Caterpillar case analysis

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Caterpillar case analysis

The company has been able to increase profit margin whilst still producing components of the highest quality.

Caterpillar Inc.’s Vision Statement

Rather than aiming to use less material, consideration goes into creating a product that is intended to be remanufactured a number of times. Some product types lend themselves more naturally to the particular loops of a circular economy, with those relating to machinery and engines often enjoying a longer history of remanufacturing.

However, challenges do still remain and the report Towards the Circular Economy highlighted significant economic benefit to be gained in this industry, especially through improvements in vehicle design and establishing professional refurbishing systems.

Heavy machinery manufacturer Caterpillar is often seen as leading in developing practices and new technologies that enable greater value to be recovered during the remanufacturing process. Through Cat Reman, the company has been able to increase profit margin whilst still producing components of the highest quality, by replacing products before they break and rebuilding them with a mixture of new and used parts.

The circular economy framework places emphasis on the importance of designing effective products and systems rather than aiming solely for efficiency.

Caterpillar have employed this strategy in their own product design, and rather than aiming to use less and less material, increasing amounts of consideration goes into creating a product that is intended to be remanufactured a number of times.

Caterpillar Case Study | Case Study Template

So salvaging materials gives a greater business advantage for the company over their competitors, where goals are often focused on driving down overhead costs. One of the most well-known involves an engine block with a removable sleeve in the cylinder bore. When the component is recovered, this material can be removed and replaced to return the engine to as-new performance.

Previous techniques for remanufacturing engine blocks have involved re-boring the engine cylinder and using a larger piston, but this can only be done up to three times before the quality of the product is affected. Additive manufacturing is also another option in use — cylinder bores can be resprayed with metal to return them to as-new condition.

Caterpillar Inc. - Wikipedia

In order to intercept products before they break, it is crucial to have consistent knowledge of the condition of the key components. In terms of pricing, Caterpillar is able to offer customers significantly lower prices on remanufactured parts when compared to their new products.

Caterpillar case analysis

However, an important part of the pricing structure of remanufactured components is a core deposit, approximately equal to that of the unit itself. Increasing core recovery rates is a challenge for any manufacturer engaging in remanufacturing activity, so offering an economic incentive to return the component keeps the embodied energy and materials within the Caterpillar network.

This in turn enables Caterpillar to salvage parts from returned cores, driving down remanufacturing costs. People think it means washed, painted, repaired, second hand and so on.

This issue exists outside of the heavy machinery industry, and can affect sales due to the misconception that remanufacturing results in inferior quality or performance, or the even safety risks. For more information see http:Caterpillar-Komatsu in Case Solution,Caterpillar-Komatsu in Case Analysis, Caterpillar-Komatsu in Case Study Solution, Provides updates to the global competitive interaction between Caterpillar and Komatsu described in companion cases Caterpillar Tractor and response Caterp.

Caterpillar Inc.’s Vision Statement

Caterpillar Inc. is an American Fortune corporation which designs, develops, engineers, manufactures, markets and sells machinery, engines, financial products and insurance to customers via a worldwide dealer network.

It is the world's largest construction equipment manufacturer. In Caterpillar was ranked #65 on the Fortune list and # on the Global Fortune list. Feb 07,  · Manufacturing giant Caterpillar uses Big Data and Internet of Things (IoT) technologies to drive impressive savings and ROI in their marine division.

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The discussion, questioning, and resolution of differences is an important part of the learning experience. More about Caterpillar Case Study.

Essay about Case Study: . This image shows a wax worm chewing a hole through plastic. Polyethylene debris can be seen attached to the caterpillar. Komatsu Ltd. Case Solution,Komatsu Ltd. Case Analysis, Komatsu Ltd. Case Study Solution, 1 INTRODUCTION Komatsu Ltd.

was founded in Komatsu is a largest industrial manufacturer of Japan and it is a large international firm with rev.

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