Caterpillar 2010 Annual Report Download - page 12

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12
THINK LIKE YOUR CUSTOMER
Caterpillar helps its customers manage change.
When the United States and European Union announced new regulations that call for non-road equipment to approach
near-zero emissions of particulate matter and oxides of nitrogen, Caterpillar went to work to develop solutions for
its customers.
For Caterpillar, this meant re-engineering hundreds of complex products in order to meet these standards. The undertaking –
resulting in the largest research and development program in Caterpillar’s history – was about meeting the requirements,
known in the U.S. as Tier 4 standards, and delivering more value to customers. One thing was certain: the effort would
require a different kind of thinking. Caterpillar knew it had to find suppliers who
could meet its requirements and deliver the level of experience, expertise and
excellence that Caterpillar customers expect. In short, Caterpillar needed a
supplier that could integrate with its development team and bring a deep level
of design and manufacturing expertise.
So Caterpillar entered into an agreement with Tenneco, Inc. to provide aftertreatment
solutions for Tier 4 Interim products in the size range from C4.4 to C32 engines. By
leveraging Tenneco’s expertise in design, development and manufacture of exhaust
systems and aftertreatment, the team developed the Cat Clean Emissions Module
(CEM). CEM is a systematically applied suite of technologies that is integrated into
the Cat ACERT™ engine range.
Tenneco’s technical and manufacturing resources have helped manage the massive
product development workload involved in the Tier 4 process and delivering the
quality levels that customers expect. Early indications point to a successful
collaboration. In its pilot stages, the Tier 4 Interim aftertreatment line’s actual delivered quality has outperformed previous
generation products.
Thanks to the successful collaboration with Tenneco and other suppliers, Caterpillar’s Tier 4-compliant product will not only
have a significant positive impact on the environment, but also provide customers with up to a 5 percent improvement in
fuel efficiency. Simply put, Caterpillar will help its customers manage change by delivering real change for the better.
“
Strategic Thinking
The collaborative approach
chosen for Tier 4 development
is a model for how we approach
Supplier Collaboration, a
Caterpillar operating principle.
In the process of identifying key
strategic suppliers, Caterpillar
uncovered a wealth of assets and
knowledge about its suppliers
that it will continue to leverage
in the future.
2010 YEAR IN REVIEW
Think Together
We are trying to run a business
every day. What we really want
to know is what you’re doing
to positively impact my
bottom line.”
Customer in Tier 4 Focus Group