Engine End of Life? Tips For Next Steps.

We have done quite a few episodes on genset maintenance, monitoring, and being able to forecast engine failure or repair. Today we want to talk about what happens when your engine reaches its end of life.  Now that could be for a number of reasons: first, it’s reached the end of its depreciation cycle and you simply want to replace it, secondly a lack of maintenance has allowed the engine to fail, and lastly perhaps it's had a good life and it's now time of a complete overhaul, which in some cases can be quite costly. 

To help us explore these different options and introduce us to a really cool new option, I've asked Hafiz Shiraz to join us.  

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Transcript

Lou:  Good Day and welcome everyone to Power Bytes!  I am your host Lou Signorelli and Power Bytes is your destination Podcast for power generation conversations.  As always please know how much we appreciate you, our listeners.  We hope you find our topics helpful and interesting.  There are several ways for you to get in touch with the show. You can send us an email at powerbytes@cat.com, visit us at Cat Electric Power on Facebook or LinkedIn.  Please remember to subscribe, leave comments and like our show wherever you listen to your favorite podcast.   

Lou: We have done quite a few episodes on genset maintenance, monitoring, and being able to forecast engine failure or repair. Today we want to talk about what happens when your engine reaches its end of life.  Now that could be for a number of reasons: first, it’s reached the end of its depreciation cycle and you simply want to replace it, secondly a lack of maintenance has allowed the engine to fail, and lastly perhaps it's had a good life and it's now time of a complete overhaul, which in some cases can be quite costly.  

To help us explore these different options and introduce us to a really cool new option, I've asked Hafiz Shiraz to join us.   

Hafiz has been with Caterpillar for the last 15 years with a degree in mechanical engineering, Hafiz has been part of the Electric Power Aftermarket team focused on providing aftermarket solutions for Genset owners and is currently based out of our Chennai, India facility. Hafiz, thanks so much for joining us today.    

Lou: Welcome Hafiz 

Hafiz:  Thanks for inviting me.  I'm excited to be here. 

Lou:  Hafiz, I listed three reasons a site owner might want to replace an engine.  The first being financial and the latter two being more wear driven. Let's focus on the latter two: The Engine is just worn out and the overhaul question.  When you think about the decision tree, on the surface both scenarios seem to be the same.  What are your thoughts? 

While both might sound similar, these could have very different results impacting the equipment’s downtime, cost to repair and time to repair. Let me explain both situations. Engine maintenance is an important aspect of equipment ownership. It’s a worthwhile investment in time and money, as it helps you get more from your equipment and helps increase your engine’s longevity. There are four main reasons: 

• Avoid costly unplanned downtime.
• Many original parts can be just reused as the engine being in running condition.
• The engine's service life can be extended without the risk of a major catastrophe due to engine failure. (which leads nicely into #4.)
• And finally, the financial impact of longer life is important.  The longer the life of an engine or machine the lower the average running cost becomes. A Genset owner can attain the best cost/value relationship per hour due to this extended life.

Lou: Those are very different scenarios after all.  Many often overlook the cost of downtime.  If we're talking about a machine down situation, it could be a significant loss of productivity or even loss of power at a facility in the case of a genset.  What's interesting is that the solution to these very different scenarios can be very similar when you consider cost effective replacement. 

Hafiz, take me through the key cost drivers of replacing an "unplanned" failure.

 Yes, delaying a required engine repair could mean more costly work later or, worse. Generator sets provides required power for commercial and industrial applications so ensuring high levels of availability or ‘uptime’ in their plants is one of the key operational priorities. I will explain some of the important cost drivers here for unplanned downtime.  

·       Lost production - Downtime is expensive.

·       Repair costs – including time spent.

·       Potential customer impact - If they can’t get your product or service due to an outage, the results could be long lasting and costly. 

 Lost Production - Downtime is expensive.

This means that your generator stops producing power, which is the very thing that you were depending on your generator to provide. For instance, let us consider an example of a manufacturing company and perhaps most obviously, there’s a reduction in the output that occurs when production slows or grinds to a halt altogether. If this incident is isolated to a particular unit, production might still continue at a reduced rate. But if there’s disruption to the whole production line – you could be faced with a full shutdown which means significant loss of production. To overcome this immediate situation, the site owners may have to depend on rental generators which may incur higher operational costs which directly impacts the production cost per unit.

 Repair costs - including time spent.

On the other hand, Genset owners must lean towards an emergency repair service which could also potentially result in higher costs. Once the engine fails, it may impact other components in the engine as well so the cost to repair/ replace those components may be substantially higher and it takes more time meaning production is stopped or you end up paying those higher operational costs for Rental Generators until the repairs are completed.  

 Reduce your owner satisfaction. 

Another potential impact of downtime is on the quality of the product you’re making. Stopping and restarting your production process may cause periods where output quality isn’t of the required standard. This risk will either increase waste or upset your customers the product is bound for. This last point can’t be overstated, either: downtime can translate directly into dissatisfied customers. If they can’t get your product or service due to an outage, the results could be long lasting and costly.

 Lou: Those costs really pile up.  Now let's look at the second scenario where the engine has a foreseen end-of-life.   What does that path look like?

 Yes, this scenario is the ideal one for our equipment owners and allows for much better planning over the previous example of unplanned failures.  While our products are meant to last a long time and work under harsh conditions, we understand that there comes a time when they will need to be rebuilt or replaced.  Let me outlay the benefits of planned overhaul or engine replacement here.

Parts availability- This is a key one.  As we all know there have been global logistical and parts shortage challenges over the past couple of years.  By understanding upfront on what parts are needed for the repairs, our Cat dealers can help ensure these parts are planned through our forecasting process and make them available when you need them.  

Less Downtime- By planning for the overhaul or replacement, the owners can plan their operations around the genset being down for a period of time, they could even coordinate with their Cat dealer for a rental genset to cover the gap while theirs is being rebuilt.  Also, by planning for the event all of the technicians, parts, and support can be scheduled and prepared ahead of time which typically leads to a much faster rebuild and having the genset back up and running in much less time.  

Reduced scope and complexity- Often when we have an unplanned failure we end up replacing more parts than would have originally been needed.  Often when unplanned failures happen there is contingent damage to neighboring components.  By planning the rebuild before failure we avoid these types of issues, and it actually helps reduce the scope of the rebuild which helps with also reducing downtime and cost.  

Lou: While this path certainly seems less stressful, I'd have to assume it's less costly as well.  We all know that emergency services are priced higher than the planned services.  That's true for many things. What I find keenly interesting though is that both paths lead to the same place.   Replacement options.  Let's talk about that.  

 True!  Once you've decided to consider your replacement options the work is nearly the same.  In the latter path, it's just less rushed. We have carefully designed our Aftermarket offerings that includes an engine replacement option which is faster and easier than rebuilding, keeping downtime low. With these complete, runnable replacement engine arrangements, you get same as original performance, upgrade of critical design improvements if any, like new warranty protection and it is an installation-ready design ensuring quick turnarounds for maintaining productivity. 

 I would suggest the best way for the Genset owners is to lean on the expertise of our Caterpillar dealers who can help choose the right solution depending on your engine condition and your needs.  One best practice is to even consider a remanufactured replacement engine option regardless of the application.

 Lou: Remanufactured Engines? What are their benefits?  

 Yes, there are lot of advantages; The remanufacturing process is built on the concept of using less raw materials and starts when a component or an engine reaches the end of its serviceable life. The cost to salvage, reuse and remanufacture is less than manufacturing using 100% new materials, and remanufacturing means fewer used parts end up as scrap. 

 Remanufactured Engine options deliver multiple benefits to Genset owners:

 Get more for your replacement dollars - When it’s time to replace it, choose the option that gives you more for your money. Cat Reman engines come fully assembled and ready to be installed in your Gensets.

 Get an engine that’s like new - when you buy a Cat Reman engine, you get a product that performs like new. One of the key advantages of a complete Cat Reman engine is that you’re getting it from the same people who designed and manufactured that product in the first place. As these Engines are remanufactured to the original performance and quality specifications.

 Control your downtime and repair costs -To keep your expenses and downtime to a minimum, Cat Reman engines are priced lower compared to new, with return of the used core. They are also backed by a 12-month Caterpillar Limited Warranty suitable for your model and application, with the same protections and conditions as if you were buying new. This combination of core credit, same-as-new warranty, and an authorized Cat dealer available to provide the information and details you need, will help control your downtime and repair costs.

 By repurposing the high-quality materials used to manufacture the original Cat component, and recycling the rest, we reduce scrap waste and extend the value of the energy and finite natural resources used to manufacture the original component. Cat Reman process uses less process energy, less new material, and less greenhouse gas (CO2) process emissions than the manufacture of new parts which in-turn helps owners build a better, more sustainable world!

 These are not just aspirational or logical words, they come from data from an external study of our engines, alternators, and turbochargers, considering the typical impact in the U.S. of the manufacturing and remanufacturing processes for engines and components within our four walls. That doesn't include impacts elsewhere in our value chain, but we are pretty familiar with the sustainability benefits for Cat Reman. 

 Lou: That's fascinating Hafiz.  We touched on some of that in our episode about the Circular Economy.  If you haven't heard that one, I highly recommend giving it a listen.  So, Hafiz, supply chains are often strained and in a number of cases deliveries of new engines are extended.  Does taking a remanufactured engine, with the full same-as-new warranty reduce lead times?

 Yes, They come in fully assembled and ready to install condition.  Our Cat dealer network stocks a broad line of Cat Reman components from engine overhaul kits to complete engines. With 21 Global Caterpillar Parts Distribution centers and more than 2,300 authorized Cat dealer locations, most components are available and ready to install, reducing your downtime and maintaining productivity. 

 Lou: So, let me get this straight, same-as-new warranty and like new Cat performance and quality??? 

  Hafiz: Yes, that’s true. At Cat Reman, we use state-of-the-art salvage techniques, strict reuse guidelines, advanced manufacturing systems and stringent inspections to return used engines and components to their original quality and performance specifications. Finally, the engine is subjected to a rigorous testing procedure to ensure we have a quality product which is backed with a same-as-new new, 12 month Caterpillar limited warranty 

Lou: There you have it folks!  I’d like to thank our guest Hafiz Shiraz for sharing his insights with us today, and thank YOU, our listeners.  For more information please go to Cat.com/replacement engines.  Also visit with your local Cat dealer to learn more about Cat remanufacturing options.

 As always please share, comment, and subscribe to Power Bytes wherever you listen to your favorite podcast.  Until next time, this is Power Bytes, have a great rest of your day.