Cradle-to-Cradle
Achieving the Vision Through Remanufacturing
Joe Allen
General Manager
Director of Sustainable Development Progress Possible
Confidential Green
Making Sustainable 1
Total Life Cycle Management
$44.9 billion* in sales 101,000 Employees
Distribution to more 181 Dealers
than 200 countries in 100,000 Dlr. Employees
23 time zones
Over 300 facilities Global customer
in 40 countries support over
multiple product
life cycles
* 2007
Reduce Reuse Recycle
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Reduce Reuse Recycle
Remanufacturing… Advanced Recycling
Remanufacturing: The process of returning
end-of-life products to original “same-as-new”
condition in a manufacturing environment.
30 years of Remanufacturing
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Reduce Reuse Recycle
The Reman Business Model…
End-of-Life Advanced Recycling New Material Assembly & Test
“Take Back” Technology
Products returned to original “same-as-new” condition - or better…
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Meeting Customer Needs
Remanufacturing… Same-as-new quality & warranty
Fraction-of-New price
2.2 million units in 2007
Over 7,000 part numbers
2 billion* pounds returned per year
15 primary facilities in 8 countries
Over 6,000 employees*
* Includes Progress Rail
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A Strategic Approach
Investments in Technology & Systems…
Head Recasting Thermal Cutting Shock Wave Cleaning
Metal Deposition Thin Film Coatings Molten Salt Bath Cleaning
Products brought back to original “same-as-new” condition…
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A Strategic Approach
Original “Same-as-New” Quality & Performance
New Reman
Engineering prints
Same-as-New functional specs.
Manufacturing quality systems
Same-as-New factory warranty
Design-for-remanufacturability
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A Commitment to “Take-Back”
Coke $1.00
Bottle deposit $0.25
Total Cash Outlay $1.25
Bottle Return ($0.25)
Net Cost $1.00
Exchange Transaction example
No Return = No Reman
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Enabling EPR
Extended Producer Responsibility…
End-of-Life Return Rates
Reman 93%
New 0%
2.2 million “cores” returned in 2007
Preservation of ~ 85% of original energy “value add”
Approaching “zero landfill” status
CORE SCRAP
RETURNS METAL
Reman CAT OTHER MILLS
Products FOUNDRIES & FOUNDRIES
65% by weight 10% by weight 25% by weight
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Remanufacturing - Benefits
Favorable Environmental Footprint…
Cylinder Head* Reman vs. New
GHG 61% less
Water use 93% less
Energy use 86% less
Safety 82% advantage
Material use > 99% less
Landfill space > 99% less
* 2006 Cat study, 3412 cylinder head
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Remanufacturing - Benefits
Less
Extended Producer Responsibility
Green House Gases Jobs
Raw Material Use Recycling
Landfill Waste Affordable Development
Energy Use Controlled Industrial Processes
Water Use
More
The future…
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Cradle-to-Cradle Solutions
Cat Certified Rebuilds…
Engineering specifications
Product upgrades
Dealer labor
New parts
Remanufactured parts
Fully warranted
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Cradle-to-Cradle Solutions
Biogas gen sets…
Remanufacture diesel truck engines
into methane fueled generators
Methane Capture - Hog Farm - Philippines
Next Generation Reman
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Cradle-to-Cradle Solutions
Cat “Zero e-Waste” initiative…
- Utilize the Reman “take back” model
- Sell electronics on an exchange basis only
- Remanufacture returned e-cores
e-Waste – a global problem
- Recycle unusable e-cores
Increase in Environmental Regulatory Laws
120
Diesel Emission Regulations
100 Current E-Waste Regulations
Number of Regulations
Projected E-Waste Regulations
80
60
40
20
0
1974
1979
1984
1989
1994
1999
2004
2009
2014
2019
Year Next Generation Reman
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The Future… Sustainable Solutions
“Cradle-to-Cradle” Life Cycle Focus…
SUSTAINABLE SOLUTIONS
PRODUCT
TECHNOLOGY
ECO-EFFICIENT
OPERATIONS
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Remanufacturing…
Good for Society
Good for Business
Good for the Environment
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