HEAD 7N3480 - Caterpillar

June 23, 2001
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PIP/PSPdelivery information NOTIFICATION TO NORTH AMERICANDEALERS ABOUT A CHANGE IN THE DELIVERY PROCESS OF SERVICE LETTERS
Early in 2001, Caterpillar launched an aggressiveand comprehensive product and process improvement strategy known as 6 Sigma.This customer-focused strategy challenges every aspect of Caterpillar?sbusiness throughout its entire value chain.One such project relates to the duplicationand distribution of Service Letters (PIP/PSP). A long-standing problemwith these important documents has been delivery cycle time. In North Americaalone, it is not uncommon for the entire cycle to take four weeks. Sucha protracted period is unacceptable particularly since the problem cannow be easily resolved.A 6 Sigma team has been diligently workingthe last four months to find a way to drastically reduce cycle time. Workingwith a select group of North American dealers, they are currently testingtheir proposed solution. Essentially, their solution will reduce cycletime from 4 weeks to 24 hours. This will be accomplished by leveragingelectronic communication channels currently in existence. When the changeis fully deployed by September 2001, all Service Letters will be deliveredelectronically through SIS Web. Interested parties will then access SISWeb to obtain their copy of the Letter.Much needs to be done before this solutionis fully deployed. This letter is a notification to all current recipientsthat a change is coming and be aware of the aggressive timetable. You willsoon receive another communiqué that will outline the details ofthe new process, how it will affect you and what you must do to assureyou will receive an electronic notification.