HOSE AS 2162419 - Caterpillar

June 22, 2001
U-144
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.Projects sanctioned by this process undergoclose scrutiny for appropriateness before being assigned a trained facilitator(Black Belt) and skilled team members. Hundreds of projects have been initiatedthus far the world over.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. An E-mail message indicating a ServiceLetter has been released will be sent to a contact at the various NorthAmerican dealers. That contact will then distribute the notification ofService Letter availability to appropriate personnel within their dealership.Interested parties will then access SIS Web to obtain their copy of theLetter.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. A similarletter will be sent to AM and TEPS dealers. You will soon receive anothercommuniqué that will outline the details of the new process, howit will affect you and what you must do to assure you will receive an electronicnotification.