LOCKWASHER-BEARING 6V1917 - Caterpillar

Information Release Memo REM02-45
Reman
November 2002 CATERPILLAR
?
REMANUFACTURED PRODUCTS
CORE ATTRITION POLICY AND ENTITLEMENT
REINSTATEMENT/ATTRITION DATE EXTENSION
GUIDELINE
Caterpillar has a Core Attrition Policy for all Reman Products sold through all Marketing
Organizations. This means that in order for a dealer to receive a core credit for the Reman
products purchased, all Reman products must be returned within a specified time period.
This applies to Reman worn cores and to Reman parts inventory. Major Components have a
different time period from all other Reman products. In addition, this policy is administered
using FIFO (First In First Out) accounting in the issuance of core credits for Core Credit
Requests (CCR?s) ; core credits for reman surplus returns (PRA?s); and in the attritioning of
outstanding entitlements, starting with each dealer?s conversion to CMIS 2.
Below is a description of the Core Attrition Time Periods, a Policy Description, and related
Entitlement Reinstatement/Attrition Date Extension Guideline.
Marketing Organization Core Attrition Time Periods
North America Commercial Division (NACD) Policy (effective July 16, 2001)
The NACD Core Attrition Policy was effective July 16, 2001 and established a 455-day time
period for all Reman products excluding Major Components.
The current Major
Component policy was effective January 1, 1998 and established a 180-day time period
Latin America Commercial Division (LACD) Policy (effective June 30, 2002 and January
1, 2003)
The LACD Core Attrition Transition Policy was effective June 30, 2002 through December
31, 2002 and established a 548-day time period. Effective January 1, 2003, a 455 day time
period will be established for all Reman products excluding Major Components.
The
current Major Component policy was effective January 1, 1998 and established a 210-
day time period.
Asia Pacific Division (APD) Policy (effective May 31, 2002)
The APD Core Attrition Policy was effective May 31, 2002 and established a 455-day time
period for Australian dealers and a 548-day time period for all other Asia Pacific dealers, and
includes New Zealand, Papua New Guinea, Samoa, and other Pacific Island dealers.
The
current Major Component Policy was effective January 1, 1998 and established a 240-
day time period (or 210 days for the Australian area).
Europe, Africa, Middle East (EAME) Policy (effective January 1, 2003)
The EAME Core Attrition Policy, effective January 1, 2003 establishes a 455-day time
period for all Reman products excluding Major Components. This policy is effective with
each dealer?s conversion to CMIS 2.
The current Major Component policy was effective
January 1, 1998 and established a 210-day time period (or 240 days for the CIS
territory).
Caterpillar Remanufactured Products Core Attrition Policy
Dealers will receive up to 100% core credit for core returns of Reman parts returned through
the defined time period
with no core reinstatement or credit after this period.
Any entitlement that has been attritioned by Caterpillar affecting a dealer?s surplus return
(Parts Return Authorization (PRA)) of new Reman parts
(excluding major components, See
IRM REM02-32 or PELE0937)
will be automatically reinstated and credited up to 100%
(See IRM REM02-38 or PELE0943)
. The process will look back up to 24 months from the
final credit issuance date to open an attritioned entitlement.
Dealers that have annual surplus returns