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Caterpillar: Confidential Green Bulletin No. 1.15

SERVICE

WARRANTY BULLETIN Global

General Guidelines

Repair vs. Replacement of Parts, Major

Components, Engines and Reman

Overview
The following are guidelines Dealers should use for determining whether to repair or replace the part,
component or engine at issue with a new or remanufactured option.

Most Economical Repair

Dealers are to perform the most economical repair when it applies. The following guidelines and worksheets
detail requirements.
Repair - Individual parts should be repaired, if the repair can be expected to restore the product to its operating
condition just prior to the warranty repair, and if the repair cost is less than a new or Remanufactured part. It
does not include restoring the product to a like-new condition. An example would be salvaging an engine block
by installing cylinder sleeves.
Replacement - When replacement of a part, assembled component or serialized component (e.g. engines,
transmissions) is less costly than repairing, dealers can replace it. The forms on pages 4 and 5 can be used by
Dealers to calculate repair versus replacement costs.
When individual parts of an assembly are not serviced (e.g. fuel injection nozzles or oil cooler cores), the
complete assembly should be replaced with a Remanufactured assembled component.
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When a water pump, turbocharger cartridge, fuel transfer pump, air compressor or Cat alternator/starter on
3114/3116, 3126, 3176, 3196, C-9, C-10, C-12, C-15, C-16 Engines and 3000, 3200, 3300 or 3400 Family
engines requires replacement, it should be replaced with a Remanufactured unit. Note: Refer to current
applicable repair procedures. When at least two of the major components of a cylinder pack need to be
replaced on a new or parts warranty repair on heavy duty engines, a cylinder pack may be used in place of
separate parts. The four major components are pistons, piston rings, liners and connecting rods.
Engine starters and alternators should always be replaced rather than repaired.
For situations that justify replacement with a new serialized, non-serialized or a Remanufactured major
component, where it would have been cheaper to repair the component, the Dealer must provide justification in
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the claim story, and if applicable include the name of the Caterpillar personnel that were consulted.

➤ 01.15-00 (03/09) ➤ Indicates change.

https://warranty.cat.com/wtyguide
© 2009 Caterpillar All Rights Reserved.

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow”

and the POWER EDGE trade dress, as well as corporate and
product identity used herein, are trademarks of Caterpillar and
may not be used without permission.

Dealer and Dealers are defined as any Cat Authorized Dealer or Cat Authorized Repair Representative.

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Examples that may qualify for such consideration include: Low product age / hours / miles / kilometers,
excessive downtime or unavailability of repair parts or Remanufactured unit.
Repair vs. Replace Cost Comparison - The Repair vs. Replace Form should be printed, filled in and kept on
file. The Engine version of the form is a downloadable spreadsheet that can be utilized to complete the
calculations; either the electronic or printed version of the completed form should be kept on file. The Engine,
Power Module and Equipment Repair vs. Replace Forms are available online at
https://warranty.cat.com/wtyforms. The appropriate form must be used as a guide when making repair or replace
decisions and must be kept on file with other repair documentation and be made available to a Caterpillar
Warranty Analyst, if requested.

NOTICE
For engines, refer to the Time Requirement Guide for labor times.

Engine Replacement (NERO)

If a complete engine is replaced (NERO), then the appropriate fees and credits associated with NERO engines
should be included in the calculation of the repair vs. replacement decision. Refer to Bulletin 3.01 for additional
information.

Usage of Reman
When replacement of a part or component is required and it is determined that a Reman part / component is the
most economical means of repair and is offered for availability, the Reman part / component is to be utilized in
the repair. For repairs involving Remanufactured major components, a complete Remanufactured major
component must always be used to satisfy a Remanufactured Product Warranty.

Claiming Practices Involving Remanufactured Major Components

The following claim field information is required, for all major component service claims (standard or extended
coverage) that involve Remanufactured components, either:
• Repair of a Remanufactured component, or
• The replacement of a failed new or Remanufactured component with a Remanufactured component.
The following are the major component categories that apply:
• Engines
• Transmissions
• Torque Converters
• Steering Clutch & Brake Groups
• Final Drive or Wheel Groups
Product ID / Serial Number - enter the machine (Prime Product) serial number, 99Z00015 if in competitive
equipment, engine serial number for engine (Prime Product) or Remanufactured serial number for
Remanufactured engine (Prime Product).
Related Equipment (Machine claims only) - enter the following in the related equipment fields:
• OEM / Make - leave this field blank.
• Cab Type - enter the letters “RM,” which indicates Remanufactured.

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• Model / Serial Number - enter the Remanufactured Component serial number.

Product Hr/Mi/Km (Engines) - For a customer-purchased Remanufactured engine enter the number of
hours/miles/kilometers on the Remanufactured Engine, not the total vehicle numbers.
Customer Credit % (Engines) - enter 100 for Parts and number entered for Labor as follows: 0 for industrial
engines or 100 for marine engines and TEPS dealers/AMDs sold Remanufactured engines.
Claim Story (Engines): If the Remanufactured engine was sold into an industrial application by a TEPS dealer
or into a marine application by either a Caterpillar dealer or an AMD, include the sales method in the Claims
Story in order to receive the appropriate Warranty.
Note (All Products): If a major component is replaced with a Remanufactured replacement component, the
Dealer must enter the Remanufactured replacement component serial number in Caterpillar’s on-line Product
Information System (PIS), as the present component in the Prime Product.

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Engine Repair vs Replace Worksheet

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Machine Repair vs Replace Worksheets

Repair Vs Replacement Cost Comparison Calculations

For Po wer Modules (e xcept Cat Elphinstone Pr oduct)

Repair or Replace
Parts At C/L $___________ New Component At C/L $___________
Additional Parts At C/L $___________
Repair Labor At C/L
Hours at $ /Hour = $___________ R&I Labor At C/L
Hours at $ /Hour = $___________
R&I Labor At C/L
Hours at $ /Hour = $___________ Modification Labor At C/L
Hours at $ /Hour = $___________

Other Expenses $___________ Other Expenses $___________

____________ ____________

Repair Estimate $___________ Replace Estimate $___________

Repair Vs Replacement Cost Comparison Calculations

For Dealer Sold Equipment Product

Repair or Replace
Parts At D/N $___________ New Component At D/N $___________
Additional Parts At D/N $___________
Salvage Labor At D/N
Hours at $ /Hour = $___________ R&I Labor At D/N
Hours at $ /Hour = $___________
Repair Labor At D/N
Hours at $ /Hour = $___________ Modification Labor At D/N
Hours at $ /Hour = $___________

Other Expenses $___________ Other Expenses $___________

____________ ____________

Total Repair Estimate $___________ Total Replace Estimate $___________

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