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Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence Across Industries David Kerr Account Manager NRE Jay Heublein Executive Vice President Nextant Aerospace Jeff Latkiewicz Vice President, Operations Detroit Diesel Remanufacturing Michael Schulte, PhD Manager, HPT Airfoils and Repair MAE Group GE Aviation John Chalifoux President and COO MERA
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Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Mar 17, 2020

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Page 1: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Remanufacturing and Sustainability Conference3:20 p.m. | Panel Discussion

Remanufacturing as a Core Competency: Excellence Across Industries

David KerrAccount Manager

NRE

Jay HeubleinExecutive Vice President

Nextant Aerospace

Jeff LatkiewiczVice President, Operations

Detroit Diesel Remanufacturing

Michael Schulte, PhDManager, HPT Airfoils and Repair MAE Group

GE Aviation

John ChalifouxPresident and COO

MERA

Page 2: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Jeff LatkiewiczVice President, OperationsDetroit Diesel Remanufacturing

COMMERCIAL VEHICLEDavid Kerr

Account ManagerNRE

RAIL

Michael Schulte, PhDManager, HPT Airfoils and Repair MAE GroupGE Aviation

AVIATIONJay Heublein

Executive Vice PresidentNextant Aerospace

AEROSPACE

John ChalifouxPresident and COO,MERA

THEMODERATOR

TOPIC:Remanufacturing as a Core

Competency: Excellence Across Industries

THE INDUSTRY VOICES:

Page 3: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks

Marketing Support

Daimler Trucks North America 167

Page 4: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks 168

West Tooele, Utah

MexicoToluca, Mexico

DMRHibbing, MN

NAFSRKentwood, MI

Corporate OfficeDetroit, MI

EastByesville, OH

Central Emporia, Kansas

Detroit Remanufacturing Facilities

Daimler Trucks North America 168

Page 5: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks 169PROPRIETARY PARTS MARKETING

Electronics & Harnesses

Diesel & Gas Engines Fuel / Air Systems

Transmissions

Engine Components

Products & Customers

Aftertreatment

169

Axles

Daimler Trucks North America 169

Page 6: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks

Reman Process Flow

8. Assembly9. Functional Testing10. Packaging

4. Reconditioning5. Fine Grinding6. Precision Gauging7. Precision Washing

1. Dis-Assembly2. Pre-Inspection3. Rough Wash

Value Creation

Page 7: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks

Environmentally‐Friendly Cleaning• Diesel Particulate Filter cleaning• Ultrasonic cleaning

Twin Wire Process• Similar to the powder spray process but uses two wires as the base coating material instead of powder

DPF Cleaning PTWA

Twin Wire Process Supersonic Spray (before)

Submerged Arc

Supersonic Spray (after)

Supersonic Spray• Used to make cosmetic repairs to aluminum and cast iron

Plasma Transferred Wire Arc• Coats hard to reach areas to make them look     

like new

Submerged Arc Welding• Automated welding process that rebuilds metal in thicker quantities• Recovers non‐wear areas that have incurred damage

State of the Art Recovery Technologies

Page 8: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks

172

Damaged Turbine Wheel Welding Process Close-up of Weld Beads

CNC Cutting Process Finished ProductFinal Grinding Process

Turbine Shaft & Wheel Recovery

Page 9: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Daimler Trucks 173

Visit us on the web: www.detroitreman.com

Thank you.

173Daimler Trucks North America 173

Page 10: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Jeff LatkiewiczVice President, OperationsDetroit Diesel Remanufacturing

COMMERCIAL VEHICLEDavid Kerr

Account ManagerNRE

RAIL

Michael Schulte, PhDManager, HPT Airfoils and Repair MAE GroupGE Aviation

AVIATIONJay Heublein

Executive Vice PresidentNextant Aerospace

AEROSPACE

John ChalifouxPresident and COO,MERA

THEMODERATOR

TOPIC:Remanufacturing as a Core

Competency: Excellence Across Industries

THE INDUSTRY VOICES:

Page 11: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

MERA ConferenceSeptember 28, 2016

Text

Page 12: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Who We Are National Railway Equipment founded

in 1984 by Lawrence Beal 1990 acquired a loco facility in Silvis, IL Provided space, track, & equipment to begin locomotive salvage & rebuilding on a large scale

Many acquisitions followed Now have 14 locations in North America & offices in India, Australia, Saudi Arabia, Croatia, and UK

Highly vertically integrated 900+ employees 5 locations equipped to do complete locomotive rebuilding ISO 9001 certified and AAR M1003 certified

Page 13: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence
Page 14: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

What We Do Coupler to coupler, roof to rail, we provide nearly all things locomotive Also service marine, power & cogeneration, and drilling industries

Buy & sell locomotives, including rebuilt, remanufactured, and new Lease locomotives Rebuild and remanufacture locomotives & components – from wheels up Manufacture new locomotives & components Provide field services for locomotive users Inspections Installations Repairs

Customers include: North American railroads, industry, transit agencies, leasing companies

Page 15: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

N-Viromotive, Genset LocomotivesInjecting new technologies to an old industry Modular 700 HP units, with latest emissions

control technologies Achieving the same HP with multiple units Single 700 HP locomotive with a single

Genset, up to a 2,100 HP engine powered by three 700 HP Genset engines

Multiple units allow for each unit to operate independently – a 3 unit Genset may utilize just a single unit when not under load, and all 3 units operate when max HP is needed

Reduces NOx and PM emissions by 85 – 90% Reduces fuel consumption by 40 – 60% Reduces maintenance cost 35 – 50% 1,100 Gensets put into operation since 2007

Page 16: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Rebuilding, RemanufacturingMaking old parts new again NRE rebuilding capabilities includes most

componentry in a locomotive from wheels to traction motors, engines, and everything in between

One of NRE’s strengths is the huge number of cores available for rebuilding

Allows for quick response to customer needs

Generators Fans Turbos

Page 17: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Rebuilding, RemanufacturingMaking old locomotives new again Rebuilding includes other’s locos as well

as our own Add up to 10 years to FRA regulated

locomotive life Can avoid regulated updates to meet

emission & crash worthiness regulations Remanufactured loco can save a buyer

up to 40% when compared with new No compromise in terms of performance Adds 20 years to FRA regulated life Stripped to the frame and rebuilt using

latest technologies Cores give customers wide range of

choices

Page 18: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

RetrofittingEnhancing performance of old locomotives Owners often can’t afford a

remanufactured unit or even a rebuild Still want to enhance the performance of their existing asset

NRE’s retrofit solutions offer loco owners ability to approach new loco performance at a fraction of the price

Nforce Locomotive Control Nhance – Wheel slip control Nlimit – Idling control Ncompass – Condition base

monitoring & position Nlighting – LED lighting upgrades Ngauge – electronic fuel gauge Propulsion control – choppers /

inverters / converters All designed to work together to

enhance the abilities of older locomotives

Page 19: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

To learn more, contact NRE or visit NRE.com

Page 20: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Jeff LatkiewiczVice President, OperationsDetroit Diesel Remanufacturing

COMMERCIAL VEHICLEDavid Kerr

Account ManagerNRE

RAIL

Michael Schulte, PhDManager, HPT Airfoils and Repair MAE GroupGE Aviation

AVIATIONJay Heublein

Executive Vice PresidentNextant Aerospace

AEROSPACE

John ChalifouxPresident and COO,MERA

THEMODERATOR

TOPIC:Remanufacturing as a Core

Competency: Excellence Across Industries

THE INDUSTRY VOICES:

Page 21: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

GE Aviation: Remanufacturing as a Core Competency

Michael D. Schulte, PhDManager: HPT and Repair Materials Applications Engineering Group

September 28th, 2016

Motor & Equipment Remanufacturers Association (MERA)Remanufacturing and Sustainability Conference

Page 22: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

186GE Aviation

Slide Request• Slides from GE Aviation, as presented by

Michael Schulte, PhD, at the 2016 MERA-Golisano Remanufacturing and Sustainability Conference, can be requested by contacting:

Michael D. Schulte, PhDManager: HPT Airfoils and Repair MAE GroupGeneral Electric AviationOne Neumann WayCincinnati, Ohio 45215Office: 513-914-2267

Page 23: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Jeff LatkiewiczVice President, OperationsDetroit Diesel Remanufacturing

COMMERCIAL VEHICLEDavid Kerr

Account ManagerNRE

RAIL

Michael Schulte, PhDManager, HPT Airfoils and Repair MAE GroupGE Aviation

AVIATIONJay Heublein

Executive Vice PresidentNextant Aerospace

AEROSPACE

John ChalifouxPresident and COO,MERA

THEMODERATOR

TOPIC:Remanufacturing as a Core

Competency: Excellence Across Industries

THE INDUSTRY VOICES:

Page 24: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

188Company Most Confidential – Do not Distribute without Permission

Nextant Aerospace 

Remanufacturing and Sustainability Conference

Jay Heublein

Page 25: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

189Company Most Confidential – Do not Distribute without Permission

Corporate Vision

Launched as Aircraft Modernization and Remanufacturing Company in 2007

Goal of Delivering the Latest in Business Jet Technology Without Passing on the Cost of “Clean Sheet” Design to Consumers

Page 26: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

190Company Most Confidential – Do not Distribute without Permission

Product Development

Primary Focus– Avionics

– Power Plant Technology

– Aerodynamic Enhancement

Design Process

– Retained vs. Remanufactured vs. New Technology

– Think in Terms of Fully Integrated Product Solution

– Just Because You Can, Doesn’t Mean You Should!

Page 27: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

191Company Most Confidential – Do not Distribute without Permission

Product Development

Technology Must “Buy Its Way On”– Significant Performance Improvement

– Significant Safety Enhancement

– Significant Reliability Enhancement

Page 28: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

192Company Most Confidential – Do not Distribute without Permission

Remanufacturing

Aircraft Produced in a Factory Environment Resulting in:– Improved Performance & Reliability using Current Technologies

– Service Life That Meets or Exceeds Competitive Aircraft

– New Aircraft like Warranty and Support Network

– Level “D” FFS Flight Crew Training

– Low Acquisition & Operating Costs

– High Residual Value

*Based on 4

400XT -2005nm

40XR -1590nm

CJ2 -1527nm

BJ400A -

Page 29: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

193Company Most Confidential – Do not Distribute without Permission

New Production Facility

Page 30: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

194Company Most Confidential – Do not Distribute without Permission

New Production Facility

175,000 sq/ft Facility with 3 Production Hangars– Main Production Hangar Supports 6 Simultaneous Lines:  Cellular vs. Assembly Line

– Completions (Interior Installation) and Customer Delivery Hangar

– Future Paint Facility

Employee Base Expands by 400% in Last 12 Months– Focus on Skilled Technicians

Page 31: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

195Company Most Confidential – Do not Distribute without Permission

Launch Product:  400XTi

• 50% Increase to nearly 1950nm with 4 Pax and NBAA IFR ReservesExpanded Range

• Cost/Mile of $2.13 (June 2010 BCA Avg) vs. $3.00 for the 400XP

Lower Operating Cost

• Exceeds Stage IV Requirements by 35dBNoise Compliance

• 32% Improvement in Specific Fuel Consumption

Significantly Improved Fuel Efficiency

Page 32: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

196Company Most Confidential – Do not Distribute without Permission

Competitive Comparison

400XTi CJ4 Phenom 300

Purchase Price  $4.95M $10.25M $9.75M

High Speed Cruise 460nm/hr 444nm/hr 444nm/hr

4 Pax Range 2005nm 2008nm 1995nm

Operating Cost/Mile $2.13 $2.95 $2.41Operating cost per mile is based on NBAA IFR 1,000nm mission with four passengers @ $4.90 per gallon of fuel

Page 33: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

197Company Most Confidential – Do not Distribute without Permission

Market Validation

Nextant Delivers Nearly 70 Aircraft to 13 Different Countries to Date…100,000 + Flight Hours!

Validates Global Market For Remanufactured A/C

Page 34: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

198Company Most Confidential – Do not Distribute without Permission

Introducing the G90XT

Page 35: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

199Company Most Confidential – Do not Distribute without Permission

Nextant–GE Collaboration

GE and Nextant to Collaborate on a Family of GE‐powered Aircraft 

The First Product of this Collaboration will be the Nextant G90XT Turboprop which will Feature the GE H75‐100 Engines and Garmin G1000 Flight Deck

Page 36: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

200Company Most Confidential – Do not Distribute without Permission

Barriers To Entry:  Support

Product Warranties

Technical Support Infrastructure

Service Centers• Teterboro• West Palm Beach• South Africa• Cleveland (2)• Las Vegas• Birmingham • Sacramento• Augsburg, Germany• Geneva, Switzerland• Singapore• Pending:  London, Dubai, Riyadh, Shanghai, Hong Kong, Australia 

Page 37: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

201Company Most Confidential – Do not Distribute without Permission

Barriers To Entry

Flight Training– Level D Full‐FlightSimulator (FFS)

– MaintenanceTraining Also Available

Global RegulatoryEnvironment– Every Country Has Own Idea For Appropriate Equipment Certification Requirements and Training Certification Requirements…

Page 38: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

202Company Most Confidential – Do not Distribute without Permission

Page 39: Remanufacturing and Sustainability Conference · 2019-06-27 · Remanufacturing and Sustainability Conference 3:20 p.m. | Panel Discussion Remanufacturing as a Core Competency: Excellence

Jeff LatkiewiczVice President, OperationsDetroit Diesel Remanufacturing

COMMERCIAL VEHICLEDavid Kerr

Account ManagerNRE

RAIL

Michael Schulte, PhDManager, HPT Airfoils and Repair MAE GroupGE Aviation

AVIATIONJay Heublein

Executive Vice PresidentNextant Aerospace

AEROSPACE

John ChalifouxPresident and COO,MERA

THEMODERATOR

TOPIC:Remanufacturing as a Core

Competency: Excellence Across Industries

THE INDUSTRY VOICES: