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General Manager PROMTRACTOR JSC CHAZ JSC KURGANMASHZAVOD MLODIK Semyon Gennadievich

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General Manager PROMTRACTOR JSC CHAZ JSC KURGANMASHZAVOD MLODIK Semyon Gennadievich. Cheboksary , August 2005. MISSION. PROMTRACTOR

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slide1

General Manager

PROMTRACTOR JSC

CHAZ JSC

KURGANMASHZAVOD

MLODIK

Semyon Gennadievich

Cheboksary, August 2005

mission
MISSION

PROMTRACTOR

Solving customers demand in completing and maintaining wheeled and tracked machinery and technological system for common excavation, transferring bulk solids, pipeline construction and timber harvesting.

CHAZ

Production and carrying out supplies of high durability elements of undercarriage systems for assembling plants of largest producers of industrial machinery as well as forgings, steel- and iron-castings.

slide3

PROMTRACTOR AND CHAZ

Promtractor as well as Promtractor-Promlit and Promtractor-Servis – enterprises with almost 30-year experience of designing and manufacturing tractor machinery and spare parts for them

CHAZ (Cheboksary Aggregate Works) – more than 48 years is a supplier and high-quality elements for undercarriage systems for assembling plants of largest producers if industrial machinesas well as forgings, steel and iron castings.

The main activities of enterprises are :

  • tractor machinery;
  • components for assembling lines;
  • spare parts for tractors and automobiles;
  • elements of freight cars .

Overall production territory – 1 800 000 square meters

marketing strategy export
MARKETING STRATEGY :EXPORT

DIRECTIONS FOR 2005-2006

Market

CIS

  • Ukraine;
  • Middle East (former SU republics)

Foreign countries

  • South-Eastern Asia;
  • Latin America;
  • Middle East;
  • Africa.

Product

  • creating specialized modifications, adapted to the requirements, demanded be local market;
  • production and supplying sets for assembling plants;
  • launching into production and sales the complete sets of undercarriage elements for tractor machinery.

Promotion

  • development and implementing sales programs directed for specific markets.
  • localization of tractor machinery in regional markets
  • organization of maintenance and spare parts supplies
marketing strategy russia s market
MARKETING STRATEGY: RUSSIA’S MARKET

DIRECTIONS FOR 2005-2006

Market

  • oil and gas industry;
  • energy;
  • gold-mining industry;
  • coal and mineral-mining industry;
  • road construction;
  • Russian railways;
  • timber industry
  • municipal economy.

Product

  • enlargement of quantity of base models and creating specialized modifications, adapted to customer’ requirements;
  • launching into production and sales the whole set of tractor undercarriage elements.
  • Promotion
  • offering to a customer of new conditions of purchasing machinery;
  • developing service net;
  • transferring spare parts to the consumption regions;
  • localization of services into regional markets.
instruments of product promotion
INSTRUMENTS OF PRODUCT PROMOTION

Communication

  • regional presentation;
  • branding;
  • industrial exhibitions;
  • specialized magazines;
  • corporative magazine.

Sales stimulation

  • Individual approach to a customer;
  • leasing;
  • Trade-In;
  • forfeiting.

Market measuring

  • Marketing research;
  • Evaluation of customer’s satisfaction;
  • Establishing consulting counsel with participation of leading domestic and foreign consumers.
innovative policy
INNOVATIVE POLICY

MAIN DIRECTIONS

  • using newest technologies;
  • equipment modernization;
  • increasing quality;
  • outsourcing.
slide9

Promtractor’s

The first deputy of General Manager

CHAZ’ deputy General Manager for sales

Nikolay Aleksandrovich

GROMOV

slide10

Directivity for a client

- Philosophy of the activity of

the group of companies «Promtractor».

slide12

DIRECTIVITY FOR A CLIENT

Consumer

Sales

stimulation

program

Perfecting

the product

Maintenance

Our goal is to increase customer’s satisfaction

through increasing quality of products and services

sales stimulation program
SALES STIMULATION PROGRAM

Leasing

LEASING — the form of a long-term rental contract implying the right of leasehold redemption.

Leasing stock of orders by 01.08.05 makes 186 unitsof machines for total of 14 million USD.

Forfaiting

FORFAITING— crediting of international operations in the form

of purchasing from the exporter bills of credit, accepted by and importer.

The system of deferred payments for a period of 1 to 7 years depending on the customer’s country is established.

There is a working contract concluded with a company “KAZPHOSPHAT” for total of 1,6 millions US dollars.

sales stimulation program14
SALES STIMULATION PROGRAM

TRADE IN

There are 4,5 thousand tractors of 15-35 tons in use in Russia with a life time of more than 5 years. The market capacity of second-hand tractors exceeds 200 millions USD.

According to TRADE-IN program used equipment of the following producers is accepted :

  • Promtractor;
  • Caterpillar;
  • Komatsu;
  • Chelyabinsk Tractor Plant.
slide15

Service

Move

of the spare parts

to the regions

Modernization

of the material base

of the service net

Providing

working condition

of machines

during life-time

Technical Audit

Technical

service and repair

of tractors

service modernization of the material base of the service net
SERVICEModernization of the material base of the service net

“Promtractorservice” jsc. has changed its ideology for aiming at technical service and tractors repair

Technical equipment of the service centers

Mobility

of the service

increased

Engines

service is

organized

Technical equipment

is modernized

Supply of spare

parts

Three mobile

service stations

«МАРТ»

introduced

  • We got the
  • authorizations to serve
  • three type of engines
  • ЯМЗ;
  • CUMMINS;
  • IVECO.
  • Introduced:
  • Engine Diagnosis and
  • Repair equipmentof
  • Cummins (6 sets;
  • «Тest» system;
  • Space diagnosis system–
  • «Open coordinates».
  • Organized:
  • 14territory warehouses
  • of CHAZ
  • (based at Service centers);
  • 130 Dealers net is
  • organized in regions
service
Service

Moving of the spare pars stocks in the regions

CHAZ Central warehouse

Dealers’ stocks in

the regions

CHAZ warehouses

on the base of “Promtractor”

Service centers

Mobile warehouses

of CHAZ

  • Q-ty of CHAZ regional dealers is increased on 26% (130 organizations totally);
  • 14 territory spare parts are set on the base of “PROMTRACTOR”Service Centers
service18
SERVICE
  • Organization of technical audit
  • 280 Clients’ specialists were trained to service and to operate the machinary
  • Tractor fleet optimization in «СУЭК», «Полюс», «Алроса» companies were initiated .

Technical Audit Scheme

Classification

of the tractors

fleet

Analysis of the

technical

condition of the fleet

Mining works

technology study

Optimal works

technologies

modulation

Appointment of

terms

and conditions

of the fleet

optimization

Design of technical

background

of the project

fulfillment

Development

of proposal for

optimization

Planning of the

requirements of

the machinery

of different classes

service tractors technical service and repair
ServiceTractors Technical Service And Repair
  • Realization of the Programme of the Subscribers’ service.
  • 12 Contracts for completeservice of 114 machinery units were
  • Concluded with the companies , and among them:
  • ОАО «Russian railways»;
  • ЗАО «ПМК 5-Центргаз» (Gazprom);
  • ООО «Бургаз» (Gazprom);
  • ЗАО «Слюдянка».
  • According to the contracts service for 21 million rubles was made.
  • 2. Capital and maintenance repair service was made for 22 million rubles
slide20

Service

Reduction of the term of the repair of the tractor under guaranty period

days

20

18,4

18

16

14

12

11,7

9,8

10

8,3

8

6,0

6

4

2

0

2001

2002

2003

2004

2005

slide21

Goods Modernization

Operator’s work

condition

improvement

Development

of the base

product line

Increase of the

quality stability

Increase

of the goods

consumption

conditions

Improvement

of the production

technology level

Decrease

of the cost

of diagnostics

and repair

Designing

new machinery

Adoption

to the territory

conditions

Outsourcing

slide22

Development Of The Product Line

Low class tractors of CHETRA Brand was awarded by the

Silver medal «Year Brand/EFFIE-2003»

Today we introduce to the market the new sub-brand CHETRA-HEAVY-Line of heavy duty industrial tractors of the world class

slide23

Development of the Product Base Line

  • Engine Cummins QSK 19C;
  • power 590 hp;
  • weight 68 тn.,
  • Transmission microprocessing control;
  • Noise and vibration proved cabin,
  • Hydraulic servo control of the attached accessories ;
  • Engine electronic control

Running Resource before the capital repair 18 thousand mth

Fault free termas per analogous international tractors .

Technical efficiency is 6-12% higher than that of the international analogue

slide24

Development of the Product Base Line

Acceptance trial

Bulldozer CHETRA 9.01, Krasnodar Region

Company «Даурия-ЮГ» (2 pcs.) – nonfailure

operating timesince 01.11.04 г. makes 3700

and 3800 mth

LoaderCHETRA 60.01, Nerungry

Company «Малые разрезы Нерюнгри»

(2 pcs.) -nonfailure

operating timesince 01.01.04 г. makes6000

and 8000 mth

slide25

EXTENDEDGAMMAOF THE BASE PRODUCTS

Bulldozer CHETRA 11 unified with CHETRA 9 :

  • Reduced height for 200 мм;
  • Hydraulic control of the attached implements
  • Microprocessor control of movement;
  • Improved toughness of the frame from applying casted back axle

Family of the wheel machines based onCHERA 60CHETRA 60Л– for working on timber-handling bases

  • CHETRA К-11 – compactor for compression of domestic waste;
  • CHETRA Б11 – wheel machinefor fulfillment of the dozer works

Axles produced by “FON” (Poland), transmissions “DANA SPICER” (Belgium), hydraulic steering and hydraulic pumps “ZAUER DANFOSS” (Germany-Denmark) are applied in the machine construction.

slide26

EXTENDED VARIETY OF BASE PRODUCTS

  • track groups for tractors Komatsu D375, D155, CaterpillarD9H, D10N/R, D6R, СHETRA HEAVY 4 are launched into production
  • realization of the program for installing production of sets «track group-track roller» for tractor machinery of imported machinery (Caterpillar D7, D8, D10, D11, Dressta TD15, TD25).
  • increasing of production capacities for manufacturing axle-box frame А100.10.009-0 and friction strips М1698.02.001/003 for railway freight cars;
  • the production of sprockets and track groups for rice-harvesting equipment T-150 have been started,
  • the production of з-channel water-heating radiators have been started ;
  • the production of design-locks have been started.
slide27

CREATING SPECIAL MACHINES

  • Machine complex for railways transport system and the divisions of emergency situations;
  • specialized machine for transferring assembling lines at mineral-mining enterprises;
  • specialized dozer for application in mines;
  • creating of machine complex for pile driving, carrying out drilling works and anchor screwing (together with the factory of construction machines).
adaptation to environment of application sites
ADAPTATION TO ENVIRONMENT OF APPLICATION SITES

Climatic

  • Eberschpeher heaters (Germany);
  • neutralizer for working in mines (Kazakhmys);
  • air scrubbing of advanced dust filtration;
  • Convecta conditioners (Germany);
  • variants of lacquer coating for tropical application of spare parts.

Geological

  • variety of machines Т11.01ЯМ, Т15.01ЯМ, Т20.01ЯМ, ТМ25.01 with specific soil pressure 0.76 to 0.43 kg//square m;
  • sprung undercarriage system for Т20.01, CHETRA HEAVY 4.

Ecological

Installing imported engines of Cummins and Iveco with up-to-date ecological characteristics of European standards (ЕURO 3 and ЕURO 4)

increasing of technological level of production
INCREASING OF TECHNOLOGICAL LEVEL OF PRODUCTION
  • introducing a unique in capacity cross-wedged mill for manufacturing bodies of revolution (shafts, axis)for increasing quality of track roller shafts;
  • applying to production new processing centers Mazak, Mitsubishi (Japan), used for manufacturing high-precisiontool set ;
  • purchasing laser complex Mazak (Japan) intended for improving accuracy and efficiency of manufacturing sheet articles;
  • planned for September 2005 launching induction furnaces in iron-cast workshop that allows to increase stability of the structure of cast iron as well as mastering production of castings from ductile iron;
  • implementing technology of vacuum-film moulding of large-sized cast by «Genrich Vagner-Sinto» license (Germany-Japan) that allows to improve the quality of castings
improving operator s comfort
IMPROVING OPERATOR’S COMFORT
  • Launched into production:
  • cabin of the 5–th generation «Buran-styling-atelier» (Russia);
  • cabin heaters «Ebenspeher» (Germany);
  • conditioners Convecta (Germany);
  • electro-hydraulic transmission control Omega (Russia);
  • hydraulic control of ripping equipment Bosch-Reksrot» (Germany);
  • designing solutions for improving dust-safety;
  • microprocessor-based control over the gear-box Omega (Russia), Dana (Belgium).

COSTS OPTIMIZATION FOR DIAGNOSTICS AND REPAIRMENT

  • Launched into production:
  • diagnostic center «TEST»for tractor acceptance after assembling;
  • diagnostic system «SKAZ»,for diagnose during the operating process;
  • satellite system of distant diagnosing «Open Coordinates»;
  • centralized lubrication system «Lincoln»,for reducing servicing labor costs
slide31

INCREASING OF QUALITY STABILITY

Incorporation of

approaches

«Statistic

process control»

Recertification

СМК ISO 9001:2000

The electronic system

of acceptance of

tractors «ТЭСТ»

was incorporated

The audit of CHAZ JSC

was conducted

by Caterpillar

representatives

Certification of the

system of

ecological

management

ISO 14000:2000

STABILITY OF

QUALITY

Toughening of

technological

discipline of

production

Realization of the

draft «total

production

optimization»

Training and

motivation

of personal

slide32

Warranty

Till july 2005 г. warranty terms enlarged:

However if operating time during the first year exceeds 3000 operating hours,Warranty is prolongated for one more year.

Without any reduction of operating time. If 1st year operating time lesser warranty makes up 24 months, but no more than 3000 operating hours.

  • Warranty period for spare parts such as track group and rollers for tractors Т-170, D355, D60, D9N, D155, enlarged by 400 operating hours for soils containing no more than 35 % quarts and now it is 2200 operating hours.
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