Job Overview

The Contract Performance Engineer at Komatsu manages the design, development, implementation and continuous operation of systems establishing performance measures i.e. MTBO, MTTF, MTTM, LCC, etc., of all equipment under customer support agreements to maximize their profitability. 

Manages and controls complex statistical analysis/data mining processes of performance measurements of equipment and systems under customer support agreements to ensure the level of risk is consistent with assumptions made in pricing models; and provides guidelines as to whether corrective actions are necessary to improve profitability or diminish risk. 

Supports the quoting process for new agreements by estimating the performance of equipment and systems at a customer's site, either by applying known severity factors obtained in testing or under field use conditions, and quality of maintenance.   Reports and communicates technical information to management and other diverse audiences related to the analysis key performance measurements of equipment and systems under customer support agreements.

Scope

Komatsu's Mining Division sells in excess of $500M of equipment (new and used, in 23 models) and replacement parts annually.  This will include locally manufactured and imported products from Japan and Germany for the North America market, along with USA manufactured products (electric and mechanical trucks) for the world market.

The value of the products marketed and sold by the Mining Division ranges from +/- $0.10M to +4.00M.  Mining Products are sold through bids frequently in groups of up to 20 – 25 machines, with frequent tenders over $20M; invariably such tenders include long term (5-yrs to life-of-machine) customer support agreements, each having the potential to create liabilities for the Company in excess of $30 to $40M.

This Role manages the monitoring and control of key performance measurements of complex, broad-based and distinctly different customer support agreements (e.g. extended warranties, prorated guarantees, cost-not-to-exceed guarantees, planned component replacement, maintenance and repair contracts, share-in-savings contracts, availability guarantees, performance guarantees, etc.) involving the technical and risk mitigation strategies for commitments equaling or exceeding annual sales in value.

Key Job Responsibilities

• Analyze the performance of all customer support agreements, comparing actual component lives and repair intervals relative to original proposal.
• Audit active agreements to ensure that proper operational practices are being followed and that potential exposures are being identified proactively.
• From the above analysis, identify the major drivers of poor performance and the associated risks of each agreement..
• Provide specific recommendations to Komatsu and DB personnel responsible for managing these agreements on items needing attention and the necessary resources to meet the commitments.
• Assist the cost control manager in the reserve analysis to ensure that KAC has adequate reserves to cover future liabilities associated with support agreements.
• Oversee the preparation of annual component replacement plans and periodic forecasts for all support agreements.
• Participate in the development of standard templates for all support agreements.
• Develop standard reporting practices to be followed by Komatsu Distributors when participating in support agreements.

Qualifications/Requirements

• BS in Engineering (Mechanical, Industrial), Engineering Technology, Finance, Actuarial Science or Statistics (discipline is a preference).      MBA preferred but not required.
• 5+ yrs in Construction / Mining / Mechanical Systems Industry.
• Understanding of / exposure or experience to distributor service operations.
• Solid understanding of reliability (survivability), risk and statistical analysis.  Proficiency in mathematical functions.
• Proven experience with Performance Contracts is a major plus for this Role. 
• Previous exposure to Product Pricing activities preferred.
• Excellent written / oral communication skills.
• Prior PC skills, software experience with programs such as: Microsoft Office; statistical, reliability and risk analysis is very helpful.
• 25% - 30% travel required.      50% Domestic / 50% International.

Additional Information