Contract Performance Engineer

Komatsu America Corp Peoria , IL 61601

Posted 1 month ago

Komatsu is an indispensable partner to the construction, mining, industrial and forestry industries that maximizes value for customers through innovative solutions. With a full line of products supported by our advanced IoT technologies, regional distribution channels and a global service network, we help customers safely and sustainably optimize their operations. Our Komatsu, P&H, Joy, Montabert, Modular Mining Systems, Hensley Industries, NTC and Gigaphoton equipment and services are used to extract fundamental minerals and develop modern infrastructure.

In the Peoria community we employ more than 700 employees performing all aspects of Manufacturing, Engineering, and Product Support. The Peoria worksite manufactures some of the largest mining trucks found anywhere in the world.

Job Overview

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 profitabiltiy 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 int esting or under field use conditions, and quality of maintenance.

Reports and communicates technically information to management and other diverse audiences related to the analysis key performance measurements of equipment and systems under customer support agreements.


KAC's Mining Division sells in excess of $500 M of equipment (new and used, in 23 models) and replacement parts annually, including locally manufactured and imported products from Japan and Germany for the North America market, and 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 +/- $0.10 M to +4.00 M, and such products are sold through bids frequently in groups of up to 20 25 machines, with frequent tenders over $20 M; 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 $40 M.

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.


  • BS in Engineering (Mechanical, Industrial), Engineering Technology, Actuarial Science or Statistics MBA preferred but not required.

  • 5-10 yrs in Construction/Mining/Mechanical Systems Industry.

  • Understanding of distributor service operations.

  • Through understanding of reliability (survivability), risk, and statistical analysis. Proficiency in mathematical functions.

  • Excellent written/oral communication skills.

  • Well versed in the use of personal computers, software such as: Microsoft office; statistical, reliability and risk analysis.

  • 30% travel required.

Additional Information

We are an equal opportunity employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability or veteran status.

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Contract Performance Engineer

Komatsu America Corp