CHAPTER ONE

COMPANY BACK GROUND

1.1. Introduction
Ries Engineering S.CO (RESCO) is one of the biggest and the oldest machinery and automotive
dealer company in Ethiopia. RESCO has been established with capabilities that enabled it
provide full support to its customers. It represents internationally reputed manufacturer including
Caterpillars, Ford, Massey Ferguson, Perkins, Marini, and Berthoud. There have been substantial
developments in the company since its initial start-up through modernization and establishment
of facilities essential for supporting its customers and upgrading the number, qualification, skill
and knowledge of its technical personnel.

The head office of RESCO, which also includes the main workshop and parts depot, is located in
the Southern outskirts of Addis Ababa along Debrezeit Road and is set-up on an area of 28,000
m2.In order to facilitate the support it gives to its customers, RESCO has set up for branches in
key regional centers (Bahir Dar, Dire Dawa, Hawassa and Mekele) and has engaged agents in
Adama, Assela and Humera. It is also in the process of opening additional branches in other
regional towns. RESCO has significant roles through construction sectors in Ethiopia. Ries
Engineering serves a number of private and government customers in the region, across
industries including mining, construction, and agriculture.

Fig 1.1: resco head office in Addis Ababa

1.2 Historical Back Ground Ries Engineering Share Company
Ries Engineering Share Company (RESCO) Founded as an independent company in 1965, Ries
Engineering S, Co. (RESCO) is one of the pioneering dealership in Ethiopia. Prior to that, it was
operating as an engineering department of Paul Ries & Sons (ETH) Ltd since 1961, when its
founders, the Ries family, acquired the caterpillar dealership for Ethiopia. Besides Caterpillar,
RESCO Represents other internationally reputed manufacturers. These include among others.

 Massy Ferguson
 Perkins
 FORD
 Marini,
 TRIMAN Group
 Berthoud

RESCO has been established with capabilities that enabled it provide full support to its
customers. There have been substantial developments in the company since its initial start-up
through modernization and establishment of facilities essential for supporting its customers and
upgrading the number, qualification, skill and knowledge of its technical personnel.

1.3 RESCO’S core values

1.3.1. Vision
To be the total solution provider to our customers in the Construction, Mining, power and

Agricultural sectors and also to be the preferred partner in their journey of success.

1.3.2. Mission
 To provide reliable quality products to our customers.
 To have the best product support team that is motivated and skilled to provide the
best after sales support.
 By so doing to generate expected profit to shareholders.
 Be an active participant in the country’s infrastructure development.
1.3.3. Corporative Values
 Integrity
 Excellence
 Team work
 commitment

1.3.4. Competitive advantage

 Professional, highly and skilled and committed work force excellent reputation.
 Being partner of first choice.
 Investment in employee up to dated equipment and technology.

1.4 Main products and services

Ries Engineering S. Co. (RESCO) represents, besides Caterpillar, a number of world renowned
manufacturers of agricultural and construction machinery and equipment as well as These
include Massy Ferguson, Perkins, Ford, Marini, Triman Group, Berthoud and others.

RESCO is the sole distributor for Ethiopia for the products of these manufacturers and gives full
pre and after-sales support to its customers for the products using its well established and
equipped facilities and qualified and experienced personnel.

Based on their application products of RESCO are categorized as:

1. Products used for agricultural sectors.

2. Products used for construction sectors.

3. Products used for transport sector.

4. Products used for other sectors (households, offices…)

1.4.1. Products used for agricultural sectors
 Massey Ferguson

Massey Ferguson (MF) is a brand of AGCO Corporation, one of the world leaders in the design,
development and manufacture of agricultural machinery and equipment. Massey Ferguson has
been the world´s leading brand for five decades.

The products include among others; tractors, harvesting machinery and implements. All the
products bear MF hallmarks of top performance, reliability, comfort and uncompromising
quality.

 BERTHOUD

The manufacturing facilities of BERTHOUD Agricole, which is member of the EXEL Industries
group, are located in Lyon, France. The company produces precision trailed and mounted crop
spraying equipment suitable for row crops, vines and fruit bushes as well as orchards and
gardens. It also manufactures knapsack sprayers and parts and accessories for sprayers.

1.4.2. Products used for construction sectors

 Caterpillar

It manufactures full range of some of the world´s best machines, equipment and related work
tools suited to various applications like construction, quarry and aggregates, mining, waste
handling, forestry, etc. designed to perform in the toughest environments. It also manufactures
full range of electric generator sets and related power products, industrial engines, marine power
system, power equipment for petroleum and railway sectors. IC engine driven and electric lift
trucks and warehouse equipment are also available from Caterpillar.

Backhoe Loaders
 Dozers

Excavators

Motor Graders

Tele handlers

Wheel Excavators
 Wheel Loaders

Fig 1.2: cat products used for constructions

 MARINI S.P.A

Marini, which is member of the French FAYAT GROUP, has over 60 years of experience in the
manufacture of asphalt plants and advanced solutions for recycling. Marini also manufactures
cold mix plants, road maintenance equipment and other asphalt equipment like bitumen sprayers
and bitumen melters.

 TRIMAN GROUP

TRIMAN Group is located in the northern part of Spain and is one of the leading companies in
the design, manufacture, assembly and after-sales support of the following products:

Complete stationary and mobile crushing, grading, transport and washing installations for
aggregate and minerals

 Stationary and mobile plants for the treatment and recycling of rubble.
 Concrete batching plants.
 Mortar (dry concrete) plants.
 Spatial anti-wear casting part.

1.4.3. Products used for transport sector

 Ford

Ford Motor Company is a global automotive industry leader based in Dearborn, USA, which
manufactures and distributes different brands of automobiles all over the world. One of such
brands is Ford. Ford vehicles, which include cars, pick-up trucks, SUVs, vans, wagons,
ambulances, etc. imports various model of ford vehicles. Among those:
  Ranger 4× 4
 Station wagons
 Different pick-up trucks
 Vans
 Wagons
 Ambulances and
 Fiestas are the main imported cars.

1.4.4. Products used for other sectors.

Those are Perkins, Cisuo and CAT products.

 Perkins

Perkins has led the field in the design and manufacture of high performance diesel engines for 75
years. Perkins offers one of the most advanced and comprehensive ranges of purpose-built diesel
and gas engines available today. Ranging from 5 to 2,600hp, Perkins engines power more than
5,000 different applications from over 1,000 major equipment manufacturers in the construction,
power generation, material handling, agriculture and general industrial markets.

 Cisuo products

As Perkins it is also one of the advanced and comprehensive ranges of purpose-built Diesel and
gasoline engines. Thus RESCO imports its products alternatively with Perkins depending on
maintenance requirement and customers order.

 CAT products

RESCO also the dealer of other CAT products in addition to construction machinery. Those are,
various size generators, pumps and compressors.

1.5. Services of RESCO

RESCO offers many services to its customers throughout the country. Among those the main

services which are offered by it consistently are:

1.5.1 Workshop services
In order to support its customers in running their machines with the lowest possible

down time and cost RESCO has invested in various workshop facilities. Workshop

facilities available to support its customers include the following:

 Fully equipped workshop for machines general repairs

A 5 stars contamination control certified specialized Component Rebuild

Workshop for:

 Engines
 Water pumps
 Turbochargers
 Fuel pumps
 Transmissions
 Torque converters
 Hydraulic cylinders
 Hydraulic Pumps and Motors, etc.
 Undercarriage and Utility workshop for track link assembly repairs, track

rollers and idlers rebuild.

 Track link assembly bushing turns and repairs.

 Track rollers & idlers rebuild.
 Track roller frames repair.

Various Welding work on buckets, blades, etc.

 Complete CAT engine rebuild with dynamometer and load banks option.

and fuel efficiency.

 CAT fuel injection and governor test bench.

 Hydraulic Cylinder assembly and disassembly bench allowing the repair of
 all sizes of hydraulic cylinders.

 Ford service workshops

 Experienced service engineers and technicians available supporting

customers throughout Ethiopia 90 days warranty on all services work.

 Broad range of "before-failure" repair option programs offered at fixed flat

rates with guaranteed turnaround time.

 Quality-control inspection on new equipment and on-going inspections

recommendations on equipment in the field.

Generally RESCO has 6 main workshops in its Head office Addis Ababa. Such as, Agricultural

Service Division, CAT Component Rebuild Center, Undercarriage, Ford service, Carpentry and

CAT main workshop.

1.5.2 Parts operation

RESCO is promoting the repair before failure principle and the necessary parts that will enable
for its customers to keep their equipment in high performance are stocked in its warehouse.
RESCO has been able to achieve its target of 97% parts availability for stock items and over
90% for stock and non-stock items combined for parts sales over the counter. Those are engine
parts, hoses, transmissions, batteries, other vehicle bodies, etc.

1.5.3 Field services

RESCO also offer maintenance of its machinery after sell whenever they are. It also give
services to its customers at the place on which the machinery is available. RESCO has their own
field service department with its budget. For instance, it has been given services to Saline
construction during the project of Gelgel Gibe I and Renaissance Dam of Ethiopia.

1.5.4 Rental services

Ries Engineering, in its effort to support its esteemed customers and to fill the demand gap of
rental machinery, started a rental wing in 2003 with key models required by the market. Today
Ries Engineering is proud to work with its customers and provide rental solutions consisting
dozers, loaders, graders, excavators, compactors, and compact machines mainly for the building
and heavy construction sectors. It is also in the process of introducing material handling
equipment into the rental fleet to meet the needs of its customers.

1.5.5 Training services

RESCO´s learning and training center provides technical training to customer´s and own staff.
The training given to customer´s personnel includes orientation on the operation, care and
periodic maintenance of machines and equipment purchased from the company given at time of
delivery of the products. Furthermore, the center prepares annually training programs for
customer´s operators and technicians that

will enable up-grade the knowledge and skill of their technical personnel. RESCO offered the
following training programs in it shop.

 CAT Professional Operators Training

 H-Series Motor Graders(120H-160H)
 CAT machine service fundamental.
 Medium Hydraulics Excavator(320-330)C/D
 Machine Drive Train
 Applied Failure Analysis
 Machine Hydraulics
 Maintenance Management
 MF 400/600/5300 Series Tractors operating training.

1.6 Customers of RESCO or end-users

RESCO has many customers in all sectors of the country (construction, transport, agricultural,

Industrial sectors, etc.).Those customers are classified as governmental, non-governmental and

private sectors.

1.6.1. Governmental sectors

It has many governmental costumers starting from its establishment up to now. Among those the

following are main costumers of RESCO.

  Ethiopian Road Authority
 Ethiopian Construction Organization
 Ethiopian ministry of construction
 Ethiopian Water Works, Design and Supervision Enterprise
 Ethiopian Air Lines
 Amhara Water Works Construction Organization
 Ethiopian Federal defense minister
 Ethiopian Sugar Corporation
 Ethiopian Agricultural Institute

1.6.2. Non-governmental customers

It has also non-governmental organizations across the country Ethiopia. Some of them are:

 Teklebrihan Ambaye construction

 Afro-Tsion construction
 Salini construction
 CCC (China Construction Corporation)
 Sur construction
 Meta brewery industry and Other private customers
1.7 Overall organization and work flow