I have done it 2x on my 416C. The brakes seem to last about 5,000 hours. It takes about a day with 2 guys. I suggest 2 guys as the rear axle is tough to get in and out with only one guy. When the brakes get worn out you will notice the brake fluid level will go down in the matser cylinder res. the brakes will work but the pedal will continue to depress when you keep pressure. May require pumping as well. I have not noticed any reduced braking performance. When brakes wear out the pistons go so far, trying to push discs against the baking plate, that they push past the seals and allow brake fluid to escape into the rear axle. How come you Cat mechanics are not sharing a few tips? I suggest buying a few sets of the piston seals. It requires a lot of force as they can be tough to get back together (the piston halves). Use lots of assembly lube and I suggest that you have a dead blow hammer on hand. Once you have put the brakes back in, and whichever out board axle housing, use compressed air to check the piston seals before you put the axle back under the machine. If you inject the compressed air into the brake fluid ports, on top of the axle, you should not hear any air movement. If you can hear air it is escaping from inside the piston to the rear axle housing (just like the fluid was when you had worn brakes) which means you have a bad seal. Dis-assemble again, repair seal, repeat check process. I would not do this with out a manual showing you the proceedure.
Originally MTO did require a friction modifier like the Ford/NH units. Cat began placing it in the MTO around 2000. I stopped adding, based on info I got from my Cat dealer, and have zero noise, or any other issues, less normal wear, since. The newer, updated, brake pads contain Kevlar. It is not recommended to use MTO if you are using these newer pads. I don't recall what the new recommended oil is. Consult your Cat dealer.