Transportation Industry:
Operations Improvement 2


 Client:

A short line railroad operator with multiple noncontiguous railroads in North America.
 Problem:With each railroad acting as an independent function, could the owner be assured that freight car inspection and repair was being performed in the most cost effective manner while maximizing American Association of Railroads (AAR) freight car repair billing?

 Approach:Perform site inspection with a team with extensive Class I railroad experience in freight car inspection and repair management plus field reporting and staff supervision of AAR billing. Daily operations observed and historical data analyzed based on accepted performance standards and recommended staffing and process improvements made to the client.

 Results: Based on analysis of three separate rail operations, annual savings of $337,000 and one- time savings of $50,000 were proposed by the Tunnell Consulting team and accepted by the client. Additional recommendations included fixed plant improvements, cross- training of employees, improved billing processes, contracting of certain mechanical repair functions, and standardization of inspection and repair processes based on using one property as a model.
   
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