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Transportation
Industry: Operations Improvement 2
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| | Client: |
| A
short line railroad operator with multiple noncontiguous railroads in North America.
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| | 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:
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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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