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Transportation
Industry:
Performance Measurement and
Operations Improvement - 1
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| | Client: |
| A
rail transportation company with a West Coast terminal operating a cross-dock
rail-to-highway, highway-to-rail function with three distinct product lines.
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| | Problem: | | The
client had no formal procedure, no performance standards, no cost measurement,
little control of staffing, and a mandate to reduce costs while maintaining or
improving service levels.
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| | Approach: | | Perform
detailed analysis of each product process, staffing and expenses. Apply performance
standards and staffing / equipment criteria to each product line. Establish a
system for equipment management with standard forms and support documentation.
Provide a management system document to set performance practices at the terminal.
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| | Results:
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Client reduced
workforce by 19% resulting in an annual savings of $400,000. An additional
$835,000 in annual savings was identified by the Tunnell study and
accepted by the client. Inter-departmental agreement was required
to realize these savings. During the post 9/11/01 period, daily volume
increased by 47% and was effectively processed with the reduced workforce
following the new management system.
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