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TRANSPORTATION INDUSTRY:
Operations Improvement 2 |
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Client: |
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A
short line railroad operator with multiple noncontiguous railroads
in North America. |
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Problem: |
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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? |
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Approach: |
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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. |
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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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