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TRANSPORTATION INDUSTRY:
Performance Measurement and Operations Improvement - 1 |
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Client: |
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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: |
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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: |
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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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