Italian Rail Network:a logistics platform in the Mediterranean Sea
QUALITY TOOLS TO IMPROVE FREIGHT FLOWS
Sergio BINITRENITALIA LOGISTICS, Italy
Bratislava, May 3 rd, 2006
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1.
MY COMPANY:TRENITALIA LOGISTICS(Ferrovie dello stato Group)
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The Ferrovie dello Stato Group is the central lever of Italy's economic development increasing its investment annu ally by over 20 %, with an overall annual 4 % increase i n the construction and machinery sector. It currently employs over 99,000 people and operate s 9,200 trains every day, transporting 472 million pa ssengers and 76 million tonnes of freight a year. The Group has about 75,000 items of rolling stock t ravelling on the 16,000 km rail network, and runs a ferry ser vice between the mainland and Sardinia, and Sicily.
The Companies of FS Group are:Trenitalia RFI (railway network management)
Italferr Ferservizi Grandi Stazioni CentostazioniSogin Fercredit Ferrovie Real Estate
Ferrovie dello Stato & Trenitalia (1)
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TRENITALIA is a Italian Railways Undertakingthat is operating into a big Company: Ferrovie dello Stato Group (the historical Italian Railways)
TRENITALIA is a complex Company multi-market that deliveries its services to a lot of “customers families” .Trenitalia has different relationship’s patterns:� Business to Consumers (passengers);� Business to Government (commuters) ;� Business to Business (freight & logistics);� “captive” Business (maintenance rolling stocks).
Consequently the Quality approach was “taylor made” for each type of:- relationship with the Customers, - market’s target characteristics.
Ferrovie dello Stato & Trenitalia (2)
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FIGURES:• 42,000 Railway Wagons (including 11,000 Intermodal)• 1,200 trains a day• 1,000 Traction locomotives• 700 Shunting locomotives • 14,000people • 4 Foreign assistance offices in Europe
Extensive network of yards and intermodal terminals throughout Italy
In 2005, TI Logistics moved 76 million t of freight, totaling more than 22 billion t*km
Trenitalia LOGISTICS
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Railway Market Quota: Comparing Major European Countries
2005 Railway Market Quota
Compared to other
European countries,
railway transport
in Italy has a low market
penetration.
14,7% 14,3%
8,1%
0%
4%
8%
12%
16%
Germany France Italy
Source: Trenitalia analysis of Eurostat research
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Italy lies at the center of Combined Maritime Transport Flows to Europe
Strong growth of container traffic flows in the Mediterranean – a strategic position on the
European-Asian route
14.6
2.1 0.7
0.1
2.1
17.9
16.4
9.1
3.90.5 0.8
3.8
0.4
2.9
23.0
Maritime traffic, major commercial flows
(% TEU, 2001)
Maritime traffic, major European ports (TEU ‘000, 2003)
Rotterdam7.100
6.138
Gioia T.3.148
3.191
Genoa1.605
Antwerp5.445
CORRIDOIO ICORRIDOIO DEI DUE MARI
Rotterdam7.100
Hamburg6.138
Gioia T.3.148
Bremerhaven3.191
Genoa1.605
Antwerp5.445
CORRIDOR ICORRIDOR OF TWO SEAS
Italy is a natural access point into Europe – two connection corridors and 5 major ports along the north-south axis
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“Blue Banana”
“Latin Arc”1
2 3
Italy will have the highest concentration of routes along the Trans-European Networks (TEN)
1) Corridor 52) Genoa - Rotterdam3) Berlin - Palermo
Talk of robust logistics development in the “Latin Arc”
Italy is the only country that intersects both the “Blue Banana” (Europe’s largest consumer and production area) and the “Latin Arc”
Italy’s favorable placement within the TEN Network
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Degree of Liberalization
Low
Medium
High
Goteborg
Brema
Liberalization moves at different speeds in Europe:opportunity is knocking
Source: IBM Study
PALERMOPALERMOLISBONLISBON
BARIBARI
GENOAGENOA
ROTTERDAMROTTERDAM BERLINBERLINKIEVKIEV
CorridorCorridor VIIIVIIICorridor
Corridor VV
Corridor Corridor of of TwoTwo SeasSeas
CorridorCorridor II
VARNAVARNA
EUROPEAN UNION POLICY� A single, competitive railway transport market� Liberalization and entry of international and low-cost carriers into all open markets� Increase of railway market quota along major
intra-European traffic routes, in part through infrastructure improvements
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- TO MANAGE EXCEPTIONALLY ALL ACTIVITIES OF THE COMPANY FOR STAKEHOLDERS
SATISFACTION (customers; shareholders; employees; environment; suppliers; collectivity)
E.F.Q.M.model
Towardsexcellence
- CULTURE OF CONTINUOUS IMPROVEMENT TO INCREASE ECONOMICS RESULTS
ISO 9004:2000
towardsefficiency
- CUSTOMER ORIENTED;- TO MANAGE THE ORGANIZATION BY PROCESSES TO CUSTOMER SATISFACTION
ISO 9001:2000
towardseffectiveness
meaningtoolsgoal
TI Logistics started its “Quality program” with implementation of internationalstandard ISO 9001:2000.
from Quality to Excellence (1)
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RESOURCES
CONSTRAINTS
(Customers)
OUTPUT(Stakeholder)
INPUT
(Providers)
Quality Management System: ISO 9001:2000
committed tomarket:Quality Charter
Company’s processes
Monitoring &Customer Satisfaction
journey to Quality continuous improvement
target: continuous improvement
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3.bthe international modelstowards Quality & Excellence
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SCHEME OF QUALITY MANAGEMENT SYSTEM BASED ON THE PROCESSES,LIKE THE INTERNATIONAL STANDARD ISO 9001:2000.
processes for Quality approach with ISO 9001(1)
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European model to excellence EFQM
LEADERSHIP[10 %]
PROCESSES[14 %]
KEYPERFORMANCE
RESULTS[15 %]
PEOPLE[9 %]
POLICY &STRATEGY
[8 %]
PEOPLE RESULTS
[9 %]
SOCIETY RESULTS
[6 %]
ENABLERS [50 %
]RESULTS [50 %
]
CUSTOMERRESULTS
[20 %]
INNOVATION AND LEARNING
PARTNERSHIP& RESOURCES
[9 %]
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TI LOGISTICS like a “network company”
The representation Trenitalia LOGISTICS is like a “WEB SYSTEM”with organizations “inside”, “de-localized” and/or “company”.
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TI.LOGISTICS Quality Management System (1)
Trenitalia LOGISTICS is represented like “only one” Quality Management System, the same for all the organization.
Processi di Direzione
Processi di Supporto
Processi di Realizzazione del Servizio
Clie
nti
ed
alt
re p
arti
inte
ress
ate
SO
DD
ISF
AZ
ION
EC
lienti ed
altre parti in
teressate
RE
QU
ISIT
I
Management Processes
Cus
tom
ers
and
Sta
keho
lder
sS
AT
ISF
AC
TIO
NC
ustomers
and Stakeholders
RE
QU
IRE
ME
NT
S
Services delivery Processes
Support Processes
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The representation of the “services delivery processes”inside in the ISO 9001:2000 Certified perimeter of TI Logistics’ organization.
SP-51.02Vendita servizi di
trasporto su ferrovia (MTO Domestic)
CLIENTECLIENTECLIENTECLIENTE
SP-55.01
Servizi Post Vendita
SP-52.01Sviluppo di soluzioni tecniche per i servizi trasporto su ferrovia
SP-53.01
Gestione della programmazione
treni (P&GO)
SP-52.02
Progettazione dell’orario annuale
(CTM)
SP-53.02
Gestione Operativa Treni(GOT)
SP-53.03
Gestione territoriale programmazione
Treni
xxxxx
Processi di realizzazione del
treno
xxxxx
Processi di realizzazione del
treno
TI.LOGISTICS Quality Management System (2)
Customer needs & requirements
Operations
Sales
Servicedesign
Customer Care
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Company = supply chain of QMS ISO 9001
TI.LOGISTICS Quality Management System (3)
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3.dTI LOGISTICS Quality Charter:la Carta dei Servizi di TI LOG
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TI Logistics Quality Charter (1)TI Logistics Quality Charter [CARTA DEI SERVIZI LOGISTICA]is an instrument that needs the Company :• to continuous improvement of the performance, • to achieve service’s quality,• to increase the Customer Satisfaction.
DEFINING QUALITY STANDARDS
(levels of promised service)
CARTA
DEI SERVIZI
TI Logistics
CHECK OF RESULTS OBTAINED AND COMPARISON WITH QUALITY STANDARDS
SET AS A GOAL
CONTINUOUS MONITORING
DELIVERING SERVICES ACCORDING TO
DESIGNED STANDARDS (promised with the Charter )
PLANNING THE ACTION TO QUALITY IMPROVEMENT
OF COMPANY AND PERFORMANCE LEVELS
(with preventives and rights actions)
DEFINING QUALITY STANDARDS
(levels of promised service)
CARTA
DEI SERVIZI
TI Logistics
CHECK OF RESULTS OBTAINED AND COMPARISON WITH QUALITY STANDARDS
SET AS A GOAL
CONTINUOUS MONITORING
DELIVERING SERVICES ACCORDING TO
DESIGNED STANDARDS (promised with the Charter )
PLANNING THE ACTION TO QUALITY IMPROVEMENT
OF COMPANY AND PERFORMANCE LEVELS
(with preventives and rights actions)
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Carta dei Servizi 2003
Carta dei Servizi TI LOGISTICS
SYSTEM’S AREA TO TI LOGISTICS
(indicatori di sistema; servizi ed aspetti comuni;sito internet; CRM e gestione reclami;
reticolo logistico, punti di accesso; ecc.)
COMBINEDBusiness
CONVENTIONALBusiness
“SINGOL” EXPERIMENTAL
PAPERwith
“GLOBAL”INDICATORS
&INFORMATIONS
TI Logistics Quality Charter (2)
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d c b
x.1e
a
x.2 x.3 f. GLOBAL CUSTOMER’S OPINION:Customer Satisfacion
There’s a progressive logic to individualize the QU ALITY FACTORS (attributes ) to services delivery that represent the Customer needs [progressively (x.1, x.2, x.3)] : EXPETATION CUSTOMER’S MODEL .AFTER, THE CUSTOMER WILL COMPARE THE SERVICE DELIV ERED WITH IT “PERSONAL MODEL” OF EXPECTATION.���� The result of assessment is the “overall Satisfacti on”.
The “represantativity” of Quality FactorsQUALITY FACTORS
QUALITY FACTORS“TO ADD”
TI Logistics Quality Charter (3)
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Quality factors (2003)
a. punctuality of trains, b. reliability of the services, c. flexibility
(management unexpected needs), d. transport’s safety
(integrity of freight), e. information and communication with the
customers, f. Customer’s opinion.
(kick off journey towards continuous improvement).
TI Logistics Quality Charter (4)
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a. punctuality of trains, b. reliability of the services, c. flexibility
(management unexpected needs), d. transport’s safety
(integrity of freight), e. rapidity (speed),f. rolling stock (wagons),g. information and communication with the
customers, h. Customer’s opinion.
Quality factors (2004)TI Logistics Quality Charter (5)
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Freight Quality Charter CER-UIC-CIT (2003)
Requirements of customer service quality provisions:• responsibility, • safety, • planning,• punctuality and reliability, • information,• rolling stock, • billing, • after sale service.
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PERFORMANCE - PERFORMANCE +
SATISFACTION
FATTORS
BASIC
FACTORS OF
PERFORMANCE
FACTORS OF
DELIGHTMENT
Kano’s model.
INSATISFACTION
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Monitoring for Quality: the model.
Company’s process
☺☺☺☺
����
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KEY PERFORMANCE INDICATORS of the Quality Management System
PR
OV
IDE
RS
SE
RV
ICE
S
SHAREHOLDERSSATISFACTION
DE
LIV
ER
Y
SOCIETYENVIRONMENT
CU
ST
OM
ER
S
AT
ISF
AC
TIO
N
“ What you measure is what you get” [Robert S. KAPLAN & David P. NORTON]
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Riempimento
cisterne di propilene
Svuotamento
cisterne di propilene
Svincolo e
terminalizzazione
Condotta treno (vuoti non
bonificati) treno 56380/1
BASELL
stabilimento
di Brindisi
BASELL
stabilimento
di Terni
Svincolo e
terminalizzazione
Accettazione
trasporto, formazione
e verifica
Trasferimento
convoglio a
cura di
Trenitalia-
Logistica
Accettazione trasporto,
formazione e verifica
Trasferimento
convoglio a cura di
SERFER
stazione di Brindisi
Stazionedi Terni
Condotta treno (pieni)
treno 58306/7Riempimento
cisterne di propilene
Svuotamento
cisterne di propilene
Svincolo e
terminalizzazione
Condotta treno (vuoti non
bonificati) treno 56380/1
Condotta treno (vuoti non
bonificati) treno 56380/1
BASELL
stabilimento
di Brindisi
BASELL
stabilimento
di Brindisi
BASELL
stabilimento
di Terni
BASELL
stabilimento
di Terni
Svincolo e
terminalizzazione
Accettazione
trasporto, formazione
e verifica
Trasferimento
convoglio a
cura di
Trenitalia-
Logistica
Trasferimento
convoglio a
cura di
Trenitalia-
Logistica
Accettazione trasporto,
formazione e verifica
Trasferimento
convoglio a cura di
SERFER
stazione di Brindisi
Trasferimento
convoglio a cura di
SERFER
stazione di Brindisi
Trasferimento
convoglio a cura di
SERFER
Trasferimento
convoglio a cura di
SERFER
stazione di Brindisi
Stazionedi Terni
Condotta treno (pieni)
treno 58306/7
Stazionedi Terni
Condotta treno (pieni)
treno 58306/7
The ”freight train system” Brindisi-Terni
BRINDISI
ANCONATERNI
The railways route for the dangerous freightBrindisi-Terni was Certified ISO 14001 (environment) and OHSAS 18001 (health and safety)like a “pipe line” of 738 km.[2004]
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Origin
Now we are carrying out a project in order to supply cha into manage the door-to-door servicefor a new product, the “Express Service”.
1
JunctionModal segments
Informations before to choice(virtual modal segment)
Traking & tracing
3 (N – 2) Destination
2 4 (N –1)
Commercial activities before to buy and after sales
Customer Care before, during and after the journey
“product Certification” in TI Logistics
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THE BLACK FACTORY INVOICE ���� 6 - 11% TOTAL INVOICE(IN THE SERVICES COMPANY) 20 – 30 % TOTAL IN VOICE
THE BLACK THE BLACK THE BLACK THE BLACK
FACTORYFACTORYFACTORYFACTORY
The quality poor costs (1)
IN EVERY COMPANY THERE’S A “BLACK FACTORY”
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TO PREVENT = TO SAVE
The QUALITY POOR COSTS (NO-QUALITY COSTS).
PR
OB
LE
M
SO
LV
ING
SER
VIC
E’S
DESIG
N
PR
OC
ESSES’D
ESIG
N
DU
RIN
G D
ELI
VER
Y
1 10 100A
FTE
R D
ELI
VER
Y S
ER
VIC
E1000
The quality poor costs (2)
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Each Company can be to segment like a succession of processes linked between them.
The final outcome is the product of the “efficiency” of each elementary process.
For a succession of “n” processes almost perfect it has:
0,99 n
effects of mistakes & defectsdefects (1)(1)
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1
2
3
4
5
6
7
8
9
10
0,99
0,98
0,97
0,96
0,95
0,94
0,93
0,92
0,91
0,90
20
30
40
50
60
70
80
90
100
110
0,82
0,74
0,67
0,61
0,55
0,49
0,45
0,40
0,37
0,33
effects of mistakes & defectsdefects (2)(2)
For a succession of “110” processes almost perfect it has:
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“Tomorrow, the future will be different from today”.
For tomorrow:in my opinion, I think that is very important to work hardly, and in a creativity waytogether with Customers and Partner towards the Quality, the innovations, and a sustainable success for all the society and the environment.
That is our engagement, not only towards our Company
but also towards our future !
Conclusions