railways in multiple supply chains phil c. ireland consultant jexi inc. cell: 403-991-3186 email:...
TRANSCRIPT
Railways in Multiple Supply Chains
Phil C. IrelandConsultant
Jexi Inc.Cell: 403-991-3186
Email: [email protected]/in/philcireland
A Critical Conversation on Railway & Shipper Relations
Seeing the complete picture matters…
Clouds... …Mist From Niagara Falls.
Up close you see… …Step back and you see
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Seeing the complete picture matters…
Endless Dots...
Up close you see… …Step back and you see
…Modern Art!
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Seeing the complete picture matters…
A critical route for a customer
…One link in the network
Up close you see… …Step back and you see
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Rail networks are very complex and their operations are fragile – require a continuous flow approach to maintain stability – all stakeholders need to embrace the “big picture”
Key Message
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Network – addressing total book of business
Balance – to drive service reliability
Velocity – faster transits and additional
capacity
Core Railway Design Principals
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3. Establishing Takt Time
2. Harmonizing Cycle Time
1. Pulling to Demand
Adhering to 3 critical principles creates Continuous Flow
Link production directly with ability to exit demand – not ability to enter demand
Establish a regular “heartbeat” to production flow to balance and level all network resources
Create “conveyor belts” so that every segment of the production line runs at the same speed
Continuous Flow
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TRIP PLANExecutable shipment instructions
TRAINOne or more blocks grouped together
Deliver the Book of Business
• Locomotives• Crews• Compounds
Yards/Terminals • Locomotives
• Crews• Work-blocks• Inspections/
Fuelling
Resource Plan
Corridors
• Rail cars
Fleets
BLOCKA packet of cars grouped on common characteristics
TRAFFICIntimate understanding of every car/container move
The Plan starts with shippers’ needs
Network Planning
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RTM’sRTM’s
__RTM__ GTM
__RTM__ GTM
On-time performance
On-time performance
Trip plan complianceTrip plan
compliance Car velocityCar velocity Locomotive ProductivityLocomotive Productivity
___GTM___ Train miles___GTM___ Train miles
# Handlings# Handlings # Block Swaps
# Block Swaps
Train Schedules
Train Schedules
Yard Capabilities
Yard Capabilities HP/tonHP/tonVolumes
(Demand)Volumes
(Demand) Train lengthTrain length Train weightTrain weight
Car milesCar miles Train milesTrain miles Train startsTrain starts
Train CrewsTrain Crews
Trip timeTrip time
Fleet size: cars
Fleet size: cars
Yard crews & assignmentsYard crews & assignments
GTM’sGTM’s
Fleet size: locos
Fleet size: locos
Key design Key design parametersparameters
11stst
measurement measurement levellevel
22ndnd measurement measurement
levellevel
Key Operating Key Operating MeasuresMeasures
Optimized in the design process
Outputs of the design process
Metrics Pyramid
Many factors need to be carefully managed to create balance and ensure we hit the “sweet spot”
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Shipping Line Port Operator
Rail Line Capacity Car Fleet Corridor Balance Shipment Flow
Causes:• Over-reaction to Backlogs• Order batching• Demand forecast inaccuracy• Resource delays impacting capacity
Solutions:• Disciplined, slight corrections• Focus on resource balancing• Stay within capacities• Collaborative channel
management
“The Bullwhip Effect”
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Reality of the Challenges
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Vessel Port Rail Inland Terminal
Railcar supply to meet import demand
All supply chain participants need to work together to dampen “oscillations” in the
network
Elements of the Supply Chain
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Entry to Network Exit From Network Seasonality
Visibility tools and process
Improved customer-rail interfaces
Optimized terminal
and vessel interfaces
Right product, right time, right place
Actively mitigate peaks and valleys
Pre-planning and notification
Sales strategies
Optimized handling and resource
allocation
Multi-modal planning
Better capacity, asset & labour utilization
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Supply Chain Coordination
Implement strategies that level andbalance demand on the network
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Rail networks are very complex and their operations are fragile – require a continuous flow approach to maintain stability – all stakeholders need to embrace the “big picture”
Key Message
Railways in Multiple Supply Chains
Phil C. IrelandConsultant
Jexi Inc.Cell: 403-991-3186
Email: [email protected]/in/philcireland
Thank You!