Portfolio of project activities – transportation industry only
Top Management Strategic Workshop Benchmarking/
Support Issues Target Costing
Corporate strategy Workshop location strategy Determining market
Organisational Charterway/vehicle pools/ position
restructuring funding schemes Deriving target costs
Coaching Innovation and technology Determining restructuring
management opportunities
Process Strategic Fleet
Reengineering Management
Maintenance Procurement planning
Product supply chain Optimisation of reserves
Vehicle provisioning Life-cycle optimisation
Administration …
...
Supporting Change Merger & Acquisitions/ Design and Implementation
Implementation Joint Ventures of Management Tools
Coaching BSC
Monitoring QMS
Change Controlling
management systems
...
–1–

Project Example:
Workshop location strategy
–2–

Workshop location strategy and optimisation of vertical
integration
TOC1 TOC2 Economic and qualitative
Rolling Stock 64 Rolling Stock 47
advantages of workshop co-
Staff Workshop 17 Staff Workshop 15
operation of four TOC was
Performance Km 2,9 Performance Km 2,0
assessed
in Mio km in Mio km
Broad scope of possibilities had
Town A
37 km Town D to be included into analysis
13 km 30 km Calculation of synergies had to
22 km
consider all aspects (running
Town B 23 km
10 km costs, investment and
TOC4
TOC3 Town C divestiture, IT-support,
Rolling Stock 123
Rolling Stock 32 integration of supplier …)
Staff Workshop 29
Staff Workshop 6 Main point was to identify
Performance Km 6,0
Performance Km 0,9
in Mio km optimal location strategy
in Mio km
? Centralised Maintenance Facility
? Integration of resources
Pooling of Resources
Advantages in Procurement
? ?
–3–

Project Example:
Benchmarking
–4–

Crucial information about the \"right strategic set-up\" can be
derived by comparing capacities spent on maintenance categories
Does TOC2 have the right
strategy (significantly What are the reasons for
higher effort on TOC4's higher effort on
preventive as well as on corrective maintenance?
FTE per vehicle corrective maintenance)?
unit (indexed)
200%
preventive
mainte- 175
nance
125 100%
77% 77%
69%
75
25
-25
-75
-125 100% 100% + x
143%
corrective -175
mainte- 170%
nance
-225
216%
TOC1 TOC1 TOC2 TOC3 TOC4
Plan
–5–

Example: significantly higher lifespan of major components gives
VU1 an advantage
[Tkm]
Frequencies of different preventive maintenance actions*
1500
1.200 1.200 1.200
1.000
1000
800
600
500 500 500 500
500 400
300 280
185
100
0 Bogies Motors Compressors Couplers Brakes
1
2
3 3
3,5 4
5 4 4
5
5,5
VU 1
9 VU 2
10
10 VU 3
12 12 12
[Years]
* unmounting, check, cleaning, painting, mounting
–6–

Project Example:
Process reengineering and
restructuring
–7–

A flexible three phase approach to optimize productivity, quality
and costs has been used in all relevant projects
Development of
Positioning and Implementation of
restructuring plan based
target costing restructuring plan
on detailed analysis
Thorough benchmarking Design client specific Real, hands-on
of action plans per sub- implementation
function
maintenance Develop realistic
productivity Maintenance roadmap for action
efficiency of the supply Administration
chain Supply Change
Supply managers
quality
Project planning,
timing, volumes and Take responsibility
Normalisation of structural
cost drivers and priorities per function
Deliver against
performances parameters milestones
Close co-operation
Target costing per with all stakeholders
(e.g. workshop managers, Effective transition to the
function business owners
unions etc.)
Extensive international Employing an effective set Rigorous project
experience with high class of improvement measures governance &
performances and tools change management
capabilities
–8–

The improvement of central maintenance processes typically
realise substantial savings of 20 – 40% ...
Example: Redefining maintenance scheme X
Step 1 Step 2 Step 3
Optimisation of Differentiation of Further differentiation
workshop and planned maintenance of planned activities
operations interfaces activities for each after refurbishing
to clarify component several components
responsibilities (different parameters
Utilisation of root-
influencing compo-
Avoiding redundancy of cause analysis based
nent lifetimes)
workflows on failure statistics to
Optimisation of monitor vehicle
component-related performance
processes and overall
workflow
Supporting Implementing modern instruments like planned process/task times
activities: Optimising workshop controlling to ensure valid/sound data
–9–

... and the complete reengineering of important processes to
stream-line process flow, realises additional savings of 10–20%
7 + 4 8 + 4 + 7
Inside and outside
of vehicle
2 5 5
5 + 9 9 4 + 6 + 11
Legend: +
+
1. Check v-belt, 1 Part
clamp or renew A/C
on demand + W1.1
2. Check + refill 4
grease, oil,
cooling water 12
3. Check+ refill
centralised Part
lubrication 13 + 15 Battery + 7 + 4 10 7 4 + 3 12 2
4. Grease cardan- W1.1.2
shaft, bearings,
articulations,
locks
5. Check interior
decoration
3 + 4 3 Start
6. Check driver's
seat,
retightening on End
demand
7. Retightening of
wheel nuts with
torque spanner
8. ... 3 + 4 3
Below vehicle Start
– 10 –

Process analysis of preventive maintenance
- example -
number of mechanics: 1
Process time % of total time
work time: 49 min ca. 60%
set-up time: 25 min ca. 30% Suggested Improvements
personal
time: 8 min ca. 10% Picking material in advance
Optimising of process work
total time: 1h 22 min flow: defining specific work
flow (order of things that
need to be done)
First perform preventive
maintenance – than
Optimised process time corrective jobs (as far as
necessary)
work time: 49 min Use the right tools
set-up time: 10 min
personal
time: 5 min
total time: 1h 4min Reduction of
process time
~ 20%
– 11 –

In the same way, other processes like \"cleaning and shunting\"
have been analysed and optimised
Example bus
5
shunting
4
3
Parking lot
2
1 shunting (5 min)
shunting cleaning (6-7 min)
fuelling (4 min)
walking 6
temporary
parking
space
– 12 –

Improving service-quality factors such as \"Punctuality\" requires a
comprehensive analysis of a complex network of interdependencies
1a Planning
Environ-
Capacity Capacity ment
Meet
utilisation utilisation
deadlines
junctions lines
Share of
amend-
ments Punctuality
Time table Fixed
including running
failures times
1b Planning during 2 Operations
period Departure- Share of
Additional traffic Excess dwell
punctuality cancelled
supply (capacities times
1. station trains
of tracks / hubs)
Share of partly
Secured
cancelled
connections
trains
3 Rolling stock 4 Infrastructure
Availability of Availability of Delay due to
Availability of
rolling stock resources constructions
infrastructure
sites
– 13 –

In the assessment of operational processes influencing
punctuality, key process drivers have to be taken into account
Factor Quality driver
Environmental impact
Process to specify manual measurement
has already to be
running times Nav-system/GIS-systems considered when
defining running
Capacity Permanent up date times:
utilisation
Ideal running
junctions Differentiation of Definition of intervals
time vs. running
running times time under
Separation into the type of
\"Defined days operational
running conditions
time\" Transfer relations
Weather
Connections conditions
Definition of dwell
times Passenger volume Quality of
Capacity measurement
utilisation
lines Definition of turnaroung
Technische
Definition of Mindestwendezeiten
turnaround times
Betriebliche
Mindestwendezeiten
Sicherheitswendezeiten
bei Interlining
– 14 –

Availability of rolling stock as a key factor influencing punctuality
is driven by various parameters and business processes
Factor Quality driver
Information flow driver-control
centre-workshop
Responsibilities
Fault management
Procedures of changing trains
Availability of staff Work time organisation
HR-development (qualifications)
Availability
Investment planning
rolling stock Availability of resources
(material, rolling stock …) Asset management
Tender specification
Beschaffungsplanung
Fleet management
Investitionsplanung
Reservemanagement
– 15 –

Project Sample:
IT-Structure, IT-Processes
& Management Tools
– 16 –

The objective has to be a simple and standardized dataflow in all
workshops
Dataflow model for all workshop locations
Additional personnel data
Work- and work-
Standardized GUI (vacation, illness etc.)
order times in the
entered by work-order
workshops
personnel
Operational
Data
Question of interfaces
Data interface
SAP-CO SAP-PM SAP-HR or (for distribution)
Booking of
work-order SAP-MM
materials
System of parents System of parents
Warehouse/
Procurement
Data
The handling and distribution of the personnel data will probably
constitute the most difficult problem during implementation
– 17 –

In order to implement such a dataflow model a comprehensive
IT-plan has to be devised
Phase 1 Phase 2 Phase 3
Determining the Determining the Drafting of an
requirements required investment implementation plan
Of particular concern e.g.: Hardware (if necessary Definition of project
Work-order preparation adaptation/expansion) milestones
(SAP-configuration) Software content
Cause of failure Quantification of training time
recording effort Constituting
Work-order recording
External implementation implementation teams
Barcode system support and defining time-
Operational data to schedule per team
adjust/validate
maintenance strategy
Interfaces to other IT-
systems (system
integration)
Training of personnel
The existing IT-plan has to be validated and, if necessary, altered in
accordance with the criteria above
Implementation of IT transformation expected in 2007
– 18 –

Companies should implement a feed back loop in their workshop
IT-landscape to ensure up-to-date maintenance strategies
Definition of content and intervals Failure
Preventive maintenance Corrective maintenance
Inspection
Service Diagnosis
No failure Failure
Correction
Failure statistics
Periodic check of Root cause analysis
requirements Technical improvements
Documentation
– 19 –

To supervise maintenance strategies and workshop activities,
we design/implement performance-based IT-controlling systems
Project example: MDBF (\"Mean Distance Between Failures\") MDBF –
vehicle A,
type A,
MDBF – component 1
component 1, ...
type A ...
MDBF –
vehicle ...
type A ...
MDBF –
safety- ...
relevant ...
MDBF –
passenger-
affecting MDBF – ...
non-safety- ...
relevant
MDBF
MDBF – ...
safety- ...
MDBF – non- relevant
passenger-
affecting MDBF – ...
non-safety- ...
relevant
Executive level, controlling, Head of workshop, Technical office,
head of workshop technical office foreman
– 20 –

The following IT-based work-order/personnel data recording and
handling process is best suited for all workshops
1 2 3
IT-recording of employee times IT-Recording/Validation of
IT-Validation (on sample)
(Work, Overtime, work-order vacation, illness etc.
of recorded data
etc.) (barcode assisted)
Data entry Responsibility Data entry Responsibility Data entry Responsibility
Mechanic work-order leader team leader work-order leader workshop head workshop head
The mechanic records his Validation checks of Direct overview of the
time at a terminal using a recorded personnel times levels of all personnel time-
barcode system only via samples accounts
Autom. alteration of data if Additional validation Data recorders also have
e.g. shift-change of usual checks of recorded times the right to sign-off on
work-time from ... till ... on a sample basis vacation, illness etc.
through work-order
Reducing overtime leader/workshop head Paperless IT-archiving of
(< 1 day) after team utilising daily SAP- vacation requests, medical
leader agrees using the reporting records using e.g. PDFs
time-recording terminal for
recording
The envisioned process flow requires a specific profile of system access
rights in SAP for the process owners
– 21 –

The optimised process of IT-based time and work-order
recordings should be as follows
Login at terminal via card
reader using e.g. employee
number
Entry of work-order/notification number using barcode
Existing work-order?
yes no
Entry work-time Selecting notification
short content
if not already Assigning materials to work- text already if necessary selection of
recorded at the order prepared in failure code
warehouse system
Additional yes
entry? Entry work-time
no
Assigning materials to if not already
Logout
notification recorded
yes Additional
entry?
no
Logout
– 22 –

A sound failure management system is based on standardized
processes (incl. triggers) and flow of information
Driver calls in failure
Escalation-level 1: \"Remote diagnostics\" and
attempt to remove failure
through Control-centre
Escalation-level 2: Attempt to remove failure
Control-centre through mobile operations
manager
Decision of whether to
exchange vehicle
(Escalation-level 3)
vehicle continues
Has vehicle to be yes no
towed?
Until the
yes no end of the yes no
line?
workshop is workshop is vehicle continues
Control-centre
informed informed until end of day
organises vehicle
exchange
towing vehicle towing vehicle driver hands over
leaves leaves failure card
new vehicle is workshop
new vehicle is
sent out is informed
sent out
defective vehicle defective vehicle workshop
enters workshop enters workshop is informed
defective vehicle
enters workshop
Repairs Repairs Repairs
Repairs
– 23 –

The information flow of the failure management system's
processes has to be properly mapped into the IT-system
Data flow diagram
Driver calls in failure
if on-board diagnostics can
be directly linked into a Control-centre
digital radio service
timely entry (e.g. failure code
in SAP-PM) of faliure data
through Control-centre (in
particular in case of vehicle
Digital operational exchange)
log
for management of vehicle Workshop is informed (work-
movements and positioning, if order leader or mechanics on
present call)
SAP-PM
Workshop Cell of on-call
management system mechanics
SAP-HR
– 24 –

Project Sample:
Asset renewal strategy
– 25 –

Comprehensive improvement of capital costs plus process
improvements lead to realistic savings of 10 – 15%
Optimising Fleet Optimising
Standardisation
Structure Procurement
Optimise investment Standardisation of Price benchmarks
strategy at a minimum vehicle equipment
of total costs Package pricing of
Homogenous fleet \"extras\"
Optimising vehicle
lifetimes Adaptation of vehicle Adjustment of level of
standards to detail of the tender to
\"Best practice\" vehicle requirements appropriate level
reserve
Conditions for
Reduction of fleet size warranties
(subsequent to
optimisation of
reserves)
Economies of scale in
procurement interaction
Optimal replacement
time
Homogeneity of fleet
– 26 –

Example: Calculation of optimal economic asset lifetime by taking
various individual asset parameters into account
- Type A, running performance x km -
[TEUR] [TEUR]
Chain net present value
Net present value
Optimum
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Vehicle's age [years]
Calculation must be based on a company's individual parameters such as failure
frequencies, lifetime of major components, running performance, configuration etc.
– 27 –

Example: Economic assessment of different engine technology
strategies (Diesel versus Natural Gas)
Overview of cost comparison
Additional investments until 2018 versus Diesel
Buses: ca. 7,1 Mio €
Infrastructure: ca. 2,5 Mio €
Health and safety: ca. 0,8 Mio €
Total ca. 10,4 Mio €
Additional annual costs until 2018 versus Diesel
Capital costs buses: ca. + 0,80 Mio €
Maintenance costs: ca. + 0,60 to + 0,80 Mio €
Fuel costs: ca. – 0,40 Mio €
Capital costs infrastructure: ca. + 0,25 Mio €
Running costs infrastructure: ca. + 0,28 to + 0,33 Mio €
Costs \"health and safety\": ca. + 0,14 Mio €
Costs due to adjusted processes: ca. + 0,02 to + 0,08 Mio €
Total: ca. +1,69 to +2,00 Mio €
From an economic perspective, a technology switch towards
buses powered by Natural Gas motors is not recommendable
– 28 –