December, 2009
Lean Rolling Stock Maintenance How to improve efficiency of rolling stock maintenance operations
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FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt
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Introductory Remarks
The present document provides insights on Oliver Wyman’s approach to lean rolling stock maintenance The intention of the document is to provide a base for discussion on how to optimize rolling stock maintenance operations using lean management methods and tools Therefore parts of this document may not entirely be self explanatory and may require additional verbal explanations For any questions please contact:
Joris D’Incà Oliver Wyman AG Tessinerplatz 5 8027 Zürich Tel.: +41 (1) 208 7749 Mobile: +41 (79) 4212484
[email protected]
© Oliver Wyman www.oliverwyman.com
Jochim Wegner Oliver Wyman Consulting GmbH Kasernenstr. 69 40213 Düsseldorf Tel.: +49 (211) 8987 694 Mobile: +49 (151) 21225386
[email protected]
FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt
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Content
Rolling stock maintenance: A major cost factor for rail operators Oliver Wyman approach to reach best-in-class lean rolling stock maintenance How to unlock the potential of maintenance operations through lean management Oliver Wyman qualifications
© Oliver Wyman www.oliverwyman.com
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Rolling Stock Maintenance: A major cost factor for Rail Operators Maintenance accounts for approx. 30% of the lifecycle costs of a high-speed train, making it the largest rolling stock operating cost factor besides energy Life Cycle Costs – High-speed fleet In percent
100% 7% 11%
Cleaning Tech. management
30%
Maintenance (incl. spare parts)
30%
Energy
23%
Depreciation
Example
Comments
Besides energy and depreciation, maintenance is the largest cost factor of a high speed train Over the lifecycle of a high-speed train, maintenance costs exceed depreciation Approx. 60% of maintenance costs are personnel cost and 40% for material / spare parts For a fleet in service, maintenance cost is the major cost position subject to optimization as depreciation and energy stay constant during the fleet’s lifecycle
High-speed
Source: Oliver Wyman
© Oliver Wyman www.oliverwyman.com
FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt
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Example Rolling Stock Maintenance: A major cost factor for Rail Operators Therefore, effective maintenance is a driver of competitive advantage for rail operators
Example: Cost comparison of freight wagon refurbishment
Example: Comparison of availability of reference locomotive
93% +47%
11,2
Adjustment for labor rates
~0,4
Overheads
~4,6
Direct labor
9,2 7,6 1.4
88%
5%
+21%
2.7
Hours worked on wagon:
3.5
4.2
Railroad A
Railroad B
~35
+97%
Materials
Railroad A
Railroad B
~70
Overall, in this example, Railroad A has a cost advantage of 3-4% over Railroad B
Source: Oliver Wyman Open-Book-Benchmarking
© Oliver Wyman www.oliverwyman.com
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Content
Rolling stock maintenance: A major cost factor for rail operators Oliver Wyman approach to reach best-in-class lean rolling stock maintenance How to unlock the potential of maintenance operations through lean management Oliver Wyman qualifications
© Oliver Wyman www.oliverwyman.com
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Objectives of Lean Rolling Stock Maintenance The overall objective of Lean Rolling Stock Maintenance is to reach an optimum between maintenance costs, availability and quality of the fleet
Quality
Optimization of vehicle reliability, security and comfort
Maintenance costs
Vehicle availability
Minimization of personal and material costs
Maximization of vehicle availability for operations
Source: Oliver Wyman
© Oliver Wyman www.oliverwyman.com
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Lean Rolling Stock Maintenance – Overall KPI targets Measurable Key Performance Indicators (KPI) should be the guiding line for lean maintenance optimization
Lean Rolling Stock Maintenance Overall KPI examples
Quality
Vehicle availability
Maintenance costs
Failure rate
Cycle time for interventions
Preventive maintenance
Reliability (MTBF/MDBF)
Delivery times (inbound/outbound)
Curative maintenance
Customer comfort
Response times to failures
Costs of indirect functions
Condition of rolling stock
Downtime due to failures
Assets and facilities
...
…
…
© Oliver Wyman www.oliverwyman.com
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Oliver Wyman lean maintenance approach – Overview Lean Maintenance can be achieved in three stages B
A
C
Maintenance Strategy Setup
Maintenance Process Redesign
Lean Workshop Transformation
Re-definition of maintenance regimes – Modularization – Condition based – Stretching
Redesign of maintenance core processes – Planning and Controlling – Fleet Management – Technical engineering – Repairs – Retrofitting / Modernization – Spare part/Component logistics and procurement
Implementation of lean methods to optimize workshop efficiency – Standardized work – Workplace organisation – Shopfloor management
Scope of activity Workshop footprint Leadership organization and systems Impact on operating costs
Time horizon
2+ years
1 - 2 years
