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Railways in Multiple Supply Chains

A Critical Conversation on Railway & Shipper Relations. Railways in Multiple Supply Chains. Phil C. Ireland Consultant Jexi Inc. Cell: 403-991-3186 Email: phil.ireland@shaw.ca ca.linkedin.com/in/philcireland. Seeing the complete picture matters…. Up close you see….

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Railways in Multiple Supply Chains

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  1. A Critical Conversation on Railway & Shipper Relations Railways in Multiple Supply Chains Phil C. Ireland Consultant Jexi Inc. Cell: 403-991-3186 Email: phil.ireland@shaw.ca ca.linkedin.com/in/philcireland

  2. Seeing the complete picture matters… Up close you see… …Step back and you see Clouds... …Mist From Niagara Falls.

  3. Seeing the complete picture matters… Up close you see… …Step back and you see Endless Dots... …Modern Art!

  4. Seeing the complete picture matters… Up close you see… …Step back and you see A critical route for a customer …One link in the network

  5. 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

  6. Core Railway Design Principals Velocity–faster transits and additional capacity Balance – to drive service reliability Network – addressing total book of business

  7. Continuous Flow Adhering to 3 critical principles creates Continuous Flow 1. Pulling to Demand 2. Harmonizing Cycle Time Link production directly with ability to exit demand – not ability to enter demand Create “conveyor belts” so that every segment of the production line runs at the same speed 3. Establishing Takt Time Establish a regular “heartbeat” to production flow to balance and level all network resources

  8. Network Planning TRAFFIC Intimate understanding of every car/container move BLOCK A packet of cars grouped on common characteristics TRIP PLAN Executable shipment instructions TRAIN One or more blocks grouped together Corridors Yards/Terminals Fleets • Locomotives • Crews • Compounds • Locomotives • Crews • Work-blocks • Inspections/Fuelling • Rail cars Resource Plan The Plan starts with shippers’ needs Deliver the Book of Business

  9. Metrics Pyramid Outputs of the design process Optimized in the design process Many factors need to be carefully managed to create balance and ensure we hit the “sweet spot” On-time performance Trip plan compliance Car velocity Locomotive Productivity ___GTM___ Train miles Key Operating Measures 2ndmeasurement level __RTM__ GTM Fleet size: cars Yard crews & assignments Fleet size: locos Train Crews 1stmeasurement level RTM’s GTM’s Trip time Car miles Train miles Train starts # Handlings # Block Swaps Yard Capabilities Volumes (Demand) Train Schedules Train length Train weight HP/ton Key design parameters

  10. “The Bullwhip Effect” Port Operator Shipping Line 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

  11. Reality of the Challenges

  12. Elements of the Supply Chain 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

  13. Supply Chain Coordination Implement strategies that level and balance demand on the network

  14. Key Message 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”

  15. Thank You! Railways in Multiple Supply Chains Phil C. Ireland Consultant Jexi Inc. Cell: 403-991-3186 Email: phil.ireland@shaw.ca ca.linkedin.com/in/philcireland

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