Framework for Railcar Maintenance Management

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Framework for Railcar Maintenance Management

• Philosophies of Managing Railcar Maintenance
• Ken Henman

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Factors Driving Maintenance Management Philosophy

• Goals
• Responsibilities of Possession
• Resources and Management
• Types of Maintenance

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Goals

• Customer satisfaction
• Customer Supplier relationship
• External and internal- formal and informal
• Business goals
• Whats critical to business operations and
  success
• Safety
• Control liabilities and loss

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Customer Satisfaction

• Customer - Supplier Relationship
• External Customers, sales
• Formal
• Service according to requirements
• Informal
• Meeting unexpected needs
• Internal Customers, supply side
• Formal
• Efficient operations meeting business goals
• Informal
• Relationships nurtured within organization

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Business Goals

• Whats critical to business operations and
  success
• Budgetary
• Rollover with allowance or-?
• Justified by condition based
• Cost cutting based
• Performance based
• Viewed as contributor to profitability
• Controllable leading to efficient capital
  planning
• Balanced by maintenance costs/replacement costs

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Business Goals

• Asset preservation
• Sustained asset value
• Sustained asset function
• Opportunity loss, mechanical cost to sales loss
• Reliability, maintenance viewed as a competitive
  advantage
• Improved reliability will reduce cost, but
  reduced cost will not improve reliability
• Value, does the equipment provide consistent
  service value and sustained asset value?

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Safety

• Control of Liabilities and Loss
• Personal injury
• Workmens compensation record
• Property damage
• Accident/incident record
• Effect on customer supplier relationship
• Avoidance or correction, proactive or reactive

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Balance of Goals

• Balance of all with key performance indicators
• Measuring effectiveness - Reliability
• To budget
• Repair cost ratio, AAR to contractor
• Customer satisfaction
• External and internal, formal and informal
• Business goals
• Whats critical to business operations and
  success
• Sustained value and function
• Safety
• Control liabilities and loss

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Responsibilities of Possession- Ownership

• Total responsibility
• Maintenance cost
• Mechanical performance
• Sustained asset value, ROA
• Control of utilization
• Responsible for all maintenance decisions-
  includes reliability, safety, sustained value and
  the net results

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Responsibilities of Possession- Net Lease

• Total responsibility within lease parameters
• Maintenance cost
• Mechanical performance
• Lessee controls utilization
• Sustaining asset value is enforced at lease
  termination
• Must meet the requirements of lease language at
  lease termination
• Responsible for all maintenance decisions-
  includes reliability, safety, sustained value and
  the net results

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Responsibilities of Possession- Full Service Lease

• Responsibilities and control reduced
• Dependent on leasing company within lease
  parameters
• Lessee controls utilization not affected by
  mechanical issues
• Must meet the requirements of lease language at
  lease termination
• Limited responsibility and control of maintenance
  decisions, reliability, safety and the net results

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Resources and Management

• Staff Experience
• Maintenance staffs level of experience and
  capabilities
• Knowledge of performance issues
• Knowledge of industry initiatives
• Interpretation of data/information
• Ability to make proactive decisions
• Available time

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Resources and Management

• Outsourcing, third party resource
• Supplements scarce internal resources
• Data management systems
• Technical expertise
• Current with industry initiatives
• Consulting
• Trending analysis
• Interpretation and recommendations
• Familiar benchmarks, KPIs
• Performance driven by customer satisfaction
• Specialized service with partnership for success

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Resources and Management

• Data, past tense measure of reliability
• Repair History
• Quality of data
• Accessibility
• Manageability
• Interpretation and trending analysis
• Performance History
• Delivery performance
• Issues reported during loading and unloading
• In service bad order records

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Resources and Management

• Car Health Information, present tense resource
• Condition evaluation
• Visual inspection
• Periodic and measured to baseline
• Historical trending
• Technology Driven
• ATSI-EHMS-InteRRIS
• What is technology telling you about your car?
• Accessibility
• Manageability
• Interpretation and trending analysis

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Resources and Management

• Maintenance logistics
• Availability of equipment
• Planned or unplanned out-of-service
• Availability of repair facility
• Schedule flexibility
• Capable and qualified
• Cost effective
• Scheduling efficiency
• Cost control and improved reliability

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Types of Maintenance

• Corrective Maintenance- Status Quo
• Simple, requires no scheduled maintenance
  strategy or technical expertise
• Reactive, efficient repair of failures
• Maximizes component life
• Unplanned out-of-service with opportunity loss
• Short notice, with extended out-of-service
• Unknown and uncontrolled cost, hard to budget for
• Breakdown maintenance generally performed by
  railroads
• No root cause analysis
• Excessive loss due to poor reliability/utilization
  
• Cost of Doing Nothing

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Types of Maintenance

• Periodic Maintenance- Time or Mileage Based
• Opportunity for condition evaluation, baseline /
  periodic
• Condition evaluation -opportunity to become
  proactive
• Initially generic and evolves to a focused scope
• Planned at regular intervals and scheduled easily
• Lacks evidence of need
• May have inefficient and unpredictable results,
  too early-too late
• Basic PM can be historically budgeted, but
  opportunity remains for variance
• Thorough PM tends to be expensive, tends to
  over-maintain
• Risk of unexpected failure remains

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Types of Maintenance

• Preventative Maintenance
• Proactive philosophy evolved from periodic
  maintenance
• Result of condition evaluations and anticipating
  failure
• Can be time and/or mileage based
• Dependent on quality of car health information
• Dependent on trending analysis and anticipating
  
• Root cause determination reduces future exposure
• Planned out-of-service, can be scheduled within
  reason
• Focused on major components, flexible for other
• Provides remedy anticipating failure
• Reduces excessive out-of-service time
• Inefficient planning shortens component life cycle

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Types of Maintenance

• Predictive Maintenance
• Proactive philosophy evolved from periodic
  maintenance
• Result of condition analysis, prediction of
  failure
• Dependent on quality of car health information
• Dependent on accurate interpretation and analysis
• Requires technical expertise
• Planned out-of-service, easily scheduled, within
  reason
• Focus on major components, flexible for other
• Cost efficient, provides remedy before failure
• Poor planning may not allow maximization of
  individual component life
• Dependable, but needs proven for acceptance

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Developing a Maintenance Philosophy

• Assessment of all of the above factors
• Weight of each factor on desired results
• Combination and balance of all to meet goals

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Summary

• Developing a maintenance philosophy
• Understand and set goals
• Understand responsibilities of possession
• Evaluate and manage resources
• Evaluate the information, past and present tense
• Develop an informed opinion and plan
• Select maintenance type or types
• Logistics, coordinate equipment to repair
  facility
• Measure effectiveness, adjust as needed
• Combination and balance of all to meet goals