Damage Prevention/Railroad & Inspection Project Update
History of Project Rick Maul - BNSF
Boxcar Shipment Complaints • Continued compilation of complaints regarding boxcar shipments aired at annual meetings • Lack of common defect codes • Reporting equipment repair needs • Limited technology available • Roll placement identity during loading • Inconsistent inspection processes • Lack of common claim forms • Information collection and retention
Committee Formed To Investigate • Factors that contribute to damage • Where and when damage is occuring • Ways to reduce damage • Line of possession recording method • Systematic inspection and reporting processes • Transport vehicle damage reporting processes
Results of Investigation • Industry awareness and desire to improve is high • Individual members are trying to institute corrective measures • Isolated attempts are being made to improve the situation • Actions are consistent but methods vary greatly – Processes, communication, record retention • Limited ability to participate – Resources, budgets • No broadly coordinated effort
Industry Objectives • Consider adoptable industry standard processes • Identify damage as early as possible in the supply chain process • Begin to process the damage event within 24 hours of awareness • Build a lessons learned capability to identify and reduce the root cause of damage • Minimize the impact on operational performance
Summary & Recommendations • Summary – It is in the best interest of the industry to reduce damage to material – The best way to reduce damage is through a better means of information sharing which leads to improved processes – The needs of the industry can best be served through the establishment of a centralized data repository – Because the industry is so large and involves so many companies any broad solution must be cost effective, easy to implement and have minimal impact on operations
Summary & Recommendations • Recommendations – Form a sub-committee to work with VoIPcare Technologies to: • Develop a prototype system • Identify the appropriate companies to participate in the prototype test period • Oversee the test process and confirm the results • Participate in the delivery of the results following the test period
Features of a Production System • Centralization • Standardization – Format – System Processes • Data collection elements • System Management • Records and reporting • Change Management – Language • Common terms • Integration • User interfaces – Data Storage – Method • Repeatable process • Archival Storage • Information access • Unified Access – Data Security • Statistical Information • Efficiency • Accountability – Streamlined Process – Transactional Process - Capture all • Replacement of manual steps relevant information • Simplified transactions – Event Recording - Time and date – Automated Interfaces stamping • Integration to unique systems – Site Identification - Where event • Fact based interaction occurred • Information in one place – User Identification - Who executed the – Intercompany Collaboration transaction • Common ground for communication
Bob Eckles – VoIPcare Technology Project Update
Project Goals • Prove that automated inspection technology can be deployed simply with minimal disruption to work flow and at a minimal cost • Prove that the inspection and reporting process can be centralized and standardized • Prove that the use of automated inspection technology can improve the overall quality of delivery, reduce damage and streamline damage reporting and claims processing
Setting Up the Test • Established centralized server and communication connections at the VoIPcare data center in Melbourne, FL • Designed and developed the inspection applications • Designed and developed the visualization tiles • Tested, documented and prepared training materials
VoIPcare System
Who Participated • Carriers • Printers –NS –Quebecor –CSX –Quad Graphics • Mill • Publisher –UPM –JC Penney
Inspections Included • Railcar Inspection – Condition of the railcar when delivered for loading • Shipping Inspection – Protective measures utilized • Receiving Inspection – Condition of the load and protective measure performance • Damage Inspection – Identify specific damage encountered
Equipment Inspection • Seven Questions – Is the car useable – Does the door operate properly – Are the door seals intact – Are there holes in the car – Is the floor in good condition – Has the car been swept – Has all dunnage been removed
Visual Representation Are there holes Is the car Are the door Did the door in the car? suitable for seals intact? operate use? correctly? Has all Is the floor in Has the car dunnage been good been swept? removed? condition?
Visibility To Multiple Cars Mill View Mill View Railroad View Condition of delivered cars Status of delivered cars Cars in need of repair Grouped by order Grouped geographically Grouped by order
Updated Visualization
Tests Conducted • UPM to Quebecor • UPM to Quad Graphics – From 10/15/08 to – From 12/22/08 tp 12/02/08 04/17/09 – All paper for JC Penney – All paper for JC Penney projects projects – Shipped 105 railcars – Shipped 36 railcars – 4 people were involved at – 3 people were involved the Mill at the Mill – 5 people were involved at – 1 person was involved at the Printer the printer
Equipment Required • Any type of telephone – Cell, Desk, Pay, Can & String • Access to the Internet – Web Browser (IE, Safari, Mozilla) • No capital investment required
Training Requirements • Training sessions were a maximum of 20 minutes • Operations staff were able to use the system immediately after training • Some participants learned the system without formal training • All users agreed that the system was simple and easy to use
Test Results • UPM to Quebecor • UPM to Quad Graphics – Processed 105 railcars – Processed 36 railcars – 16 were unusable – 1 was unusable • 6 had bad floors – 34 needed to be swept • 12 had bad doors – There were no damaged rolls • 4 had bad seals • 2 had holes – 80 needed to be swept – 26 needed dunnage removed – There were 2 damaged rolls
Proof Of Concept Conclusions • It is technically feasible to implement a standardized data gathering system • There would be no capital expenditures necessary to implement the system • The system could be implemented quickly and easily with minimal impact on operations personnel • Centralized access to information would provide process improvement throughout the supply chain
Feedback So Far Critical to the ongoing survival of the industry Of value if it can improve the damage claim process Could have a very positive impact on damage rates Can help the turn around time for repairs
Revisiting Project Goals • Prove that automated inspection technology can be deployed simply with minimal disruption to work flow and at a minimal cost • Prove that the inspection and reporting process can be centralized and standardized • Prove that the use of automated inspection technology can improve the overall quality of delivery, reduce damage and streamline damage reporting and claims processing
Reducing Damage • Damage to paper can be reduced by: – Establishing accountability – Timely damaged equipment notification to the railroad – Accumulation of relevant data – Six Sigma Attitude • Define, Measure, Analyze, Improve, Control • Gathering and analyzing data about delivery performance over a large range of shipments • Making continuous improvements to processes and procedures
The Next Phase • Expand the number of users and the level of detail in the project • Gather data over a larger number of shipments • Expand the system to a production environment • Working with the proof of concept participants VoIPcare has developed the spec for the next phase of the project
TAPPI Inspection System Features • Real Time Data Collection • Automated Inspection • Automated Claims Processing • Centralized Photo Storage • Automated Notifications • Increased Efficiency • Visual Information
Equipment Inspection Diagram Railcar Fleet Empty Railcars Inspected Railcars Load Rejected Railcar Railcars Equipment Inspection Inspection Results Damage Photos User ID Equipment Number Equipment Equipment Status Inspection Photo Table Customer Archive User Damaged Table Equipment Table Damage Damage Photos Damage Information Information Equipiment Damage Notification
Industry Problems* • Lack of common defect codes • Reporting equipment repair needs • Limited technology available • Inconsistent inspection processes • Lack of common claim forms • Information collection and retention * TAPPI Damage Prevention Committee Report – April 2008
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