Lean Rolling Stock Maintenance

December, 2009
Lean Rolling Stock Maintenance

How to improve efficiency of rolling
stock maintenance operations
C O N F I D E N T I A L | www.oliverwyman.com
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Introductory Remarks
The present document provides insights on Oliver Wymans 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 DInc
Oliver Wyman AG
Tessinerplatz 5
8027 Zrich
Tel.: +41 (1) 208 7749
Mobile: +41 (79) 4212484
joris.dinca@oliverwyman.com
Jochim Wegner
Oliver Wyman Consulting GmbH
Kasernenstr. 69
40213 Dsseldorf
Tel.: +49 (211) 8987 694
Mobile: +49 (151) 21225386
jochim.wegner@oliverwyman.com

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

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 fleets lifecycle
High-speed
Source: Oliver Wyman

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

Content

Oliver Wyman approach to reach best-in-class lean rolling stock maintenance

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

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 lean maintenance approach Overview

Lean Maintenance can be achieved in three stages
B
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
<1 year

Maintenance Strategy Setup

Four areas have to be addressed to define the overall rolling stock maintenance setup
Re-definition of maintenance regimes

A
Transition to
modularized
maintenance regimes
Maintenance Regime
A modularized maintenance regime helps to optimize downtime of a train and introduce
condition based maintenance
Non modularized maintenance regimes
Modularized maintenance regime
Freight traffic traction
Freight traffic traction
140k km
F2
35k km
F2
5k km
F1
F0
F0
SM 7
SM 6
SM 3
SM 6
SM 7
SM 2
SM 5
SM 2
SM 5
SM 2
SM 1
SM 4
SM 1
SM 4
SM 1
Natural train
downtime
Driven by kilometric performance
Service modules to use natural down times
Avoidance of short term control due to

extensive preventive maintenance
Transition to flexible service capacities through

qualification on as many locations as possible
Synchronization of circulation and maintenance

often not possible
Tailored modules by km / time / erosion / utilization
Scope of activity
A
Condition based
maintenance
Workshop 1
Preventive Maintenance
Corrective Maintenance
Modifications
Small
Exam
Med.
Exam
Diagno
stics
Light
Light
Heavy
Refurbishment
Heavy
Outside
Workshop 5
()
Cleaning
Inside
()
Workshop 3
Workshop 4
Overhauls
()
Workshop 2
Stretching of
maintenance intervals
Depth of maintenance
operations
Light maintenance
Heavy maintenance
Refurbishment
Cleaning
Scope of Service performed internally by workshop

Maintenance is split across several facilities
Types of rolling stock
Full scope
Limited scope
Workshop footprint
A
Leadership organization and systems

Optimization of
workshop footprint
balancing
Cost of locations
Transfer cost of
rolling stock
Transfer time
needed
Footprint
Location planning needs to take trade-off between transfer cost of rolling stock
and cost of location into consideration
Location planning for maintenance cites
Example ICE-T
Trade-Off for Location Optimization

Location of trains
in downtimes and
location of trains
with failures
Hamburg
Location of trains
with failures
Berlin
Dresden
Transfer cost for

rolling stock
Leipzig
Wiesbaden
Frankfurt
Saarbrcken
33
Oliver W yman www.oliverwyman.com
12
Optimized
location concept
Munich
Cost of location
(direct and
indirect costs)
Definition and
implementation of
leadership and KPI
system
Leadership Systems
An integrated KPI system ensures appropriateness and quality control in maintenance
planning and execution
Performance indicators for maintenance planning and execution
Performance Indicators
Maintenance
costs
Frequency of
investigation
24/7
Peak times

Availability
Quality
Overall maintenance
costs per train-km
Fleet availability
Mean time / distance

between Failures
Vehicle maintenance
costs per 1.000 km
Vehicle availability
Absolute failure
frequency per 1.000
train km
Parts and labor costs

per replacement
Spare part
availability
Refurbishment quota
ICE-T depot
Oliver W yman www.oliverwyman.com
13
14

10
Maintenance Process Redesign

Process redesign for maintenance encompasses direct maintenance related processes
and related planning and supporting processes
Illustrative
Core processes
1.0 Integrated Planning and Controlling
1.1 Vehicle support and maintenance standards
1.2 Capacity planning and controlling
1.3 Vehicle transfer and return
1.4 Spare parts Purchase / Logistics
2.0 Fleet Maintenance
2.1 Task preparation
2.2 Plant planning /
controlling
2.3 Periodical work
2.4 Repairs
2.5 Cleaning / vehicle
preparation
3.0 Modernization &

retrofitting
controlling
3.3 Engineering
3.4 Modernization
3.5 Retrofit
4.0 Component manufacturing and refurbishment

controlling
4.3 Component
manufacturing
4.4 Component
refurbishment
5.0 Support functions

5.1 Finance and Controlling
5.2 IT
5.3 QSE
5.4 Human Resources

11
Lean Workshop Transformation Objective

Lean Workshop Transformation eliminates the root causes creating inefficiencies in the
workshops by creating a higher level of industrialization of the workshop
Typical issues creating inefficiencies in a rolling
stock maintenance workshop (examples)
Objective of Lean Workshop Transformation
Maintenance tasks are not standardized

- Inadequate checklists or work instructions
- Lack of standards for tools and locations
- Missing standard times for tasks
Workshop organization not performance driven
- Lack of performance management
- Supervisors lack information about job status
- No sharing of best practices
Insufficient planning and preparation
- Repairs are given the highest priority and interrupt
scheduled work
- Scheduled maintenance tasks are started before all
parts and equipments are ready
Industrialization of the workshop

- More standards
- Higher efficiency
Infrastructure constraints
- Tracks are not equipped in a standard way
- Teams have to wait for a shared equipment to
become available
Spare parts logistics
- Long lead times for spare parts
- Repairables logistics not optimized

12
Lean Workshop Transformation Foundations

Industrialization is achieved by applying Lean and Six Sigma concepts in 3 key areas:
Work standardization, Workplace organization and Shopfloor management
Lean Manufacturing
Six Sigma
Lean system: delivery of products

and services matched to customer
needs
Six sigma system: reduce

variation and defects to improve
quality
Lean concepts: eliminating

waste, i. e. anything not adding
value to the product or the
customer, and improving process
flow
Six sigma concepts: reduce

process variation to eliminate
defects, while ensuring the
organization is focused on the
voice of the customer to
differentiate products and services
Lean approach: a total

organizational and cultural
transformation
Lean Workshop
Transformation
3 focus areas:
Work standardization
Workplace organization
Six sigma approach: measure

defects, analyze the root cause,
systematically improve the system
and ensure sustainment of the
gain

13
Lean Workshop Transformation Overview

Our experience shows that these 3 areas are key pillars to drive Lean Workshop
Transformation
Objective
Results
Work standardization
Workplace organization
Reduce variation in preventive

and curative maintenance tasks
to improve efficiency and quality
Organize workplace in the most

efficient manner possible
Establish adequate planning and

communication on the shopfloor
Stabilized, repeatable
maintenance processes
Defined standards in terms of

cleanliness and orderliness (A
place for every tool and every
tool at its place)
Quicker exchange of
information on the shopfloor
KPI-based process to ensure

sustainability
Continuous improvement on
the shopfloor
Reduced throughput time

Increased quality (elimination
of sources of error)
Increased flexibility in the
deployment of employees
Accelerated feedback to work

order planning teams

14
Lean Workshop Transformation Toolbox

Lean Workshop Transformation uses a toolbox combining traditional and Lean Six
Sigma methods and tools
Traditional Process Improvement tools
Lean tools
Checklists
PDCA
Pareto Charts
5S
Flowcharts/Process Maps
Standardized work
Cause-Effect Diagram (Ishikawa diagram)
Level production
Histogram
Value Stream Mapping
Correlation
Total Productive Maintenance (TPM)
Control Chart
Visual Controls
Problem solving (5 Why, A3 boards,)
Pull/Kanban Systems
Continuous improvement process

Lean Workshop
Transformation
Organization and Planning tools
Statistical tools
Vision, Mission, Values
Gage R&R (MSA)
Hoshin Planning (Policy deployment)
Process Capability
Roles and responsibilities
Data Collection Plan
Go see it Management system
Hypothesis Testing
Empowered workforce
Multiple Regression
Flexible workforce
Design of Experiments
Quality circles/Quality function deployment
Modeling
Supplier development
Statistical Process Control
CTQ/Voice of the Customer (Kano model)
Cross-Functional Mapping

15
Lean Workshop Transformation Oliver Wyman Lean Curve

Lean tools used will depend on the organizations current lean maturity
Lean Maturity levels and corresponding lean focus/tools
Position of best-in-class
workshops in the rolling
stock maintenance industry
Realized
improvements
Lean maturity
Position of average
workshops in the rolling
stock maintenance industry
Maturity level
1
Transformation focus
Organizational
development
Discipline building
Lean tool use
Continuous improvement
Methods
and Tools
Vision, Mission, Values
Hoshin Planning (Policy

Deployment)
Visual controls
Quality circles
Roles and responsibilities

Core competencies linked
to performance
PDCA
Empowered workforce
Flexible workforce
Go see it Management
System
Problem solving
5S
Error proofing (EP)
process
Feedback and
communication system
Quick changeover (QCO)
PD linkage via DFA/DFM

and QFD
Pull/Kanban systems
Supplier development
Standardized work
Andon
Level production
1-piece-flow
Value Stream Mapping
Just-in-time (JIT)
Total Productive
Maintenance (TPM)
Statistical process control


16
Lean Workshop Transformation Standardized work

Standardized work has several levels of excellence, ranging from basic checklists for a
complete check to standard worksheets for every single task of this check
Standardized
work
Basic Checklist
Level 1
Contents
Optimized checklist with

maintenance tasks
Advanced Checklist
Level 2
Optimized checklist
including
Tools used and locations
Material used
Standard time for entire
check
Standardization Missing tasks and existing

and optimization standards included in
levers
checklist
Improved coordination
between different tasks
(e. g. mechanical and
electrical)
Improved task preparation

Reduced movements and
search time
Workplace
organization
Shopfloor
management
Standard worksheet
For each task:
Detailed description of how
the task is carried out
Standard time for each step
Visualization of each task
Safety equipment
Tool
Material
Reduced variance in
carrying out a certain task
Maintaining a predefined
quality level
Workers perform each task
in the most efficient way
Optimized sequence of
maintenance tasks

17
Lean Workshop Transformation Standardized work

In order to standardize work, the actual steps of maintenance tasks are recorded and
optimized with the maintenance teams
Standardized
work
Workplace
organization
Shopfloor
management
Oliver Wyman case example
Recorded sequence of I2 maintenance level

Excerpt
Pos.Nr. Pos. #
Aktivitt
Check- Nr.
MA
-12
1 Werkzeug Vorbereiten
6.1.1.1 -1
13
1 Kompressor Sicht- und Funktionsprfung Luftockner
5 -1
14
1 Luftgerstschrank: Absperrhne prfen
-1 Filter vom Magazine holen (unvollstndige Bon)
-Unterbrechung wegen 1503 Reparatur
-1 Werkzeug Vorbereiten
1 Alte Filter ausbauen Sichtprfung, Entwsserung
6.1.1.1.-1 Filter aus Lager holen
6.1.1.2
1 Neue Filter einbauen
-2 Ersatzteile fr I2 aus dem Wartungspaket fr I3 ausgesucht
-Pause
-1 Abklrung Checkliste mit Baureihenbetreuer; Checkliste Eintragen
-2 Materialbeschaffung
-1 Absprache bezglich Pannenbehebung
-1 Werkzeug vorbereiten
-2 Absprache mit Vorarbeiter
-1 Materialbeschaffung
-1 Turbolader reparieren
6.2.1
1 Hydraulikl wechseln
6.2
1 lfilter ausbauen, Schleuderfilter auslaufen lassen
6.2
1 Hydrauliklfilter abbauen
-Beobachtung unterbrochen wegen Reparatur 1817
6.2
Filterspritzwanne Hydrostatik
6.2
l fllen
6.2
2 Einbau lfilter
6.2
1 Einfllen Hydrostatikl
-1 Checkliste Eintragen
3.5.1
1 Dieselfilter austauschen
3.5.1
1 Dieselfilter entlften
-1 Checkliste nachsehen
1.6.8-2
2 Khl- und Washanlage Flssigkeit holen
1.6.8-2
1 Khl- und Washanlage Flssigkeit holen + fllen
-1 EPI holen (Helm)
2
2 Sichtprfung Fahrwerk
2.5
1 Sichtprfung Unterbau + alle Schalter und Steckdosen
-Pause
-1 Werkzeug vorbereiten (Radmeung)
2.4.-2
2 Radsatz vermessen
-1 Datenblatt Radsatz abgeben
-1 Checkliste eintragen
-1 Mewerkzeug zurck bringen
-1 Schmierpumpe holen
1.1.2.1.
1 Trschlsser und Scharnieren schmieren
-1 Schmierpumpe zurck bringen
-1 Checkliste eintragen + lesen
-1 EPI und Werkzeug weg rumen
# of workers
per task
Task
07:00
08:00
Issues
09:00
10:00
11:00
12:00
13:00
14:00
Visualization of actual
sequence
15:00
16:00
Dauer
(min)
5
10
10
5
25
5
10
10
10
10
15
10
30
20
5
5
10
20
15
15
15
290
15
35
10
5
20
30
20
10
10
10
5
10
5
15
10
30
10
25
5
15
5
5
15
5
5
20
Sequence of PM tasks not

optimized, e. g.
Oil purge valve only opened at
the beginning of oil filter
change lasts several hours
Brake test delays underbody
grease
PM tasks have been fully
interrupted due to repairs on
another locomotive
Frequent and lengthy
movements by workers to get
tools or parts
Duration
Checklist
references

18
Lean Workshop Transformation Workplace organization

Workplace organization is optimized using the 5S method - a standard process involving
a systematic review of all items and installations in the work area using 5S cards
Standardized
work
Workplace
organization
Shopfloor
management
5S implementation process
Sort
Straighten
Shine
Standardize
Sustain
Implementation stages
Systematic review of all items and

installations in the pilot area using
5S cards
5S card
Identification of usage type and

frequency for each item
Definition of storage locations
Organization of workplace
Cleaning of area
Disposal of unnecessary items
Deployment of visual tools
Clarification of responsibilities for
maintenance and inspection
Review of delivered results
Definition of checklist for area
Implementation of KPI-based
continuous improvement process
Tagging of
equipment and
material using 5S
cards
Organization of
workplace

19
Lean Workshop Transformation Workplace organization

Typically, a pilot area will serve as a reference for 5S roll-out to the entire workshop
Standardized
work
Workplace
organization
Shopfloor
management
After (Examples)
Before (Examples)
Cleanliness/
orderliness
Workplace
organization
Tools and materials

are not stored in
specified locations
A place for everything

and everything at its
place
Cleanliness variable
Visual management
standards
Tools are stored

without system
Use of shadow boards

to ensure tooling is
complete
No visual clues
Cabinets in the work

area
Insufficiently marked
Work benches
insufficient and used
as shelves
Sorting and systematic

storing of parts/tools
Creation of additional
workspace in the work
area
Standards are kept through implementation of 5S checklists and KPI-based 5S audits


20
Lean Workshop Transformation Shopfloor management

Efficient shopfloor management relies on effective communication by maintenance
managers and team leaders
Standardized
work
Workplace
organization
Shopfloor
management
Efficient shopfloor management
Principles of effective communication

Communication should be structured,
disciplined and frequent
All meetings held on the shop floor via
information centers/boards and or team
rooms
One-on-one communication regarding
results of a process or other audit take
place at the point of cause (POC) or
location of the audit with the appropriate
employees
In effective meetings only relevant
information/issues based on actions /
feedback and accurate data are discussed
Rules for visual displays

All information and data are kept on simple,
visual displays (e. g. boards), which are
Completed in a timely manner
Updated by hand whenever possible
Reviewed regularly by key personnel
Characteristics of simple, user-friendly
visual controls:
Current status communicated at a glance
Prompt go and see activity
Initiate containment, countermeasure and
support activity

21
Lean Workshop Transformation Shopfloor management

Ultimately, a coordinated set of daily meetings involves all workshop levels from the
worker on the shopfloor to the workshop manager
Standardized
work
Who?
Workshop
manager
Area
manager
Supervisor
Teamleader
What?
When?
Where
Key points from previous shift

Action relevant to Group/Team
Specific trends for Group/Team
Shift schedule
Safety check
Safety
Quality
Kaizen
Worker
Shopfloor
management
Purpose
Confirmation of previous shift results
Trend analysis
Review actions taken and results
Next steps
Review shift report

Review performance trends
Review actions
Review previous shift performance
Review trends
Set action
Review outstanding tasks
Review resources capacity
Workplace
organization
Infocenter
Before
each
shift
Group area
Team area
Communication of shift requirements

Communication of key points from previous shift
Consensus on actions for coming shift
Communication of trends
Prioritization of tasks
Consistent dialogue with group
Overview of key points from previous shift
Create awareness on coming actions
Create awareness on Group metrics and actions
Safety issues
Worker involvement
Communication of key points specific to team
Worker input to continuous improvement
process
Develop ownership and accountability

22
Lean Workshop Transformation - Effects

Lean addresses all the key value levers of an organization to optimize operational
performance and economic results
Value levers for workshop operations
Illustrative
Key results
Hours per
maintenance
Productivity increase
by 15% - 40%
Personnel
Hourly rate
COGS
Reduced material usage
Material
Costs
Limited but effective

support resources
requirements
SG&A
EBIT
Additional 3rd party

maintenance and
operations revenue
Turnover
ROCE1
Inventory
Working
Capital
Receivables
Liabilities
Capital
employed
Reduced capital costs

through better inventory
management and
pooling
Increased availability of
critical parts
Infrastructure
Reduced infrastructure
costs (increased OEE)
Reduced CAPEX
requirements
Rolling stock
Increased rolling stock

availability by 3-4%
Reduced CAPEX
requirements
Fixed assets
Overall ROCE
improvement
of +5 pts
1 Return on capital employed


23
Lean Workshop Transformation Sustainability

Short term Lean Workshop Transformation should be combined with a longer term Lean
culture change to ensure sustainable productivity improvements
Performance curve of Lean Workshop Transformation projects
Lean Workshop Transformation methods
Workshop
Productivity
(indexed)
Lean principles, benchmarks and

best practices
Quick short term improvements
Optimization of processes and
structure
Productivity increasing measures
Change Management/Sustainability
Proven methodology and coaching
Sustainable Lean Workshop
Transformation
Productivity
with CIP/ Lean
culture change
125
Lean culture
change effect
Productivity
without CIP/ Lean
culture change
100
Lean Workshop Transformation
Continuous improvement/
Lean culture change
Time

24
Content

Oliver Wyman approach to efficient rolling stock maintenance

25
Lean Workshop Transformation Principles

To achieve sustainable results, Lean Workshop Transformation implements a process of
top-down definition of KPIs and goals and bottom-up generation of ideas
Contents
RS
manager
up
mtto
Bo
Project sponsor
To p
- do
wn
Roles and organization levels
Workshop
manager
Core team
KPIs and
targets
Maintenance
manager
Project
team
Maintenance teams
Problem
solving
process
Top-down definition of KPIs, targets and

approach
Definition of issues
Decisions (top level of escalation process)
Consolidation of KPIs and targets
(catch ball principle)
Implementation responsibility (escalation)
Support of (pilot) areas
Follow-up on improvements (KPI)
Check effectiveness of implemented measures
Escalation, in case of insufficient support
Bottom-up workshops to reach KPI-targets

Generation of improvement ideas
Implementation of improvements
Escalation, in case of insufficient support

26
Lean Workshop Transformation Pilot Generic approach

Typical duration of a pilot phase is 12 weeks, including a 2 weeks quick scan
Lean Workshop Transformation Pilot

Lean workshop loop
2 weeks1
1
Quick scan to
identify pilot
workshop area
Quick assessment of
workshop areas
Standardized work
Workplace
organization
Shopfloor
management
Comparison of relative
maturity
Selection of pilot
workshop area
1 week
2
Definition of
priority topics,
goals and KPIs
Definition of priority
topics for Lean
Transformation
Assessment of
improvement goals
Definition of
corresponding KPI
improvements
Priority topics and

KPIs defined
9 weeks
3
Lean workshops
4
Specific workshops
with project teams for
each priority area:
Task explanation
Observation/Issue
analysis
Action definition
Implementation
launch
Actions planned and

implementation launched
Implementation
Implementation of
longer term actions
Follow-up on actions
through PDCA action
plan
Actions implemented/
1 Depends on the number of workshop areas to scan (~2 days per area)

27

Example Lean Transformation approach
Standardized work, 5S, Shopfloor management and KPIs were implemented in a pilot
area of the client workshop using a 3-step approach
Lean Transformation
Step 1
Lean Transformation
Step 2
Standardized work Level 1:

Fully completed checklists
Coordinated electrical/
mechanical tasks
Optimized task sequence

Tools
Materials
Standard time for complete
maintenance task
Lean Transformation
Step 3
Optimization of each individual
task
Standard worksheets with
standard time for each task
Standardized work
Workplace organization and
cleanliness
5S
5S implementation based on
maintenance tasks
5S checklist and KPI to keep
standard
Capacity and resource planning
Shopfloor management & KPIs
Implementation of two meetings

per shift
Implementation of work, resource
and track planning
Definition of KPI set

28
Success factors for implementation

Clear targets and management leadership are key success factors for Lean
Maintenance Transformation
Clear targets and responsibilities for improvement

measures
Management buy-in,
commitment and
leadership
Transparency on
goals and methods
Trust in project
success from all
stakeholders, incl.
shopfloor workers
Fast execution of
improvements to
kick-off lean culture
Openness on performance gaps and related root causes

(no sacred cows), willingness to change
Management implication and leadership in order to
change things quickly
Success
factors
Implementation oriented approach quickly generating
visible results
Transparent communication within the project and to all
stakeholders
Early identification and mitigation of implementation
obstacles

29
Quick Lean Maintenance Operations Assessment

Have you implemented lean maintenance basics?
Quick Lean Maintenance Assessment Scorecard
Lean Temperature Check
Practice
Implementation level
Standardized
work
Not (0)
Partly (1)
Fully (2)
PM is carried out using comprehensive checklists as a reference

standard times are defined for the whole checklist
20
For key tasks, standard worksheets show the optimal way to

perform the task. All workers are trained to the optimal method
18
For main fault categories, curative interventions (inspection,

repair) are standardized (use of fault trees,)
16
Clear separation of team spaces and workplace

Workplace
organization
14
12
Workplace is always clean and orderly, tools are kept at their

designated places, materials and parts are stored away
10
Visual management standards (floor and installation markings,

tags,) are defined and implemented everywhere
Youve implemented a lot of

basic practices, but can still
improve on those
Youve started with lean
practices, but could benefit
from a complete roll-out
5S checklist, KPI and audit process exist to sustain workplace

organization standards
Shopfloor
management
Congratulations, you are

ready to continue with
sophisticated lean methods
6
4
Team meetings, lead by supervisors, take place at least once per

shift on the shopfloor to perform resources and work planning
Visual displays, updated daily, with work and resource planning,

SQACM1 KPIs and PDCA action plan efficiently support meetings
Lean maintenance practices

are not implemented or seem
to be very weak only call for
action needed
All unsolvable issues at one level are escalated, using the correct
escalation process, and are resolved in due time
Score2
x / 20
1 Safety, Quality, Availability, Costs, Morale

2 Assess your implementation level (not, partly or fully implemented) for each of the 10 practices, then sum up corresponding points (0 = not, 1 = partly, 2 = fully implemented)

30
Content

Oliver Wyman approach to efficient rolling stock maintenance

31
Qualifications of Oliver Wyman

Oliver Wyman disposes of comprehensive experience in the fleet management and lean
maintenance of railway companies
1
Comprehensive
experience in the
railway industry
Oliver Wyman is one of the leading consulting firms in the transportation

industry with in-depth knowledge of the rail industry and its relevant drivers
along the entire value chain
2
Extensive experience in
rolling stock maintenance
optimization
Over the past years, we have accumulated significant experience in the field of
rolling stock maintenance through projects with many leading European and
international rail operators
3
Lean maintenance
competences
Oliver Wymans Transportation Team disposes of distinct (also railway-related)

experience and in-depth know-how in the area of maintenance, fleet / asset
management, sourcing, and resource optimization adapting lean principles

32

38

Lean Rolling Stock Maintenance

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December, 2009

Lean Rolling Stock Maintenance

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Rolling stock maintenance: A major cost factor for rail operators

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Rolling Stock Maintenance: A major cost factor for Rail Operators

Besides energy and depreciation,

Source: Oliver Wyman

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Example: Cost comparison of freight

Example: Comparison of availability of

Source: Oliver Wyman Open-Book-Benchmarking

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Rolling stock maintenance: A major cost factor for rail operators

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Objectives of Lean Rolling Stock Maintenance

Source: Oliver Wyman

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Lean Rolling Stock Maintenance Overall KPI targets

Lean Rolling Stock Maintenance

Cycle time for

Downtime due to failures

Assets and facilities

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Oliver Wyman lean maintenance approach Overview

Source: Oliver Wyman

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Maintenance Strategy Setup

Re-definition of maintenance regimes

Modularized maintenance regime

Freight traffic traction

Freight traffic traction

Driven by kilometric performance

Service modules to use natural down times

Avoidance of short term control due to

Transition to flexible service capacities through

Synchronization of circulation and maintenance

Tailored modules by km / time / erosion / utilization

Scope of Service performed internally by workshop

Types of rolling stock

Source: Oliver Wyman

Leadership organization and systems

Trade-Off for Location Optimization

Transfer cost for

Oliver W yman www.oliverwyman.com

Oliver Wyman www.oliverwyman.com

Mean time / distance

Parts and labor costs

Oliver W yman www.oliverwyman.com

Oliver Wyman www.oliverwyman.com

Source: Oliver Wyman

Oliver Wyman www.oliverwyman.com

FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales

Maintenance Process Redesign