Project - Railroad

The railroad and its support industries have proven to be a harsh environment for equipment. Often, the actual or realized economic useful lifecycle of railroad support assets are significantly less than the economic assumptions used to justify the acquisition. Unfortunately, these realities are often not communicated to the C-level, where the process began. This often reduces asset uptime or availability while skyrocketing maintenance costs resulting in a significant uptick in the asset operating costs per hour matrix.

The Challenge

Identifying all potentially effected units within the predefined asset class. Conduct a sampling inspection and analysis of the defined project parameters. Work within the existing financial envelope with limited resources. Develop a workaround to refresh the assets without significantly effecting the CAPEX.

Project Solutions

  • Project Solution 1

    Developed an analysis matrix to measure all effectors associated with operating and ownership of the asset class.

  • Project Solution 2

    Implemented a customized 8-R program with a modified timing strategy designed to address the worst offenders first then rotate assets through the program at scheduled intervals based on condition.

  • Project Solution 3

    Created an alternative third-party financing solution that incorporated an outsourced preventative maintenance solution.

  • Project Solution 4

    Reduced overall operating costs per hour. Decreased dependency on expensive short-term rental units. Altered the maintenance strategy from reactive to proactive. Reduced the size of the fleet while minimizing client’s property tax obligation.

Project Completion 83%
Customer Satisfaction 100%
* Reduced OPEX 22%
Asset Utilization Improvement 31%
Asset Uptime Improvement 36%
Asset ROI Improvement 31%

* OPEX, as used in this graph, is limited to the assets defined within the project.

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