Value Analysis Case Study: Rail Road Turnout Process ... · PDF file1 Value Analysis Case...

1

Value Analysis Case Study: Rail Road Turnout Process & Greenfield Facility2012 Canadian Society of Value Analysis (CSVA) Conference

2© Argo, Inc.www.argoconsulting.com

What is a Turnout?

Double Crossover

Left HandCrossover

Right HandCrossoverFrog Crossing

Under 30°Equilateral

TurnoutThree-way

Turnout

Straight Crossing

Left Hand Turnout

Right Hand Turnout

Turnouts are constructed in a manufacturing facility in order to achieve the required high tolerances.


What is a Frog?


Setting the Stage


Planned Design

Mfg. Facility ~50,000 Square FeetOverhead CraneThree Through Tracks


Project Objectives

Three project objectives were to:

Assess existing turnout manufacturing sitesAssess existing turnout manufacturing sites1.

Create potential future state scenariosCreate potential future state scenarios2.

Propose options to save CapExPropose options to save CapEx3.


Turnout Facility

Current turnout process is a known process in the railroad industry but it is inefficient with safety and ergonomic issues.

Rails

Material Storage

Material Storage

Material S

torage

Tru

ck

Train CarsTrain Cars


Approach – Job Plan

Information

Function

Creative

Evaluate

Development

Presentation


Approach

A key to the success of this project was to view it from both an Opex and Capex point of view.

• Often overlooked• Operating costs exceed

capex costs

• Often overlooked• Operating costs exceed

capex costs

• Initial investment • Important because it requires

cash flow now

• Initial investment • Important because it requires

cash flow now

OpExOpEx CapExCapEx

• Capital investments are solid & current cash flow is utilized effectively• Operational expenses in the long-term are minimized

• Capital investments are solid & current cash flow is utilized effectively• Operational expenses in the long-term are minimized

Synergies of Taking into Account BothSynergies of Taking into Account Both

VS.


Industrial Engineering Studies

A series of industrial engineering studies was performed.

13

34

44

45

1

P

P

5 6 496

10

27

39

33

11

12 2

335

36

38

4 7 825

7 9 20

41

222

1 35

36 3

77

26

2 26

1

28

291

40 3

9

P

P

PP

P

• Pails• Steps• Crew

LayoutLayout

Build

InspectInspect

LoadLoad

Material FlowMaterial Flow

Process StepsProcess Steps

Cycle Time vs. Takt TimeCycle Time vs. Takt Time

Process LayoutProcess Layout

Process BuildProcess Build

Current Assembly PracticesCurrent Assembly Practices

Parts Preparation/ PresentationParts Preparation/ Presentation

Tool Preparation/ PresentationTool Preparation/ Presentation

ErgonomicsErgonomics

SafetySafety


Turnout Assembly Process

Material Storage

Placing Material

Verification

Ties

Plates

Rails

Clips

Spikes Material Storage

Stage Pallets

Stage Material

Gauging Drill & Spike

Attach Clips

Stage Clips / Spikes

Inspect

In gondola oron truck

Dis-assemble

InspectionStorage Waiting/QueuingTransport Operation


Crane Move to Gondola


Customer FAST Diagram

Build Facility

Produce Turnout

Assure Dependability

Assure Convenience

Satisfy Stakeholder

Attract Stakeholder

Produce Panels

Assign Area

Supporting or Enhancing Functions

Sco

pe

Line

Sco

pe

Line

Basic Functions

HOW WHY

Facilitate Parking Access

Provide Waiting Area

Facilitate Expansion

Secure Facility

Purchase Components

Provide Multi Skilled Labor

Minimize Storage Distance

Minimize Parking Distance

Shelter Operator

Manage WasteProduce Cross Over &

Derailment

Purchase Tooling

Refrigerate Building

Provide Amenities

(*)

(*)

Satisfy Stakeholder

Attract Stakeholder

Automate Tasks

Provide Alternative

Energy Source

Enhance Revenue Sell Turnout

Improve Safety

Improve Ergonomics


Technical FAST

Deliver Cargo

Divert Load

Move Parts

Improve Safety Enhance Lifetime

Project Objective

Sco

pe L

ine

Basic Function

HOW WHY

Transfer Load

Position PartsFacilitate Transportation

Facilitate Assembly

Maintain Car

Sco

pe L

ine

One Time Function All Time Function

High Order Function

Assumed Function

Connect Parts

Distribute Load

Absorb Load

Apply Load

Apply ForceReceive Force

Receive Load

Transfer Force

Distribute Load

Absorb LoadCaused by or happens at the same time

Critical Path


Value Mismatches


Turnout Process- Before

Rails

Material Storage

Material Storage

Material Storage

Tru

ck

Train CarsTrain Cars

PanelPanel


Panel – Aha Moment

Function: Facilitate

Transportation

Function: Facilitate

Transportation


Turnout Process- Ideas

(6) Fully Automated Assembly (3) Moveable Panel Assy


Selection Matrix

Safety

Automation

Foot Print

Parameter Definition• Potential hazards (fork lift, crane, operator

area, traffic flow, etc.)

• Degree of automation vs labor

• Area to be used compared to other facilities

Scaleability • Being able to adjust to changes in demand

Material Flow • From raw material to finished good (number of touches)

Aux. Equipment • Equipments (outside automation) added to the process

Inventory • Additional RM, WIP and FG

Ergonomics • Easy for operator

9

2

5

Weight

6

5

6

3

8


Turnout Process- After


Quantifiable Benefits

Benefits

Tru

ck

Train

Cars

~50% smaller footprint

Increased Flexibility

Reduced Lead Time

Reduced Footprint

Improved Safety

Reduced Op Ex and Cap Ex



~ 9-12 FTEs*~ 26 FTEs

* Loaders not shown on this graph



• Office and Locker Room can be adjacent to manufacturing facility

• Employees and suppliers will not have to cross rail roads tracks

• Materials can be stored closer to the manufacturing site

• End users had input into their new facility

Argo, Inc.737 N. Michigan Ave.Suite 2000Chicago, IL 60611

tel. 312-988-9220Fax 312-988-9270

Argo, Inc.737 N. Michigan Ave.Suite 2000Chicago, IL 60611

tel. 312-988-9220Fax 312-988-9270

UNITED STATES- WORLD HEADQUARTERSUNITED STATES- WORLD HEADQUARTERS

Argo, Inc. (Canada)TD Canada Trust Tower161 Bay Street, 27th FloorPO Box 508 Toronto,Canada M5J2S1

Tel. 1-416-572-2454

Argo, Inc. (Canada)TD Canada Trust Tower161 Bay Street, 27th FloorPO Box 508 Toronto,Canada M5J2S1

Tel. 1-416-572-2454

Argo, Inc.- Spain OfficePaseo de La Castellana 95Torre Europa, 15th Floor28046 Madrid, SpainTel. +34-91-418-69-57

Argo, Inc.- Belgium OfficePlace de Champs de Mars, 51050 Brussels, BelgiumTel. +32-2-550-36-42

Argo, Inc.- Spain OfficePaseo de La Castellana 95Torre Europa, 15th Floor28046 Madrid, SpainTel. +34-91-418-69-57

Argo, Inc.- Belgium OfficePlace de Champs de Mars, 51050 Brussels, BelgiumTel. +32-2-550-36-42

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Value Analysis Case Study: Rail Road Turnout Process ... · PDF file1 Value Analysis Case...

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