Automotive quality improvement program - cars as railroad freight - Vehicle Track System Newsletter

Railway Age, Sept, 1992

Introduction

Transportation of automobiles has been a very profitable part of the total commodity mix shipped by railroads in the past, and is projected to rise considerably in the 1990s. As an example, in 1985, Toyota moved 175,000 units by rail. This volume increased to almost 360,000 units in 1990, and is projected at 750,000 units by 1995. As demand for rail transportation of automobiles increases, improvements to the existing distribution system are necessary to insure continued timely delivery of the customer's product. And while new multilevels are being added to the fleet each year, improvements are needed in the equipment to insure damage-free shipments. With the increased demand on the existing fleet improved maintenance procedures become more important. Existing multi-level rail cars are based on flat cars that in some cases are up to 30 years old. At the same time, ocean-going vessels usually are replaced after five years. Some of the concerns expressed by the auto manufacturers are the timeliness of deliveries, compliance with the "no more than four mph" rail impact program, irregular information systems, and in-transit and environmental damage (paint contamination).

The increasing quality and high-performance demands being put on today's distribution system of transporting automobiles, using a fleet of some 35,000 auto rack cars, has prompted the formation of an inter-industry alliance. As a result of discussions held by the chief executive officers of several major railroads and the automobile manufacturers, the AAR board of directors in 1991 concurred with the recommendation of the railroads to assemble a quality team. This team was to address the issues presented by both the domestic and import manufacturers.

Two executive-level committees have been formed, the Automotive Quality Improvement Executive Policy Committee (AQIEPC) steering the railroad effort and the Automotive Industry Logistics Steering Committee (AILSC), representing the automobile manufacturers. These committees will meet jointly to oversee the overall progress.

The AQIEPC is chatted by Walter Trollinger of Norfolk Southern and, in addition to, the Reload Carrier Steering Committee, has four task forces under its purview. The task force names and chairman are as follows:

Future Distribution Systems:

Gerhard Thelen, Conrail

Quality and Maintenance of Today's Equipment:

Thomas Petersen, Chicago & North Western Transportation. Co.

Operations and Service Quality:

Bill Wiles, Norfolk Southern

Integrated Information:

Mark Popovich, CSX Transportation

Each of these task forces has railroad as well as automobile industry personnel as active members. Some task force members are also members of the two Executive Committees (AQIEPC and AILSC). The Reload Carrier Steering Committee, chartered by M.D. Decker, Union Pacific, is responsible for carrier liaison with each of the automobile manufacturers on matters relating to operation of the reload pools.

Traditionally, the auto manufacturers pursued quality improvements with each railroad independently, resulting in delays, unsatisfactory results, and higher costs. The auto manufacturers are now committed to speaking with one voice on inter-industry quality matters. The AILSC is co-chaired by Chuck Wilkins of the Ford Motor Company (FMC) and Bob Frinier of Nissan, and has issued the following mission statement:

"The AILSC will pursue industry-wide quality improvements on a continuous basis through the development of standards, setting goals, implementing actions and monitoring progress."

Each task force of the AQIEPC was given a broad purpose and was directed to formulate a mission statement and plan of action including timeliness. Briefly, the following is the purpose of each of the four task forces:

Future Distribution Systems: To focus on strategic and long-term railcar and other equipment design for tomorrow's vehicles.

Quality and Maintenance of Today's Equipment: To focus and direct quality improvements with today's railroad equipment. This will include railcar condition, ride quality and handling, maintenance, contamination, and other related issues.

Operational and Service Quality: To focus on areas such as improved utilization, accuracy of transit time performance, etc.

Integrated Information Systems: To focus on integration of state-of-the-art business systems, using common software, etc.

At the current time, Research & Test participation is limited to two of the four task forces under AQIEPC, namely, Future Distribution Systems and Quality and Maintenance of Today's Equipment. Future Distribution Systems

Mission Statement: "The Future Distribution Systems Task Force is an inter-industry team committed to developing and implementing design requirements acceptable to all users for the transportation of finished motor vehicles."

Objectives:

Identify problems with present system

Design system requirements:

--Optimal capacity

--Cost efficiency

--Optimal inside space and outside clearance

Maximum loading/unloading efficiency