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Value Analysis Case Study: Rail Road Turnout Process & Greenfield Facility2012 Canadian Society of Value Analysis (CSVA) Conference
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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.
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What is a Frog?
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Setting the Stage
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Planned Design
Mfg. Facility ~50,000 Square FeetOverhead CraneThree Through Tracks
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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.
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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
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Approach – Job Plan
Information
Function
Creative
Evaluate
Development
Presentation
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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.
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Industrial Engineering Studies
A series of industrial engineering studies was performed.
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34
44
45
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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
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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
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Crane Move to Gondola
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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
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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
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Value Mismatches
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Turnout Process- Before
Rails
Material Storage
Material Storage
Material Storage
Tru
ck
Train CarsTrain Cars
PanelPanel
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Panel – Aha Moment
Function: Facilitate
Transportation
Function: Facilitate
Transportation
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Turnout Process- Ideas
(6) Fully Automated Assembly (3) Moveable Panel Assy
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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
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2
5
Weight
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5
6
3
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Turnout Process- After
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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
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Quantifiable Benefits
~ 9-12 FTEs*~ 26 FTEs
* Loaders not shown on this graph
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Quantifiable Benefits
• 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
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Tel. 1-416-572-2454
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