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TEAMS

It All Ties
Headline Goes
Together
In This Area:
Deck or secondary part of headline
CSX team’s project curtails fuel
consumption, saves company millions
by Nicole Adrian, contributing editor

In 50 Words FIRST THREE


AT A TIME WORDS
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2 QP • www.qualityprogress.com May 2008 • QP 21


The team’s work earned it a bronze medal at the 2007 used for exception reporting on locomotive dwell
International Team Excellence Competition, sponsored times (see Figure 1). The median time a locomotive
by ASQ’s Team and Workplace Excellence Forum. The didn’t move was 12 hours on a weekday and 14 to 16
team presentations are judged annually at ASQ’s World hours on the weekend. About 3,600 locomotives were
Conference on Quality and Improvement. in transit at any given time.
The team found that the idling locomotives wasted
War on waste 30 million gallons per year. Armed with these num-
CSX locomotives were typically left idling when not in bers and data, the team decided the project was worth
use, even for relatively short periods of time. Idling lo- tackling.
comotives wasted four gallons of fuel per hour. But if
the shutdown occurred for too long a period, gaskets Getting involved
would dry out, causing engine leaks. Potential stakeholders in the locomotive shutdown
In 2004, the locomotive shutdown project was cre- project participated in the effort to define and launch
ated out of a CSX Six Sigma process improvement the project, each bringing valuable perspectives, in-
team (PIT+) that focused on fuel. PIT+ teams created sights and concerns. The team validated the project
at this time were to look at all business processes and stakeholder perspective by using suppliers, inputs,
major cost areas. The project arose out of organiza- process step, outputs and customers (SIPOC), and in-
tional needs, using a top-down approach that focused cluded the suppliers and customers as stakeholders.
on waste elimination based on data and broad stake- Ultimately, the project involved stakeholders
holder involvement. across various work areas (see Table 1). This included
Fuel made up nearly 10% of total operating expens- employees and people from:
es, and fuel prices were expected to increase in the • The senior leadership team (SLT).
coming years. The fuel PIT+ developed a value driver • Locomotive management and shop.
tree to focus in on high impact areas that could be rap- • Transportation management, and train and engine
idly implemented. departments.
To figure out if a fuel conservation project was • Finance and purchasing.
worth attacking, the team tapped into data that was • Environmental group.
• Communities served.
In the beginning, the SLT and
Reasons this project was selected / FIGURE 1 project champion addressed re-
sistance, allocated resources and
Fuel cost is a function of these key drivers:
ensured project goals cascaded
volume, productivity, engine idling, price and logistics costs.
through the organization. The fi-
Nonproductive nance and purchasing stakehold-
Gallons/hour Engine idle efficiency
use (sitting) ers tracked and validated savings,
Waste = 30 million gallons ensuring that budgeting activity re-
Idle Time
Gallons (~6% of total usage) flected the project’s success. Tying
Gallons/KGTM Diesel engine productivity in the budget process further com-
mitted functional departments to
Total Productive use the project.
fuel (pulling freight) KGTM Measure of volume
costs Employees who managed and
Base price/gallon worked in locomotive shops and ser-
Largely exogenous,
(including taxes) reflects purchasing, vice centers agreed with the project’s
Cost/gallon Distribution tax efficiency and aim but had concerns. Employees
cost/gallon physical facility locations reasoned that if the locomotives did
not restart easily and needed as-
sistance, it could hurt their facility
(KGTM = thousand gross ton miles) throughput and pull resources away

22 QP • www.qualityprogress.com
TEAMS

Stakeholder involvement / TABLE 1

Stakeholder roles, involvement and impact of contribution to root cause analysis

Who: Role: Responsibility: Impact:

SLT and Champion Secure resources. Monthly champion reviews and oversight. Low

Locomotive management Locomotive Engineering support. Validate improper shutdowns. High


and shop employees

Transportation manage- Advise on issues perceived by Evaluate failures. High


ment and T&E employees end users. Identify exceptions for missed opportunities.

Finance and purchasing Finance/budget analysis. Not process owners. Medium


Provide cost per gallon.

Environment/ Help identify “other”occasions Support through idea generation. Low


communities served of shutdown opportunity.

Black Belt support Data analysis. Perception on process variation. High


Effectiveness of current controls.

Levels of Impact:
Low = support role
Medium = validation
High = SMEs

from their primary tasks. plaints from residents, who said the idling locomotives
The transportation management and train and en- disturbed their sleep. The residents also had concerns
gine employees also had concerns. These included: about diesel fumes. The group also saw the opportu-
• Yard delays caused by restarting locomotives. nity to gain emission reduction credits.
• Initial start-up taking more time than it would have
with idling locomotive waiting. Choosing the mission
• Locomotives shut down for a short period of time. To select the project, the team used familiar tools: Six
• Lack of locomotive maintenance assistance at out- Sigma and define, measure, analyze, improve and con-
lying areas. trol (DMAIC).
• A lapse in production. Project selection also included some consider-
• Poor service to customers. ations and measures:
To be successful, the team needed to maintain and • Data availability and quality.
leverage the support of the SLT while increasing sup- • Projected benefits and savings.
port from the locomotive shop and service center • Impact on internal and external customers.
employees, and the train and engine personnel. The • Impact on existing initiatives.
team also needed them to change their behavior. To • Locomotive idle time in hours.
understand the degree of impact the project would • Gallons per hour consumed while idling.
have on stakeholders and the reasons behind potential • Historical total idle time.
resistance, the team used failure mode effects analysis The team used various tools to assess the type of
(FMEA). impact the project could have on stakeholders and all
The environmental group was an obvious project units involved. These tools included:
supporter. The group envisioned fewer noise and • Subject matter expert (SME) input.
air pollution complaints from the communities CSX • FMEA.
serves. The environmental group had received com- • Change acceleration process tools.

May 2008 • QP 23
• Driver trees.
• Analytical tools.
AN INSIDER’S VIEW The team found that 78% of the locomotive fleet is
equipped with a global positioning system (GPS), which
I’ve worked for CSX Corp. for 34 years, and my father
generates an automated transmission each hour, provid-
and brother worked on the railroad. Railroading is in
ing information about the status of the locomotive and
my blood, and I know this industry very well. I realize
because of its 180-year history, there is a lot of tradi-
whether it has moved since the last transmission.
tion that can sometimes mean slow-moving processes To gauge the shutdown performance and to measure
and resistance to change. the project’s impact and value, team members used infor-
This changed at CSX when the company got in- mation about the locomotive’s identification, latitude and
volved with Six Sigma and ASQ. From the start, I could longitude of reporting, hours since last movement and if
easily see how the Six Sigma process tore down the the locomotive was running or shut down.
walls that prevented our growth. Being involved with SMEs provided insights into the potential root causes
the locomotive shutdown project is a perfect example that stemmed from the FMEA. These ideas included:
of how this process works at CSX and how it made me • Employee knowledge and attitude.
see that we were changing for the better.
• Current and expected ambient temperature.
As one of the 32 finalists, our team was filled with
• Dwell or sitting time of locomotive.
pride. To be included with some of the world’s cor-
• Actionable opportunities.
porate leaders—companies such as Boeing, Siemens
and Genentech—was mind-boggling. This was the first
• Applicable rules regarding when to shut down.
time CSX was in the finals. When we marched into the • Health of locomotive.
meeting with the other finalists, and as the streamers A questionnaire was then sent to all engineers to serve
as a fuel shutdown reminder and affirmation, and to gain

“ After generations of doing things


the same way, this was quite an
amazing accomplishment. Rail-
roaders are full of a sense of pride
their feedback and ideas. For the project to succeed, it
had to affect the behavior of more than 8,000 employees
in hundreds of locations throughout the eastern half of
the country.
in their work because for nearly


two centuries we’ve run trains. Root cause analysis
The team again used FMEA to identify issues of critical
importance to the stakeholders and to view the issues in
were flying and the cheering crowd was using noise-
makers, it was hard to contain our excitement.
context with all stakeholder involvement. Additionally,
I remember that when it was announced that our the team worked through a cause and effect matrix to
team was the bronze winner, we launched from our validate the insights from FMEA, relate the inputs to cus-
seats and ran onto the stage, leaping and screaming tomer requirements and prioritize potential root causes.
with excitement. I think my teammates would agree While team members developed SME insights from cause
that we didn’t feel this excitement just for ourselves. and effect diagrams and FMEA, they also investigated
We were accepting this coveted award for the entire hard data, the GPS data from the locomotive fleet and
CSX Corp., and the employees who embraced this new other sources to confirm SME insights.
way of working. After generations of doing things the The identification and analysis of root causes started
same way, this was quite an amazing accomplishment.
with subjective insights followed by data collection and
Railroaders are full of a sense of pride in their work
analysis. The facts led to team agreement. The process in-
because for nearly two centuries we’ve run trains.
volved a wide variety of tools based on the type of infor-
Now, with this sort of process improvement, we don’t
just run trains—we run them well. This is the sort of
mation and data available, which also created a common
forward thinking that future generations of railroaders perspective and commitment within the team.
will use to ensure that, indeed, CSX is how tomorrow These tools included:
moves. — Dennis Merrell, core team member • Process maps.
• FMEA.
• Cause and effect diagrams.

24 QP • www.qualityprogress.com
TEAMS

• Questionnaire/survey.
• Measurement system analysis.
• Statistical tests.
• Team agreement on results.

Following the rules


The team found that locomotives were often left idling
because operators were simply following the compa-
ny’s rules. Before this project began, the CSX trans-
portation fuel conversation rule was to shut down die-
sel locomotive engines when they were not being used
for at least 30 minutes, and the ambient temperature
was above 40° F.
To develop possible solutions, the team benchmarked
other railroad shutdown practices—including those of
Burlington North Santa Fe Corp. and Canadian Nation-
al—to determine what risk levels railroad operators ac-
TEAM MEMBERS WHO represented the CSX group at the 2007 International Team
cepted. They discovered these other railroads supported
Competition were (from left) Andy John, Herb Schubert, Wayne Sequin, Dean Mene-
lower temperatures and time thresholds. fee, John Murphy and Dennis Merrell.
The team’s solution tree identified several factors
that had statistical significance to shutdown perfor- These samples indicated:
mance—most were constrained by the fuel conserva- • At 28° F ambient temperature, it should take 32
tion rule. The data showed clear differences in per- hours for water temperature to reach 40° F.
formance by location. It was also clear that shutdown • At 28° F ambient temperature, it should take 52
performance was impacted by temperature. Regres- hours for the water temperature to reach freezing.
sion results on a fitted line plot gave the team clues However, each locomotive had a different heat
that individuals had different interpretations of the transfer rate—the data on two of the units indicated
temperature. the water would reach 40° F in as little as 14 hours

A final solution
The team considered changing the Final solution validation / FIGURE 2
rule’s time and temperature limits,
which would result in increased em- Final solution opportunities
ployee awareness, rule adherence and Cumulative % of locomotive idle time by temperature
standardization of the delivery system 100%
of temperature information. The team 90%
% of total not moving time at
or below this temperature

used an improved FMEA to gauge the 80%


solution’s potential value. 70% 3,800 locomotives subject
To understand the risk of increasing
60% to temperature variation
shutdown opportunities by adjusting
50%
the parameters of the rule, the team col-
40% 40º - 37.63%
lected data from temperature gages in-
30% 35º - 30.44%
stalled in the water system on a sample 28º - 19.91%
20% 32º - 24.80%
of units in colder weather. Each of the
units had a dump valve installed so the 10%
engine cooling water would automati- 0%
-31º
-20º
-13º
-5º

10º
17º
23º
29º
35º
42º
48º
55º
62º
69º
77º
84º

cally drain when it reached 40° F, pre-


venting any possible freeze damage. Outside temperature at start of not-moving period

May 2008 • QP 25
The team found idling locomotives wasted
30 million gallons of fuel per year.
and begin freezing at 25 hours. The data showed that benchmarking and validated by temperature decay re-
CSX can tolerate risk at 35° F for shutdown without gressions. The rules were applied in September 2004.
unusual risk of locomotive engine and components
damage. At 35° F ambient temperature, locomotive Making changes
cooling water will never reach freezing. After the rules were put into practice, large, obvi-
After analyzing the data, the team concluded it ous signs were built at locomotive shops to reinforce
would support two rule changes (see Figure 2, p. 25). when to shut down locomotives and when to leave
First, at selected locomotive shops and service centers them running. Daily scorecards for each location and
that were manned 24/7, the shutdown temperature division were and continue to be used to provide re-
threshold would be decreased from 40° to 28° F. Sec- sponsible field officers with current, relevant and ac-
ond, the temperature in the rule would be decreased tionable data.
from 40° to 35° F, and the time would be decreased Each 1% change in shutdown performance gener-
from 30 minutes to 15. These changes were based on ates more than a half million gallons of fuel annually,

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26 QP • www.qualityprogress.com
TEAMS

equaling more than $1 million in savings for each per- more than $28 million over the three-year span of
centage point. the project.
Some of the tangible and intangible results realized • Better stewardship with regard to the environment
include: resources by reducing emissions and noise, which
• Improvements to shutdown performance numbers has led to happier neighbors and recognition for the
without collateral damage for operations’ mechani- achievements.
cal and transportation management. • A savings of more than 650,000 barrels of a non-
• A savings of $3.6 million in 2004. renewable fuel resource.
• Additional savings at specific shop locations. Beyond these results for CSX, the locomotive shut-
• Train origins that were not impacted. down team had results of its own. Over the course
• Improved fuel efficiency at a time when fuel costs of the project, the team members increased their fa-
were escalating. miliarity and understanding of process improvement
• An invitation to join the Environmental Protection tools and the workforce developed more disciplined
Agency’s greenhouse gas initiative. behavior. Several key members were identified for per-
• A savings of more than 14 million gallons of fuel and formance and received awards.

READ MORE TEAM COMPETITION ARTICLES


Look for case studies on other winning projects from the 2007 International
Team Competition on www.qualityprogress.com.

May 2008 • QP 27

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