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Hartford Locomotive

Company
Light Locomotive Section(LLS)
BY Group 3
Mahendra
Kumar
Deependra
Partani
Divya Manjari
Mytherya
Divya
Introduction to Hartford Locomotives
A Large U.S manufacturer of railway locomotives
and components
Contains two operating departments
Locomotive Department
Heavier Locomotives for Main-line freight and
passenger service
Light Locomotive Section(LLS) – Profit Center
Components Department
Supplies with electrical and control
components and charges LLS the
manufacturing cost
Light Locomotive Section(LLS)
Accounts to a total of 25% of locomotive departments
total sales
Most LLS sales are Diesel-electric Locomotives
Customers were diverse group like government,
public utilities, primary metal producers and
manufacturing companies
Locomotive Department supplies LLS with
fabricated parts such as cabs and platforms
The component Department supplied LLS with
electrical and control components
Manufacturing Process at LLS
LLS assemble components Received from other
departments like components and parent locomotive dept
Also assemble the parts received from outside vendors
like diesel engines etc
It mounts the Engines, generator and cabs on the platform
or frame of the locomotives
Then install various controls and accessories
Finally paint and test the locomotive before final
shipment
LLS Locomotives with three different
category
Sales activity at LLS
Employed 10 sales engineers who provide technical assistance
The sales department also sells railway signaling devices, block
controls, heavy repair equipment etc purchased from other
manufacturer apart from standard LLS locomotives
LLS sales engineers have consultative selling approach and
then the actual order is taken by Sales Department which
split into two groups
Domestic sales group(12 major district offices, 200 sales person,
Sales group is paid a fixed fee)
International sales group(Percentage selling commission+ fixed
fee)
Both the sales group can negotiate the fee on an annual basis
Market Characteristics
In 1975, sales amounted to $31.5million
In 1979, sales amounted to $93.5million
Domestic Market:
LLS usually anticipate comparatively long order lead times
For Eg Public utility might place an order for switching
locomotive two years before the required delivery date
However customers usually demand delivery within six or
seven weeks
Foreign Market:
Customers demanded delivery upon extremely short notice
Also it takes two months to ship a locomotive abroad
It become a industry practice to promise shipment six
months after the receipt of foreign orders
LLS Standardization Program
Mr.Roger Sherman(Manager of LLS)
Implemented two major projects
 Standardization project
 Sales forecasting project

Standardization Project:
Aimed at developing specifications for a set of standardized
components from which all locomotives can be assembled
Though many diesel-electric sold by LLS are custom designed but
the components were standard and can be interchanged such as
cabs engines etc to achieve operating savings and improved
delivery
“Hollow Platform”-
 All major components can be interchangeable within three weight class and
some among classes i.e 25-25 tons, 45-60tons, and 65-80tons
 Interchangeable components flexibility allowed 40% reduction in inventory
 As shown in Exhibit 5
The Planning Problem

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