Professional Documents
Culture Documents
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