sas helping railways on the fast track
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Copyright © 2012, SAS Institute Inc. All rights reserved.
SAS® Helping Railways On The Fast Track
Copyright © 2012, SAS Institute Inc. All rights reserved.
Click Any Of The Titles To Go Immediately To The Specific Page
Table Of Content
• SAS® Holistic Transportation Framework
• Planning Improvement Cases
• Dwell Time Reduction
• Demand Driven Forecasting
• Maintenance Improvement Cases
• Predictive Asset Maintenance
• Operations Improvement Cases
• Operational Efficiency
• Operational Expense Saving & Capital Avoidance
• Transparency & Cost Allocation
• Business Process Optimization Through Data Quality
• Cases In Other Areas
• Getting Value Out Of Big Data
• Customer Upsell
• SAS® Value Assessment To Tackle NMBS’s Challenges
Copyright © 2012, SAS Institute Inc. All rights reserved.
BACK TO CHALLENGES OVERVIEW
SAS® Holistic Transportation Framework
The railway industry faces significant challenges, so the need to be efficient and effective has
escalated significantly. In order to support increasing demand while achieving positive societal
outcomes, it is vital that railway companies address the functions of the system holistically.
Addressing the transportation system holistically allows them to use all of their accessible
data to measure and analyze outcomes.
Using predictive analysis allows railway entities to better anticipate and more proactively
address a community’s current and future transport. More importantly, it helps users visualize
the short- and long-term implications of decisions, thereby promoting effective and proactive
decision making. In other words, railway companies can make decisions knowing the likely
outcomes of various alternatives – taking the guesswork out of decision making.
This approach can lead to enhancements at the planning, maintenance and operations levels,
and to reduced costs and better outcomes for all road users and stakeholders .Furthermore, it
is critical to ensuring safety, reliability and accessibility for commuters.
On the following pages we provide cases how SAS helped to improve planning,
maintenance and operations at railways worldwide.
Copyright © 2012, SAS Institute Inc. All rights reserved.
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Dwell Time Reduction
Dwell Time Reduction is a solution targeted at the transportation
industry today for better detection and monitoring of factors
associated with excessive dwell time. Using fact based, data
driven analytics, companies are able to identify and take action
to reduce dwell time.
• Background
• Route Miles: 32,000
• Number of Employees: 40,000
• Locomotives: 5,200
• Average Freight Cars on System: 220,000
• Coal, Agricultural, Industrial, Consumer
• Longtime SAS tools customer
• Dwell Time Impact
• 1 Hour of Locomotives Dwell Reduction every 3 days for 1 Year for the
most important locomotives:
• There are 5,200 Locomotives with 3,000 or more Horse Power
• 365 Days in a Year or 8,760 Hours in a Year and 121 Dwells per Year
• 5,200 X 121 = 629,200 Hours Saved in 1 Year
• .629 Mil / 8,760 Hours of Loco Usefulness in a year = 71 Locos
• Hours saved are equal to 71 Locomotives per Year
• $2Mil per Loco => 71 X 2 = $142,000,000 Savings
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Copyright © 2012, SAS Institute Inc. All rights reserved.
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Demand Driven Forecasting
Demand Driven Forecasting (DDF) for Transportation is a
solution targeted at the transportation industry for creating
demand forecasts to drive the development of the consensus
forecast in conjunction with the Sales and Operations Planning
(S&OP) process.
Solution
Wrong Cars, Crews, Locomotive at the wrong place at the wrong time.
Loss of revenue
Customer Service Issues
SAS Demand Driven Forecasting
Case: Union Pacific Railroad
"We examined and compared the results and
found that SAS presented the most accurate
forecasting."
“SAS Delivered Tangible Results in 3 weeks”
Charlie Storie – VP Logistics
Challenge Benefits
Dramatic improvements in accuracy of demand forecasts and automation of complicated processes.
Forecasts improved 44%
Increased Revenue
Improved Profit
Results in < 6 Months
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BACK TO CHALLENGES OVERVIEW
Predictive Asset Maintenance Solutions – Part 1
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Predictive Asset Maintenance Solutions – Part 2
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Operational Efficiency
Our value focuses on the following areas* of industrial average savings as a result from the initiation of a functional predictive maintenance program:
*Source: Operations and Maintenance Best Practices Guide. USDE
EFFICIENCY PREDICTIONS – FAILURE MITIGATION
Return On Investment 10 times
Reduction Maintenance Costs 25%-30%
Elimination in breakdowns 70%-75%
Reduction in downtime 35%-45%
Increase in production 20%-25%
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Operational Expense Saving & Capital Avoidance Customer Success Story – Part 1
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Operational Expense Saving & Capital Avoidance Customer Success Story – Part 2
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Transparency & Cost Allocation
• Background
• The Kansas City Southern Railway Company serves central and south central U.S.
and northeastern and central Mexico and the port cities of Lázaro Cárdenas,
Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway
Company, providing ocean-to-ocean freight and passenger service along the
Panama Canal.
• Challenge
• Replace an existing Costing System at a reduced cost of ownership, and provide
additional functionality and data warehouse & BI infrastructure for future
capabilities.
• Although KSCR went through a multi-year SAP implementation for their core
operational systems, the main concern to tackle transparency and cost
allocation issue’s was SAP’s complexity and expensive “keeping the lights on”
modifications.
• Solution
• SAS® Enterprise BI and Miner
• Benefit
• Give power users the ability to research correlations of cost drivers and operational
metrics to gain insight to factors that may impact the organization. Deliver results
to the individuals who can make informed business decisions
• Build predictive models that allow users to manipulate variables to test various
predictive/what if scenarios.
• Determine profitability on potential shipments prior to booking
• Create statistical forecasts of revenue, expense, and profitability by customer,
origin/destination, rail car, track segment, train, car type, commodity type, business
division and time.
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Copyright © 2012, SAS Institute Inc. All rights reserved.
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Business Process Optimization Through Data Quality
• Background
• SNCF Voyages : part of the National Corporation of French Railways
• Long distance and high speed passengers transport
• Creation of a Competency Center for providing added-value technologies for
business lines and projects
• Revenue: 7.4 billion Euros
• Challenge
• Aggressive competition (air and road)
• Opening railways emphases this competition
• Appropriate tariffs and traffic optimized for maximum profitability and customer
satisfaction
• Solution
• SAS® DataFlux® Data Management Platform (integrated platform for data
integration, data quality, governance and master data management).
• Data quality is critical in making sure the appropriate tariffs are proposed and that
traffic is optimized for maximum profitability and customer satisfaction (follow-up
delays and incidents)
• Benefit
• ROI and easy to use
• Real efficient solution to explorer the data quality
• Processes are industrialized, avoiding manual and repeatable checking and
rework.
• IT costs reduction as well as gain a competitive advantage and profitability.
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Getting Value Out Of Big Data
• Challenge of a European Railway
• As of January 1, 2010, EU legislation requires the further opening of railway
markets. Coming from a monopolistic environment, a European Railway is now
under competitive pressure and needs to increase and optimize its processes.
• The Innovation & Research department needs to value the data of 5 business
divisions and propose an efficient model that could bring competitive advantages.
• The main issue for the Innovation & Research experts was the difficulty to explore
massive amounts of new data and define the right model on a monthly basis,
taking in consideration that trends & relationships in data are not evident.
• The cost of this difficulty was lost time and accuracy.
• Solution
• SAS Visual Analytics was rapidly identified as a strategic key solution in order to:
• Execute analytic correlations;
• Identify opportunities for further analysis;
• Quickly present results.
• Benefit
• By increasing the accuracy of data exploration and data analysis and reducing the
time to market, SAS Visual Analytics impacted the company’s bottom line and
business goals by improving:
• Operational excellence (better fraud control)
• Customer intimacy (better understanding of customer behavior)
• Quality control of products & services to better satisfy customer needs
Web Interface Mobile (iOS / Android)
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Customer Upsell
Customer Case Nordic Railway
• Challenge
• Effective and unified CRM processes with targeted and goal-oriented customer
communication resulting in more passengers and increased earnings.
• The root cause of these business problems was the old and best of breed IT
solutions were used, making it difficult to collect and report on quality data.
• If the Nordic railway did not solve these pains, they would lose business and not be
able to fulfill its vision to make their region even more attractive to visit, live and
work.
• Solution
• Thanks to SAS® Marketing Automation, the Nordic railway is able to combine
info on travelers’ behavior & use that info to target campaigns to specific groups.
• Benefit
• Optimize market communication
• Increase earnings
• Faster delivery of more useful, analytic-driven reports (MIS)
• Stronger financial management
• The estimated ROI is an increase the number of travelers from eight to nine trips
per year, providing a 10% rise in turnover.
The transition to a customer-focused business strategy continues to gain
momentum in the transportation industry, giving organizations more opportunity
than ever to drive profitable revenue growth.
SAS® Customer Intelligence solutions for transportation can help you advance
marketing management beyond the confines of the marketing department and
ensure harmony with overall organizational strategy.
In fact, only SAS provides a full suite of customer intelligence solutions – fueled by
the world's best analytics – that give you the power to find the most profitable
growth opportunities, take the best marketing actions and maximize cross-
business impact.
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SAS® Value Assessment To Tackle NMBS’s Challenges Methodology and Deliverables – Part 1
Prioritization Workshop
Identify and prioritize one or more
business challenges
Scoping &
mobili-
zation
Identify
priorities &
gaps
Organi-
zational
alignment
Value
Indi-
cation
Value Gap Assessment
Solve your business
challenges and present road
map with supporting business
case
Scoping &
Required
Information
(AS IS)
Define TO
BE
Recommend
ations &
Next Steps
Status at NMBS
1. Actions taken so far?
2. What is your target?
3. How to reach your
target?
Spider Web
Pain Chain
Value Indication
Business Case
Road Map
• Background
• Trenitalia is part of Ferrovie dello Stato Group, the major Italian railways holding
• Trenitalia operates in passenger rail transport on medium and long distance,
metropolitan and regional traffic and cargo transportation
• 1.3 million passengers per day
• Challenges tackled with our Value Assessment
• Analyze web traffic both from marketing & IT point of view
• Improve the percentage of visitors who complete the purchasing path
• Identify distinctive characteristics of customers’ purchasing behavior
• Monitoring on line response to new offers launched via the web site
• Reach the company web channel goals and increase profits
How we helped Trenitalia through our Value Assessment
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SAS® Value Assessment To Tackle NMBS’s Challenges Methodology and Deliverables – Part 2
SUMMARY
The SAS Institute Value Assessment provides a way for your organization to identify
opportunities to more effectively utilize your investment in SAS technologies. This
engagement will help your organization understand how SAS technologies are currently used
across your organization and identify recommendations for adapting your existing SAS
technologies to your current and future environment.
PROCESS & DELIVERABLES
Through a series of on-site interviews with key stakeholders, SAS will explore your current
environment and processes as well as your desired future strategy, goals and requirements.
SAS will also explore your experiences with SAS software and gather your input on how SAS
can better serve your organization.
At the conclusion of this exercise, SAS will provide you with a document summarizing their
findings and providing detailed recommendations. These recommendations might include
usage of SAS technology and (if appropriate) recommendations for SAS solutions & services.
PARTICIPANTS
SAS recommends that the following individuals participate in this process:
• An Executive Sponsor – business lead responsible for the decision to implement SAS
and other software initiatives at your company
• SAS User Advocates – one or more users who can represent the SAS business user
community at your company
• A SAS Administrator – administers current SAS deployment
• A Project Manager – responsible for implementations
• A Enterprise Architect – familiar with enterprise environment
TIME & COST
SAS Value Assessment engagements typically will run 2-3 weeks. This project will include:
• On-site interviews
• Follow-up phone and on-site interviews (as necessary)
• An on-site Executive presentation of findings and recommendations
Value Assessments are delivered free of charge to NMBS Group.
QUESTIONS?
For more information about Value Assessments please contact your SAS Account Manager.
Copyright © 2012, SAS Institute Inc. All rights reserved.
PATRICK VANBINST
ACCOUNT MANAGER
PATRICK.VANBINST@SAS.COM
+32 477 89 04 63
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