sas helping railways on the fast track

Copyright © 2012, SAS Institute Inc. All rights reserved.

SAS® Helping Railways On The Fast Track


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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


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.



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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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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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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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



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.


PATRICK VANBINST

ACCOUNT MANAGER

[email protected]

+32 477 89 04 63

sas helping railways on the fast track

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