Railway, Construction, Land Transport

Characteristics of the industry

Rail & Land Transport

  • Few very large partially state-owned enterprises and many small players
  • Very long life cycles of vehicles and components, rarely any innovations in operation and maintenance
  • Highly regulated in terms of changes, e.g. changes to maintenance programs according to DIN 27201-1
  • Strong regulation and high market entry barriers for new operators as routes are tendered publicly and safety management needs to be present as well as for new manufacturers as tenders are often tailored to established manufacturers

Construction

  • Complex project structures due to subcontracting
  • Ever changing project partners
  • Low productivity growth compared to other industries
  • Shortage of young talents

 


Typical Challenges

Rail & Land Transport

  • Competitive pressure especially in formerly state-owned companies is growing as a result of emerging private providers
  • Rigid structures and silo thinking in large corporations and companies that have grown too fast hinder flexibility and process speed which leads to inefficiencies and high process costs
  • End customers exert cost pressure on so called commodities (e.g. travel, transport)
  • New transport contracts provide for low vehicle reserves thus resiliant and efficient workshop and operating processes are becoming indispensable
  • Increased requirements for safety management systems require a previously non-existent process orientation in operation and maintenance
  • OpEx / Lean Management is often only rudimentarily or not implemented at all

Construction

  • Close coordination of all processes and project participants in the planning and construction phase
  • Cost and schedule transparency

Fields of consultancy

Rail & Land Transport

  • Increase availability by reducing throughput and down times
  • Improvement of efficiency through lean maintenance
  • Itroduction of performance dialogs and shop floor management for daily structured communication and problem solving at all hierarchy levels and management based on key figures
  • Empowering and coaching employees and executives to ensure sustainability

Click here for a Deutsche Bahn Cargo project example

Construction

  • Increase productivity and schedule efficiency through lean process management in the planning and construction phase
  • Change management and communication
  • Usage of performance dialogs and shop floor management for daily structured communication and problem solving at all hierarchy levels as well as usage of KPI

References

  • Transformation program for the maintenance of rail vehicles and their components at a large German transportation provider with the aim of increasing fleet availability while improving efficiency and quality
  • International construction company in the field of power plant construction

Contact

Wolfgang Lobmeier, Pricipal Industry Practice Railway, Construction and Land Transport

Wolfgang Lobmeier

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