Helping rail greight operators to stay on track with improved efficiency

Helping Rail Freight Operators to Stay on Track with Improved Efficiencies and Profitability

Contents

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Executive Summary

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The Changing Landscape of Rail Transportation

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Challenges: Factors Disrupting Fleet Optimization and Efficiencies

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Overcoming the Challenges

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Our Solution

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Accelerating Growth through Collaboration

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Moving Towards Sustainable Logistics and Rail Freight Transportation

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Success Stories

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Author

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References

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About Cyient

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With more than £2 billion private investment across wagons, locomotives and systems since 1995, rail freight traffic continues to grow at a rapid pace.

Executive Summary The strengthening worldwide economy, growing traffic, and increasing flow of goods have led to the steady growth of the rail freight sector. With more than £2 billion private investment across wagons, locomotives and systems since 19951 rail freight traffic continues to grow at a rapid pace. Growing climatic concerns, increasing market demands and privatization are not only making the rail freight sector competitive but also forcing players to enhance efficiency and reliability quickly and cost-effectively. To adapt to these market conditions, operators need to replace or upgrade their aging rolling stock to enable better utilization of capacity and align their locomotives with the growing transportation requirements.

This paper discusses how organizations can leverage design and system reengineering solutions along with predictive and reliability analytics to effectively maintain and enhance the existing rolling stock. It also provides an overview of product and system engineering technologies and services, and how they can be effectively leveraged across multiple areas—from concept to prototype—to improve business outcomes.

The Changing Landscape of Rail Transportation The rail transportation industry is an instrumental player in providing logistical support and moving the products along the supply chain. However, key market trends such as demand for product individualization, shift from heavy bulk commodities to lightweight products and smaller consignments of high-value goods are now impacting the overall business. To keep pace with the market dynamics and provide sustainable logistics, there is an urgent need to improve the overall efficiency of rail transportation. Optimization of one

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key resource, ‘the rail freight wagon’ through innovative design and use can significantly help rail freighters to achieve economic efficiencies and growth.

According to the Rail Delivery Group, rail freight operators in Europe plan to invest hundreds of millions of Euros over the next five years to carry more goods faster, more efficiently, and with greater reliability. While the share of freight rolling stock procurement will drop, the new acquisitions will be focused on replacing obsolete wagons. As railway companies gradually reduce their rolling stock fleet, the market share of the independent companies that lease cargo wagons will record rapid growth. Freight efficiency has improved due to a move towards longer and heavier trains. By the year 2012-13, the number of freight trains run fell by a third; and ton miles increased by 17% since 2002-03. This amounts to a net increase of 70% in tons per train. Including changes in distances travelled, each freight train now carries over 50% more cargo than it did 10 years ago2. Investments in the capability of the network and rolling stock improvements have made this possible by providing gauge clearance and enabling longer trains to access key markets.

Heavy investments, privatization and emerging trends are reshaping the industry, making it more competitive and demanding. To move goods faster and more efficiently, freight operators need to improve operations and freight efficiency. A strategic global partner with relevant domain expertise can help drive significant efficiencies through viable freight and operational improvements.

Challenges: Factors Disrupting Fleet Optimization and Efficiencies Freight companies are under severe pressure to move goods quickly, effectively and efficiently. This in turn has increased pressure on freight operators to innovate and come up

The aging rolling stock equipment is proving to be a major setback for fleet operations impacting operational efficiencies significantly and the resulting high inventory costs are restricting the ability of freight operators to invest capital in new and futuristic products

with new means and methods to improve fleet efficiency while containing costs. However, factors such as lack of visibility into failure data and uncertainty are making it difficult to predict reliability of components, resulting in the accumulation of spares/inventories. The aging rolling stock equipment is proving to be a major setback for fleet operations impacting operational efficiencies significantly3. The resulting high inventory costs are restricting the ability of freight operators to invest capital in new and futuristic products and equipment that can help improve fleet efficiency and reduce cost.

In order to address these challenges and achieve business objectives, use of tools and technologies such as reliability predictions and failure projections for accurate inventory planning is absolutely crucial.

Overcoming the Challenges Most of the containers and wagons used by freight operators today are old and aging which makes material handling a time consuming process. This, in turn, reduces efficiencies

Stage Gate - 1

Requirement analysis Market research Benchmarking Merits and demerits

Stage Gate - 2

Development of alternate concepts Evaluation of performance parameters Enabling decision making process by proposing viable solutions

and profitability. The existing containers and wagons need to be either upgraded or replaced to improve the freight efficiency. Product engineering solutions from experienced partners can help freight operators in several ways. They can analyze the existing rolling stock and suggest modifications to enhance material handling capabilities. Design reengineering can increase carrying capacity of the current wagons and containers, thus optimizing wagon utilization. At the same time, advancements in metallurgy and composites have opened up new avenues for innovation.

These advanced materials can be used to build wagons, containers and coaches which are lighter and more efficient. Lighter rolling stock helps in reducing the carbon footprint by increasing fuel efficiency of the locomotive and also is environment friendly.

Our Solution Leveraging the evolving product and system engineering technologies, we at Cyient have developed cost-effective, quality solutions to help customers address these challenges. Our comprehensive service delivery framework spans various areas including:

Stage Gate - 3

Stage Gate - 4

Stage Gate - 5

Create solution description

Optimization of products with respect to

Refine system requirements

Prototype Build

• Manufacturability

Verify and validate

• Serviceability

Cyient’s Methodology Fig. 1| Cyient’s end-to-end approach to service delivery

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• Performance • Reliability

Testing & Validation

We at Cyient have over twenty years of experience in product design and engineering and we offer solutions spanning design, repair, development and innovation

• System Engineering: Develop system design specifications, identify and quantify system goals, create alternative system design concepts, perform design trades, select and implement the best design. Also includes verification of the design to ensure it is properly built and integrated, and a postimplementation assessment to verify that the system meets the specifications and objectives.

• Concept Engineering: Develop alternate concepts, evaluate performance parameters as well as merits and demerits of each concept to propose viable solutions, and enable better decision making and choice.

• Product Engineering: Refine system requirements, create solution description, build, verify and validate the system.

• Product Optimization and Support: Optimize existing and new products with respect to manufacturability and reliability, and reduce parts count through parts or component commonization.

• Reliability Engineering: Predict reliability and inventory optimization through failure data analysis Our approach as depicted in figure 1 extends from concept to prototype. In-depth market research, analysis and stage gate reviews ensure effective solutions.

Accelerating Growth through Collaboration Improving or extending life of existing wagons and containers can offer long-term benefits to freight operators. Increased focus on revamping existing rolling stock equipment helps reduce costs and make provisions for future upgrades and expansion of markets and customer base.

We have worked across geographies and have over twenty years of experience in product design and engineering. Leveraging our

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domain expertise, we offer solutions spanning design, repair, development and innovation resulting in the following business benefits: Enhanced performance: End-to-end solution from concept development to validation helps improve freight capacity and meet growing market demands, in-turn enabling competitive advantage.

Optimized cost: Innovative design and reengineering solutions enable freight operators to optimize cost and enhance fuel efficiency. Additionally, the savings from deferred investments in locomotive and wagon replacement can fuel critical areas of growth.

Increased availability: In-depth risk and predictive analysis enhances freight reliability and stability, and in-turn improves its life expectancy. It also ensures increased wagon utilization i.e. use of lesser wagons per fleet without impacting the amount of material carried.

Moving Towards Sustainable Logistics and Rail Freight Transportation Increasing focus on sustainability and market liberalization are undeniably changing the market dynamics of the rail industry. These market forces are driving the need for efficient, reliable and stable rail freights to optimize capability and improve environmental performance. We at Cyient believe that in order to thrive in this competitive market and ensure sustainable economic growth, industry players need to focus on investing in high-quality rolling stock and innovative reengineering solutions.

Success Stories Case Study - 1 Unleashing Efficiency

Delivering enhanced capacity and reduced costs Overview A leading freight operator from an emerging market wished to increase carrying capacity of its hopper wagon from 74 to 80 tons.

Challenges • Increase the capacity of the wagon without major changes to the existing design • Reduce manufacturing cost

Our Solution • Lightweight hopper wagon with enhanced carrying capacity of up to 80 tons • Wagon was redesigned with approximately 8% increase in capacity Benefits Helped reduce manufacturing cost by 15% and optimize freight capacity by implementing commonization across client’s product portfolio.

Case Study - 2 Accelerating Innovation

Improving freight efficiency through accelerated innovation Overview A leading freight operator from an emerging market wanted to design a new container that would substantially reduce the cost of unloading ore from fleet/ wagon and improve freight efficiency.

Challenges • Reducing unloading time in order to improve efficiency of the freight and reduce costs • Adhering to international weight limitations, where gross container weight could not exceed 30 tons and tare weight s could not be more than 3 tons

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Our Solution • Bottom discharge container was conceptualized with hydraulic unlocking mechanism to unload the contents within minutes • Lifting frame was designed to accommodate hydraulic cylinders within intermediate frame, with minimum weight • Hand calculation and FE analysis was carried out to analyze and optimize the design • Lever mechanism was designed to lock or release the doors Benefits Helped the client reduce cost and enhance efficiency to gain competitive advantage.

Case Study - 3 Redefining Realibility

Enabling life extension and reliability prediction Overview A reputed locomotive manufacturer wanted to increase the life of components used in locomotives.

Challenges • Validating the possibility of extending component life from 10 years to 20 years • Reducing the cost of labor and materials by extending the life of suspension link used in locomotive bogie until the next overhaul

Our Solution • Conducted extensive lab tests on metal and rubber bushing used in suspension link and extrapolated the data to analyze the possibility of life extension • Performed failure data analysis and reliability risk assessment to analyze the impact of failure • Proposed that the suspension link be reused with minor refurbishments over the next ten years Benefits Helped the client overcome field failure issue and save substantial costs.

Case Study - 4 Providing Repair Technology

Supporting failure analysis and repair Overview A reputed locomotive manufacture wanted to reduce the replacement cost of handbrake Challenges • Identifying the root cause of handbrake wheel wobbling issue and providing relevant solution to repair and re-install cost-effectively

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Our Solution • Based on the failure data, Crow model was prepared to analyze the root cause • Teardown analysis of a failed hand brake indicated bush wear and spring failure • Field service personnel were advised to replace bush and spring in the field to restore handbrake functionalities Benefits Helped the client achieve substantial cost savings by replacing two smaller components instead of the entire unit.

Author

References

Yogesh Mudlapur is working as Senior Project Manager at Cyient. He has over 15 years of experience in transportation industry across the areas of locomotive, rail transportation/ rolling stock, heavy engineering and automotive. He has worked with several global OEMs and helped them on product development, design and engineering.

Throughout his experience in India and the US, Yogesh has been focusing on product development, innovation and customer relations.

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http://www.freightonrail.org.uk/FactsFigures. htm

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http://www.raildeliverygroup.com/wpcontent/uploads/file/Keeping%20the%20 lights%20on%20and%20the%20traffic%20 moving.pdf

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As per Ferrier Hodgson’s Transport and Logistics Insights 2014, Australia’s fleet of ~2,200 locomotives has an average age of 36 years, one of the oldest and least efficient in the world

http://www.sci.de/uploads/tx_ edocuments/130524_FreightWagons_ Flyer_01.pdf

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About Cyient Cyient is a global provider of engineering, manufacturing, data analytics, networks and operations solutions. We collaborate with our clients to achieve more and shape a better tomorrow.

With decades of experience, Cyient is well positioned to solve problems. Our solutions include product development and life cycle support, process and network engineering, and data transformation and analytics. We provide expertise in the aerospace, consumer, energy, medical, oil and gas, mining, heavy equipment, semiconductor, rail transportation, telecom and utilities industries.

Strong capabilities combined with a network of more than 13,100 associates across 38 global locations enable us to deliver measurable and substantial benefits to major organizations worldwide.

For more information about Cyient, visit our website.

NAM Headquarters Cyient, Inc. 330 Roberts Street, Suite 400 East Hartford, CT 06108 USA T: +1 860 528 5430 F: +1 860 528 5873 EMEA Headquarters Cyient Europe Ltd. High Holborn House 52-54 High Holborn London WC1V 6RL UK T: +44 20 7404 0640 F: +44 20 7404 0664 APAC Headquarters Cyient Limited Level 1, 350 Collins Street Melbourne, Victoria, 3000 Australia T: +61 3 8605 4815 F: +61 3 8601 1180 Global Headquarters Cyient Limited Plot No. 11 Software Units Layout Infocity, Madhapur Hyderabad - 500081 India T: +91 40 6764 1000 F: +91 40 2311 0352

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Š 2016 Cyient. Cyient believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Cyient acknowledges the proprietary rights of the trademarks and product names of other companies mentioned in this document.

Updated June 2016

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