Passenger Train Refurbishment Acceleration

Production flowline significantly reduces costs and lead time

Our client is a privately owned rolling stock engineering and maintenance service provider that operates as a tier-two contractor delivering rolling stock maintenance, repair and overhaul contracts for operators and tier-one contractors. The client had been subcontracted to deliver a $20M refurbishment contract on an aging fleet of passenger trains operated by Transport for NSW.

The project was 30% complete but needed help to meet the agreed program, resulting in customer dissatisfaction and significant cost overruns from labour inefficiency and liquidated damages. This created an urgent need for intervention. ORBIZ was engaged in rapidly identifying the root cause of the problems and implementing solutions to turn the project around by reducing costs and accelerating the delivery program.

17%

Reduction in labour costs on the first trainset through the new flow line process
Customer satisfaction significantly improved
Team morale increased
Revenue increase from recovery of out-of-scope costs and selling excess labour capacity to head contractor

The approach

ORBIZ completed an operational review and then facilitated stakeholder engagement to agree to move the project from a static strip and rebuild process to a production flow line. This would provide the structure, discipline, and accountability needed to increase productivity, improve cost control, and accelerate program delivery.

Once the change in manufacturing strategy was agreed upon, the existing workflow was analysed in conjunction with the constraints presented by fleet availability. A three-station flow line operating a three-day cycle time with an additional three-day test and delivery process was determined to be the best option for achieving the project’s desired outcomes.

A business case was developed for the agreed-upon concept to obtain a formal agreement before committing to the investment. Several parties needed to align, including the head contractor, customer, and other subcontractors.

ORBIZ was then engaged in facilitating the planning and implementation of the flowline, plus coaching the project team on the systems and behaviours required to operate it successfully.

The solutions

Once all parties were aligned, a changeover point was agreed upon, and a program was developed to monitor progress through the detailed planning and production readiness phases.

Planning encompassed the development of a revised program schedule, manufacturing plans, rosters, material kitting, internal material transport schedules and containers, tooling needs, workshop layout, point-of-use materials, and consumable stores.

The project’s execution was monitored through daily project reviews and weekly governance meetings, using a project master schedule of activities and related production readiness tools.

The first trainset was inducted into the new production line on time and progressed through the line as planned. Project control was then handed back to the subcontractor, and a process confirmation audit process was established to enable regular self-assessment of compliance with the new production system.

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