Norfolk Southern Corporation 1998 Annual Report - Countdown to Growth
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Roll-out of systems a 'go'
for
computer operations
on the new Norfolk Southern

Implementation to come in stages

Combining NS and Conrail computer systems to track the movement of thousands of freight cars has been a challenge at NS.

June Arata, who leads NS' team to integrate software for car-movement data, says the biggest effort involves rolling out TYES (Thoroughbred Yard Enterprise System) on the portion of Conrail that NS will operate.
June Arata
June Arata
NS Director-
Client Server Development,
Information Technology department,
Atlanta,
31 years' service

"We can't flip a switch and replace one railroad's system with the other," she says.

Part of successful integration of the NS and Conrail computer systems into one will involve dual computer operations initially.

NS' innovative TYES technology centralizes car-tracking functions and provides fast, complete reports of car movements. Its companion system for intermodal operations, SIMS (Strategic Intermodal Management System) enables NS to load trailers and containers more efficiently, transport equipment more rapidly, and then store the shipment information for analysis.

"It's critical that we implement these new systems for the Conrail transaction."
Wes Alexander, Transportation department

Training people on the two systems is a time-consuming effort. "We're planning a 'staged implementation strategy' that will take 30 weeks for TYES and about 10 weeks for SIMS," Arata says.

In the meantime, however, the two railroads' systems must be able to share data. Until NS' system becomes the car-tracking system for the larger NS, the Information Technology department has created a software mechanism to facilitate data exchange.

"Although we can't change all the systems at once," says Arata, "we at least can gather data and provide it to users, even if it comes from multiple sources."

But there's still another challenge. NS will not operate all of the Conrail rail system, which means that only some of Conrail's system will undergo conversion to the NS car-tracking system.
National Customer Service Center, Pittsburgh
Click to enlarge
Conrail employees are using a special training room at the National Customer Service Center in Pittsburgh to learn operation of TYES, NS' car movement reporting and inventory system.

"Essentially, only slightly more than half the Conrail car-tracking system must be converted to the NS system, so this is an unusually complex integration," Arata continues.

Linked with tracking car movements is the process of gathering data for billing.

One of Arata's co-workers, Wes Alexander, has been charged with overseeing the team responsible for integration of billing systems.

"All of NS' operating and accounting information comes from two sources - car movement report events and waybill data," Alexander says. "So, it's critical that we implement these new systems for the Conrail transaction."

An additional challenge for Alexander and his team is arranging for billing data to be shared between NS and Conrail. "NS can generate waybills on Day One, but we also need the data in Conrail's system," he says. "If it's not there or we can't get to it, we can't classify or route cars across the new rail system."

Work to get these data systems fully functional will take place over time. "Throughout 1999," says Alexander, "we'll be rolling them out in phases."

Wes Alexander
NS Director- Agency/Electronic Data Interchange, Transportation department, Atlanta,
27 years' service

Alexander and Arata were with NS when it was formed in 1982, and both say this transaction is more demanding.

"From an IT (Information Technology) standpoint," Arata says, "the consolidation of Norfolk and Western and Southern was a challenge, but looking back on it, that was simple compared to this."

Arata considers the Conrail transaction vital to NS' continued success. "Being involved in this transaction was critical for NS," she says. "If we hadn't played a part in it, we wouldn't have been able to remain a key player in the railroad industry."

Integrating software systems

Communications challenges aren't limited to making sure that NS and Conrail computer systems can exchange information. Customers also must be able to interact via computer with NS.

Blair Hanna, formerly of Conrail's IT department, now works for NS and is tackling that challenge.

"Part of my job is to ensure that conversions for computer systems are in place so that customers who previously shipped with Conrail can begin communicating with NS," he says.
"NS has paid close attention to details, and everyone is focused on making this transaction happen."
Blair Hanna, Merchandise Marketing department

Hanna is facilitating Conrail customers' conversion to NS' "Thoroughbred Quickfo," a Windows-based software that permits customers to transmit bills of lading, trace equipment, find out weights, make rate inquiries, and send email.

Hanna also is developing Internet applications for customers. "I want to see NS in the lead with diverse offerings of customer software products," he says.

Hanna worked for Conrail in the electronic commerce group and had experience there with customers. More recently, he handled problem management and systems development in the IT department.
Blair Hanna
Blair Hanna
NS Manager- Customer Access/ Electronic Commerce, Merchandise Marketing department, Roanoke, Va.,
22 years' railroad service

"I didn't get to interact with customers much in my last job," he says. "The opportunity at NS gives me a chance to be involved with them again."

The transition from Conrail to NS has gone well for Hanna. "Everyone has been receptive to our coming down here," he says.

Hanna had an added advantage of knowing some NS people before joining the company. He was part of an NS-Conrail software transition team that prepared for the Conrail transaction.

Hanna believes the transaction will result in a stronger railroad, and he looks forward to its success. "The potential for the new NS is tremendous," he says. "NS has paid close attention to details, and everyone is focused on making this transaction happen."

From the beginning, he says, NS people have had a good understanding of the data needed to make the transaction successful. "From an IT standpoint," he says, "NS has been focused and organized."

Hanna remarks on NS employee dedication to the Conrail transaction. "Success," he adds, "is part of the NS culture."

Coil steel car
Click to enlarge
The larger NS will have the biggest steel-handling equipment fleet in North America. To accommodate expected increases in steel traffic as a result of the Conrail transaction, NS is adding more than 700 open coil steel cars, 1,360 covered coil steel cars like these, and 2,000 mill gondolas.

Norfolk Southern Corporation 1998 Annual Report - Countdown to Growth
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