Sept. 11, 2001

Sept. 11, 2001, started as any other day for most Norfolk Southern employees. Trains were dispatched, freight cars spotted, track maintained and customers served. Then, at 8:48 a.m., an airliner crashed into the north tower of the World Trade Center in New York. Shortly thereafter, a second airliner crashed into the south tower. A plane then crashed into the Pentagon, and another one near Pittsburgh. As employees heard the news, it became clear this was a deliberate attack. They knew things would never be the same.

Chairman, President and Chief Executive Officer David Goode told employees in a broadcast message, "All of us in the Norfolk Southern family are saddened and angered by the attacks on New York and Washington. And yet, we can be thankful that our people are accounted for, and safe.

This U.S. flag montage includes images of the nation's banner at half-staff over the NS coal transload facility at Norfolk and displayed on an employee's vehicle, a common sight following the Sept. 11 terrorist attacks.

"For those of you with friends and family affected by the terrorist acts, and for our customers, suppliers and other partners who might have been impacted, be assured that our thoughts and prayers are with you."

He urged employees to "make sure our transportation system continues to run safely and smoothly. The nation depends on us, and we must deliver." He also encouraged NS employees to contact their local Red Cross chapter to donate blood and money for relief efforts.

NS train operations in the New Jersey Shared Assets Areas were temporarily suspended in cooperation with federal and local authorities and agencies. In the Philadelphia area also, offices and other facilities closed.

Operations were suspended or limited on the Northeast Corridor, including Washington; Baltimore; Philadelphia; New York; Newark, N.J.; on the Eastern Shore of Maryland; and in Delaware.

The Transportation and Police departments were in a heightened state of alert, paying close attention to the rail system's infrastructure, including tracks, bridges, tunnels and other facilities. The company took these steps to protect the public and employees who operate trains and work in facilities systemwide. Employees were asked to pay close attention to trains, rail yards and key operating routes. Round-the-clock track inspections were under way.

"We made sure that everyone knew to be careful and to keep their eyes open for anything unusual," said Steve Hanes, director NS police. "We also limited access to our facilities to those with card keys to ensure the safety of our employees."

Special Agent in Charge Joe Geng in Elizabeth, N.J., said NS police helped keep trains moving. "We brought in additional police, secured our yards and locked our buildings," he said. "We also ran identifications on cars in our parking lots to see who owned them as a precaution."

Geng said it was eerie to look across the river at the Manhattan skyline and not see the twin towers of the World Trade Center. "It will never be the same," he said.

"We had many friends at the World Trade Center," said Rob Martínez, vice president Marketing Services and International. Martínez works closely with the Port Authority of New York/New Jersey, among others. "Of the people we know well and deal with regularly at the port, most made it out. Tragically, at least three of our friends at the port did not."

Some ports closed. Security at all ports was tightened.

"Businesswise, we had some traffic backups for some port-related and other North Jersey traffic due to the temporary operating shutdown and increased security," said Martínez. "Things were mostly back to normal in a few days, including at the New York/New Jersey port facilities."

For those trying to get home after offices and businesses closed early, passenger and commuter service ran smoothly on NS tracks. "For the most part, we ran our regular operations for Amtrak, Metra in Chicago and Virginia Railway Express," said Mark Owens, director Joint Facilities. "We were pleased to be able to help people get home safely to their families."

NS Vice Chairman and Chief Marketing Officer Ike Prillaman was in New York to address a conference at the Plaza Hotel about four miles from the World Trade Center.

"On Tuesday morning, we took a break after one speaker and passed a television monitor on our way to the break area," he said. "People were gathered transfixed on the screen as they watched events unfold. For those attending from New York City it was doubly horrific, because many of them knew people who worked in the Trade Center and didn't know if they were safe."

The conference was cancelled immediately, but attendees such as Prillaman had to stay put. He was one of about 160 NS employees who were stranded when all air traffic was grounded across the nation and no one knew when it would resume. Rail traffic in New York also was halted because of the potential threat to tunnels that give access to Manhattan rail stations.

"The hotel made a large room available for those of us who were stranded and set up a communication center so we could contact our families and businesses," Prillaman said. "The enormity of what had happened just a few hours before was staggering." He said the realization that he was on an island with no way out, at least for the foreseeable future, was unnerving.

"People's apprehension and fear grew as the day wore on," Prillaman said. "We weren't sure what might happen next. Hotel security was tight. People began to disappear from the streets. Traffic wasn't moving. Public transportation was shut down. In fact, when I went out in the evening to get a sandwich, I could look from 57th to Times Square and see only one taxi. There was nothing else. It was strange."

Prillaman was able to return to Norfolk the next day via Amtrak. As his train left the Hudson River tunnel, he could see the smoke plumes from the fires still burning at the Trade Center.

In the days that passed, NS employees rallied to help the Red Cross, The Salvation Army and other organizations in the relief efforts. Employees donated blood at centers across the NS system. Many gave cash donations. In Atlanta, employees in Centralized Yard Operations, together with employees from the National Customer Service Center, collected more than $2,600 for the Red Cross. IT employees at One Georgia Center rose to the occasion and raised more than $2,500.

"The spirit and generosity of the Thoroughbred team has never been demonstrated so powerfully as during this difficult week," said Debbie Butler, assistant vice president Transportation/National Customer Service Center.

Some employees who serve in armed forces reserves and National Guard units waited to hear if they would be called to active duty.

Some train crews displayed American flags from locomotives as they kept the nation's freight system running.

Teddy bears for children and work supplies for rescue and recovery workers poured into New York from people around the nation, compliments of intermodal rail transportation donated by NS. The stuffed animals originated at Dallas in a 53-foot trailer. NS moved them from Chicago to Croxton, N.J., for delivery to seven Manhattan elementary schools. The work materials included boots and gloves loaded into a 40-foot container at St. Louis.

NS also offered free transportation of up to 1,000 carloads of nonhazardous debris from the World Trade Center site to disposal sites on NS' rail system.

The offer was well received. "I'm just an average citizen," one person wrote in an e-mail to the NS webmaster, "but I wanted to say thank you for the offer of recovery assistance your corporation has made to New York. It is the total of all gestures like this that will make the impossible task ahead achievable and allow us to rebuild into a stronger and more united nation."

NS posted a U.S. flag on its Web site home page. The patriotic symbol evoked this e-mail response from an employee at Cleveland: "I just brought up the home page this morning, and it made me smile...something I haven't done much since last Tuesday. Thanks again!"

Goode commended employees across the system for keeping trains moving safely and contributing to relief efforts.

"Norfolk Southern employees showed their professionalism, their humanitarianism and their commitment to this nation in the wake of these events. I am deeply proud of each of you."

What can you do to help?

Support the Red Cross by donating blood and money through your local chapter and by making monetary contributions through 1-800-HELP-NOW; online at www.redcross.org; and by mail to ARC, P.O. Box 37243, Washington, DC 20013. Checks should be made out to the American Red Cross, and the memo line should include the notation "National Disaster Relief Fund."

Support The Salvation Army with monetary contributions through 1-800-SAL-ARMY; online at www.salvationarmy.org; and by mail to The Salvation Army, P.O. Box 27848, Tampa, FL 33688. Checks should be made out to The Salvation Army, and the memo line should include the notation "Disaster Relief."

Heed air travel changes

New Federal Aviation Agency regulations were implemented following the events of Sept. 11. The NS Corporate Travel department reports the following:

• Allow at least two hours to check in at the airport due to new security measures.
• There will no longer be curbside baggage check-in service.
• All passengers should remember to bring a government-issued photo ID, such as a driver's license.
• Only ticketed passengers will be allowed beyond security checkpoints in airports.
• Those with electronic tickets must check in at the ticket counter or have an original passenger ticket receipt. NS headquarters employees will be issued passenger receipts with their itineraries. Receipts will be sent via overnight mail service to NS employees not at headquarters.
• No knives of any kind can be carried through security checkpoints.
• Book your travel through the NS CorporateTravel department, not the airline, so changes can be made and refunds applied for, if necessary.
• At airports, do not leave your car unattended. It will be towed, and you might be questioned by authorities.
• Do not leave your bag unattended. It will be confiscated, and you might be questioned.

A tip of the CAP to NS Six Sigma class

A group of Norfolk Southern employees attended a three-day class at General Electric Corp.'s Croton-on-Hudson, N.Y., training facility to learn about Change Acceleration Processes, or CAP, as part of the company's commitment to continuous quality improvement using Six Sigma problem-solving methodology.

"The goal was to learn ways to help NS employees understand the clear benefits of Six Sigma and have them totally embrace it," said Jeff Yates, assistant vice president Quality Management. "We've had some tremendous successes in meeting ISO 9002:1994 standards, gaining seven registrations. In order to meet tougher ISO 9001:2000 standards, we must show our commitment to and successes in continuous quality improvement or lose those certifications. That's where Six Sigma plays the key role. It must become the way we work every day."

Six Sigma is a problem-solving methodology introduced by Motorola Corp. in the 1970s. Sigma is a measurement that indicates how good a product is. Six Sigma means 99.9997 percent free of defects, nearly perfect.

"In order to make Six Sigma the way we work, we had to learn more and better ways of helping NS employees understand the concept and the benefit of Six Sigma to ourselves and our customers," said Charlie Strickland, director Quality Management and member of the class at GE.

Strickland said GE offers the class to some suppliers and customers as part of its quality process.

"By learning from our customer, GE, it puts us all on the same page when it comes to quality performance," he said.

Nearly 100 NS employees in a number of departments have received Six Sigma training in the past year.

Each employee who receives training brings a specific, quantifiable departmental project to resolve. The ultimate goal is to address a department's "top five" or most important issues. Analysis helps focus on the root cause of the problem and set the course for a successful resolution.

"Six Sigma teaches us to define the root cause for a problem and use facts, not feelings, to solve it," said Strickland.

Strickland added that ISO 9001 requires measurement of the "voice of the customer" to determine success.

"We have to measure our customers' satisfaction and perception under ISO 9001," he said. "That raises the bar considerably.

"ISO 9001 defines the processes," said Yates. "Six Sigma defines the problems within those processes and provides sustainable improvements."

"Success in this process comes one project at a time," he said. "Once we solve one problem, we can move on to the next until we've achieved Six Sigma quality. Then, it truly will be the way we work."

What is Six Sigma?

Newsbreak interviewed John M. Samuels, senior vice president Operations Planning and Support, regarding Norfolk Southern's efforts to improve quality through Six Sigma.

Q: What is Six Sigma?

• A: Sigma is a measurement that indicates how good a product is. Six Sigma means 99.9997 percent free of defects. That's excellent quality - near perfection.

Q: Why 99.9997 percent? Isn't 99 percent good enough?

• A: No, it's not even close. Motorola, which introduced Six Sigma in the mid-1980s, said that 99 percent reliability represents 20,000 pieces of mail lost every hour, drinking water that's unsafe 15 minutes each day, 5,000 surgical operations performed incorrectly each week, 200,000 drug prescriptions filled incorrectly each year, and seven hours without electricity each month.

Q: What would 99.9997 percent reliability mean to Norfolk Southern?

• A: At Norfolk Southern we do many things with a high level of quality, but Six Sigma is a whole new level. For example, our train safety statistics already are excellent. When we reach the Six Sigma quality level, though, some 614,000 trains will operate a year with just two derailments. We'll issue 255,000 paychecks per quarter, but only one will be in error. We'll process 300,000 waybills every month, but just one will be disputed. Given the large scale on which the railroad operates, incremental improvements can make a big difference.

Q: How does Six Sigma fit in with Thoroughbred Quality?

• A: Six Sigma is our mechanism to demonstrate the continual improvement portion of the revised ISO 9001:2000 global quality standards under Thoroughbred Quality. In response to the voice of our customers, we'll use Six Sigma to systematically reduce variation in our processes and services. Variation is our enemy. For instance, the customer doesn't want his or her shipment to arrive on time 99 percent of the time. The customer wants it on time (within a certain window) 100 percent of the time, and when we do that, we'll have an important competitive edge.

Q: When does Six Sigma start?

• A: We already are training a core group of participants. We begin introducing the concepts this fall to various departments. As we go along, we'll select the major projects that we want to focus on. GE, a recognized quality leader, is helping us. Other railroads are beginning to implement their own Six Sigma programs as well.

Q: How are NS people reacting to Six Sigma so far?

• A: With open minds and enthusiasm. We know that if we're going to succeed individually and as a company, we have to offer world-class quality. Our customers want greater reliability, and they want it now. To the extent we deliver it, the more satisfied our customers will be and the greater our opportunity for success. Six Sigma is a tool to help get us there quickly, and one day it will be "the way we work."

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