Local operating plan adherence improves customer service measures

Norfolk Southern continues to make strides in providing consistent and reliable customer service. The company implemented its Thoroughbred Operating Plan in 2001 and added Local Operating Plan Adherence in April 2003.

As the name implies, the objective of local operating plan adherence is to plan and measure local switching at origin and destination terminals. Service at that level is reported, recorded and monitored through the company's Thoroughbred Yard Enterprise System.

When a work order is executed through TYES, any service exceptions to that order and the reasons for them are noted in a separate report. This report is an exception file that classifies the reasons for service failures into customer- and railroad-caused failures. Centralized Yard Operations staff members review the exceptions report daily, and service problems are addressed immediately. Field transportation staff also closely monitor performance data right to the customer's loading dock. Conrail locations that use NS systems also are included in the measurements.

"We have a very accurate picture of our service performance through LOPA," said Tommy Williamson, manager CYO Dearborn, who was a member of the group that implemented it. "With this in place, you see every service failure and the reason for the failure. That means we can work with our field transportation people to respond to our customers much more quickly and fix the problem."

The results have been positive, according to Brad Fitzgerald, director CYO.

"Being able to easily and quickly determine where and when the failure occurred and whether it was a railroad- or customer-caused problem helps us resolve the issue permanently in most cases," Fitzgerald said. "We also have a more accurate customer database that helps us continuously improve our service to them."

Fitzgerald said documentation is more accurate, making communicating with NS customers easier.

"We're able to show them exactly what happened and why," Fitzgerald said. "And, we can show them what was done to resolve the situation and how it can be prevented in the future."

Fitzgerald said the commitment of NS people to improving customer service has made the process smooth.

"Without total commitment, this would have been much more difficult," he said. "It says a lot about NS people and our commitment to providing the best service possible to our customers."

NS weathers hurricane, massive power outage

Norfolk Southern people responded quickly to keep rail traffic moving following last month's hurricane Isabel and August's massive blackout.

Isabel felled 2,700 trees across NS tracks in North Carolina, Virginia, Maryland, Pennsylvania and Delaware. Some tracks were submerged in eastern North Carolina, and one bridge was damaged by washouts in Virginia.

Thanks to advance preparations staged as emergency operating plans were put in place, employees were ready for the storm. Normal operations resumed after trees were cleared and bridgework and track repairs were completed. Some trains were delayed, and some traffic was rerouted between Roanoke and Front Royal, Va., as the bridge was repaired.

The Aug. 14 power outage was no match for NS employees in the Northern Region and Midwest. "There were quite a few examples of people going the extra mile," said David Brown, general manager Northern Region, the area hit hardest by the blackout.

The communications and signals department moved quickly to affected areas, bringing portable generators to battery-powered locations before the batteries ran out. The engineering department operated a Cleveland drawbridge manually to get it back into position so trains could cross. These employees then coordinated with the U.S. Coast Guard to manually operate the bridge 10 more times for boat traffic to pass through.

In most cases, major facilities were not shut down. NS used generators already placed around the system to provide backup battery power for signals and crossing protection. The dispatching office in Dearborn, Mich., operated on backup generator power during the outage.

Northern Region facilities where operations were hampered included terminals and routes to and from Buffalo, N.Y., Cleveland and Toledo, Ohio, and shared assets areas in New Jersey and Detroit.

"Some shared asset areas without backup power were virtually shut down. The effect was like getting three feet of snow in August," said Brown.

Services at the Oakwood Terminal in Detroit were not restored for 12 hours due to a fire in a refinery adjacent to the terminal. The terminal and rail yard were swiftly evacuated, and the facility sustained no damage.

In the Western Region, the Bellevue, Ohio, hub facility was shut down for about two hours.

"The team reacted well," said Greg Comstock, general manager Western Region. "We had some delays, but the effect on customers was minimal. Our people are the best, and this is just another example of that."

Operating plans help NS generate new business

When a generator needed to be replaced immediately at an energy plant in Hinkle, Ore., Siemens Westinghouse, a power generation equipment supplier, called Norfolk Southern for help. A 200-ton replacement generator at Alexander City, Ala., had to be moved to Memphis, Tenn., for interchange with a western carrier.

The Alabama Division faced a unique challenge. The generator would have to be transferred from a truck to a rail car, but a temporary track used to handle previous overweight loads was no longer available. The transfer would have to be made on the main line. Burkhalter Rigging, the company responsible for loading the generator on a special car, required a six-hour window to make the transfer with a gantry crane and to secure the generator to the rail car.

"We never had allowed a contractor to straddle a gantry crane over our main line to load a piece of equipment for rail shipment," said Matt Townley, operations manager, Columbus, Ga. "Then there was the additional challenge of the six-hour requirement."

Alabama Division operating employees used the Thoroughbred Operating Plan and the Local Operating Plan Adherence system to devise the best way to make the transfer while keeping rail traffic moving on schedule. A coordinated effort by the transportation, mechanical and engineering departments, the dispatch office in Birmingham and the clearance department in Atlanta brought success and additional business.

"We were able to meet the special request of our customer through a cooperative team effort," Townley said. "The transfer went so smoothly that they requested an additional transfer of the same type later." The second emergency generator transfer replaced a downed generator at a plant in Edinburg, Texas.

"Our success proves that TOP and LOPA can do more for customers than just inform them of the departure and arrival of their shipments," Townley said. "We can use these to make our scheduled railroad work for the customer and for us in everyday operations."

Analysis process being used to work smarter, add value

A new process for analyzing the work of Norfolk Southern departments, Activity Value Analysis, is being used to help contain general and administrative costs -- costs not directly related to providing transportation service.

"This process helps departments deliver the right products and services in the most efficient and effective way by focusing on activities that truly bring value to our customers and to the bottom line," said Jim Hixon, senior vice president administration and chair of the steering committee overseeing the process. "It also gives departments the ability to reconfigure some work in light of our most recent voluntary severance offer."

The steering committee is composed of Hixon; Steve Renken, senior vice president and chief information officer; Terry Evans, vice president operations planning and budget; Gary Woods, vice president engineering; Don Seale, senior vice president merchandise marketing; Mark Manion, vice president transportation services and mechanical; and John Rathbone, senior vice president and controller.

Here's how the process works. A departmental team led by someone from NS, but from outside the department, performs a work analysis. Each process is studied by employees of the department that performs the work of that unit. Ideas then are generated to reduce costs by eliminating work that does not contribute meaningfully to the bottom line. The team decides which ideas are viable and makes recommendations on which ideas should be implemented. The steering committee and senior leadership make final decisions about which to implement. The process takes about eight weeks before implementation can begin.

"This tool gives our employees the opportunity to make suggestions about the work their department must do," Hixon said. "They know what is best for their department, and this is a good way to tap into that knowledge. While the process will produce changes across the company, it is not focused on head counts or working harder. It's about working smarter."

To date, the human resources, engineering, real estate, casualty claims, labor relations and treasury departments have participated. The analysis for all departments should be completed by the end of the year.

NS certifies first Six Sigma Canada Greenbelts

Norfolk Southern achieved another quality milestone with the certification of its first group of Greenbelts by Six Sigma Canada. Six Sigma is a data-driven problem solving methodology that NS uses to improve customer satisfaction, eliminate waste and increase profit.

The 26 new Greenbelts completed an intensive three-week training program in which they learned how to apply Six Sigma tools and methodology to their day-to-day work. Each member of the group completed a project designed to produce high-impact business results.

A certification luncheon was held at the Shenandoah Club in Roanoke, followed by the first-ever Greenbelt Project Fair. The fair showcased completed projects. Successes included savings in roadway machine fuel use, fewer transferred calls in Centralized Yard Operations, and a reduction in theft at Landers Yard Intermodal facility in Chicago.

"There is great importance in choosing a project for the Greenbelts' day-to-day responsibilities," said Jeff G. Yates, assistant vice president quality management. "Greenbelts dedicate about 30 percent of their time to process improvement and project work in their respective departments. Their job is tougher, because they maintain their normal workload plus working toward completion of their Six Sigma projects."

Yates said the completed projects have recurring annual benefits of approximately $6 million.

The 26 SSC Certified Greenbelts, represent 11 departments ranging from communications and signals to payroll. NS chose SSC to develop its Six Sigma certification standards for Green and Black Belts. They join 15 Greenbelts previously certified through General Electric Transportation Systems.

Six Sigma Canada Greenbelts

Six Sigma General Electric Greenbelts

Voluntary separation program announced

Norfolk Southern announced a voluntary separation program for nonagreement employees with at least two years of service.

"The program is designed to achieve through voluntary separation a reduction in overall staff and an internal restructuring to increase the efficiency and effectiveness of Norfolk Southern's nonagreement work force," said Jim Hixon, senior vice president administration.

The program offers severance pay of three weeks' salary for each year of service, continued health insurance for one year at no cost, and outplacement assistance for up to 90 days. Voluntary separations will be effective Oct. 31 in most cases.

Carman celebrates 34 injury-free years, plus perfect attendance

Roger Collins achieved a double milestone as he retired from Norfolk Southern. The carman, who worked at Bulls Gap Yard in Tennessee, retired on Aug. 29 after 34 years of injury-free service. What's more, he never missed a day of work. He even took vacation once when he was ill.

"It's an outstanding feat and testimony to his character and commitment. It proves that double zero and an injury-free career are attainable," said John Ivy, division manager mechanical operations, Knoxville, Tenn.

Collins, who received a fishing rod and reel at his retirement ceremony, competes in fishing tournaments and may start a fishing school for children.

Trip rates implemented for some UTU members

Norfolk Southern and the United Transportation Union have implemented NS' first trip rate payroll system. Employees represented by the UTU on 18 former Nickel Plate assignments working out of Muncie and Fort Wayne, Ind., will have their rates of pay simplified by combining a number of separate arbitraries into a single trip payment.

This process is one of the key elements of NS' Aug. 20, 2002, national agreement with the UTU. It provides a more efficient way to pay train service employees. In return, employees hired after 1985 will now reach relative parity with other conductors and trainmen as a result of pay elements, such as initial and final terminal delay and deadheads of a minimum basic day, being rolled into their base wages. General Chairman Delbert Strunk, a member of the UTU's national negotiating team, said, "Parity for post-1985 employees was one of the main objectives of the negotiating team."

Strunk and Jim Goff, NS assistant director labor relations and one of NS' lead negotiators, cited the cooperative efforts of the union and the company in formulating the payroll system. Strunk said, "In particular, the involvement of local chairpersons Bill Waymire, Danny Thieme and Ryan Glessner in the preliminary trip rate discussions was instrumental in the successful outcome of the Fort Wayne and Muncie rate implementation."

The system was launched July 26, 2003. The parties will implement trip rates on additional portions of the Nickel Plate and N&W territories before moving on to other system locations.

Returning to work? Call the medical department information line first

Norfolk Southern employees returning to work after a prolonged absence due to illness or furlough can speed the process by using the medical department's information line.

"We found that a number of employees didn't know the exact procedures and policies for returning to work, and that caused delays in their getting back on the job," said Dr. Ray Prible, director medical services. "This is a simple and convenient way to get answers and information."

The toll-free information line is menu-driven. Callers can choose the options that apply to their personal situation without having to wade through a lot of other information.

"We believe this is a real benefit to our employees," Prible said. "They are able to get right to the information they need to be better prepared for a smooth return to work."

In addition to the menu system, callers can be directed to a medical department professional for additional help. The phone system also has information about the Family and Medical Leave Act, required periodic physical examination programs and Railroad Retirement Board sickness forms and disability claims procedures.

"Our information line can make a difference for those returning to work or those just seeking information," Prible said. "We encourage people to use it often."

The information line toll-free number is 1-877-737-0746.

Are you a veteran? We want to hear your story

In November, Newsbreak and a special section of the Norfolk Southern Web site will feature information about NS employees who have served in the U.S. Armed Forces. If you would like to submit your story for consideration, contact Newsbreak Editor Andrea Just by MEMO at aljust, e-mail at andrea.just@nscorp.com, by phone at (757) 823-5205 or U.S. mail at Three Commercial Place, Box 224, Norfolk, VA 23510.