Collaborative Planning in Rail transport

Delft, September 2008Semir HusagicConsultant IT & LogisticsSOPTIM AG

semir.husagic@soptim.de

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SOPTIM AG Profile

SOPTIM AG, founded 1971 Experiences over 36 years!

More than 1800 successful projects

Business process analysis and Business process developmentConsultancy in IT and logisticIT-application development andspecialist counselingSystem integration

CustomersPower industryRecycling and waste managementIndustry and Logistics

Locations: Aachen, EssenEmployees: 200

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Project Background RETRACK

RETRACK Goals and ObjectivesImproving the competitiveness of small and medium-sized European railway undertakings (time, cost, service quality)Improving the interoperability between railway undertakingsBraking down communication barriers Enhancing collaborative SCMCreating a virtual European Train Control Centre

Central Challenge: The railway undertakings need to cooperate!

Need for IT based data exchange (Orders, planning data, production data)

in real-timeon a strategic, tactical and executive level

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IT-Focus ReTrack

Improving IT based intra-corporate railway operations processes

Providing seamless IT services based on best practice railway operations processes

Order-to-delivery process Planning and SchedulingReal-Time Management

Connecting railway undertakings Providing an IT integration platform for distributed systemsConfigurable communication services for intra-corporate Services for collaborative Supply Chain Planning and Execution

Creating value added services for rail freight customersCustomer Information Centre (Information on demand)Proactive Messaging Services (in cases of delays, conflicts)with configurable communication services and a loose linking of IT-Systems with according protocols

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State-of-the-Art in European collaborative planning

State-of-the-Art in European collaborative planningToday European railway undertakings plan and control border crossing trains mostly only bilateral via E-Mail, Fax, Fon

Challenges:No continuous data base based order-to-delivery processDifferent Excel environments for planning processesInconsistent plan and production dataNo transparency above plan and production dataNo IT interfaces for structured data exchange

Coopetition Situation (Cooperation vs. Competition)Competitors are not willing to exchange/share all plan and production data with their Supply Chain Partners

DE AT HU RO

A B B C C D D E

Time

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Definition “Roles and Responsibilities”

CustomerOne or more customers for the ReTrack-TrainOrders a unit Rail-Freight Information demand concerning the state of their order (Track&Trace)

Major ContractorPlans the train and defines the general logistics activities Schedules the general route and the HubsCarries out the commercial responsibilityInformation demand along the whole transport chain

Leading Railway UndertakingCoordinating the operations processes of the Transport-ChainOptionally he’s also a part of this chainProvides/manages resources for his (part) servicesInformation demand concerning his transport part and along the whole transport chain

Railway UndertakingsProvides resources for their part and services Information demand concerning their transport and the fore- and after going train runs (esp. Handover at the border)

Each partner can carry out one or more roles

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Contract Structure and Decomposition to the Partners involved in the Process

Main element: Common Order StructureAll partners (Customer/MC/LRU/RU) work together in an overall Supply-Chain, therefore a common view on the order structure is needed.

RETRACK TRAIN

DE AT HU RO

Customer /Major Contractor

Leading RU / 3PL(Order Splitting)

Railway Undertaking(Subcontractor)

A E

A B B C C D D E

Locomotives StaffTrain Paths Wagons

Germany Austria Hungary Romania

E

Major Contract / OrderGeneral Order-Planning“Bill-of-Material” including Checkpoints

Order SplittingDetailed Order-PlanningGeneral Resource-Planning

Sub-Contractor 1 – n:Detailed Resource-PlanningService-Delivery

Refinem

ent

Reporting

Refinem

ent

Reporting

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Why collaborative Planning is a Key-Performance-Factor

SCEM SCE

SCP SCEM SCEExecutive

CollaborativePlanning

Strategic Planning

Year Month Week Day Hour

Capacity Planning

Production Planning/ Scheduling

Available-to-Promise

Opt. Resource Allocation

OperationalStrategic Tactical

- Capacity Utilization- optimal allocation of resources- optimal plan adjustment- Minimize light runnings

-Alert Management

-Exception Handling

-Solve Problems

-Reaction on changes in Planning

Loose moneyMinor/No Influence on Profitability

Earn or loose moneyStrong Influence on Profitability

- Accidents- Delays - Interruptions - Cancelations

SCM = Supply Chain Management SCP = Supply Chain PlanningSCEM = Supply Chain Event Management SCE = Supply Chain Execution

-Order / Procure

-Dispatch

-Proceed

-Transport

SCM

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Structure of Train-Control-Center

3 Level Approach (Process-Steps and specific Tasks)

Level 1- Basic IT-Services

Level 2- Best Practice Processes- Higher Order Management- Planning & Scheduling- Real Time Management- Advanced IT-Services

Order-Preparation

Weekly Planning & Scheduling

Weekly Planning & Scheduling

Daily ProgramPlanning

Frame Contracts

Relations/ Variants

Bill ofMaterials

Contracts and Order - Sales & Distribution Management- Contract Management

Train Templates

Pre-Planning- long-term Planning- Regular Trains

Planning and Scheduling- Operations Management- Locos, Tracks, Staff- Freight Management / Wagon lists

Train ControlPDA

Train Control- Real Time - Exception Handling

Locomotive Management Wagon Management Track Management

Order Management Logistics Management

Master Data Management

RETRACK RIPS Railway Integration Platform Services

CIC Customer Information CentreRailway Operators connected via TCC

Partners / Operators connected via other Interfaces

Staff Management

Roles and Rights Order Management Communication Procurement

Local Train Control Centre

Level 3- Interconnection- SC Event Management- Customer Services- Collaborative IT-Services

Virtual Train Control Centre

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Architectural Approach for coupling distributed Systems via standardized Communication Services

ReTrack virtual Information Bus (Network-Layer)

WEB

CO

RE

Local ERP-Sys

tem (R

U)

Local Integration-Platform / Services

(RIPS)

WEB

CO

RE

Local ERP-Sys

tem (R

U)

(Applic

ation-Laye

r)

Local Integration-Platform / Services

(RIPS)(Transport-Layer)

WEB

CO

RE

Local ERP-Sys

tem (M

C)

Local Integration-Platform / Services

(RIPS)

WEB

CO

RE

Loca

l ERP-S

yste

m (LRU)

Local Integration-Platform / Services

(RIPS)

„Messages“

Customer Information Services

Parameterization and Control of Information

exchange

„Messages“

„Messages“„Messages“

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SummaryTo establish integrated Collaborative Planning & Execution IT processes with a Big Bang model is almost impossible today

BarriersThe fewest European railway undertakings have integrated IT services for their operations processes

Missing common order structuresMissing IT based Long-Term-, Medium-Term- and detailed PlanningMissing IT based production data acquisition in real timeMissing structured/standardized data exchange

ReTrack IT Approach: Implementation of seamless IT services into Best Practice railway operations Processes

Base Services (Master-Data Management/ Resource Management, …)Contract & Order ManagementServices for Planning, Scheduling and ExecutionData Exchange via distributed configurable communication systemsEstablishing a virtual European Train Control Centre

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Screenhots

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Thank you for your attention!

Thank you for your attention!Any questions?

Semir HusagicConsultant IT & LogisticsSOPTIM AGsemir.husagic@soptim.de