The nation’s rail freight system has many moving parts. So when a single cog in this enormously complicated machine breaks down, it can lead to delays and work stoppages which can quickly add up to millions of dollars in lost productivity.
That’s one of the reasons the rail freight line CN has developed a new agreement with the Hyster and its parts distributor, Wajax, to reduce or eliminate downtime when a key piece of equipment breaks down.
CN depends on mobile cranes to keep its intermodal yards working as quickly as efficiently as possible. These mobile cranes, which are also called reach stackers, play an integral role because they handle most of the containers at CN’s network of intermodal terminals.
Tiny Part Can Cause Huge Delays
When a part in one of these mobile cranes wears out or breaks down, the vehicle has to be taken out of service until a replacement part can be ordered, delivered and installed. When the vehicles are idle, they aren’t contributing to the success of the operation, according to Gordon Graham, CN’s senior manager of intermodal development.
These breakdowns were beginning to cost CN real money, so the company met with officials from Hyster and Wajax and developed a plan in which critical parts — especially expensive parts that required long lead times — would be stored in CN’s suppliers warehouses so they could be delivered in agreed-upon time frames, such as 48 hours or less.
Poised for Fast Response
Plus, Wajax assigned key account managers and master technicians to work directly with the railroad, while factor engineers provided CN mechanics with training on how to quickly repair and service the mobile cranes.
The system seems to be working because downtimes have been reduced and the productivity of CN’s mobile cranes has increased. It represents a success story of how the railroad was able to work with its vendors to achieve a common goal, according to Graham.
“If what we do at CN is inefficient because of an equipment failure, our end customer is disadvantaged,” he told Modern Materials Handling. “That reflects poorly on us, and it reflects poorly on our suppliers. For that reason, we have to be comfortable with the level of support we receive from the component and service providers in our network.”
A Growing Trend
This importance of developing highly responsive maintenance, repair and overhaul (MRO) strategies isn’t limited to the rail freight industry. It is a trend that is being found in many types of industries that rely on mechanical equipment for their livelihood, including commercial aviation, mining, power plants, and oil and gas refineries.
Whenever a mechanical breakdown threatens productivity, the end user is the one who is inconvenienced. That’s something companies want to avoid because given the high level of competition, even the slightest delay could send customers into the arms of their competitors.
That’s why many companies are reconsidering MRO, as well as improving automation and identifying key areas that are prone to breakdown, such as CN’s mobile cranes.