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Prospects for OS&M Business in Hitachi's Railway Business

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Prospects for OS&M Business in Hitachi's Railway Business FEATURED ARTICLES Advanced Railway Systems through Digital Technology Prospects for OS&M Business in Hitachi’s Railway Business Two years aft er presenting the new vision of Hitachi’s railway business in 2018, Hitachi’s Rail Systems Business Unit remains on track to deliver a single, dedicated global OS&M organisation. The re-alignment enables OS&M to respond to the changing needs of the rail market and accelerate the integration of products and services Hitachi provides with digital capabilities and technology. The new OS&M organisation combines global activities and resources in S&M for rolling stock equipment and signalling installations with its O&M business including turnkey, signalling infrastructure, vehicles, buildings, and facilities. OS&M organisation works in close collaboration with regional sales and project units to present one face to customers and strengthen its approach as a full service provider. Edoardo La Ficara Michele Budetta Piero Marotta Gianluca Giudo as the organisation adapts to meet the demand for faster, cleaner railways. 1. Introduction Th e integration of Hitachi’s railway business began in 2015 2. Integrated Global Organisation with the acquisition of Ansaldo Breda S.p.A. and Ansaldo STS S.p.A. With these acquisitions, Hitachi expanded its As a fully integrated unit and profi t center, the new OS&M portfolio of products and services, strengthening its turnkey organisation structure includes global functions for business capability, as well as the capability for signalling and traf- development, bids, sales, programme management, procure- fi c management systems. In 2019, Hitachi’s Rail Systems ment, quality control, and maintenance engineering. Th ese Business Unit (RSBU) began a study into the new organ- functions support a global operations structure to manage isational model and identifi ed signifi cant benefi t in the service delivery in the local markets (see Figure 1). creation of a single operation, service, and maintenance Th e key principles of the new OS&M organisation struc- (OS&M) organisation. Further integration presented an ture include: opportunity for Hitachi to enhance its off ering for custom- (1) Global leadership of “commercial and programme ers, to strengthen its culture and collaboration across regions, management.” and to improve profi tability and align with market leaders (2) Regional leadership for “customer focus” and “execution” and competitors. (3) “End-to-end” interaction between OS&M provider and After touching on the new organisational model, this design and build (D&B) team. article presents some of the key projects the OS&M organ- (4) Delivery responsibility for operation and maintenance isation delivers around the world, along with an insight (O&M) and service and maintenance (S&M) via the proj- into some of its innovation projects and future challenges ect-based organisation. 92. Figure 1 — OS&M Global Organisation Model This figure shows the rebuilt OS&M organisation chart of Hitachi’s railway business. OS&M COO OS&M Deputy COO BMO & PMO OS&M Operations Business Improvement France and Middle East N/C/S Europe UK Latin America North America Asia-Pacific North Africa and Africa Engineering Procurement Quality control Programme management O&M Sales OS&M and project management S&M COO: chief operating off icer OS&M: operation, service, and maintenance BMO&PMO: business management off ice and project management off ice N/C/S: North, Central and South O&M: operation and maintenance S&M: service and maintenance (5) Local O&M and S&M resource management under an bus, metro, tram, commuter systems across the globe. integrated organisation with rolling stock, and signalling (2) Rolling stock and systems providers: delivering main- and turnkey experts. tenance services in addition to rolling stock products and (6) Procurement, supply chain, quality, and engineering contracts. with regional resources under joint global management to (3) Services providers: global or local industrial companies drive effi ciency and integration of standards and processes. focused on delivery of maintenance services. To meet these challenges, Hitachi’s OS&M organisation 2. 1 are strengthening its position in the O&M market around OS&M Market Overview and Perspective two axes: the green-fi eld driverless (grades of automation RSBU continues to deliver major projects across the globe, 4: GoA4) metro project and Hitachi’s traditional signal- demonstrating the breadth of products and geographical ling systems and rolling stock maintenance services. At the areas in which OS&M operates (see Figure 2). Th e key same time, its O&M experiences on Copenhagen Metro challenge for RSBU now is to increase its business share in the Kingdom of Denmark and Riyadh Princess Noura by identifying and pursuing new opportunities in emerging bint Abdulrahman University in the Kingdom of Saudi markets, leveraging expertise gained through acquisition Arabia are being used to develop capability in automated of other companies and the new dedicated and integrated driverless metro systems such as Riyadh Metro Line 3 to OS&M organisation model above. Line 6, Metro de Lima Line 2/Line 4 in the Republic of For the O&M market, unlike the traditional rolling stock Peru, and Honolulu Light Rail Transit (LRT) projects in and signalling sectors, providing core services; the operation Hawaii, USA. of control centers, fare collection, facilities management, To facilitate further growth, Hitachi’s OS&M organ- infrastructure maintenance, station operation, and customer isation intends to build on its unique position as the only care are more important. Th e breadth of services presents operator able to provide rolling stock, signalling and turn- signifi cant challenges for OS&M and explains the level of key; making key decisions around the maintenance of non- competition in this market. Th e three main categories for Hitachi rolling stock, the operation of high-speed lines competitors are: or monorails and investing in open innovate projects. If (1) Global operators (“O&M pure players”): major opera- successful, these projects present exciting opportunities in tors with international presence; operating and maintaining new markets and regions. Hitachi Review Vol. 69, No. 6 804–805 93. Figure 2 — Major OS&M Project Delivery around the World Hitachi’s Railway Systems Business Unit is developing a number of OS&M projects around the world. ATW Class l800 GWR Class 802 LSER Class 395 ASR Class 385 ATE Class 800/801 TPE/HT Class 802 AEMR AT300 SXR Bi ETR 1000 Sirio Firenze (1, 2, 3) 57 trains – 369 cars 36 trains – 218 cars 29 trains – 174 cars 61 trains – 204 cars 12 trains – 108 cars 24 trains – 120 cars 33 trains – 165 cars 50 trains – 400 cars 46 trains – 230 cars ETR 700 Genova Honolulu 17 trains – 136 cars 7 trains – 28 cars 20 trains – 80 cars Honolulu O&M ETR 500 Milan Leonardo 32 km, 21 stations 59 trains 72 trains – 432 cars Rock - Caravaggio Roma Linea C 300 trains 13 trains – 78 cars Miami Madrid –Lerida HSL Madrid Copenhagen CR O&M Riyadh O&M Taipei CDPTR (DC, TC) TSR (3, 4) 68 trains – 136 cars 500 km, 56 stations 60 trains – 300 cars 24 km, 23 stations 60 trains – 300 cars 17 trains – 68 cars 706 cars 114 cars ATW: Agility Trains West GWR: Great Western Railway LSER: London and South Eastern Railway Limited ASR: Abellio ScotRail ATE: Agility Trains East TPE: TransPennine Express HT: Hull Trains AEMR: Abellio East Midlands Railway ETR: Elettro Treno Rapido HSL: high-speed line CR: Cityringen CDPTR: Carrozze Doppio Piano Trasporto Regionale DC: distribution center TC: transfer center TSR: Treno Servizio Regionale 2. 2 eff orts with regard to these changes are described below Continually Improve Fleets KPIs (see Figure 3). Changes to the structure of markets such as O&M require 2. 3 RSBU to accelerate its rate of improvement. Under its Reducing Life-cycle Cost: Lumada Applied to Railway new business structure, RSBU intends to re-orientate core Maintenance activities towards the environment in which its customers operate, seeking greater collaboration in areas of perfor- Th e process of digitisation makes it almost impossible mance reporting, governance, and information. OS&M for OS&M to deliver maintenance services without the Figure 3 — OS&M Approach to Improve Fleet KPIs The figure shows four points on which the Railway Systems Business Unit will work on to improve its response to changes in the O&M market. Relentless Customer Focus Changing the organisational mindset Operational excellence that exceeds and culture to focus on customer customer expectations needs and quality. 1 Revised KPIs Improved availability, compliance with Expand KPI measures to drive maintenance standards and superior 2 desired behaviors and improvement fleet management Develop asset management capability 3 Safe operation, compliant engineering Provide global governance and management standards, and reliability growth for the systems to support maintenance, refurbishment, entire life of products reliability improvement, innovation, and change 4 System Integration Reduce maintenance, improve life cycle Integration of digital solutions and processes to costs and support design for maintenance shift from re-active to pro-active and preventative requirements maintenance KPI: key performance indicator 94. FEATURED ARTICLES Figure 4 — OS&M Roadmap for Predictive Maintenance and Data Maintenance optimisation is achieved by evaluating the usage rate of parts based on the usage history, automating inspection procedures, and providing information on
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