RESEARCH PAYS OFF

Improved Utilization of Multilevel Autorack

Problem For many years, Solution A Multilevel Project Application A project management multilevel railcars that carry was established by the Association group was established in Detroit to finished automobiles have been of American Railroads (AAR) as a distribute specific empty multilevel assigned to specific automobile part of a larger project to improve that moved from seven assembly plants. When loaded, utilization of freight cars. The assembly plants to these assigned cars hauled project team examined the 16 unloading ramps during the automobiles from the procedures used to manage 1980 automobile-model year. The manufacturing plants to the multilevel cars and quickly group was composed of a director, unloading ramps, from which the concluded that major improvements two car distributors, and a vehicles were delivered by highway could be made. Cooperation of the secretary. Inputs to the model were to dealerships. After each Southern Railway was enlisted. A supplied weekly in the form of a was unloaded, it traveled empty linear computer program already detailed plan of expected shipments back to the same plant to be loaded being used by the Southern by each assembly plant and a for another trip. This practice Railway was used to examine forecast of expected receipts by resulted in unproductive, empty different possible car flow patterns each unloading ramp. The data railcar mileage and reduced the and to analyze costs and benefits. were cross-checked to increase the time the equipment was available The primary benefit was a forecast accuracy. for loaded movement. reduction in empty-car miles or days. On the basis of the favorable results of the analyses, the project team then developed reports of car status and location for use in making decisions on the routing of empty cars.

8 TR News, May-June 1984 The model output was used by the Benefits In the first year, empty-car the accuracy of the forecasts. A project management team to plan handling was reduced by 20 to 30 second improvement has been the daily distribution of empty cars. percent. The average distributed development by the AAR of a Cars were moved from the empty car moved 335 fewer miles dynamic network optimization unloading ramps to the closest to its next loading plant, took 36 model, which is producing appropriate plant in a manner to hours less to get there, and had 0.42 improved car routings and larger reduce empty handling costs fewer railroad-to-railroad reductions in empty-car miles. without jeopardizing a dependable interchanges than it would have had Although development of the rail car supply for any plant. During before the start of the project. The computer programs has been the first year, two more plants were savings were estimated to be $150 important in realizing large savings, added to the project. Subsequently per car distributed, or a total of $2.7 the major research achievement the program continued to expand, million. By the 1983 model year, it was definition of the problem and with additional multilevel car types, was estimated that the Multilevel bringing it to the attention of plants, and ramps. A second project Car Projects resulted in an annual railroad management. team was established to distribute savings of 96 million empty miles, the multilevel railcars in service to or $34 million. In addition, Ford Motor Company. substantial reductions in the fleet For further information, contact size required to handle a given level Paul N. Kromberg, Assistant of were made possible. The Manager, Freight Car Program, AAR subsequently developed an Association of American Railroads, information system that can provide 1920 L Street, N.W., Washington, input to the computer D.C. 20036 (telephone 202-835- independently of the automobile 9179). manufacturers and has improved

TR News, May-June 1984 9