AlpInnoCT

Report of industry (production)

development trends relevant for
CT in the Alpine region

Deliverable D.T.1.3.1.

March 2018

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Document Title: Report of industry (production) Sub Title:
developmental trends relevant for CT in Alpine Space

Document Version Comments Date Done by

History
Draft Methodology for With KPI 14/03/2017 Stane Božičnik
concept evaluation of CT Mitja Klemenčič
Processes on a
Draft corridor
concept Production With review of the 14/03/2017 Stane Božičnik
optimisation methods Mitja Klemenčič
methods Vlasta Rodošek

First review General comments 30/07/2018 Karsten Kessel

Sebastian Ruckes
Marko Just,
Robert Burg
Version 01 Joint Concepts 15/9/2018 Mitja Klemenčič

Version 02 - update Added methods, 30/01/2018 Achim Klukas

tools and literature Lukas Nikelowski
resources
Finalisation Added table on 28.2.2018 Mitja Klemenčič
transferability of
industry solutions to
CT processes

Number of pages: 45
Number of annexes:

Prepared by: University of Maribor Principal Author(s): Stane Božičnik

Mitja Klemenčič
Contribution: OBB, BHG, AKL, TX Vlasta Rodošek
Contributing Author(s): Achim Klukas
Lukas Nikelowski
Marko Just
Robert Burg
Karsten Kessel
Sebastian Ruckes
Partner Date
University of Maribor 28.2.2018
Approval for delivery AlpinnoCT Coordinator Date
SSP Consult for StMB 30.03.2018

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Index
Index 3
Tables ................................................................................................................................................. 4
Figures ................................................................................................................................................ 4
List of abbreviation 5
Summary 6
1. Introduction 12
1.1. Objective ........................................................................................................................ 13
1.2. Methodology ................................................................................................................. 13
2. Production processes and lean principles 15
2.1. Description of lean principles........................................................................................ 15
3. Tools and methods in optimisation of production processes 19
3.1. Proccess optimisation tools and methods ................................................................ 19
3.1.1. Just-in-Time (JIT) / Just-in-Sequence (JIS) ............................................................... 19
3.1.2. Kanban ............................................................................................................................ 20
3.1.3. Kaizen .............................................................................................................................. 20
3.1.4. Business process reengineering ................................................................................ 21
3.1.5. Six Sigma ......................................................................................................................... 21
3.1.6. TQM – total quality management ........................................................................... 22
3.1.7. 5S ....................................................................................................................................... 22
3.1.8. Cellular manufacturing............................................................................................... 23
3.1.9. Value stream Mapping............................................................................................... 23
3.1.10.MUDA – 7 Wastes.......................................................................................................... 23
3.1.11 Single Minute Exchange of Die (SMED) ................................................................. 24
3.1.12 Fishbone Diagram ........................................................................................................ 24
3.1.13 Heijunka – production leveling ................................................................................. 24
3.1.14 One Piece Flow............................................................................................................. 25
3.1.15 Pareto Chart .................................................................................................................. 25
3.1.16 Spaghetti Diagram ..................................................................................................... 25
3.1.17 DMAIC / PDCA .............................................................................................................. 25
3.2. Practical examples .......................................................................................................... 27

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 3.3. Optimisation methods – overview ............................................................................... 29
4. Monitoring of Combined Transport processes on a corridor 30
4.3. Costs in CT Process ........................................................................................................... 32
4.4. Time in CT Process ............................................................................................................ 34
4.5. Other indicators in Combined transport process .................................................... 35
4.6. KPI template structure ..................................................................................................... 36
5. Applicability of Lean principles in CT - identification and depiction of production
optimization methods & tools 38
6. Conclusions - Towards innovative flexible CT processes in the Alpine Space 42
7. References 43

Tables

Table 1: Key Performance Indicators 7

Table 2: Possible applicability of Industry process solutions to Combined transport 9
Table 3: KPI template for CT Corridor 36
Table 4: Possible applicability of Industry process solutions to Combined transport 38
Table 5: Main problems in CT in Alpine space and suggested lean method 40

Figures

Figure 1: Clustering of production methods/tools (SGKV, 2018) 7

Figure 2: Spaghetti diagramme example 27
Figure 3: Photo of a “train system” 28
Figure 4: Clustering of production methods/tools (SGKV, 2018) 29
Figure 5: Relevant information and material processes in CT chain (Bendul, 2015) 31
Figure 6: Transport cost for a transport chain 32
Figure 7: Terminal cost efficency on a chosen corridor 33
Figure 8: Comparison between terminals (Costs/TEU) 33
Figure 9: Node/transport time performance monitoring 34

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List of abbreviation
5S Seiri, Seiton, Seiso, Seiketsu and Shitsuke – sort, set in order, shine
standardize, sustain
CT Combined Transport
DMAIC Define, Measure, Analyse, Improve and Control
EC European Commision
EU European Union
EUR Euro
EUSALP EU-Strategy for the Alpine Region
ILU Intermodal Loading unit
ITU Intermodal transport unit
JIT Just in Time
JIS Just-in-Sequence
KM Kilometer
KPI Key Performance Indicators
MIN Minute
MUDA 7 Wastes
OD Organization Development
O/D Origin Destination
PDCA Plan-Do-Check-Act
SMED Single Minute Exchange of Die
TEN-T The Trans-European Transport Networks
TEU Twenty-foot equivalent unit
TQM Total Quality Management
TPM Total Productive Maintenance
UIR Union of Italian freight villages
UTI Units for intermodal transports - Unité de transport intermodale

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Summary

Production overview
Production is a process of combining various material inputs and immaterial inputs
(plans, know-how) in order to make something for consumption (the output). It is the
act of creating output, a good or service which has value and contributes to
the utility of individuals (Kotler et.,2006).
In industry the production represents the a process of planning, organisation,
management and control of a product including the selection of the measures and
solutions for reaching production goals.
The most common goal of production optimization is to minimize costs, maximize
throughput and/or efficiency. Production optimisation techniques allow the product
to be delivered in less time, with lower costs, with improved quality and flexibility. In
modern industry several fields and topics are overlaped: operations research, systems
engineering, manufacturing engineering, production engineering, management
science, management engineering, financial engineering, ergonomics or human
factors engineering, safety engineering, or others, depending on the viewpoint or
motives of the user.
The most developed trend in modern industry to optimise production with improving
efficency is the so called »lean production«, which suggests decision makers to
decentralize, outsource, define hierarchy and compress the existing production
process.

Production optimisation methods

The goal of lean manufacturing is reducing “waste”. According to Russell and Taylor
(Russel and Taylor, 2011) »waste« is “anything other than the minimum amount of
equipment, materials, parts, space, and time that are essential to add value to the
product.”
Five principles are basic pillars in the lean philosophy: Identifying customer value,
Managing the value stream, Developing a flow production, Using pull techniques and
striving to perfection.
The methods for optimising production processes can be structured to:
 Process Optimisation tools (reduction of waste)
 Process Trigger Tools (reduction of inventory)
 Quality Improvement Tools (Reduction of defects, improvement of quality)
 Strategic Tools (continuous improving of organisation and operation)
 Visualisation tools (Identification of bottlenecks, weaknesses, visualising
potentials for optimisation)
 Lead Time improvement tools (shorten lead time, reduction of
inventory/work preparation and searching)

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 Figure 1: Clustering of production methods/tools (SGKV, 2018)
KPI Template
The following table presents the KPI template for CT corridor user, which covers main
aspects:
 Financial performance (Finance)
 Operational performance (Time)
 Customer satisfaction (Quality of service)
 Environmental performance
 Other (Security, Damage)

Table 1: Key Performance Indicators

Sub
Category Indicator Unit
category
Terminal fee €/TEU
Transhipment fee €/TEU
Administration costs (quality
inspection, customs procedures, €/TEU
Terminal
documents, informatics …)
operations
Warehousing, parking €/TEU
Transport at terminal etc … €/TEU
Financial
Other (e.g. Costs for damage of
performance
loading unit/cargo, VOT etc.)
Total origin – destination transport
€/TEU or €/km
cost on a CT corridor
First mile costs €/TEU or €/km
Transport
Long haul cost (including shunting) €/TEU or €/km
Last mile costs €/TEU or €/km
Other

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 min/TEU or
Total terminal time
min/block train
min/TEU or
Transhipment (cargo handling)
min/block train
min/TEU or
Marshalling (Shunting)
min/block train
Waiting time of cargo at terminal min/TEU or
Terminal
(Queueing) min/block train
operations
Administration procedures (e.g.
min/TEU or
cargo inspection, weight and gauge
min/block train
Operational checking) (min/operation
performance min/TEU or
Transport at terminal
(time) min/block train
Trains handled /
Terminal capacity
day
First mile min/km
Long haul (O/D total corridor),
min/km
between individual terminals),
Long haul (between individual
Transport min/km
terminals)
Last mile, min/km
Total min/km
Other
% of consignments
delivered within a
Reliability
On - time delivery pre-defined
of service
acceptable time
window;
number of services
per day/
week/moth/year);
Frequency Trains per day,
Numbers couples
of service Number annualy trains / working days
Customer train for railroad
Satisfaction track dedicated in
(Quality of one day
service) Rolling stock % of fleet
Off terminal transhipment
Availability technologies
Required transport capacity Max. TEU/rail link
number of craneable railroad tracks
Number of hours
between the arrival
Other Time rail plant opening / Efficiency and departure of
freight train after
processing
Environmental CO2 (SOx) Population affected with CO2 (SOx)
g/tonne-km
performance emissions emissions
Noise Population affected with noise
Other Security Number of thefts Number of thefts
Damages/losses/
Damage Damages/losses/ per TEU
per TEU

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In order to provide clearer monitoring, a unified unit of ILU (Intermodal Loading Unit)
can be applied instead of TEU in order to analyse containers, swap bodies or
semitrailers.

Identification and depiction of production optimization methods &

tools
The identification of production optimization methods and tools is based on reviewed
literature of methods and their functional solutions in industry processes. The following
presents the possible implementation of solutions in industry process to Combined
Transprot processes. The table presents the main category of KPI for which the selected
method is most relevant.
For more flexible and innovative CT process, the process should meet the end user
requirements, set measurable and achievable targets and implement proposed
optimisation method.
Table 2: Possible applicability of Industry process solutions to Combined transport

CT Process main KPI Method Industry Process Solution

Category
Quality of service JIT, KANBAN Few suppliers with long term open
relationship
Operational JIS and JIT Perfect sequence
performance
Quality of service KANBAN Kanban cards to identify critical
inventories
Quality of service KAIZEN Continuous change of small level
improvements by workers
All Categories/ Quality of BPR (Business Process Fundamental change of processes
service Reeingineering)
Quality of Service 6 Sigma Reduction of defects - statistically
(including damage loss) (according to different roles of staff
and their level of education)
Quality of Service TQM (Total Quality Autonomous maintenance
Management)
Quality of Service TQM (Total Quality Establish standards
Management)
Quality of Service TPM (Total Productive Clear hierarchy of maintenance
maintenance) management
Operational 5S Organize workplace
performance
Operational Cellular Defects repaired in a cell, not in usual
performance manufacturing company batch
Operational Value stream Detect waste
performance mapping
Operational MUDA – 7 wastes Disposal of defective goods
performance
Operational perfomance MUDA – 7 wastes Disposal of overproduction or early
production

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 Operational SMED (Single Minute Splitting the external and internal
performance Exchange of Die) setup of production in time of
machinery changeover
Quality of Service Fishbone Diagram Identifiying the root cause of a
problem
Operational Heijunka Leveling – constant speed of
performance production
Operational One piece flow One product at a time, next product
performance with different requirements
Operational Pareto chart Prioritize the causes of defects and
performance/ Quality of complaints
Service
Operational Spaghetti Diagram Change of layout, due to minimized
performance/Quality of walking/motions/transportation
Service
Quality of Services DMAIC (Define, Clearly defined sequences for
(continuous measure, Analyse, improving the existing process and its
improvement) Improve and Control) »nonquality« parts
Quality of Services PDCA (Plan Do Check Clearly defined sequences for
(continuous Act) improving the existing process and its
improvement) »nonquality« parts

The CT process is to be improved with measures for digitailisation (also blockchain),

automatisations and new technologies (transhipment, driving, handling), outsourcing,
asset sharing, production (industry 4.o, 3D printing) and harmonised push and pull
measures (driving bans, subsidies, investments in Infrastructure, rolling stock and
terminals, taxing) in Alpine region.
In general the CT processes can be improved from 2 approaches:
 Bottom up approach – smaller changes based on experience/new
technologies (e.g. integration of e-freight documents with KAIZEN,
Integration of Nikrasa with MUDA)
 Top down approach – bigger changes based on new technologies (ERTMS
on TEN-T Corridors with BPR)
To achieve lean principles in combined transport in Alpine Space, several production
methods and tools are needed to be implemented. This approaches are to be used
on macro level (for whole CT process or for individual CT process steps) or on micro
level (for optimizing single process step – e.g. handling). All relevant stakeholders in the
CT process are to be included.
After improvement and starting eliminating wastes (process time, material, tools,
space) with concepts and tools like JIT, KANBAN, MUDA or Fishbone Diagramme,
additional lean manufacturing methods for leveling and standardisation should be
used (Heijnuka, 5S, One piece flow, TQM). To continuously improve the CT process tools
like PDCA or DMAIC are to be used. For successul improvement of KPI, several
measures and lean concepts are to be implemented in parallel.
Additionally the holistic view is important to be considered in improved CT Service, as
also minor changes in process can effect other processes (e.g. elimination of paper

10
wagon control may not be efficient, if not all wagon controls on the corridor are not
improved with new technologies and/or skilled stuff).

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1. Introduction
Basic idea of the project AlpinnoCT is to analyse the basic principles of the
manufacturing industry and use the efficient and successful proved management
concepts for the development of the »European transport system«.
The main challenge of AlpinnoCT is to raise efficiency, competitiveness and
productivity of Combined Transport (CT). Holistic & transnational optimization between
all involved transport chain actors with improved efficiency & competitiveness of CT
will lead to easier access to & increase the utilization of this low-carbon transport
method with positive effects for environment & inhabitants of the Alpine Space (AS).
In general the output of the project contributes to:
 EC: Europe 2020 (reduction of greenhouse gas emission & EU aim to
promote modal shift as part of the greening transport policy),
 European Strategy for low-emission mobility 2016 (Outputs (O) 1,2,5).
 EUSALP, Action 4: promote intermodality in freight transport (O 4,5).
 Alpine Convention: increasing efficiency of transport systems & promoting
modes of transport which are more environmentally friendly. WG Transport:
Report 2016 Innovative Logistics Solutions (O 1-5).
 Zurich Process: support new technologies & innovations in CT, strengthen
cooperation on int. level. (O 1,3,4).
 White Paper 2011,Goal 3: 30% of road freight over 300km should shift to
other modes (water, rail) by 2030 and more than 50% by 2050 (O 1,3,5).
 TEN-T: efficient intermodal freight corridors (O 1,2)
 EUSALP goal for improving transnational cooperation to provide easier &
more sustainable access to the Alpine Region. Only with cost-effective &
attractive goods rail transport, the whole railway system
(passenger&goods) can be used efficiently and contribute to EUSALP goals.
 “Better overall transport system in terms of sustainability &
quality”/sustainable accessibility to the Alps by raising railway
attractiveness & utilization.
Main goal of the project is to organise CT processes more efficiently, productive
(benchmark are industrial processes) and coordinated on international level in order
to raise the awareness, access and use of CT, especially for small and medium-sized
entities.
In work package Task 1 (T1.1 and T1.2) a review of policies, strategies, responsible
bodies for CT, CT measures, CT-technologies and funding systems per Alpine space
region/Country will be presented. Together with detailed CT process analyzes (T2) and
review on production optimization methods (T1.3), the overview will serve as an input
for model identification (T3) and pilot implementation (T4).
The analysis of technologies & concepts for fostering modal shift will lead to a guideline
showing how to integrate these technologies, concepts and approaches in practical
CT processes (Guidelines for CT production – T5). The guidelines will serve Politicians,
who may benefit from alpine wide dialogue results to be better prepared to set the
future legal & regulatory framework.
Main stakeholders, that need to be considered in the model and in the pilot are :

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Shippers, forwarders, transport companies, associations, railway companies, terminals,
infrastructure providers, Wagon & semitrailer producers.

1.1. Objective
The main aim of the Deliverable Report of industry (production) development trends
relevant for CT in the Alpine Space is to present current methods, tools and
approaches in modern industry, that could be applied in Combined Transport
processes.
Analysis of development trends in industrial processes will raise awareness and create
a common understanding/basis to develop innovative (more flexible & market-
oriented…) CT services in the Alpine Space.
T1 provides (working) basis for other WPTs with understanding state of the art & future
CT trends.
Purpose of the report is to present and propose main tools and methods for
optimisation of production for CT. Selected methods are planned to be analyzed and
implemented in a model (T3) and implemented on a transport corridor (e.g.
Bettembourg-Trieste & Rostock-Verona) (T4) using an elaborated template for Key
Performance Indicators (KPI) as a basis for comparative analysis of CT processes.
Purpose of the KPI template is to present main categories for performance monitoring
of Combined Transport on a corridor.

1.2. Methodology
A review of industry production principles, methods and tools will be elaborated.
Review of production optimisation methods represents theoretical background for
charachteristics of lean principles. Based on defined (industry) production methods a
review of their general applicability will be defined (e.g. quality assesment methods,
process optimization methods).
Each review of method/tool contains:
 Description of the method/tool (basic characteristics)
 Advantages and disadvantages
 Input/output data (variables and parameters), Optimisation technique
used (linear programmig,...)
 Applicability
 Resources.
Identification and depiction of production optimization methods & tools is performed
on support from practitionaires, due to their CT processes knowhow.
The tools (e.g. Value stream mapping) should enable the analysis of all material and
information flow of CT process and with lean principles help to eliminate waste
procedures (e.g. waiting at terminal, bottlenecks in the network, unnacessary storage,
additional transshipment).
Tools and methods are planned to be in line with KPI template, identified specific
objective and possible measures to be implemented.

13
Based on identified barriers, problems and threats of CT and CT identified processes,
a list of combining Industry principles and CT solutions is elaborated at and will serve
as a basis for the further work.

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2. Production processes and lean principles
The basic idea of the project AlpinnoCT is to transfer the knowledge of pruduction
processes in modern industry to Combined transport processes.
Production is a process of combining various material inputs and immaterial inputs
(plans, know-how) in order to make something for consumption (the output). It is the
act of creating output, a good or service which has value and contributes to
the utility of individuals (Kotler et.,2006).
In industry the production represents a process of planning, organisation,
management and control of a product including the selection of the measures and
solutions for reaching production goals.
The most common goal of production optimization is to minimize costs, maximize
throughput and/or efficiency. Production optimisation techniques allow the product
to be delivered in less time, with lower costs, with improved quality and flexibility. In
modern industry several fields and topics are overlaped: operations research, systems
engineering, manufacturing engineering, production engineering, management
science, management engineering, financial engineering, ergonomics or human
factors engineering, safety engineering, or others, depending on the viewpoint or
motives of the user.
In order to reach production goals modern industry implemented operational
innovations like digitalisation and automatisation to optimise material and information
flow. The experts in this field are called industrial engineers (also production engineers
or manufactural engineers), which main role is to eliminate waste of time, materials,
person-hours, machine time, energy and other resources. They often also use
computer simulations and matemathical tools like queueing theory, data science and
machine learning for optimisation of processes. The industrial engineer is responsible
for analyzing and optimizing conveyance, material handling, and warehouse flow,
layouts, and processes related to production.
The most developed trend in modern industry to optimise production with improving
efficency is the so called »lean production«, which suggest decision makers to
decentralize, outsource, define hierarchy and compress the existing production
process.

2.1. Description of lean principles

Ideally, the entire business processes as well as the human and material resources of
evaluation and classification should be examined in the context of an integrated
concept.
Lean manufacturing concept uses a number of simple concepts and tools to eliminate
»waste« (all kind of excess inventory) in all manufacturing activities1. On this way also
»hazardous rocks« are removed.

1
Lean manufacturing was introduced and implemented in the manufacturing area in the book The
Machine That Changed the World by Womack et al. [1] in 1990. In this book, the models the Japanese

15
The goal of lean manufacturing is reducing “waste”. According to Russell and Taylor
(Russel & Taylor, 2011), »waste« is “anything other than the minimum amount of
equipment, materials, parts, space, and time that are essential to add value to the
product.”
Lean methods target at the following types of “waste”:
1. Defects: money and time wasted for finding and fixing mistakes and
defects
2. Over-production: manufacturing products faster, sooner, and more than
needed
3. Waiting: time lost because of people, material, or machines waiting
4. Not using the talent of manpower: not using experiences and skills of those
who know the processes very well
5. Transportation: not necessary movement of people, materials, products,
and information
6. Inventory: raw materials, works in process (WIP), and finished goods more
than the one piece required for production
7. Motion: Any people and machines movements that add no value to the
product or service.
8. Over-processing: Tightening tolerances or using better materials than what
are necessary.

“Waste” can be anything that adds no value to a product or service.

Similar principle to follow is used by Toyota , where within the tool MUDA - 7 wastes are
identified as:
1. Waste from overproduction
2. Waste from waiting times
3. Waste from transportation and handling
4. Waste related to useless and excess inventories
5. Waste in production process
6. Useless motions
7. Waste from scrap and defects

Lean Principles
Five principles are basic pillars in the lean philosophy:
 Identifying customer value
 Managing the value stream
 Developing a flow production
 Using pull techniques
 Striving to perfection

were using in their car industry was conceptualized by a group of MIT researchers. Since then, lean
concepts and tools have been adjusted and used in other areas such as transportation and
warehousing.

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Identifying Customer Value
Value is an important and meaningful term in the lean context, meaning something
that is worth paying for in a customer’s point of view. Therefore, the first step in
specifying this value is demonstrating a product’s capabilities and its offered price.
Managing the Value Stream
Once value is identified, all required steps that create this value must be specified.
Wherever possible, steps that do not add value must be eliminated.

Making Value-Adding Steps Flow

Making steps flow means specifying steps so that there is no waiting time, downtime,
or other general waste within or between the steps.

Using Pull Techniques

Fulfilling customer needs means supplying a product or service only when the cus-
tomer wants it. The following types of waste are eliminated by using pull techniques:
Designs that are out of date before the product is completed, finished goods,
inventories, and leftovers that no one wants.

Striving to Perfection
By repeatedly implementing these four steps, perfect value is ultimately created and
there is no waste.
Using these principles is the key in making an activity lean. These principles are also
called lean thinking. With this thinking, any tiny change may lead to waste. A good
example is changing the placement of a waste bin in a plant. After a while workers
get used to the placement of the bin and blindly throw their wastes in it without
searching for it. When the bin’s place is changed, however, workers have to find the
bin first, which is time consuming, even if it is just a few seconds. In lean thinking, these
seconds are waste.

Push versus pull strategy

Main processes in Combined Transport are generally divided in pull and push
strategies of measures, where:
 "Pull type" starts to supply operations triggered by actual demand
 "Push type" corresponds to a model for trains, lorries, ships etc. for which supply
(push) is based on demand forecast by time period and route.
According to the conventional push system, manufacturing process functions
according to adopted manufacturing plans, available resources and manufacturing
capacities regardless of whether or not the next step needs them at the time.

17
18
3. Tools and methods in optimisation of production
processes
3.1. Proccess optimisation tools and methods
There are several management approaches, methods and tools for reducing
unwanted processes. Main concepts are:
 Just in time (JIT) / Just in sequence (JIS)
 Kanban
 Kaizen
 Six Sigma
 Total Quality Management (TQM)
Additionally various tools are developed for process optimisation in production. Most
important are:
 5S
 Cellular Manufacturing
 Value Stream Mapping
 7 Wastes (MUDA)
 Single Minute Exchange of Die (SMED)
 Fishbone Diagram
 Heijunka – Production leveling
 One Piece Flow
 Pareto Chart
 Spaghetti Diagram
 DMAIC / PDCA

3.1.1. Just-in-Time (JIT) / Just-in-Sequence (JIS)

The main goals of JIT in lean manufacturing are: inventory reduction, product quality
increase, customer-service improvement and production-efficiency maximization.
Furthermore the minimization of process time and stocks are striven (Grundig, 2015). JIT
focuses on integration of purchasing (inbound), lean manufacturing using Kanban
and out bound logistics processes. In JIT system is aiming at continuous improvement
of the processes and the quality of the product and service. This is achieved by
reducing inefficient and unproductive time in the production and logistics process.
JIT often changes many conceptual principles of a firm. For example, instead of
concentrating on cost, quality is considered more. ‘Many suppliers’ thinking is
replaced by ‘few suppliers with long-term open relationship’ thinking. In fact, in JIT
thinking, higher-quality customer service is more important than cost, which is the main
issue in conventional systems.
Another approach to optimize the production process is JIS which is similar to JIT, but
instead of perfect timing the perfect sequence is considered. A combination of both
methods is common so that JIS tops JIT by adding the right sequence for supplied parts

19
and components (Werner, 2003). JIT and JIS require high discipline and great
communication of supplier and manufacturer.

3.1.2. Kanban

The basic philosophy of Kanban is that raw materials, semi products, parts etc. should
be supplied right at the moment when they are needed in the production process.
Kanban is a pull system, which means that input needed for production must only be
pulled through the chain in response to the end customer demand. The word
“Kanban” is a Japanese word meaning signboard or visible record (Ukil et al., 2015).
The Kanban system basically uses cards and containers to identify critical inventories
and to control the production (Bauer, 2016).
In the Kanban system, the aim is to meet demands right at the time they are ordered
and not before.
The aim of Kanban is to reduce inventory to its minimal amount at every stage to
achieve a balanced supply chain.

3.1.3. Kaizen

”When things are constantly improved through many small modifications”

For process optimization, kaizen or coined in Japanese is a management concept,
which focuses on the gradual improvement of processes and on the development of
people so that they are able to solve the problems and the desired results can be
achieved. The message of kaizen is that there must not be a day without an
advancement (Kach, 2015).
It’s not a project; it is a comprehensive tool and mindset to develop the business. It is
used to remove problems and capitalize opportunities for improvement. This work is
driven by employees with management support.
Kaizen means continuous change for the better in Japanese (Bauer, 2016). The kaizen
rapid-improvement process is the foundation of lean manufacturing. It holds that by
applying small but incremental changes routinely over a long period of time, a firm
can realize considerable improvements. Kaizen involves workers from all levels of an
organization in addressing a specific process and identifying waste in this process.
After finding possible »wastes«, the team tries to find solutions to eliminate them and
then quickly apply chosen solutions, often within three days. After implementing
improvements, periodic events ensure that this improvement is sustained over time.

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3.1.4. Business process reengineering

“fundamental and radical approach to reengineer the processes with a ‘top down’
approach”
Business process reengineering is a business management strategy, focusing on the
analysis and design of workflows and business processes within an organization. BPR
aimed to help organizations
fundamentally rethink how they do their work in order to dramatically improve
customer service, cut operational costs, and become world-class competitors. BPR is
used when a company is not competitive anymore caused by changes in the
economic environment or changes in the strategic orientation (Koch, 2011).
BPR seeks to help companies radically restructure their organizations by focusing on
the ground-up design of their business processes. Unlike Kaizen, BRP does not believe
in small improvements but rather aims a total reinvention (Muthu, 1999). Reengineering
emphasized a holistic focus on business objectives and how processes related to them,
encouraging full-scale recreation of processes rather than iterative optimization of sub
processes. Business process re-engineering is also known as business process redesign,
business transformation, or business process change management.
BPR is different from other approaches to organization development (OD), especially
the continuous improvement or TQM movement, by virtue of its aim for fundamental
and radical change rather than iterative improvement.

3.1.5. Six Sigma

”Quality improvement strategy focused on removing variability from a process”

Developed by Motorola in the 1990s, Six Sigma uses statistical quality-control
techniques and data-analysis methods. Six Sigma uses a set of methods that analyse
processes systematically and reduce their variations, ultimately leading to continuous
improvement. The goal of Six Sigma is that there are only 3.4 defects per one million to
satisfy almost every customer (Andersson, 2006). At the Six Sigma quality level, there
will be about 3.4 defects per million, which signifies high quality and low variability of
process . Six Sigma is used for clarification, minimization and elimination of causes of
defects in processes and thereby reducing the variability in manufacturing (Koch,
2015).
The method is used primarily by large manufacturing companies for example in
manufacturing or automotive industry in order to become even more cost effective.
Six Sigma is a statistical method within the area of quality management with the
approach – define – measure – analyse – improve - monitor. Is frequently used in
manufacturing processes to increase the quality level. The ‘Six Sigma‘ methodology
requires a special training for the company staff, it means talking about the different
roles that staff can fill depending on their level of education.
Six Sigma is a quality improvement strategy focused on removing variability from a
process. Although originally developed for manufacturing processes, the Six Sigma
methodology has been successfully applied to a wide range of processes. As a tool

21
for process improvement and reduction of defects, Six Sigma compliments Lean and
is a component of many Lean programs.

3.1.6. TQM – total quality management

“Awareness of quality throughout the organizational process”

For corporate management TQM is a comprehensive and structured approach to
organizational management that seeks to improve the quality of products and
services through ongoing refinements in response to continuous feedback. TQM is an
integrated concept which is designed for the long run (Rothlauf, 2014). TQM
requirements may be defines separately for a particular organization or may be in
adherence to established standards, such as the international organization for
standardization ISO 9000 series. TQM can be applied to any type of organization; it
originated in the manufacturing sector and has since been adapted for TQM is based
on qualitymanagement from the customer’s point of view.
TPM reaches effective equipment operation by involving all workers in all departments.
For security and improvement of quality of products it is necessary that workers and
managers of all hierarchy levels fell responsible for the quality management (Koch,
2015). The most important concept of TPM is autonomous maintenance, which trains
workers to be in charge of and take care of their own equipment and machines. TPM
tries to eliminate breakdowns, the time spent on equipment setup or adjustment, and
lost time in equipment stoppages and to minimize defects, reworks, and yield losses.

3.1.7. 5S

Standing for sort, set in order, shine, standardize, and sustain, 5S represents a set of
different practices for an improved workplace organization as well as improved
productivity (Kanamori et al., 2015). In a more detailed way 5S is maintaining and
creating a high effective, high quality and well organized workplace, supports the
reduction of work environment, the improvement of safety and quality of work as well
as the elimination of losses resulting from breaks and failures (Filip & Marascu-Klein,
2015). Sort means to organize tools in a specific order to prepare an easy storing and
retrieval. Set or Set in order means to clearly label and designate where things like tools
should be stored and that everything should be stored at this exact place to reduce
the searching effort to zero. Shine means to keep all needed things clean and neat.
The S for Standardize represents the documentation of the work methods and the
implementation of these methods into the organizational culture. The last S - sustain
means keeping 5S operating over time. (Omogbai & Salonitis, 2007).
The 5S philosophy encourages workers to maintain their workplace in good condition
and ultimately leads reduced waste, downtime, and in-process inventory.

22
3.1.8. Cellular manufacturing

Cellular manufacturing is the actual practice of the pull system. The ideal cell is
basically a pull system in which one piece is pulled by each machine as it needs the
piece for manufacturing. All of the machines needed for a process are gathered as a
group into one cell. Resources within cells are arranged to easily facilitate all
operations (Abdulmalek 2006). Using cellular manufacturing offers different
advantages such as improving quality while decreasing material handling cost, work
in process (WIP), setup time, lead time and throughput time (Ariafar 2009). In a cell,
when a defect occurs, only one product is defective, and it can be immediately
caught. As soon as a defective part is seen, the operator starts repairing it, which leads
to reduced scrap. In addition, using cells can shorten lead times. For example, if a
customer’s order is less than the usual company batch, the order can be delivered
the moment it has been completed. In conventional manufacturing, however, the
customer must wait until the company batch is completed before the order is shipped.

3.1.9. Value stream Mapping

Value stream mapping is a method to collect all actions that are required to bring a
product through the main flows, starting with raw material and ending with the
customer (Abdulmalek 2006). This offers the possibility to visually depict the current
state of production and/or assembly and to detect wastes.The goal is to first reduce
waste and to subsequently shorten the lead time or the efficiency of a process. Value
stream mapping is a tool which helps to identify the root causes of waste.
When a value stream is mapped out, material and information flows are illustrated in
a clear and transparent manner. In order to holistically improve a process, it is
necessary to understand how both flows are interrelated.
Steps / Sequence of a value stream project (Lasa 2008):
(1) selection of a product family;
(2) current state mapping (value stream mapping);
(3) future state mapping;
(4) defining a working plan; and
(5) achieving the working plan.

3.1.10. MUDA – 7 Wastes

Muda is the Japanese term for waste and the elimination of these waste is essential in
order to become lean (Palmer, 2001). The main categories of waste were already
determined in 1988 by Taiichi Ohno and consists out of the seven categories (1) waste
of handling, (2) waste of processing, (3) waste of inventory, (4) waste of waiting, (5)
waste of manufacturing too much or too early, (6) waste of defective goods and (7)
waste of action (Cai et al., 2017). Examples of waste in these categories, which should
be eliminated, are for example defective goods because these defective

23
components require disposal or recycling, so waste. Another example is within the
category „waste of manufacturing too much or too early“. Here the extra products
may become obsolete because they are not needed yet, what leads to the
requirement of disposal (Fercoq et al., 2016).

3.1.11 Single Minute Exchange of Die (SMED)

SMED stands for Single-Minute Exchange of Die and it’s a tool for time reduction
(McIntosh et al., 2000). The SMED concept has its origin at the Toyo Kogyo´s Mazda
plant in Hiroshima, Japan in 1950, in the course of a production efficiency
improvement study conducted by Shigeo Shingo (Augustin & Santigo, 1996). This
method is focused on changeover time reduction of machinery by splitting the
external and the internal setups, followed by converting the internal to external setup
and finally streamlining all operations within both kinds of setups (Filla, 2016).

3.1.12 Fishbone Diagram

The fishbone diagram is a nonstatistical tool for identifying the root cause of a problem
(Gupta, 2006). Because of the function of the fishbone diagram, it may be referred to
as a cause-and-effect diagram (Arvanitoyannis, 2007). A fishbone diagram, also
called Ishikawa diagram, is a visualization tool for categorizing the potential causes of
a problem in order to identify its root causes. When you have a serious problem, it's
important to explore all of the things that could cause it, before you start to think about
a solution. That way you can solve the problem completely, first time round, rather
than just addressing part of it and having the problem run on and on, in this case you
can use a fishbone diagram.
The factors are drawn on lines radiating out from a central line. The completed
diagram resembles a fish skeleton hence the nickname. Cause and Effect Analysis is
a mix of brainstorming and mind mapping and it was originally developed as a quality
control tool, but you can use the technique just as well in other ways. For instance, you
can use it to:
• discover the root cause of a problem,
• uncover bottlenecks in your processes,
• identify where and why a process isn't working.

3.1.13 Heijunka – production leveling

The levelling of production, also known as smoothing - according to the Japanese

"heijunka" is a technique to reduce the Mur (unevenness), which in turn reduces the
Muda (waste). For the development of production efficiency according to the lean
manufacturing philosophy. The aim is to produce semi-finished parts and assemblies
at a constant speed so that further processing can be carried out at a constant and
predictable speed (Matzka et al. 2012).

24
3.1.14 One Piece Flow

In order to meet the trend of mass customization, established production concepts

have to be reconsidered and adapted. The variety of products increases and the
available production time decreases. As a component of JIT, the one-piece-flow
manages to meet the requirements. The aim is to manufacture only one product at a
time, so that the next manufactured product can be produced according to different
requirements. In practice, a one-piece-flow may be implemented as the smallest
possible batch production (Koch 2015; Scholz et al. 2016).

3.1.15 Pareto Chart

Pareto chart is a basic quality tool that helps identifying the most frequent defects,
complaints, or any other factor you can count and categorize. The chart based on
the 80/20 rule, which says e.g. 80% the losses come from 20% of the causes. In the
production environment, Pareto is used to identify A and B parts, assemblies or
products. In this way, measures can be prioritized according to necessity and highest
impact (Kulkarni et al. 2017).

3.1.16 Spaghetti Diagram

A spaghetti diagram is a visual representation using a continious flow line tracing the
path of an activity through a process (Raikar 2015). The continuous flow line enables
to detect redundancies in the work flow and opportunities to expedite process flow.
A spaghetti diagram makes it possible to identify how to change the layout of an area
to minimize walking and other non-value activities (Labach 2010). The diagram clearly
depict types of waste, in particular the waste types »transportation« and »motion«. In
a layout of the production area, the trips made during the production process are
tracked with lines. The less productive a process flow is, the more cluttered the
organisation of the lines on the layout will be. The name spaghetti diagram comes
from the fact that such plots often liik like a plate of spaghetti noodles.
Goals:
• Visualise trips made during a work process
• Detect the waste types "transportation" and "motion"
• Provide a basis for optimising the production layout in order to reduce
waste and therefore increase productivity.

3.1.17 DMAIC / PDCA

Define, Measure, Analyse, Improve and Control (DMAIC) is the core approach of the
quality management method Six Sigma. It has its similarities to the PDCA-cycle
method of lean management.

25
DMAIC improves existing processes, which do not meet the critical quality criteria to
the desired extent. It is considered one of the most proven and recognised methods,
as it are associated with a systematic and formalised approach. In addition, this
method is carried out in a project form with defined milestones and roles in a clearly
defined sequence (Koch 2015). DMAIC also meets the requirements of ISO 9001
(Marques et al 2013).
Define Phase: Identifying and selecting those processes that have a high level of
revenue for the company and a low sigma level.
Measure phase: Involves the determination of the actual state by measuring the error
rate (FpMM) and the dispersion for the critical quality characteristics.
Analysis phase: Statistical tools and methods are used to identify the causes of errors
and deviations that have the greatest influence on the quality characteristics for
assessing process performance.
Improve phase: Improvement opportunities that have the highest impact on customer
satisfaction and economic results are identified. At the end of the phase, the
improvement projects are implemented.
Control: The measures implemented are checked to see whether the desired success
has been achieved. Deviations from the planned project goal can be calculated by
means of final costing.
Plan-Do-Check-Act (PDCA) results from Lean Management and is used for continuous
improvement. The procedure is similar to DMAIC. These phases are to be considered
as a continuous process and are constantly undergoing (Koch 2015):
1. Plan: Analysis of the actual situation by means of data collection and
evaluation using the defined quality tools. Based on these data, an
improvement plan is drawn and realistic targets are defined.
2. Do: The affected employees are familiarized with the plan, and the
planned improvements are implemented.
3. Check: Data collection as a basis for verifying the achievement of
objectives. Determine whether the objectives of the planning phase have
been achieved.
4. Act: Check whether there is an overriding of target and actual. Either the
results or go through the "Planning" and "Implementation" phases for as long
as necessary, until there is agreement. As soon as an improvement is
implemented, new goals must be based on the latest improvement
(Bandow et al. 2007).

26
3.2. Practical examples

In Cosima Project (Cosima Project 2015 - Process Optimisation methods) tools are
presented with a practical example, where the example for Spaghetti diagramme
and Value Stream Mapping could be applied also to Combined transport.
Example for Spaghetti diagramme represents visualization of workflows and material
flows. The primary goal is to detect waste in work processes, especialy for
transportation/motion processes. This can be done from the viewpoint of the
employee or from the viewpoint of a produced part (material). The procedure consist
of Sketching a Layout, determine the period of observation, draw lines for every trip
taken and analyse the Spaghetti diagramme. A table providing an overview of all trips
with data on total distance and number of trips quidkly identifies long unnecessary
movements, which can be identified also with a sketch (Thick and long lines represent
waste)

Figure 2: Spaghetti diagramme example

Example for Value stream mapping represents a optimization tool to reduce waste
and shorten lead time or improvement of efficiency. Steps / Sequence of a value
stream project include:
1. Choose a product (e.g loader crane)
2. Create a CURRENT state map (value stream mapping) – The material flow is made
“backwards”, from shipping back to receipts of goods (this allows the custumer
perspective view). Processes can be sketched on paper or digitilised according to the
level of intervention or individual process step /substep.

27
3. Analysis phase (plot an optimized image of ideal process, this includes also identified
problem areas and potential in the current situation:
- Utilisation and takt times (according to costumer wishes (size and model of
wanted crane) the production differences in takt times between each workplace
- Missing parts (delivery problems with subsupplieres)
- High inventory levels (due to outdated push system)
- Information flow (overview of crane assemblies for each employee)
4. Create a FUTURE state map with answering on questions: What takt time is given by
our customer?; Where can a continuous production flow be applied?; Where should
pull systems be employed?; Which individual processes require improvement?
5. Implement corrective actions - for example:
a) with balancing takt times for production of standard cranes and high
sophisticated cranes, This is achieved by preassembling time consuming assemblies
(e.g. electronic assemblies, support cylinders) on days with a lighter workload, which
can then be taken out of the system on days with a heavier workload. Initially, 4 or 8
hours were necessary to complete a work step. With the supermarket pull system, this
difference is harmonised which means that the workplace now needs 6 hours to
complete every crane, regardless of which model.
b) with introduction of tugger train to drastically reduce the high amount of fork
lift transport, parking spots and unnecessary manipulation. (see photo). Because the
train is able to tow twelvefold the load volume of a forklift, just one delivery replaces
eleven forklift runs and therefore reduces the high number of empty runs. The resulting
advantages for the company include: Forklift runs reduced by 60%, Parking spaces
reduced by 70%, Elimination of unnecessary empty runs, Elimination of individual pallet
transportation, Reduced load on coordinators

Figure 3: Photo of a “train system”

28
 3.3. Optimisation methods – overview
The methods for optimising production processes can be structured to:
 Process Optimisation tools (reduction of waste)
 Process Triger Tools (reduction of inventory)
 Quality Improvement Tools (Reduction of defects, improvement of quality)
 Strategic Tools (continuous improving of organisation and operation)
 Visualisation tools (Identification of bottlenecks, weaknesses, visualising
potentials for optimisation)
 Lead Time improvement tools (shorten lead time, reduction of
inventory/work preparation and searching)

Figure 4: Clustering of production methods/tools (SGKV, 2018)

29
4. Monitoring of Combined Transport processes on a
corridor
To analyse future trends in Combined Transport monitoring an analysis of individual
functions in terms of cost and time is needed. The functions are focused on
transshipment processes, administration e.g. customs, information system and
procedures, interoperability – operations, problems, solutions, organization (e.g.
shunting) - and terminal as a whole (organization, capacity, technology, possible
improvements…).
Main scope represents the identification of performance indicators (in terms of cost
and time) in the entire Combined Transport process, which is seperated to:
 Transport processes and
 Terminal operations

Transport process consist of:

 First mile (operated on road)
 Long haul (operated on rail)
 Last mile (operated on road)

Terminal operations can be:

 Handling
 Shunting
 Storage, parking
 Administration procedures (documentation, booking, weight/gauge
inspection, clearance)
 Transport at terminal
 Road traffic from/to terminal (access gate)
 Etc.

Terminal operations differ according to the type of transport and terminal (eg. Port
Terminal, RoRo Terminal, Manufacturer Terminal, end costumer Terminal, Logistic
center, Shunting Terminal/Marshalling yard, border terminal, etc.).
The monitoring of a CT process in general should cover all relevant stakeholders
contributing to transport chain and affecting costs and time in CT corridor.
The main material and information processes of relevant stakeholders are presented
in Figure 5.

30
 Figure 5: Relevant information and material processes in CT chain (Bendul, 2015)
The Monitoring concept follows the before-after approach, where the monitoring will
be performed in two stages:
1. Analysis of existing CT activities and processes on chosen corridors
2. New - improved picture of CT activities and process on chosen corridors
(after adoption of measures for improvement)
Combined transport processes can be monitored according to different parameters.
Cost and time represent two crucial parameters to be measured for performance
analysis. This chapter presents general relationships between costs, distance and time
for a CT process. Costs/distance and time/distance relationship in CT Process are
presented below. A detailed analyses of CT processes on the corrdors will be made in
WPT2.
The basis for implementation of Production optimisation methods represents the cost
distance and time distance diagrammes on CT Process with KPI template.
The loading units used for the combined transport are called UTI (Units for intermodal
transports - Unité de transport intermodale) or ITU (Intermodal transport unit) or ILU
(Intermodal Loading unit). They are characterized by a high transferability, which is the
essential element of intermodality. The main elements of the definition of ILU are
container, swap body and the semitrailer. The selection of an ILU is depending on the
kind of transport (maritime, continental or RoRo). The conversion from ILU in TEU could
be done using e.g. the means of the coefficient set at: 1.79 ILU/TEU (e.g. fixed by union
of italian freight villages – UIR).

31
4.3. Costs in CT Process
The costs for Combined Transport process in a corridor consist of costs for transport
between nodes and costs in nodes. Figure 6 presents transport cost for main processes
in CT consisting of nodes and links between nodes, where monitoring of performance
process of CT is presented (costs/distance diagram).

Figure 6: Transport cost for a transport chain

The costs of Combined Transport in the Corridors can be divided into several cost
groups referring to transport and nodes. Number of transport links and nodes is to be
applied according to individual situation. In the graphs above following index
meanings are used:
x0, x1, …xn – represents nodes
x0-x1; xi-xi+1; – represents transport between nodes (terminals)
Ci-Ci-1 – represents costs in node xi
Ci+1-Ci = ci - represents costs of transport in the transport link between nodes
xi and xi+1
Costs can be measured in €/tonnekm resp. €/ UTI or TEU or ILU or train and also in
€/transhipment (liftings).
Main cost categories can be analysed from the point of view of a user or operator. For
the model the unit of measure should be defined as the intermodal transport provides
for the adoption of the ITU as standard and not TEU.

32
Main Terminal operator costs are:
 fix costs (depreciation, labour, …),
 variable costs (energy, …):
The aim is to asses costs of terminal per TEU/ILU volume and to compare efficiency of
different terminals on the corridor (EUR/TEU). Figure 7 and 8 present the concept of
terminal efficiency on a chosen corridor.

Figure 7: Terminal cost efficency on a chosen corridor

Figure 8: Comparison between terminals (Costs/TEU)

Main User costs at terminals are:

 terminal fee, transhipment fee, administration costs (quality inspection,
customs procedures, documents, informatics …)
 warehousing, parking,
 transport at terminal etc. …

33
Main User costs of transport are:
 first mile,
 long haul and
 last mile
 Total
Aim is to assess Structure and total volume of all transport and terminal costs (EUR/TEU
or EUR/KM) on the entire corridor for:
 existing situation (also comparing with road transport corridor) and
 after implementation of AlpinnoCT project identified measures for
improvement of CT processes and procedures.

4.4. Time in CT Process

The time for Combined Transport process in a corridor consists of transport time
between nodes and for CT processes in nodes.
Figure 9 presents transport time for a transport chain consisting of nodes and links,
where monitoring of performance process of CT is presented (time/distance diagram).

Figure 9: Node/transport time performance monitoring

34
Main time categories are listed for time at terminals/nodes and transport time
between nodes. Transport time can be measured in hours, min/TEU, min/km (or
average speed, measured in km/h). The unit depends on the application (e.g. for 1
TEU or 1 block train etc.).
Time needed for individual operations at terminal:
 transhipment (cargo handling),
 marshalling (Shunting),
 waiting time of cargo at terminal (Queueing) and
 administration procedures (e.g. cargo inspection, weight and gauge
checking) (min/operation),
 transport at terminal
 damage, checks, repair
 Other
Transport time for combined transport on corridor (distance between x1 and x2-e.g.:t3-
t2):
 first mile,
 long haul (O/D total corridor, between individual terminals),
 last mile,
 total (min/km).
Aim is to assess Structure and total volume of time needed for individual operations at
terminal and needed transport time on the corridor (in hours/minutes) according to:
 existing situation (also comparing with road transport corridor) and
 after implementation of AlpinnoCT project identified measures for
improvement of CT processes and procedures.

4.5. Other indicators in Combined transport process

Other key performance indicators can be measured for:
• Reliability of service (in terms of timely deliveries), measured in percentage of
consignments delivered within a pre-defined acceptable time window);
• Frequency of service (measured in number of services per day/
week/month/year);
• Availability (rolling stock, off terminal transhipment technologies, required
transport capacity)
• CO2 (SOx) emissions,(measured in g/tonne-km); and
• Capacity (e.g.higher allowance in CT – 44t)
• Other.

35
4.6. KPI template structure
Relevant KPIs could be selected by the involved stakeholders on the basis of the
objectives being pursued – (evaluation possible also within the time framework e.g.
today after 5, 10, 20 years…provided the policy & other measures are implemented).
The following table presents the KPI template for CT corridor user, which covers main
category aspects:
 Financial performance (Finance)
 Operational performance (Time)
 Customer satisfaction (Quality of service)
 Environemntal performance
 Other (Security, Damage)

Table 3: KPI template for CT Corridor

Category Sub category Indicator Unit

Terminal fee €/TEU
Transhipment fee €/TEU

Administration costs (quality

inspection, customs procedures, €/TEU
Terminal operations documents, informatics …)

Warehousing, parking €/TEU

Transport at terminal etc … €/TEU
Financial
performance Other (e.g. Costs for damage of
loading unit/cargo, VOT etc.)
Total origin – destination
€/TEU or €/km
transport cost on a CT corridor
First mile costs €/TEU or €/km
Transport Long haul cost (including
€/TEU or €/km
shunting)
Last mile costs €/TEU or €/km
Other
min/TEU or
Total terminal time
min/block train
min/TEU or
Transhipment (cargo handling)
min/block train
min/TEU or
Marshalling (Shunting)
min/block train
Waiting time of cargo at terminal min/TEU or
Operational
(Queueing) min/block train
performance Terminal operations
(time) Administration procedures (e.g.
min/TEU or
cargo inspection, weight and
min/block train
gauge checking) (min/operation

min/TEU or
Transport at terminal
min/block train
Trains handled /
Terminal capacity
day

36
 First mile min/km
Long haul (O/D total corridor),
min/km
between individual terminals),
Long haul (between individual
Transport min/km
terminals)
Last mile, min/km
Total min/km
Other
% of consignments
delivered within a
Reliability of service On - time delivery pre-defined
acceptable time
window;
number of services
per day/
Trains per day, week/moth/year);
Frequency of service Number annualy trains / working Numbers couples
days train for railroad
Customer
track dedicated in
Satisfaction
one day
(Quality of
Rolling stock % of fleet
service)
Off terminal transhipment
Availability
technologies
Required transport capacity Max. TEU/rail link
number of craneable railroad
tracks
Number of hours
between the arrival
Time rail plant opening /
Other and departure of
Efficiency
freight train after
processing
Environmental Population affected with CO2
CO2 (SOx) emissions g/tonne-km
performance (SOx) emissions
Noise Population affected with noise
Other Security Number of thefts Number of thefts
Damages/losses/
Damage Damages/losses/ per TEU
per TEU

37
5. Applicability of Lean principles in CT - identification
and depiction of production optimization methods &
tools
The identification of production optimization methods and tools is based on reviewed
literature of methods and their functional solutions in industry processes. The Table 4
presents the possible implementation of solutions in industry process to Combined
Transport processes. The table presents the main category of KPI for which the selected
method is most relevant.
For a more flexible and innovative CT process, the process should meet the end user
requirements, set measurable and achievable targets and implement proposed
optimisation methods.

Table 4: Possible applicability of Industry process solutions to Combined transport

CT Process main KPI

Method Industry Process Solution
Category
Quality of service JIT, KANBAN Few suppliers with long term
open relationship
Operational performance JIS and JIT Perfect sequence
Quality of service KANBAN Kanban cards to identify
critical inventories
Quality of service KAIZEN Continuous change of small
level improvements by workers
All Categories/ Quality of BPR (Business Process Fundamental change of
service Reengineering) processes
Quality of Service (including 6 Sigma Reduction of defects -
damage loss) statistically (according to
different roles of staff and their
level of education)

Quality of Service TQM (Total Quality Autonomous maintenance

Management)
Quality of Service TQM (Total Quality Establish standards
Management)
Quality of Service TPM (Total Productive Clear hierarchy of
maintenance) maintenance management
Operational performance 5S Organize workplace
Operational performance Cellular manufacturing Defects repaired in a cell, not
in usual company batch

Operational performance Value stream mapping Detect waste

Operational performance MUDA – 7 wastes Disposal of defective goods
Operational perfomance MUDA – 7 wastes Disposal of overproduction or
early production
Operational performance SMED (Single Minute Splitting the external and
Exchange of Die) internal setup of production in
time of machinery changeover

38
 Quality of Service Fishbone Diagram Identifiying the root cause of a
problem
Operational performance Heijunka Leveling – constant speed of
production
Operational performance One piece flow One product at a time, next
product with different
requirements
Operational performance/ Pareto chart Prioritize the causes of defects
Quality of Service and complaints
Operational Spaghetti Diagram Change of layout, due to
performance/Quality of minimized
Service walking/motions/transportation
Quality of Services DMAIC (Define, measure, Clearly defined sequences for
(continuous improvement) Analyse, Improve and improving the existing process
Control) and its »nonquality« parts
Quality of Services PDCA (Plan Do Check Act) Clearly defined sequences for
(continuous improvement) improving the existing process
and its »nonquality« parts

The table helps decision makers to select the method according to identified
problems. In AlpInnoCT WP1 problems were identified as:
 Barrires of CT implementation (based on questionaire – Deliverable T1.1.1 –
WP1)
 Weaknesses of CT (based on analysis of policies, strategies and funding
schemes – Deliverable T1.1.1 – WP1)
 Bottlenecks of Transhipment technologies and CT processes (Deliverable
T1.2.1)

According to results of the questionnaires most important identified barriers:

 Lack of incentives in some Alpine countries
 Insufficient standards
 Lack of cooperation between actors and transport modes

Weaknesses of CT were identified from Infrastructure, Management and Service point

of view:
Infrastructure (differences in energy and signalling systems in EU, insufficient train
capacity, interoperability deficit of rail infrastructure (train lenght, maximum weight),
lack of maintenance of infrastructure, low average commercial speed, low density of
CT terminals, uncoordinated infrastructural works).
Management (lack of open access, lack of service guarantees (no cooperation
between main actors).
Services (Costly last mile, deficit in cost-efficiency (e.g. handling costs, costs for short
shipping), insufficient ICT capabilities, lack of operational service quality (waiting times

39
at gates, lack of storage areas), lack of standardisation about technical and
administrative procedures, non harmonized terms and conditions for rail access).

Bottlenecks of transhipment technologies and CT processes:

 Different loading times (per train, per wagon)
 Different infrastructure and rolling stock requirements (e.g. transhipment
vertical-horizontal, loading platform, pocket wagon, slot availability)
 Terminal investments needed (only some technologies relevant for all TEN-T
corridors in the Alps)
 Different requirements for selected Intermodal Loading Unit (container,
swap body, semitrailer –noncraneable-craneable)

The selection of the method for testing and tools should be in line with the clear
identification of objectives and targets to solve according to identified
problem/bottleneck.

Table 5: Main problems in CT in Alpine space and suggested lean method

Main Problems of CT in Alpine Space Possible Optimisation Method

Insufficient standards TQM
Lack of cooperation between actors KAIZEN
Differences in energy and signalling BPR, SMED
systems in EU
Insufficient train capacity BPR, SMED
Interoperability deficit of rail TQM,TPM, Heijnuka
infrastructure (train lenght, maximum
weight)
Lack of maintenance of infrastructure TQM, TPM
and rolling stock
Low average commercial speed TQM, TPM
Low density of CT terminals Value Stream mapping, Spaghetti
diagram
Uncoordinated infrastructural works 6SIGMA
Loading/unloading time MUDA
Resting and transport MUDA
Needed personal for transhipment 6SIGMA
Operational cost on storing and sorting Spaghetti Diagram
Terminal space used for transhipment Value Stream mapping
Train headway (through faster loading) One piece flow, Cellular manufacturing
Waiting time at terminal (queueing JIT, MUDA
time)
Lack of Storage at Terminal Value Stream mapping
Noneffective communication between TPM
actors
Deliver on Time Kanban, 5S
Identification of causes of damages Pareto chart, 6SIGMA

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41
6. Conclusions - Towards innovative flexible CT
processes in the Alpine Space
The scope of the report is to present an overview of production methods and make
an analysis of basic characteristics & development trends in modern industry to be
considered in future CT services.
Main findings from our analyses show a relative broad field of applicability of industry
optimisation methods and tools in Combined Transport processes.
The CT process is to be improved with measures for digitalisation (also blockchain),
automatisations and new technologies (transhipment, driving, handling), outsourcing,
asset sharing, production (industry 4.o, 3D printing, robotics) and harmonised push and
pull measures (driving bans, subsidies, investments in Infrastructure, rolling stock and
terminals, taxing) in Alpine region.
In general the CT processes can be improved from 2 approaches:
 Bottom up approach – smaller changes based on experience/new
technologies (e.g. integration of e-freight documents with KAIZEN,
Integration of Nikrasa with MUDA)
 Top down approach – bigger changes based on new technologies (e.g.
ERTMS on TEN-T Corridors with BPR)

After improvement and starting eliminating wastes (process time, material, tools,
space) with concepts and tools like JIT, KANBAN, MUDA, Fishbone Diagramme,
additional lean manufacturing methods for leveling and standardisation could be
used (Heijnuka, 5S, One piece flow, TQM). To continuously improve the CT process,
tools like PDCA or DMAIC are to be used. For successul improvement of KPI several
measures and lean concepts are to be implemented in parallel.
This approaches are to be used on macro level (for the whole CT process or for
individual CT process steps) or on micro level (for optimizing single process steps – e.g.
handling).
Additionally the holistic view is important to be considered in improved CT Service, as
also minor changes in process can effect other processes (e.g. elimination of paper
wagon control may not be efficient, if not all wagon controls on the corridor are not
improved with new technologies and/or skilled stuff).
Main criticalities during the future data collection represent lack of statistical data on
CT operation (e.g. most ILU on rail are not traced) and non harmonised organisation
structure of bodies relevant for CT in individual countries in Alpine space. A main
added value of this Deliverable represents a table combining and matching CT
processes and industrial process solutions, it represents an entry point for the definition
of a measures within the pilotcorridors (as task of WP3 and WP4).
The Deliverable provides the compendium of identified barriers and weaknesses in
Deliverable DT1.1.1, bottlenecks of Transhipment Technologies in Deliverable DT1.2.1 in
order to find solutions on problems of CT from modern industry. The table also provides
a review of possible methods and tools to be further analyzed (WP3) and applicable
for the pilot (WP4).

42
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