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Fanshawe College *

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Industrial Engineering

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Dec 6, 2023

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1. What are potential advantages and disadvantages of entering into these "power-by- the-mile" arrangements? Advantages - Cost savings: Financially beneficial for the company as it saves on fixed maintenance costs, aligning expenses with actual usage - Encourage usage: Encourages the use of equipment, contributing to higher work output and potentially increased productivity. Disadvantages - Environmental impact: Causes environmental pollution due to the increased activity associated with frequent maintenance work. - Customer disruption: The extensive maintenance activities might disrupt customer operations, potentially causing inconvenience or delays. 2. What should be done if the problem with the locomotives continues even with the agreements? * Root Cause Analysis: Conduct an in-depth analysis of locomotive performance, involving experts in engineering, maintenance, and operations. Investigate historical data, maintenance records, and failure patterns to identify the root causes of the reliability issues. * Data Collection: Gather comprehensive data on locomotive performance, breakdowns, and maintenance activities. Utilize advanced data analytics to identify patterns and correlations that may indicate the root causes. * Supplier and Manufacturer Collaboration: Collaborate closely with locomotive manufacturers and suppliers. Share data and insights to understand if there are design, manufacturing, or supply chain issues contributing to the reliability problems. * Employee Involvement: Involve current employees in the analysis, as they may have valuable insights based on their hands-on experience. Invest in training programs for existing employees to enhance their skills and keep them updated on the latest maintenance practices. This can empower them to contribute more effectively to problem-solving efforts. Additionally, consider hiring new employees with expertise in modern locomotive technologies and maintenance practices. * Strategic Partnerships: Explore partnerships with research institutions, industry experts, or technology providers who specialize in locomotive design and maintenance. Collaborative efforts may bring in external expertise and resources. 3. Do you think that the decision to lease the locomotives was the best decision for ABC? Explain your answer. The decision to lease locomotives, particularly through a "power-by-the-mile" arrangement, can

be both advantageous and disadvantageous depending on the specific circumstances and goals of ABC Railway Company Good sides  Cost Control and Predictability: Leasing allows ABC to have more predictable and controlled costs. The "power-by-the-mile" arrangement means that maintenance costs are directly tied to actual usage, providing a more efficient way to budget.  Access to Manufacturer Expertise: By outsourcing maintenance to manufacturers, ABC can benefit from the specialized knowledge and expertise of locomotive manufacturers, potentially leading to higher-quality maintenance. Bad sides  Dependency on Manufacturers: Relying on manufacturers for maintenance services may create a dependency. If a manufacturer faces challenges or goes out of business, it could impact the maintenance and reliability of ABC's locomotives.  Variable Costs: While the "power-by-the-mile" arrangement provides predictability, the costs are still variable and depend on the actual usage of locomotives. This variability can make budgeting more complex.  Environmental Impact: As mentioned earlier, there could be concerns about the environmental impact due to increased maintenance activities associated with the "power-by-the-mile" arrangement 4. Pick two Container Ports in Canada and discuss which railways services the ports, how freight is moved from the port to the customers and list two customer concerns expressed regarding delivery of the freight. Two container ports in Canada: Port of Vancouver, Port of Halifax. a. Port of Vancouver - The Port of Vancouver is served by several major rail carriers, including Canadian National Railway (CN) and Canadian Pacific Railway (CP). - CN and CP have extensive rail networks connecting the Port of Vancouver to various destinations across Canada and the United States. - Containers arriving at the Port of Vancouver are transported by rail to inland destinations. Both CN and CP offer efficient intermodal services for the movement of freight containers. - Intermodal transportation involves the use of containers that can be easily transferred between ships, trains, and trucks. - Customers may express concerns about delays and congestion, especially during peak periods or when there are disruptions in the transportation network. Addressing these concerns requires coordination between the port, railways, and other stakeholders . b. Port of Halifax

- The Port of Halifax is also served by Canadian National Railway (CN), providing rail connections to different parts of the United States, as well as northern and central Canada. - Customers using the Port of Halifax may express concerns about goods arriving in a damaged state. Adequate planning and utilizing appropriate packaging can help address this concern - Late deliveries can impact customer operations and are a common concern. Effective communication with logistics partners and planning for potential delays can help manage and mitigate the impact on customers.

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