Italian Rail Network - TREND Project · Italian Rail Network: a logistics platform in the Mediterranean Sea QUALITY TOOLS TO IMPROVE FREIGHT FLOWS ... OF TWO SEAS Italy is a natural

Italian Rail Network:a logistics platform in the Mediterranean Sea

QUALITY TOOLS TO IMPROVE FREIGHT FLOWS

Sergio BINITRENITALIA LOGISTICS, Italy

Bratislava, May 3 rd, 2006

2Bratislava - May 3 rd, 2006Logistics - Quality

1.

MY COMPANY:TRENITALIA LOGISTICS(Ferrovie dello stato Group)


The Ferrovie dello Stato Group is the central lever of Italy's economic development increasing its investment annu ally by over 20 %, with an overall annual 4 % increase i n the construction and machinery sector. It currently employs over 99,000 people and operate s 9,200 trains every day, transporting 472 million pa ssengers and 76 million tonnes of freight a year. The Group has about 75,000 items of rolling stock t ravelling on the 16,000 km rail network, and runs a ferry ser vice between the mainland and Sardinia, and Sicily.

The Companies of FS Group are:Trenitalia RFI (railway network management)

Italferr Ferservizi Grandi Stazioni CentostazioniSogin Fercredit Ferrovie Real Estate

Ferrovie dello Stato & Trenitalia (1)


TRENITALIA is a Italian Railways Undertakingthat is operating into a big Company: Ferrovie dello Stato Group (the historical Italian Railways)

TRENITALIA is a complex Company multi-market that deliveries its services to a lot of “customers families” .Trenitalia has different relationship’s patterns:� Business to Consumers (passengers);� Business to Government (commuters) ;� Business to Business (freight & logistics);� “captive” Business (maintenance rolling stocks).

Consequently the Quality approach was “taylor made” for each type of:- relationship with the Customers, - market’s target characteristics.

Ferrovie dello Stato & Trenitalia (2)


FIGURES:• 42,000 Railway Wagons (including 11,000 Intermodal)• 1,200 trains a day• 1,000 Traction locomotives• 700 Shunting locomotives • 14,000people • 4 Foreign assistance offices in Europe

Extensive network of yards and intermodal terminals throughout Italy

In 2005, TI Logistics moved 76 million t of freight, totaling more than 22 billion t*km

Trenitalia LOGISTICS


2.

FREIGHT MOBILITY & LOGISTICS


Railway Market Quota: Comparing Major European Countries

2005 Railway Market Quota

Compared to other

European countries,

railway transport

in Italy has a low market

penetration.

14,7% 14,3%

8,1%

0%

4%

8%

12%

16%

Germany France Italy

Source: Trenitalia analysis of Eurostat research


Italy lies at the center of Combined Maritime Transport Flows to Europe

Strong growth of container traffic flows in the Mediterranean – a strategic position on the

European-Asian route

14.6

2.1 0.7

0.1

2.1

17.9

16.4

9.1

3.90.5 0.8

3.8

0.4

2.9

23.0

Maritime traffic, major commercial flows

(% TEU, 2001)

Maritime traffic, major European ports (TEU ‘000, 2003)

Rotterdam7.100

6.138

Gioia T.3.148

3.191

Genoa1.605

Antwerp5.445

CORRIDOIO ICORRIDOIO DEI DUE MARI

Rotterdam7.100

Hamburg6.138

Gioia T.3.148

Bremerhaven3.191

Genoa1.605

Antwerp5.445

CORRIDOR ICORRIDOR OF TWO SEAS

Italy is a natural access point into Europe – two connection corridors and 5 major ports along the north-south axis


“Blue Banana”

“Latin Arc”1

2 3

Italy will have the highest concentration of routes along the Trans-European Networks (TEN)

1) Corridor 52) Genoa - Rotterdam3) Berlin - Palermo

Talk of robust logistics development in the “Latin Arc”

Italy is the only country that intersects both the “Blue Banana” (Europe’s largest consumer and production area) and the “Latin Arc”

Italy’s favorable placement within the TEN Network


Degree of Liberalization

Low

Medium

High

Goteborg

Brema

Liberalization moves at different speeds in Europe:opportunity is knocking

Source: IBM Study

PALERMOPALERMOLISBONLISBON

BARIBARI

GENOAGENOA

ROTTERDAMROTTERDAM BERLINBERLINKIEVKIEV

CorridorCorridor VIIIVIIICorridor

Corridor VV

Corridor Corridor of of TwoTwo SeasSeas

CorridorCorridor II

VARNAVARNA

EUROPEAN UNION POLICY� A single, competitive railway transport market� Liberalization and entry of international and low-cost carriers into all open markets� Increase of railway market quota along major

intra-European traffic routes, in part through infrastructure improvements


3.

QUALITY EXPERIENCESIN TRENITALIA LOGISTICS


3.athe Quality path


- TO MANAGE EXCEPTIONALLY ALL ACTIVITIES OF THE COMPANY FOR STAKEHOLDERS

SATISFACTION (customers; shareholders; employees; environment; suppliers; collectivity)

E.F.Q.M.model

Towardsexcellence

- CULTURE OF CONTINUOUS IMPROVEMENT TO INCREASE ECONOMICS RESULTS

ISO 9004:2000

towardsefficiency

- CUSTOMER ORIENTED;- TO MANAGE THE ORGANIZATION BY PROCESSES TO CUSTOMER SATISFACTION

ISO 9001:2000

towardseffectiveness

meaningtoolsgoal

TI Logistics started its “Quality program” with implementation of internationalstandard ISO 9001:2000.

from Quality to Excellence (1)


from Quality to Excellence (2)


RESOURCES

CONSTRAINTS

(Customers)

OUTPUT(Stakeholder)

INPUT

(Providers)

Quality Management System: ISO 9001:2000

committed tomarket:Quality Charter

Company’s processes

Monitoring &Customer Satisfaction

journey to Quality continuous improvement

target: continuous improvement


3.bthe international modelstowards Quality & Excellence


SCHEME OF QUALITY MANAGEMENT SYSTEM BASED ON THE PROCESSES,LIKE THE INTERNATIONAL STANDARD ISO 9001:2000.

processes for Quality approach with ISO 9001(1)


European model to excellence EFQM

LEADERSHIP[10 %]

PROCESSES[14 %]

KEYPERFORMANCE

RESULTS[15 %]

PEOPLE[9 %]

POLICY &STRATEGY

[8 %]

PEOPLE RESULTS

[9 %]

SOCIETY RESULTS

[6 %]

ENABLERS [50 %

]RESULTS [50 %

]

CUSTOMERRESULTS

[20 %]

INNOVATION AND LEARNING

PARTNERSHIP& RESOURCES

[9 %]


3.cQuality Management SystemISO 9001:2000


TI LOGISTICS like a “network company”

The representation Trenitalia LOGISTICS is like a “WEB SYSTEM”with organizations “inside”, “de-localized” and/or “company”.


TI.LOGISTICS Quality Management System (1)

Trenitalia LOGISTICS is represented like “only one” Quality Management System, the same for all the organization.

Processi di Direzione

Processi di Supporto

Processi di Realizzazione del Servizio

Clie

nti

ed

alt

re p

arti

inte

ress

ate

SO

DD

ISF

AZ

ION

EC

lienti ed

altre parti in

teressate

RE

QU

ISIT

I

Management Processes

Cus

tom

ers

and

Sta

keho

lder

sS

AT

ISF

AC

TIO

NC

ustomers

and Stakeholders

RE

QU

IRE

ME

NT

S

Services delivery Processes

Support Processes


The representation of the “services delivery processes”inside in the ISO 9001:2000 Certified perimeter of TI Logistics’ organization.

SP-51.02Vendita servizi di

trasporto su ferrovia (MTO Domestic)

CLIENTECLIENTECLIENTECLIENTE

SP-55.01

Servizi Post Vendita

SP-52.01Sviluppo di soluzioni tecniche per i servizi trasporto su ferrovia

SP-53.01

Gestione della programmazione

treni (P&GO)

SP-52.02

Progettazione dell’orario annuale

(CTM)

SP-53.02

Gestione Operativa Treni(GOT)

SP-53.03

Gestione territoriale programmazione

Treni

xxxxx

Processi di realizzazione del

treno

xxxxx

Processi di realizzazione del

treno


Customer needs & requirements

Operations

Sales

Servicedesign

Customer Care


Company = supply chain of QMS ISO 9001



intra-net & site http://qualita-log (1)










3.dTI LOGISTICS Quality Charter:la Carta dei Servizi di TI LOG


TI Logistics Quality Charter (1)TI Logistics Quality Charter [CARTA DEI SERVIZI LOGISTICA]is an instrument that needs the Company :• to continuous improvement of the performance, • to achieve service’s quality,• to increase the Customer Satisfaction.

DEFINING QUALITY STANDARDS

(levels of promised service)

CARTA

DEI SERVIZI

TI Logistics

CHECK OF RESULTS OBTAINED AND COMPARISON WITH QUALITY STANDARDS

SET AS A GOAL

CONTINUOUS MONITORING

DELIVERING SERVICES ACCORDING TO

DESIGNED STANDARDS (promised with the Charter )

PLANNING THE ACTION TO QUALITY IMPROVEMENT

OF COMPANY AND PERFORMANCE LEVELS

(with preventives and rights actions)

DEFINING QUALITY STANDARDS

(levels of promised service)

CARTA

DEI SERVIZI

TI Logistics

CHECK OF RESULTS OBTAINED AND COMPARISON WITH QUALITY STANDARDS

SET AS A GOAL

CONTINUOUS MONITORING

DELIVERING SERVICES ACCORDING TO

DESIGNED STANDARDS (promised with the Charter )

PLANNING THE ACTION TO QUALITY IMPROVEMENT

OF COMPANY AND PERFORMANCE LEVELS

(with preventives and rights actions)


Carta dei Servizi 2003

Carta dei Servizi TI LOGISTICS

SYSTEM’S AREA TO TI LOGISTICS

(indicatori di sistema; servizi ed aspetti comuni;sito internet; CRM e gestione reclami;

reticolo logistico, punti di accesso; ecc.)

COMBINEDBusiness

CONVENTIONALBusiness

“SINGOL” EXPERIMENTAL

PAPERwith

“GLOBAL”INDICATORS

&INFORMATIONS

TI Logistics Quality Charter (2)


d c b

x.1e

a

x.2 x.3 f. GLOBAL CUSTOMER’S OPINION:Customer Satisfacion

There’s a progressive logic to individualize the QU ALITY FACTORS (attributes ) to services delivery that represent the Customer needs [progressively (x.1, x.2, x.3)] : EXPETATION CUSTOMER’S MODEL .AFTER, THE CUSTOMER WILL COMPARE THE SERVICE DELIV ERED WITH IT “PERSONAL MODEL” OF EXPECTATION.�� The result of assessment is the “overall Satisfacti on”.

The “represantativity” of Quality FactorsQUALITY FACTORS

QUALITY FACTORS“TO ADD”



Quality factors (2003)

a. punctuality of trains, b. reliability of the services, c. flexibility

(management unexpected needs), d. transport’s safety

(integrity of freight), e. information and communication with the

customers, f. Customer’s opinion.

(kick off journey towards continuous improvement).



a. punctuality of trains, b. reliability of the services, c. flexibility

(management unexpected needs), d. transport’s safety

(integrity of freight), e. rapidity (speed),f. rolling stock (wagons),g. information and communication with the

customers, h. Customer’s opinion.

Quality factors (2004)TI Logistics Quality Charter (5)


Freight Quality Charter CER-UIC-CIT (2003)

Requirements of customer service quality provisions:• responsibility, • safety, • planning,• punctuality and reliability, • information,• rolling stock, • billing, • after sale service.


PERFORMANCE - PERFORMANCE +

SATISFACTION

FATTORS

BASIC

FACTORS OF

PERFORMANCE

FACTORS OF

DELIGHTMENT

Kano’s model.

INSATISFACTION


3.eThe Quality control


Monitoring for Quality: the model.

Company’s process

☺☺☺☺

��

��

KEY PERFORMANCE INDICATORS of the Quality Management System

PR

OV

IDE

RS

SE

RV

ICE

S

SHAREHOLDERSSATISFACTION

DE

LIV

ER

Y

SOCIETYENVIRONMENT

CU

ST

OM

ER

S

AT

ISF

AC

TIO

N

“ What you measure is what you get” [Robert S. KAPLAN & David P. NORTON]


3.fThe innovative solutions


Riempimento

cisterne di propilene

Svuotamento


Svincolo e

terminalizzazione

Condotta treno (vuoti non

bonificati) treno 56380/1

BASELL

stabilimento

di Brindisi

BASELL

stabilimento

di Terni

Svincolo e

terminalizzazione

Accettazione

trasporto, formazione

e verifica

Trasferimento

convoglio a

cura di

Trenitalia-

Logistica

Accettazione trasporto,

formazione e verifica

Trasferimento

convoglio a cura di

SERFER

stazione di Brindisi

Stazionedi Terni

Condotta treno (pieni)

treno 58306/7Riempimento


Svuotamento


Svincolo e

terminalizzazione





BASELL

stabilimento

di Brindisi

BASELL

stabilimento

di Brindisi

BASELL

stabilimento

di Terni

BASELL

stabilimento

di Terni

Svincolo e

terminalizzazione

Accettazione

trasporto, formazione

e verifica

Trasferimento

convoglio a

cura di

Trenitalia-

Logistica

Trasferimento

convoglio a

cura di

Trenitalia-

Logistica

Accettazione trasporto,

formazione e verifica

Trasferimento

convoglio a cura di

SERFER


Trasferimento

convoglio a cura di

SERFER


Trasferimento

convoglio a cura di

SERFER

Trasferimento

convoglio a cura di

SERFER


Stazionedi Terni


treno 58306/7

Stazionedi Terni


treno 58306/7

The ”freight train system” Brindisi-Terni

BRINDISI

ANCONATERNI

The railways route for the dangerous freightBrindisi-Terni was Certified ISO 14001 (environment) and OHSAS 18001 (health and safety)like a “pipe line” of 738 km.[2004]


Origin

Now we are carrying out a project in order to supply cha into manage the door-to-door servicefor a new product, the “Express Service”.

1

JunctionModal segments

Informations before to choice(virtual modal segment)

Traking & tracing

3 (N – 2) Destination

2 4 (N –1)

Commercial activities before to buy and after sales

Customer Care before, during and after the journey

“product Certification” in TI Logistics


4.

THE QUALITY Poor costs(the no-quality costs)


THE BLACK FACTORY INVOICE �� 6 - 11% TOTAL INVOICE(IN THE SERVICES COMPANY) 20 – 30 % TOTAL IN VOICE

THE BLACK THE BLACK THE BLACK THE BLACK

FACTORYFACTORYFACTORYFACTORY

The quality poor costs (1)

IN EVERY COMPANY THERE’S A “BLACK FACTORY”


TO PREVENT = TO SAVE

The QUALITY POOR COSTS (NO-QUALITY COSTS).

PR

OB

LE

M

SO

LV

ING

SER

VIC

E’S

DESIG

N

PR

OC

ESSES’D

ESIG

N

DU

RIN

G D

ELI

VER

Y

1 10 100A

FTE

R D

ELI

VER

Y S

ER

VIC

E1000

The quality poor costs (2)


The quality poor costs in a network company


the Company like a network


Each Company can be to segment like a succession of processes linked between them.

The final outcome is the product of the “efficiency” of each elementary process.

For a succession of “n” processes almost perfect it has:

0,99 n

effects of mistakes & defectsdefects (1)(1)


1

2

3

4

5

6

7

8

9

10

0,99

0,98

0,97

0,96

0,95

0,94

0,93

0,92

0,91

0,90

20

30

40

50

60

70

80

90

100

110

0,82

0,74

0,67

0,61

0,55

0,49

0,45

0,40

0,37

0,33

effects of mistakes & defectsdefects (2)(2)

For a succession of “110” processes almost perfect it has:


5.

CONCLUSIONS


“Tomorrow, the future will be different from today”.

For tomorrow:in my opinion, I think that is very important to work hardly, and in a creativity waytogether with Customers and Partner towards the Quality, the innovations, and a sustainable success for all the society and the environment.

That is our engagement, not only towards our Company

but also towards our future !

Conclusions

Documents

Italian Rail Network - TREND Project · Italian Rail Network: a logistics platform in the Mediterranean Sea QUALITY TOOLS TO IMPROVE FREIGHT FLOWS ... OF TWO SEAS Italy is a natural