$500M
Revenue target post-acquisition
Applying the EFESO Transformation System at a Major Railroad: Driving Long-Term Operational Excellence and Workforce Productivity
Industry: Transportation, Logistics and Services
Service: Manufacturing
Service: Operations Strategy and Transformation
Service: People and Organization
Our Client
A major freight railroad operator experiencing frequent locomotive standstills due to maintenance and repair inefficiencies.
$18M
Targeted cost synergies by end of 2019
The Challenge
The client faced operational inefficiencies that limited fleet availability, increased costs, and reduced service reliability.
- High locomotive dwell times (LDT) reducing fleet availability.
- Frequent failures per locomotive (FLY) causing service disruptions.
- Underutilized workforce, with only 45% productive work time.
- Inefficient maintenance processes inflating material and labor costs.
- Lack of performance tracking, limiting accountability and decision-making.
Real Results Achieved Together
EFESO’s transformation delivered measurable improvements in operational efficiency, workforce productivity, and repair facility throughput.
20%
Reduction in Locomotive Dwell Time (LDT)
57%
Improvement in Failures per Locomotive Year (FLY)
2.3x
Increase in repair facility throughput
Transformation Impact
- Standardized work methods and Lean practices improved maintenance efficiency.
- Real-time performance tracking enabled better decision-making and accountability.
- Behavioral performance management via IBC aligned leader actions with operational goals.
- IBC system scaled across 22 additional maintenance facilities
- Workforce productivity and repair throughput increased sustainably.
- Operational discipline and continuous improvement embedded across multiple facilities.
- First-line worker productive time increased from 45% to 80%.
- Improvement in Failures per Locomotive Year (FLY), from worst-in-class to best-in-class.
- >30% reduction in material costs
- 15% reduction in labor hours per locomotive repair
Our Approach
EFESO applied the EFESO Transformation System (ATS), integrating principle-based change management, Lean work methods, and behavioral performance management (IBC) across tactical, operational, and sustainment levels.
Key initiatives included:
- Tactical: Work Methods Optimization – Redesigned maintenance workflows, applied Lean tools (5S, FMEA), and optimized flow to reduce waste.
- Operational: Data-Driven Performance Management – Established real-time KPI tracking and visual management systems to accelerate problem-solving.
- Sustain & Evolve: Playbook & IBC Performance Management – Developed a standardized Playbook and embedded IBC to ensure sustainability and alignment of leadership behavior with long-term goals.
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Facing Similar Maintenance and Operational Efficiency Challenges?
- Seeking to reduce maintenance dwell times and increase asset reliability.
- Wanting to improve workforce productivity and operational throughput.
- Looking to embed continuous improvement and standardized processes.
- Needing structured change management and performance accountability for long-term success.
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