How The EFESO Transformation System Was Applied to Achieve Sustainable Change at a Major Railroad Operation

Client Context

A major freight railroad operator struggled with locomotive standstills due to inefficiencies in its maintenance and repair operations. Key performance metrics such as:

• Failures per Locomotive Year (FLY), measuring reliability in service, and
• Locomotive Dwell Time (LDT), tracking time spent in maintenance,

were consistently underperforming, leading management to consider shutting down a heavy repair facility and outsourcing the work.

Despite multiple past improvement efforts, the company had failed to achieve sustainable change. EFESO was engaged to implement the EFESO Transformation System (ATS) and drive long-term improvement while laying the foundation for continuous evolution after project completion.

Key Challenges

• High locomotive dwell time, reducing fleet availability.
• Frequent failures per locomotive, leading to service disruptions.
• Underutilized workforce, with only 45% of time spent on productive work.
• Inefficient maintenance processes, increasing material costs and labor hours per repair.
• Lack of performance tracking, hindering decision-making and accountability.

Approach & Key Success Factors

EFESO applied the EFESO Transformation System (ATS), a structured change management approach combining:

1. Principle-Based Change Management
2. Work Methods Optimization (Lean, Industrial Engineering, PVM, etc.)
3. Behavioral Performance Management (“Instruction | Behavior | Consequence” System – IBC)

1. Tactical: Translating Business Needs into Work Methods

• Redesigned locomotive maintenance workflows, optimizing flow and minimizing waste.
• Implemented Lean methodologies such as 5S and Failure Mode Effects Analysis (FMEA) to enhance process efficiency.

2. Operational: Data-Driven Performance Management

• Established real-time KPI tracking, providing visibility across all levels of management.
• Applied Visual Management techniques to improve problem-solving and drive continuous improvement.

3. Sustain & Evolve: Playbook & IBC Performance Management

• Developed a “Playbook” to document standardized processes and ensure sustainability.
• Implemented Instruction-Behavior-Consequence (IBC) performance management, aligning leader behaviors with long-term improvement goals.

Results

20% reduction

In Locomotive Dwell Time (LDT).

57% improvement

In Failures per Locomotive Year (FLY), moving from worst-in-class to best.

2.3x increase

In throughput, improving repair facility efficiency.

45% to 80%

Productive work time increased from for first-line workers.

>30%

Reduction in material costs.

15% reduction

In labor hours per locomotive repair.

Additionally, the success of IBC led to its adoption across 22 additional maintenance facilities, further driving long-term improvements.