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News Wire: NS to adopt Precision Scheduled Railroading operating principles

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Posted by Brian Schmidt on Wednesday, October 24, 2018 10:45 AM

NORFOLK, Va. — Norfolk Southern will adopt Precision Scheduled Railroading principles as it develops a new operating plan that aims to produce better service at lower cost. The decision, announced today, comes a month after Union Pacific said ...

http://trn.trains.com/news/news-wire/2018/10/24-norfolk-southern-to-adopt-precision-scheduled-railroading-operating-principles

Brian Schmidt, Editor, Classic Trains magazine

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Posted by BaltACD on Wednesday, October 24, 2018 11:43 AM

Everybody adopting the PSR buzzword BS in response to Wall Streets gullibility.

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Posted by kgbw49 on Wednesday, October 24, 2018 6:49 PM

Compared to where both CN and CP started, Norfolk Southern with an operating ratio of 66.4 through September 2018 is much closer to the hallowed PSR number of "sub-60" operating ratio. Hopefully it won't be too disruptive. One concern is Juniata shops - hopefully all their expenses get capitalized into the asset value of the "like-new" locomotives those highly-skilled artisans are creating every day. That would keep the expenses out of the operating ratio and hopefully mean they would be able to continue their diesel locomotive version of the old TV show "American Chopper".

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Posted by oltmannd on Thursday, October 25, 2018 2:19 PM

Taking a clean sheet of paper to the yard and local work is a good start.  It'll allow more pre-blocking, and NS really needs reliable, realistic local schedules to allow their movement planner to work properly. It'll help improve the network car velocity.

But, NS's problem isn't lack of plan velocity.  It's the gap between the current plan and actual.  It's been nearly two years and they're still a long way away from proper train speed and dwell.

Also, the transportation planning department is so skinny these days, I don't know if they have enough folk to do the "clean sheet" work and keep things limping along.

 

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Posted by rrnut282 on Thursday, November 1, 2018 12:49 PM

Are the customers looking forward to PSR?  I doubt many are.  

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Posted by tree68 on Thursday, November 1, 2018 1:16 PM

I suspect that from the investor's point of view, P$R is more like it.

 

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Posted by rrnut282 on Friday, November 9, 2018 10:03 AM

But didn't NS just report a record quarter?  And they did it wihout PSR.  (one factor in the record is likely picking up a lot of CSX cast-offs.)

Throwing away customers (via PSR) is not a viable long-term strategy.  

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Posted by zugmann on Friday, November 9, 2018 12:37 PM

rrnut282
But didn't NS just report a record quarter? And they did it wihout PSR. (one factor in the record is likely picking up a lot of CSX cast-offs.)

"Official" PSR.  Believe me, many aspects of PSR are already and have been implemented. 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

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Posted by BaltACD on Friday, November 9, 2018 12:49 PM

tree68
I suspect that from the investor's point of view, P$R is more like it.

PSR is a buzzword Wall Street wants to hear railroad CEO's utter, irrespective of the real actions taken.

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Posted by jeffhergert on Friday, November 9, 2018 3:46 PM

I like how one put it on another forum.  Precision Stock Manipulation. 

It isn't about record profits.  It's about wringing every single penny possible out of a company and sending it to the investors.  Especially those investors who's long term outlook is the end of the present quarter.  

Fred Frailey's blog had something about "Hunter's triumph from the grave."  Yes, EHH delivered short term money, but I seem to read how the railroads he was at now have to undo some of EHH's actions.  He left very little, if any, room for growth.

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Posted by BaltACD on Friday, November 9, 2018 9:21 PM

jeffhergert
I like how one put it on another forum.  Precision Stock Manipulation. 

It isn't about record profits.  It's about wringing every single penny possible out of a company and sending it to the investors.  Especially those investors who's long term outlook is the end of the present quarter.  

Fred Frailey's blog had something about "Hunter's triumph from the grave."  Yes, EHH delivered short term money, but I seem to read how the railroads he was at now have to undo some of EHH's actions.  He left very little, if any, room for growth.

Jeff 

EHH's purpose was not to grow the railroads he managed, it was to liberate every possible penny and remit all those pennies to the Hedge Funds that controlled him.

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Posted by YoHo1975 on Thursday, November 15, 2018 4:18 PM
Being in the Software dev business. I think of PSR as akin to Development Lifecycle trends. For many years Software used the waterfall method of development which became very rigid and impractical. Then along came Agile which was very good for small fast teams, but fell apart on bigger projects. Now we have DevOps which takes many of the principles of Agile and applies them to different scenarios where Agile simply can't work. I would imagine NS is doing something similar with PSR. Look at what works, what doesn't/can't and figuring out what a good solution might be. Of course this doesn't garuntee success/competence, but it's probably a good way to work through it.
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Posted by BaltACD on Thursday, November 15, 2018 5:59 PM

YoHo1975
Being in the Software dev business. I think of PSR as akin to Development Lifecycle trends. For many years Software used the waterfall method of development which became very rigid and impractical. Then along came Agile which was very good for small fast teams, but fell apart on bigger projects. Now we have DevOps which takes many of the principles of Agile and applies them to different scenarios where Agile simply can't work. I would imagine NS is doing something similar with PSR. Look at what works, what doesn't/can't and figuring out what a good solution might be. Of course this doesn't garuntee success/competence, but it's probably a good way to work through it.

Railroads - all of them - continually look at their operations to see what is working and what is not and adjiusting the operation of their company from the observations that they see.  A process that has been taking place since the laying of the First Stone of the B&O on July 4, 1828.  EHH hung the buzzword 'Precision Schedule Railroading' to it and 'rang a bell' with the Wall Street psyche and they have fallen in love with every saying they are installing PSR.  Railroads beholding to every sniffle of Wall Street are on the PSR bandwagon.  Haven't heard BNSF talking about PSR - they are running their property and don't have to blow anything up Wall Steet's skirt.

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Posted by zugmann on Thursday, November 15, 2018 6:46 PM

BaltACD
Railroads - all of them - continually look at their operations to see what is working and what is not and adjiusting the operation of their company from the observations that they see

Unless it means they have to admit a mistake.  Then they will double down.

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

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Posted by BaltACD on Thursday, November 15, 2018 7:31 PM

zugmann
 
BaltACD
Railroads - all of them - continually look at their operations to see what is working and what is not and adjiusting the operation of their company from the observations that they see 

Unless it means they have to admit a mistake.  Then they will double down.

They just take the normal path of covering it up - just like a cat covers it droppings.  Admit nothing and cover it up.  Cover ups have worked so well in society for Nixon et. al.

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Posted by Paul_D_North_Jr on Saturday, November 17, 2018 3:39 PM

BaltACD
. . . EHH hung the buzzword 'Precision Schedule Railroading' to it and 'rang a bell' with the Wall Street psyche and they have fallen in love with every saying they are installing PSR.  Railroads beholding to every sniffle of Wall Street are on the PSR bandwagon.  Haven't heard BNSF talking about PSR - they are running their property and don't have to blow anything up Wall Steet's skirt.

See the article on Matt Rose's pending retirement in this month's issue of Trains.  It makes clear that he, BNSF, and Berkshire Hathaway are in the business for the long run.  Not stated but implied is that they have no interest in saying they're adopting PSR.

- PDN. 

"This Fascinating Railroad Business" (title of 1943 book by Robert Selph Henry of the AAR)
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Posted by BaltACD on Saturday, November 17, 2018 6:19 PM

Paul_D_North_Jr
 
BaltACD
. . . EHH hung the buzzword 'Precision Schedule Railroading' to it and 'rang a bell' with the Wall Street psyche and they have fallen in love with every saying they are installing PSR.  Railroads beholding to every sniffle of Wall Street are on the PSR bandwagon.  Haven't heard BNSF talking about PSR - they are running their property and don't have to blow anything up Wall Steet's skirt. 

See the article on Matt Rose's pending retirement in this month's issue of Trains.  It makes clear that he, BNSF, and Berkshire Hathaway are in the business for the long run.  Not stated but implied is that they have no interest in saying they're adopting PSR. 

- PDN. 

In as much as they are not on the next quarter reporting cycle - BNSF can think and act long term.  Those on the Wall Street merry-go-round can only look to the next quarter.

Never too old to have a happy childhood!

              

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