Rolling Stock Asset Health

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1 MARTS Omaha, NE - October 2016 Roing Stock Asset Heath Mike Lesniak (AAR) Jamie Wiiams (NS) Chip Summey (Raiinc)

2 MARTS Roing Stock Asset Heath 2 Asset Heath Strategy Committee Reducing Mechanica Service Interruptions Bad Actor Identification Increasing Yard and Shop Efficiency Eectronic Inspection Reporting Mechanica Defect Reporting Component Tracking Improving Inspection Quaity Detector Based Inspection Roing Stock Asset Heath ASSET HEALTH STRATEGY COMMITTEE

3 MARTS Roing Stock Asset Heath Asset Heath Strategic Initiative (AHSI) Description 3 Muti-year strategy for improvement of asset heath driven by yeary industry targets and measures for improvement, Soves probems with roing stock that need a network view of asset information and industry coordination, Appies information technoogy soutions and processes. Prevent Detect SAFETY Pan Sette Repair Move

4 MARTS Roing Stock Asset Heath 4 Asset Heath Strategic Initiative Contributors Safety and Operations Management Committee (SOMC) Technica Services Working Committee (TSWC) Asset Heath Strategy Committee (AHSC) A 7 Cass 1 Rairoads 4 Associate/Affiiate Members TTX Amtrak AHSC Staff Members AAR Raiinc TTCI Additiona Committees Engaged EHMC, AEI, GIS, ARB, BSC, etc.

5 MARTS Roing Stock Asset Heath Asset Heath Strategy Committee (AHSC) 5 Member Rex Beck Pat Ameen Derek Maier Steve Harris Darre Ier Rodney Campbe Charie King Tom Mordock Ryan Mier Jamie Wiiams Mike Key Rick Koenig Rick Grossman Representing UP, Chair Amsted Amtrak BNSF CN CP CSX GATX KCS NS, Vice-Chair TTX UTLX Wes Fargo Rai Committee Focus: Continue to provide eadership to the work of the Asset Heath Strategic Initiative. Coordinate work of a number of technica committees and champion prioritized initiatives that improve industry safety, reduce variabiity, streamine mechanica operations, and reduce or eiminate non-vaue added activities. Interface with FRA in promoting reguatory change.

6 MARTS AHSC 2016 SOMC Deiverabes Roing Stock Asset Heath 6 1. Refine AHSI performance goas and measure resuts for prioritized metrics in each of the three AHSI target categories. 2. Execute the muti-year AHSI projects to buid upon the estabished foundation and move forward on detector based brake effectiveness and bad-actor identification. 3. Continue to refine the AHSI roadmap to confirm or revise priorities for future year activities. 4. Continue to review and champion targeted asset heathreated opportunities that bridge across other AAR technica committees and other groups.

7 MARTS AHSI Project work is providing vaue Roing Stock Asset Heath 7 Capabiity Deveoped Identification of Bad Actor equipment through network eve anaysis Improved and enhanced heath information avaiabe to Cass I Rairoads and car owners Sharing of Cass I, IA, and Extended Hau inspection data Determination of Brake Effectiveness for a Consist (via whee temperature detector data) Initia Reease Benefit 2014 Reduction of Line of Road Faiures in the UDE No Cause Found category 2014 More detaied equipment eve anaysis based on avaiabe heath indicators 2015 Reduction in dupicate or non-required inspections between rairoads 2014 Higher quaity inspection data and future reduction of manua Cass IA inspections Vaue Begins Status September More than 2,000 Line of Road Faiures prevented to-date via MA-0146 study. Rue-making proposas being advanced Line of Road Data Faiure data summaries estabished for UDEno-cause-found and air hose separation events rairoads sending eectronic mechanica conducted Cass 1 Air Sips; Work is underway to everage eectronic inspections FRA Pubic Hearing recenty conducted to review proposed waiver request.

8 MARTS Roing Stock Asset Heath 8 Asset Heath Strategy Committee Reducing Mechanica Service Interruptions Bad Actor Identification Increasing Yard and Shop Efficiency Eectronic Inspection Reporting Mechanica Defect Reporting Component Tracking Improving Inspection Quaity Detector Based Inspection Roing Stock Asset Heath BAD ACTOR IDENTIFICATION

9 MARTS Roing Stock Asset Heath Approximatey 921 ine-of-road faiures have been reduced to date in Focused effort wi be required to achieve the reduction target of ~2, MA-0146 (UDE-No Cause Found) resuts through August 8, 2016 Test Yes No N/A Tota % Fai Other Brake Reated Issue? % Faied SCABT? % Either Issue? % Current Opportunities: - Worksheets from compete repairs remain outstanding potentia bad actors are on the MA as of 8/17/16 *Caveats, Assumptions, and Notes: - Ony incudes data contributed by Cass I rairoads and participating PCO s. - Ony incudes equipment with a score of 5 or higher - Ony incudes equipment added after our initia add on 7/7/15 - Resuts subject to change as data quaity and anaysis methodoogy improve. - Data quaity varies between carriers, which may resut in under-reporting of incidents. - Likey understated due to a ack of automated reporting by a carriers. - Lack of consistency of reporting impacts accuracy of metric.

10 MARTS Roing Stock Asset Heath Eary resuts show that equipment intercepted and repaired has a ower re-incidence rate (5.23%) than equipment not intercepted at a (18.05%). 10 *Caveats, Assumptions, and Notes: - Current sampe size is too sma to come to any definitive concusions - As more cean data comes in we wi be abe to better test our hypothesis. - Mutipe faiures on the same trip may ony be counted once. - Equipment must fai with at east 2 distinct groups be abeed a repeat WS Resut No Yes Repeat Rate Issues Found % No Issues Noted % Non-Intercepted % - Data quaity varies between carriers, which may resut in under-reporting of incidents. - Likey understated due to a ack of automated reporting by a carriers. - Lack of consistency of reporting impacts accuracy of metric. - Resuts subject to change as data quaity and anaysis methodoogy improve

11 MARTS Roing Stock Asset Heath 11 LORF-NCF Data Summary Exampe

12 MARTS Roing Stock Asset Heath Line of Road Faiure (LORF), Progression to Industry Rue 12 Initiate Identify and Gather Data Identify and Prioritize Probems to Address Standardize and Stabiize Data (quaity and quantity) Execute Piot Process to Address Identified Probems Piot / Vaidate Anayze Resuts, Adjust, Repeat Review with Appropriate Subject Matter Experts / Committees Identify Method for Industry Impementation Determine Methods to Share Information (e.g., Data Summaries) As appicabe: Propose Rue Changes, Provide CBA, Communicate Timeines, Update Training, Estabish Aerts, etc. Monitor Resuts

13 MARTS Roing Stock Asset Heath 13 Asset Heath Strategy Committee Reducing Mechanica Service Interruptions Bad Actor Identification Increasing Yard and Shop Efficiency Eectronic Inspection Reporting Mechanica Defect Reporting Component Tracking Improving Inspection Quaity Detector Based Inspection Roing Stock Asset Heath ELECTRONIC INSPECTION REPORTING

14 MARTS Roing Stock Asset Heath Eectronic Cass 1 Air Sips have been deveoped by the AIR/E-Train TAG. Opportunity: Generate an eectronic version of the Cass 1 air sip for each train, Capture and store a record of each Cass 1 inspection at the car eve, and Submit a record of each car receiving the inspection to Raiinc. Benefits: Enabes repacement air sips to be generated on demand when a paper sip is ost, Faciitates sharing of 215 inspection with Canadian roads at interchange, Supports methodoogy for cacuating brake effectiveness at the car eve, Provides increased oca visibiity to inspection performance. Actions / Next Steps: Rairoads finaizing changes to capture, submit, and retrieve inspections conducted by mechanica personne, Rairoads adjusting processes to capture Cass 1 inspections that are conducted by Transportation personne, Evauation underway to determine waiver opportunities to extend mieage on Cass 1 and Extended Hau inspections based on eectronic records. Raiinc 14

15 Inspection Month MARTS Roing Stock Asset Heath 15 Reported Eectronic Inspections in 2016 Industry Cass 1/ Cass 1A / Ext Hau Monthy Inspections Data Submitted to Raiinc since February 2016 February 22,863 March 57,741 Apri 70,938 May 72,811 June 70,960 Juy 72,297 Target (Est) 0 50, , , , , ,000 Number of Inspections Cass 1 (Mech) Cass 1 (Trans) Cass 1A (Mech) Cass 1A (Trans) Ext Hau Caveats, Assumptions, and Notes: - Ony incudes inspection in Resuts subject to change as data quaity and anaysis methodoogy improve. - Data quaity varies between carriers. - Likey understated due to a ack of automated reporting by a carriers. - Lack of consistency of reporting impacts accuracy of metric.

16 MARTS Roing Stock Asset Heath 16 Asset Heath Strategy Committee Reducing Mechanica Service Interruptions Bad Actor Identification Increasing Yard and Shop Efficiency Eectronic Inspection Reporting Mechanica Defect Reporting Component Tracking Improving Inspection Quaity Detector Based Inspection Roing Stock Asset Heath MECHANICAL DEFECT REPORTING

17 MARTS Roing Stock Asset Heath 17 Objectives of the Mechanica Defect Initiative Current: Whee, Axe, Bearing, and Casting data is coected from faxed and manuay input onine forms. Future: Increase the reporting compiance of MD reports by enabing automated reporting from proprietary systems. Increase the quaity of the data by vaidating input. Provide Metrics to measure competeness and quaity. Need for more compete, accurate, and timey reporting for deraiment prevention.

18 MARTS Roing Stock Asset Heath Automated MD reporting wi increase the quaity and competeness of the MD data (MD-115 September 2016) 18

19 MARTS Roing Stock Asset Heath MD-115 Communications Pan* heps stakehoders understand and benefit from new reporting capabiities 19 Raiinc User Interface and Web Services depoyed to production on September 22nd Industry shop systems can begin integrating with the MD-115 Web Service Pan is in pace to transition from egacy TTCI web site Proposed cutover from TTCI to Raiinc MD reporting interface Juy 1, 2017 Advertise change on current TTCI site Update Fied Manua & MSRP s Instruction and assistance on setting up SSO ID s * AHSC/WABL members are requested to drive adoption of MD reporting

20 MARTS Roing Stock Asset Heath 20 MD Forms Moving to Current: MD-115 Whees : MD-11 Roer Bearings MD-12 Axe MD-500 Side Frame and Bosters

21 MARTS Roing Stock Asset Heath 21 Asset Heath Strategy Committee Reducing Mechanica Service Interruptions Bad Actor Identification Increasing Yard and Shop Efficiency Eectronic Inspection Reporting Mechanica Defect Reporting Component Tracking Improving Inspection Quaity Detector Based Inspection Roing Stock Asset Heath COMPONENT TRACKING

22 MARTS Roing Stock Asset Heath Objectives of the Component Tracking Initiative 1. Visibiity into rai equipment heath and performance 2. Increase the safety of the rai industry by supporting reca 3. Reduce the cost of a reca by enabing targeted recas and efficient industry response strategies 22 22

23 MARTS Component Registry Timeines Roing Stock Asset Heath 23 Current Date: October 2016 Wheesets Castings Brake Vaves Sack Adjusters Optiona Registration & Association OEM Registration Association CRB 23 Reject Raiinc Corp. A rights reserved. 12/31/201

24 MARTS Seriaized Component Coverage August 15, 2016 Roing Stock Asset Heath 24 Mechanica Service Interruptions

25 MARTS Roing Stock Asset Heath 25 Asset Heath Strategy Committee Reducing Mechanica Service Interruptions Bad Actor Identification Increasing Yard and Shop Efficiency Eectronic Inspection Reporting Mechanica Defect Reporting Component Tracking Improving Inspection Quaity Detector Based Inspection Roing Stock Asset Heath DETECTOR BASED INSPECTION

26 MARTS Inspection Quaity Reusabe Process (The U ) Roing Stock Asset Heath 26 Detector Format and Standards Team Detector Registration Detector Reads pushed to IQ Information pued via Air web service Data Summary Security Rues Security Vaidation Team Anaysis Team Data Quaity Business Rues Persist matched reads Data Anaysis/ Cacuations Business Rues Data Interpretation Business Rues Data Summary created in EHMS Data Summary Business Rues Scenario Vaidation Team Data Summary Definition Team 26

27 MARTS Roing Stock Asset Heath Inspection Quaity Patform Work Timeine 27 Cod Whee Scenario Fu Production Brake Heath Indicator/Score Mieage Integration Air Brake Test Integration AEI Bad Tag Scenario Piot Bad Tag Identification & Data Summary AEI Merging Capabiity Improvement Hot Whee Scenario Anaysis Whee Profie Fu Production HBD Sharing Fu Production WILD & THD Fu Production OGD Standards & Design (RPSWC Outcome) ABD Standards & Design (RPSWC Outcome) Standard Data Format Detector Registration Reads Repository Cod Whee Temperature Scenario Bearing/Whee Graph Too Cod Whee Data Summary AEI Merging Anaysis AEI Data Summary Fu Production Whee Profie Piot WILD/THD Scenario Piot HBD Data Sharing Piot Hot Whee Scenario Data Cacuations ABD Message format Optica Geometry Piot (RPSWC Outcome) Acoustic Bearing Piot (RPSWC Outcome) Machine Vision, On Board, other detectors - Piot

28 MARTS AEI Bad Tag Identification Roing Stock Asset Heath 28 AEI Bad Tag Identification Benefits Identify AEI Tag issues that can cause defect misidentification Identify data quaity issues through business rues Industry Data Request: AEI data in Wayside Message Format (xm) for co-ocated defect detectors to support the industry merge process and detector quaity monitoring S9203 data for identifying AEI tag issues and AEI committee metrics Raiinc Vaue Additions: Consistent AEI business rue vaidations across the industry to eiminate corrupt data and create a cean, mergeabe fie Umer data vaidation and fagging Data Output for Consumption: AEI Bad Tag data summary Industry aert supporting cause for attention (future) Detector Registration Detector Reads pushed to IQ Data Quaity Business Rues Persist matched reads Data Anaysis/ Cacuations Business Rues Information pued via Air web service Data Summary Security Rues Data Interpretation Business Rues Data Summary created in EHMS Data Summary Business Rues

29 MARTS AEI Bad Tag Data Summary Roing Stock Asset Heath 29 10,625, 8% Distinct Equipment 1,274,419 DS Created 284,714 DS Open 127,793 DS Cosed 156,921 20,588, 16% Open Data Summaries Tag Issue Data Issue Both 96,580, 76%

30 MARTS Roing Stock Asset Heath 30 New EHMC Aerts and Notifications Progressive Pan for new Line of Road Faiure (LORF) industry aert Process wi appy to new AHSI technoogies Investigation Data Summary Window Open Aerts Mandatory Aerts Future: New aert eves; composite data summaries; composite rues

31 Roing Stock Asset Heath MARTS Omaha, NE - October 2016 Questions?