Case: RZD

JSC "Russian Railways"

Open Joint Stock Company "Russian Railways" (JSC "Russian Railways") is a Russian state-owned vertically integrated company, owner of public infrastructure and the largest carrier of the Russian railway network. The largest employer in Russia. As of 2022, the company employed 701 thousand people. In 2018, the company took second place in the global competitiveness ranking in terms of cargo turnover, fourth place in passenger turnover, and first place in traffic safety, energy efficiency and environmental protection. In 2019, the company transported 1.2 billion passengers and 1.28 billion tons of cargo.

THE CHALLENGE:

The Finance Department of one of RZD's branches, OOO "RosTransLogistika", faced the critical task of enhancing efficiency and transparency within its operations. The primary objective is to streamline financial processes, improve budgeting accuracy, and ensure stringent compliance with regulatory standards. This initiative aims to identify and eliminate inefficiencies to achieve significant cost savings while maintaining robust financial controls. By optimizing these processes, the department seeks to pave the way for a more efficient and transparent financial management system that supports RZD's overall mission and objectives.

THE SOLUTION:

The analysis revealed a clear breakdown of daily activities into productive, supportive, and non-essential operations, identifying that over 30% of working hours were unproductive. Moreover, it was found that the current workforce could handle significantly more tasks with restructured work orders.

By employing a rigorous methodology to assess functional efficiency and process costs methodology, we have determined the optimal staffing levels required for our organizational system and accurately evaluated the cost impact of various processes and sub processes in terms of their functional utility. Through continuous observation and systematic collection of statistical data on employee actions, we built a comprehensive database for analysis. Utilizing the methodology's algorithms, we calculated criteria for the functional efficiency of each employee and assessed process costs based on total expenditure. Subsequently, we scrutinized process maps and revised operational regulations accordingly. This allowed us to establish standards and metrics for individual employee performance,

RESULTS:

Through targeted operational improvements, we successfully identified and mitigated the root causes of operational losses without requiring additional investments, solely by optimizing our operational methodologies. This initiative included recalibrating our operational procedures to enhance efficiency. Using a methodology tailored for calculating optimal staffing levels within our organization, we precisely determined the optimal number of personnel needed.

The efforts resulted in a remarkable 28% reduction in workflow execution time and a 17% decrease in operating costs.

Crucially, our revised workflows now exhibit predictability. Managers benefit from precise metrics and standards for each stage of operations, facilitating objective assessments of employee performance and substantiating feedback.

Case: Russian Rail Ways

JSC "Russian Railways"

THE CHALLENGE:

THE SOLUTION:

RESULTS:

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