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Norfolk Southern Corp.'s "NS 21" program so far has helped the railroad reduce 2001 expenses more than $70 million.
To achieve even greater results, the Class I now is moving into phase two of the year-old program, under which several NS employee teams have been working with Mercer Management Consulting to create better business processes aimed at improving customer service and reducing costs.
NS recently formed an NS 21 program-management office, designed to help employee teams complete their cost-saving projects throughout the company. Through 2001, teams have been realigning the railroad's car-management department, selling surplus rolling stock, closing and consolidating facilities, and improving the railroad's bill collection processes.
"It's essential that we keep our momentum and constantly look for opportunities to improve everything we do," said Tom Mullenix, NS vice president of human resources and NS 21 steering team member, in a prepared statement. "Now, it's time to bring the coordination of all our projects under one internal group."
NS named Director of Program Management Karol Weigand as head of the new office and Manager of Program Management Paddy O'Neill as Weigand's assistant. The railroad also plans to add a program analyst.