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Author Topic: Another Inspector General Report
Vincent206
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Amtrak's Inspector General has published yet another report: AMTRAK: Top Management and Performance Challenges—Fiscal Years 2019 and 2020 .

Here's a brief summary of the 8 areas of concern to the Amtrak Inspector General.

1. Safety and Security
Since FY13, 11 passengers and 9 employees have been killed by Amtrak. To change this disturbing pattern, Amtrak has appointed an Executive Vice President in charge of safety who is responsible for implementing an effective safety culture and overseeing the PTC installation.

2. Governance: Institutionalizing More Effective Management Processes and Tools
Amtrak has identified 6 strategic "pillars" that will guide company policies: defining the company strategy, safety, finances, capital investment, customer care and building the Amtrak team. Company programs are expected to be built around the 6 pillars. Amtrak expects to eliminate its annual operating loss by 2021 by increasing revenue and reducing costs. So far, 400 management positions have been eliminated and labor contracts have been renegotiated.

3. Financial Performance: Securing the Company’s Financial Future
The LD trains are still losing close to $500 million a year and Amtrak is going to look closely at the division. LD bookings have dropped significantly since the Dupont and Cayce accidents and on-time percentage has dropped over the last few years. Not surprisingly, the customer satisfaction index has also tumbled. We'll see what Amtrak decides to do.

4. Asset Management: Ensuring Capacity, Coordination, and Effective Planning for Major Asset Upgrades
Amtrak has a lot of new rolling stock coming online in the next few years and, according to OIG, they doesn't do a very good job of managing major asset programs.

5. Customer Service: Putting Customers First
Amtrak is adding staff to ensure that trains are clean and is trying to instill a customer-care attitude among its frontline employees. Amtrak is working to restore its brand value by improving the safety culture and operating cleaner trains. The OIG reports that some employees are resisting the changes in customer service policies.

6. Acquisition and Procurement: Strengthening Procurement Processes
Apparently Amtrak needs to improve its contract development, contract management and oversight skills.

7. Information Technology
It sounds like IT at Amtrak is a mess and needs to get fixed.

8. Human Resources: Strategically Managing the Workforce
Labor costs are about 50% of Amtrak's total expenses. The Engineering Department doesn't have nearly enough staff to complete its projects but the Mechanical Department has plenty of excess capacity. Meanwhile, Amtrak has at least 3,100 contract employees working on projects and has paid over $215 million in overtime wages so far this year.


Clearly Amtrak's reputation has taken a hit with its poor safety record, trains that are late, dirty and staffed by employees indifferent to customer satisfaction. It will be interesting to watch developments with the LD division. But running trains safely and providing a pleasant, on-time journey should improve the financial results tremendously.

Posts: 831 | From: Seattle | Registered: Jan 2011  |  IP: Logged | Report this post to a Moderator
Gilbert B Norman
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Thank you, Mr. Vincent, for preparing your own summary and sharing it here.
Posts: 9390 | From: Clarendon Hills, IL USA (BNSF Chicago Sub MP 18.71) | Registered: Apr 2002  |  IP: Logged | Report this post to a Moderator
   

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