1 © Optym

Dr. Ravindra K. Ahuja

President & CEO

Innovations in Network Efficiency and Productivity (June 23, 2015)

2 © Optym

Presentation Overview

Challenges for Heavy

Haul Railroads New Generation of Planning,

Scheduling and optimization

Visibility, Analytics

& Mobility Roadmap for Things to Come

About Optym

3 © Optym

About Optym

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Develop optimization and automation

solutions to create efficiencies in transportation.

Our Vision

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Optym’s Foundations

Optym started in 2000 with its

foundations in academics and deep

scientific research.

Optym is bridging the gap between

academics and real-world practice.

Optym continues to bring cutting-edge

Operations Research and Computer

Science techniques to transportation

industry.

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90

50

20

45

75

30

20+ Nationalities

150+ Employees

Optimization and automation solutions require specialized expertise, which

we have gathered over the years: optimization, Algorithms, Data Structures.

Ph.D.

M.S.

Others

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Optym’s Skill Sets

Data Analytics

• Databases

• Data Transformation (ETL)

• Big Data Analytics

Project

Management

optimization/Simulation

• Mixed Integer Programming

• Network optimization, Heuristics

• Algorithms & Data Structures

• Machine Intelligence, AI

Information Technology

• Multi-tier Architecture

• Graphic Design & HCI

• Quality Assurance

• Mobile Applications

Subject Matter

Expertise

• Airlines

• Railroads

• Trucking

• Mining

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Optym’s Railroad Projects

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Shared Development Across Multiple Modes of Transportation

Rail Air Trucking Mining

Repository of modules, algorithms, techniques, codes, interfaces

Common research and development teams designing and building

components for all modes of transportation

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Some of Our Clients

BHP

Billiton

United

Airlines

Deutsche

Bahn Rail BNSF

Railway Walmart

CSX

Transportation

FedEx

Southwest

Airlines Belt

Railway of

Chicago

Canadian

Pacific

Railway

Norfolk

Southern

Railway

Towne Air

Freight

ABF

Freight

SAIA

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Challenges for Heavy Haul Railroads

Increase production, reduce costs, innovations, automation, optimization

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Challenges for Heavy Haul Railroads

Increase production

• Use existing capacity most efficiently

• Identify capacity bottlenecks

• Increase network capacity most efficiently

Reduce operational costs

• Reduce asset idleness

• Improve manpower utilization

• Use optimization technology

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Complexities Created by New Technologies

New upcoming technologies are making rail operations more

complex and right software is required to take advantage:

• Driverless Trains

• Communications-Based Train Control

• Virtual Block & Moving Block

• Auto Route Settings (ARS)

Full benefits of these technologies can be obtained only when

the entire rail system is optimized end-to-end.

Optimization will be critical to create ROI to pay for these

technologies.

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Increasing Optimization

Less reliance on human experience.

Do more with less people.

Capture human intelligence of your

operations into software solutions.

Build a GPS like solution that will

guide the entire rail operation.

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Potential Benefits on Optimization

We can increase network capacity

by at least 10%.

We can reduce operational cost by

at least 10%.

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Optimization to Become All Pervasive

Creating better plans Executing plans better Analyzing results and identifying areas

for improvement

Planning Execution Visibility & Analysis

Role of optimization

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Rail Planning Systems

Effectively plan all aspects of your rail operations.

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Important Planning Decisions

When and where to have maintenances to have

minimum impact on train operations.

How many trains to run and at what times to meet

product demands.

Create detailed schedules of all trains while

creating enough opportunities for maintenances.

Create plans that are realistic, can be followed

and disseminate them among all stakeholders.

These plans will form the basis for execution.

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Rail Planning Tool: Overview

Rail Planning Tool will determine how many trains to run, when to run, which

products to load from, which car dumper to go, and how to do meet-pass conflict

resolution.

Schedule of Trains (Train Departure Times,

Product Loadouts & Car Dumper

Assignment)

Arrival Schedule of Trains at all Locations

including Loadouts and Car Dumpers

Analytics & Reporting

Inputs

RPT

Outputs

Ship Schedule

Product Demand

Loadout Availability

Track/Switch Availability

Car Dumper Availability

Rolling Stock Capacity

Maintenance Schedules

Cost & Parameters

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Greater Capability for Rail Planners

Rail Planners will plan operations for one

day to several weeks ahead in future.

Rail Planners will determine the feasibility of

meeting customer demands by taking into

account various network and resource

capacities.

Rail Planners will also use this tool to plan

for track, switch and signal maintenances.

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Rail Planning Tool Features

Multiple users with

privilege

management

Ability to create

multiple what-if

scenarios

Ability to analyze,

compare and

publish scenarios

Use latest optimization

technology, evaluate

various options and

recommend best

option

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Real-Time Rail Execution Systems

Execute and optimize train schedules in real-time.

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Important Execution Decisions

Execute the plan created by the planning system.

Receive data from various sources in real-time and adjust plans

to account for disruptions.

• Rolling stock availability

• Crew availability

• Track availability

• Car dumper and loadout availability

• Product need

Execution system will run in real-time and produce decisions for

train controllers to follow.

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Mobility to Connect Field Operations with Central Dispatch

Worker reports

outage in the field Central Dispatch

server receives the

data

System automatically creates

new schedule

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Train Control System’s Capability

Building of Intelligent ETG (Electronic Train

Graph).

ETG will have drag and drop and touch screen

capabilities.

Same system used by all train controllers and

rail planners with full visibility to everyone.

Train controllers will be able to perform all of

their day-to-day functions using ETG efficiently

in less time and with less people.

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Expanding Train Control System’s Role

Intelligent train control systems will

resolve all meet-pass train conflicts.

Meet-pass planning will be goal-driven

and user configurable.

Humans will only do exceptions

management.

All decisions related to train routings

will be communicated to ARS and

switches will be automatically lined up.

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Real-Time Visibility & Analytics

Have full visibility of all rail operations in real-time and proactively manage them.

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Moving from Static Reporting to Dynamic Analytics

Faster User Focused Mobile Simpler Relevant

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Visibility and Analysis

Real-time dashboards

monitoring system behavior

and KPIs.

Historical analysis of past

data and playback

capabilities.

Proactive analytics with focus

on actionable decisions.

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Building Data Foundations

We need complete, connected and correct data

to build these solutions.

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Building Strong Data Foundation

Any intelligent solution requires data for all assets and resources. We need

complete, connected and correct data.

Rail Network Database

Infrastructure

Management Track

Maintenance Crew

Scheduling

Speed

Restrictions Train Control Rolling Stock

Maintenance

Train

Scheduling

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Partnerships for Innovation

Partnerships are needed to

build automation and

optimization solutions.

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Technologies Needed to Build these Systems

Data Analytics

• Databases

• Data Transformation (ETL)

• Big Data Analytics

Vision Optimization/Simulation

• Mixed Integer Programming

• Network Optimization, Heuristics

• Algorithms & Data Structures

• Machine Intelligence, AI

Information Technology

• Multi-tier Architecture

• Graphic Design & HCI

• Quality Assurance

• Mobile Applications

Industry Expertise

• Railroads

• Mining

• Ports

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Partnerships Needed for Development

Community supported development

and maintenance of optimization

solutions.

Partnership needed between railroads

and solution providers.

Agile and progressive development

that creates value at every stage.

We have the SKILL and the WILL

to transform the industry.

Can we do it?