Positive Train ControlImplementation on the Fast Track

Rail companies face intense pressure to meetgovernment-mandated deadlines

Transportation the way we see it

• Lack of funding - There is noprovision in the RSIA for federalgovernment funding as to thedevelopment or implementation ofPTC systems, in an economy thathas recently seen dropping revenuesfor freight carriers. The industryexpects to spend roughly $12billion to implement PTC through2015.

• Untested interoperabletechnologies - The interoperabilitymandate within the RSIA results inthe industry having to investsignificant resources to enhance ordevelop new, unproveninteroperable technologies andundertake significant industryintegration planning.Interoperability impacts are seen inback office systems,communications and signalinginfrastructures, and multiplelocomotive components.

What Must Railroads Do?Affected freight, passenger andcommuter railroads should already bemobilized toward defining theirapproaches to implementing PTC andaggressively moving to undertakemultiple FRA compliance activities insupport of that goal:

Define and submit PTCImplementation Plan (PTCIP): TheFRA established a deadline of April16, 2010 for railroads to submit theirplans to deploy PTC technologies ontheir rail networks. TheImplementation Plan involves a great

What is Positive Train Control(PTC)?Positive train control refers totechnologies that collectively helpprevent train collisions, enforce speedlimits and protect track maintenanceworkers. The concept is not a newone: Railroads started to developvarious flavors of PTC systems in the1920’s and given that safety is aprimary concern of Americanrailroads, the industry has continuedto spend considerable sums of moneyand effort on research, developmentand testing of technology related toPTC.

The development and installation ofPTC technology as a preventivemeasure gained increased attentionafter September 12, 2008, when apassenger train in Chatsworth,California, ran a red signal, collidingwith a freight train coming from theother direction on the same track.Twenty-five people were killed.Human error was seen as acontributing factor to the tragedy. Amonth later, the Rail SafetyImprovement Act (RSIA) was passedby Congress and signed into law,mandating that certain railroadterritories must install interoperablePTC systems by the end of 2015.

Challenges of PTCDespite the collective industry viewthat it is desirable from a safetyperspective to have PTC-compliantsystems in place, railroads tend to seethe RSIA mandates and deadlines asproblematic for several reasons,among them:

• Massive scope – Tens of thousandsof track-miles and locomotives, plustelecommunications, signal, andback office support systems must bemade compliant by the 2015deadline, so there is a massivevolume of work to be planned andexecuted by the railroads.

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timelines for the development andtesting measured in years, it isimperative that interoperabilityquestions be settled in the near-term.

Set up internal programmanagement: In order to address thechallenges of designing, developing,testing, and implementing PTC,railroads must be purposefullyorganized and mobilized towardgetting the work done. Byestablishing a PTC ProgramManagement Office (PMO) with thenecessary human and physicalinfrastructures to plan and overseepotentially dozens of individualprojects, railroads can reduce the risksassociated with massive effortsaffecting multiple business units. Fora given railroad, a PTCimplementation will involve hundredsof individual stakeholders, dozens ofprojects, and perhaps nine- or ten-digit budgets. With such broadimpacts and scope – and with aprohibitive cost of failure – a strong,centralized oversight mechanism isessential for creating and maintaininga master plan, identifying andmanaging risks, identifying issues anddriving them to resolution, andkeeping budgets under control.

Assess systems and componentdevelopment needs: Each railroadneeds to settle its approach todeveloping PTC technologies. Thisinvolves the aforementioned industry-wide effort to define interoperablestandards and product specifications,but also vendor selection, assessmentof internal development and testingcapabilities, and planning for ongoingsupport.

Define testing strategies andapproaches: In advance of deployingPTC, railroads will have to developPTC testing strategies to addressindividual components and systems,

deal of analysis and planning, and willrequire railroads to project their PTCimplementation efforts through 2015.

Define and submit PTCDevelopment Plan (PTCDP): Inorder for a railroad to receive theFRA’s approval for its PTC system, it isrequired to submit a PTCDP. Thatdevelopment plan describes arailroad’s PTC system, including suchinformation as system components,operational practices, target safetylevels, etc. At this time, manyproposed PTC components andprocesses are in development, so thisdocument will also need to bemaintained and amended by the RFAprocess.

Define and submit PTC Safety Plan(PTCSP): Before a given PTCtechnology can be placed into service,it must be approved by the FRA and aPTC System Certification must begranted. The PTCSP will require arailroad to attest the system has beenbuilt in accordance to the PTCDP.The railroad will be required tocompletely describe its PTC systemaddressing (at a high level) allfunctionality, verification andvalidation processes, maintenanceprocesses, and enforcement processes.Railroads should plan on thisdocument being extremely large andon dedicating a great deal of time andresources to its creation.

Agree on interoperable standards:The industry should agree in 2010 ona wide array of interoperablestandards and specifications for PTCcomponents, systems, and processesin order to enable development ofthose items in a timely manner.Interoperability is a key component ofPTC, and beyond the heavy work ofdefining requirements andinteroperable specifications,substantial work remains to actuallydevelop and test the new technologiesbefore they can be deployed. With

Transportation the way we see it

Begin deployment planning: Beyondthe development of FRA-requireddocuments, planning the physicaldeployment of PTC through 2015 willinvolve extensive cross-organizationalplanning, possibly beyond a givenrailroad’s experience and potentially incontravention of long-standingcorporate cultures. Railroads willhave to conduct detailed surveys oftheir signal and telecominfrastructures, create or updatedetailed maps of their rail networks,and determine how best to deploycomponents on their locomotivefleets. In all these efforts, railroadswill be dealing with tens-of-thousandsof devices to be deployed...and withfinding the human talent to do thework in a safe manner.

integration test planning, full systemtesting, interoperable testing withother railroads (including commuterand passenger railroads), andprobably a pilot test phase on selectterritories. Given that PTC-enabledcomponents and systems do not existtoday, testing must be viewed as along-term effort with an expectationof very challenging defects. Withstrategies defined, more detailedtesting approaches will have to follow;this will foster detailed test planning,complete with the need to createcomplex and voluminous test cases.

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How Capgemini Can HelpWe at Capgemini believe we have theright combination of people,processes, and technology to helprailroads meet some of the challengesposed by the PTC mandate.

To successfully build, deploy, andsustain a PTC solution requiresrailroads not only to plan, organize,and execute in the traditional projectmanagement sense, but to transformcertain parts of their organizations.

Based upon Capgemini’s experienceand research with third parties likeThe Economist, we believe PTCshould be treated as a major ‘BusinessTransformation Program’. When weasked, only 30% of executives felttheir organizations excelled atbusiness transformation, withrespondents having the leastconfidence about implementation,which is seen as the riskiest stage ofa project.

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What does this mean for PTC? Itmeans PTC cannot be approached justas another project initiative. In orderfor a program with the size andcomplexity of PTC to achieve itsrequired results, management needsto consider:

•Traditional project managementskills may not be enough – theability to lead transformation andmanage large-scale change is moreimportant.

• Having executives who championbusiness transformation is a keyfactor toward success - managersand staff alike must know they havethe backing of senior management.

• Programs that perform well in earlystages can still run into serioustrouble if they move directly toimplementation without a clearTransformation Strategy.

Capgemini’s Business Transformationapproach for building and deliveringcomplex programs incorporatescertain principles to support thetransformation changes:

• Besides the rational side, thepolitical and emotional dimensionsmust also be managed

• Time-boxed implementation stepsand releases

• Demonstrate acceleration throughtailored events and interventions aspart of an overall program masterplan (e.g., create momentum, senseof urgency, rejuvenation points,departure / take-off, etc.)

• Have significant changemanagement elements embedded inthe design

• Have a business case elementembedded in the design; financialand non-financial aspects

Complementing our transformationalapproach, Capgemini can bringproven methodologies andframeworks as well as end-to-enddelivery and execution to bear in yourorganization to logically structure theefforts and address the risks posed bysuch a massive undertaking as a PTCprogram:

PTC Health Check: Capgemini’sprocess starts with a “health check”, inwhich Capgemini works with yourPTC stakeholders, determining exactlywhat is going on inside the company.We examine: Does your companyhave a clear view as to the impact ofPTC? Where do you stand in terms ofstaffing, resources, costconsiderations? Do you have aprogram in place to manage PTC? Doyou have established and well-managed relationships with vendors,other railroads and governmentagencies? What are your real criteriafor success?

It’s an exhaustive, intensive, andenlightening process and it paves theway for some strategic thinkingspecific to the scope of PTC.

Program Management: Once theright mix of projects is determined wethen move into the projectmanagement phase. We have provenproject and program managementmethodology offerings, including ourDELIVER framework and our UnifiedProgram Management (UPM)methodology; we blend your bestpractices with our own to make astronger whole. In our view, a criticalsuccess factor for a program the sizeand importance of PTC would be astrong Program Management Office(PMO). A PMO provides integratedplanning and support services acrossall projects, releases and workstreams. The result is proper planningand estimation, project prioritization,delivery methods, deployment

strategy and resource management. Ithelps optimize business values andresults, leverages infrastructure,resources and investments, and offerscontrols via governance and structure.It also reduces the risk of deliveryfailure, inadequate up-front scopedefinition, and poor cross-project andrelease communication.

Testing: Capgemini’s community ofmore than 5,000 quality managementprofessionals have set theinternational standard for testmanagement and processimprovement, and our internationalteam of quality experts continues toprovide thought leadership in thisdomain. Capgemini is a recognizedleader in systems and applicationtesting, offering a deep and world-class testing regime that offerssignificant benefits toward thedevelopment of PTC technologies. Infact, Capgemini has been involved fornearly a year with various railroads inthe development of functional andtechnical use cases – tying these backto business requirements in order tofoster traceability – as well as thedevelopment of test scenarios forvarious PTC components.Capgemini’s testing services are builtto tackle the scale and complexity ofefforts like PTC, and whether it is ourmanaged testing services, test maturityassessments, or our integratedrequirements management approach,we believe we can provide thethought leadership the railroadindustry needs.

Architecture, ApplicationDevelopment, and Integration:When organizations approach atechnology upgrade or change, theirexisting applications must adapt toachieve cost savings, improveperformance, and ensure continuity.At Capgemini, we work with leadingcompanies every day to understandthe value of legacy applications and todetermine the best path forward, one

Transportation the way we see it

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that minimizes total costs andproduces enhanced performance.With respect to PTC, railroads aregrappling with how to leverageexisting safety- and mission-criticalsystems and integrate them with new(or enhanced) systems that will enablePTC functionality while maintainingthe railroad industry’s rigorous safetystandards. Our Integration HealthCheck and Integration CompetencyCenters are geared toward helpingyou position your applications withinan overall architecture and putting theappropriate architectural governancein place.

Organizational Change Management(OCM): A PTC program will affectmany functional areas within arailroad by forcing changes to long-standing operational procedures, socommunication with and training ofyour people is a critical success factor.On large programs like the PTC effort,the likelihood of success increaseswith a measured and deliberatecommunications approach that keepspeople informed and up to date,enabling better decision-making.Similarly, given that process changesare inevitable with PTC and with theunderstanding that the PTC is drivenby a safety mandate, rigorous andtimely training as to the new ways ofdoing business is essential.Capgemini offers a full range of OCMservices to help you manage thechange yielded by a transformationalevent like this.

Accelerators and Tools: We wouldrecommend taking advantage of ourtransformational environments, likethe Accelerated SolutionsEnvironment® (ASE), RapidInnovation (RAIN), or Rapid Designand Visualization (RDV) systems.They deliver sustainable new businessmodels much more rapidly thantraditional methods. They are all partof our Business TransformationProgram, which is designed tosupport and encouragetransformational change.

The Capgemini ExperienceCapgemini has over 40 yearsexperience managing large, complexprojects. We offer a complete packagethat includes:

• A proven One Team model whichsupports successful global deliveryfrom onsite, offsite and offshore

• Experienced professionals who haveestablished, optimized and managedglobal transformation programs

• On-going training and certificationfor our project managementprofessionals

• Toolkits to address program andproject management componentsincluding organization andgovernance, process, technologyand business intelligence

• Comprehensive services that aredelivered collaboratively with ourclients.

• End-to-end capabilities, from visionthrough design and development todelivery

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Copyright ©2010 Capgemini. No part of this document may be modified, deleted or expanded by any process or meanswithout prior written permission from Capgemini. Rightshore® is a trademark belonging to Capgemini.

Capgemini, one of theworld's foremost providers

of consulting, technology andoutsourcing services, enables its clientsto transform and perform throughtechnologies. Capgemini provides itsclients with insights and capabilities thatboost their freedom to achieve superiorresults through a unique way of working,the Collaborative BusinessExperienceTM. The Group relies on its

global delivery model calledRightshore®, which aims to get the rightbalance of the best talent from multiplelocations, working as one team to createand deliver the optimum solution forclients. Present in more than 30countries, Capgemini reported 2009global revenues of EUR 8.4 billion andemploys 90,000 people worldwide.

More information is available atwww.capgemini.com

About Capgemini and theCollaborative Business ExperienceTM

For more information about Positive Train Control, please contact:

Danny Pittsdanny.pitts@capgemini.com+1 972 556 7456

Michael A. Davismichael.davis@capgemini.com+1 972 603 8324

Bob Wegenerrobert.wegener@capgemini.com+1 630 880 3935