Lean Management in the Railway Industry

Rail transport (also known as train transport or railway industry) is a means of transferring passengers and goods on wheeled vehicles running on rails, which are located on tracks. In contrast to road transport, where the vehicles run on a prepared flat surface, rail vehicles (rolling stock) are directionally guided by the tracks on which they run. Tracks usually consist of steel rails, installed on sleepers (ties) set in ballast, on which the rolling stock, usually fitted with metal wheels, moves. Other variations are also possible, such as “slab track”, in which the rails are fastened to a concrete foundation resting on a prepared subsurface. The railway industry consists of sale, manufacture and operation of railway technology. Rail transportation, primarily consisting of freight shipments and passenger service, plays a vital role in the economy of many countries. The industry is characterized by a high extent of labour division and globally collaborating value chain networks (Helmold et al., 2017). Value chain and supply chain partners are integrated into supply chain networks and concepts. The world’s railway network spans over 1.3 million route-kilometres worldwide. The United States operates by far the longest railroad network in the world, closely followed by Russia, China, India, Canada, Germany and France. Japan was adjudged number one in the ranking of countries with the highest-quality infrastructure for railroads in 2019. The average annual market volume of railway technology in North America is forecasted to reach around 32 billion euros by 2023. Western Europe will be the region with the highest market volume. The collective region of Asia, Oceania and the Middle East accounts for the largest rail passenger traffic globally, with around three trillion passenger-kilometers travelled annually.