Union Pacific 2001 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2001 Union Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

EMPLOYEE PRODUCTIVITY
REACHED AN ALL-
release cars 24 hours a day with just a phone call. We plan to add more function-
ality in 2002 due to the extremely positive customer response. Additionally, feed-
back from customer focus groups drove a simplification of our Web pages,
yielding a 95% increase in customer Internet transactions and earning Union
Pacific the top ranking for a transportation/shipping Web site from B2B magazine.
PRODUCTIVITY
We enter 2002 leaner and with a sharper focus than ever on efficiency throughout
our operations. Employee productivity reached an all-time high in 2001, and we
should see continued improvement as we leverage volume growth when the econ-
omy rebounds.
Our assets were also more productive in 2001. Our continuing locomotive
modernization program was a key contributor with 500 new units acquired and
over 700 units retired. Maintenance costs decreased dramatically and the fuel con-
sumption rate reached its best level in our history. Longer, heavier trains resulted
in a 5% increase in average carloads per train.
Our focus on quality processes has driven these successes. Union Pacific Rail-
road was a finalist for the Malcolm Baldrige National Quality Award in 2001 and
the feedback we received about areas of strength and opportunities for improve-
ment will fuel our ongoing efforts.
OVERNITE
The recession had a significant impact on the trucking industry in 2001, but
Overnite’s employees turned in some of the best financial results in the industry,
through their focus on profitable revenue growth and on-time performance.
Operating income at Overnite improved 2% to $54 million in 2001, with record
revenue of $1.13 billion.
Improved transit times in over 3,000 lanes, complemented by the recent addi-
tion of Motor Cargo Industries, enhance Overnite’s one- and two-day service
lanes, and provide opportunities for revenue growth and improved efficiency.
GREAT IDEAS continued
Recyclable Racks – Dick Ander-
son, Sales, with Dan Schnell and
Chuck Jordan, National Customer
Service Center (below, from left to
right), developed a recyclable racking
system for shipping auto parts from
St.Louis to Mexico. The new corru-
gated cardboard racks replace heavy
metal racks, improving capacity by
60%, reducing lading weight by 65%
and allowing UP to gain a return
load to the US.
New Light Bulbs –Orlando Corral
(below right), Western Region
Mechanical Department, recom-
mended replacing the 100-watt
incandescent light bulbs with more
efficient 75-watt halogen light bulbs
in the 16 service areas at Taylor
Yard. The new bulbs reduce energy
consumption by 25% and require
significantly less labor to replace
because the 30 bulbs in each area last
three times longer.
4