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Creating a Maintenance Plan Auditing, Data Exchange and Paperless Billing Carol Scarborough
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 2 Auditing Auditing Maintenance Bills The rules for auditing are in the AAR Field Manual and AAR Office Manual AAR Office Manual contains the Price Matrices All freight railroads and freight car owners must subscribe to the AAR Interchange Rules Contract shops use AAR Rules for job codes and other reporting Price Master is available from Railinc for $425 each issue, or $1,700 annual subscription
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 3 Auditing Auditing Maintenance Bills Contract shop general rule: Contract shops use AAR labor standards for applying labor time to repair work Material costs will be a percentage over actual cost of material In extreme heavy repair cases, actual hours may be charged Labor and material can be negotiated Individual agreements can vary
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 4 Auditing Auditing Maintenance Bills Both railroad and contract shop billing is in AAR Billing Repair Card format (500 byte ) Billing can be generated and supplied to you manually floppy disk electronic file via email AAR Car Repair Billing via Data Exchange (Railinc) – now required for Class I’s billing. Mandatory 1/1/2009.
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 5 Auditing Auditing Maintenance Bills Minimum AAR Billing Repair Card Requirements: Railcar initial and number Kind of car (not mandatory for Group Billable repairs) Date repairs completed SPLC (location name may be used in addition) Load/Empty indicator (not mandatory for Group Billable repairs) Location on car Quantity
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 6 Auditing Auditing Maintenance Bills Minimum AAR Billing Repair Card Requirements (cont.) Condition Code Job Code Applied Description of repairs Why made code Job Code Removed Responsibility Code Net Charge
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 7 Auditing Auditing Maintenance Bills Other items to audit Duplicate billing for same repair Components standard to car (incorrect repair) Correct number of components per car Correct pricing Correct job code and why made or condition code Calculation of total amount
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 8 Auditing Auditing Maintenance Bills AAR Rule 112.H.3: If entire bill is improperly rendered, return unpaid for correction 10% when bill is $10,000 or less 7.5% when bill is $10,001 to $200,000 5% when bill is $200,000 or more If net amount of error or questionable charges (not counting car number) exceeds limits of the total amount, return the bill no later than 60 days from receipt to the billing road or shop Returned invoices can be resubmitted within 12 months from date of return. Corrected invoice will to back through DX.
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 9 Auditing Auditing Maintenance Bills AAR Rule 112.H.4 Exceptions to paid repair bills= Within 7 months from receipt of bill (DX date) Except if rebilled from lessor, then 10 months Must be more than $50 (except for incorrect car numbers) All exceptions to bill taken at the same time Exception letters and supporting documentation can be sent via mail or as PDF attachment to an email. Must send copy of original BRC Billing Road has 90 days to handle and/or issue CBA
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 10 Auditing Auditing Maintenance Bills Measurement and Analysis is important Look for problem cars Look for problem components Need to gather mileage on cars, real or estimate Projection of maintenance and planning
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 11 Data Exchange Data Exchange – What is it? Car Repair DX was deployed in 1970 Redesigned 2004 – 2006 New Environment / Flexibility Enhancements to Survey, Online PM, Internet BRC Expanded Format Authorized by AAR Circular C-10397
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 12 Data Exchange Data Exchange – Why participate? Minimizes data entry and eliminates manual auditing of bills Supports a more detailed audit by checking against AAR pricing Facilitates paperless billing and re-billing By importing repairs from DX the backup can be used for rebuttal billing, CBA backup, etc. Feeds a repair database for historical trending and analysis of repairs by car, component, etc. Currently required for submittal for Class I defect card and JIC damage claims and will be mandatory on 1/1/2009
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 13 Data Exchange Data Exchange – Who participates? Submitter – submits input to the CRBX system for car repair data No cost for submitter only data Receiver – received output from the CRBS system on equipment which they own or control Base fee of $140 per month $5.75 for 1,000 records over base (each line is a record) CRB Committee working on removal of fees to receiver as part of 1/1/2009 deadline for paperless billing
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 14 Data Exchange Data Exchange – How do you participate? Create your own system – maintain your own internal pricing and audit system capable of generating the 500 byte CRBX (CRIP) file. Use a 3 rd Party Vendor – partner with a qualified vendor that can submit and or receive (500 byte CRBX file) on your behalf Use the Railinc Internet BRC – basic input system allowing users to input car repair data at no charge (submitter only)
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 15 Data Exchange
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 16 Data Exchange
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 17 Data Exchange After CRBX is run, a system generated email is sent to active participants containing a PDF summary information of their outbound file CRBX Outbound Detail Files (CROP) are Zipped and put into receivers FTP mailbox which they can pull within the next 20 days
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 18 Data Exchange
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 19 How to become a CRBX Submitter 1. Must send an e-mail to DX@railinc.com stating that you want to become a submitter to CRB.DX@railinc.com 2. Your email must contain the complete company name and address, with a contact person's phone and E-mail information. 3. Your e-mail must also include list of the repair mark(s) registered with Umler Or include a list of marks which you will be submitting on behalf of 4. Must submit a TEST 500 byte CRB file via email The file must be in a ZIP file with naming convention of MARKcripyymm (ex: MARKcrip0802)
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 20 How to become a CRBX Submitter 5. After you have created your (Zipped) 500 byte test file it must be attached to an e-mail and sent to dx@railinc.com so it can be download and processed in our TEST system.dx@railinc.com 6. You will receive your TEST file results (and associated Error/Warnings) so you can see what records the system accepted or rejected. 7. You may want to review this output, make corrections and then resubmit this Test file to again be reprocessed. 8. When your TEST file is approved by Railinc then you will be able to go live in our CRBX Production System. 9. DX Admin will create a CRB profile and an inbound FTP mailbox for you to use in Production.
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 21 How to become a CRBX Receiver 1. Must send an e-mail to DX@railinc.com stating that you want to become a receiver of CRB.DX@railinc.com 2. Your email must contain the complete company name and address, with a contact person's phone and E-mail information. 3. Provide a list of (receiving) car mark(s) that you own or lease that has your stenciled mark. 4. Complete and return a Railinc credit application. 5. DX Admin will set up profile in CRB with the owner’s mark or marks.
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 22 How to become a CRBX Receiver 7. DX Admin will create a outbound FTP mailbox for the CRB file to be placed FTP mailbox id and password will be provided Must be able to open a ZIP file from the Railinc FTP server. 8. CRBX file receivers will also receive the 2008 DX schedule, current file layout and a copy of the FTP users manual. 9. DX Admin will work with the customers on how to pull down the outbound file.
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 23 Car Repair Billing Procedures Manual Required Reading for creating your own system
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 24 Paperless Billing In 2008 AAR Office Manual: Rule 112.G.2: “Data supporting the invoice presented in accordance with Rule 112.G.1 must be submitted to the Car Repair Billing Data Exchange System in accordance with Rule 113.” Rule 112.G.7: “Presentation of the invoice will be either paper mailed to the responsible part or as a PDF attachment to an email presented to the Billed Party. The presentation method will be at the discretion of the Billing Party. Regardless of method chosen, the repair detail source data must be submitted to the Car Repair Data Exchange System in accordance with Rule 112.G.2 and Rule 113.”
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 25 Paperless Billing In 2008 AAR Office Manual: Rule 112.H.2: “The receipt of the invoice for the purpose of invoice payment and auditing will be defined as the date that the detail source data supporting the invoice is available (Rule 113) from the Car Repair Billing Data Exchange System. In the event that your company is not downloading your repair data from Car Repair Data Exchange, the receipt of the invoice will be defined as the date that the Data Exchange data would have been available subsequent to the date that the Billing party submitted the detail source data.”
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 26 Paperless Billing – After 1/1/2009 Defect cards and JICs are going away and will be submitted and stored thru Railinc. The billing party will no longer be required to submit a paper or PDF invoice. Generic e-mail address database that will allow delivery to a company and not to a person The invoice will be the Data Exchange system records. The billed party will have access to their data exchange details without a fee. The time limits for exception handling will be reduced
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 27 Conclusion Many changes in Car Repair Billing Fleet Managers need to be current on changes in the industry Maintenance Plans save $$ Plan for maintenance important to fleet size Proper fleet size can drive out excess cars Maintenance no longer the “black hole”
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May 23, 2008 DTE Rail Services, Inc. Maintenance Management Seminar 28 Conclusion Maintenance on railcar fleets is expensive Through Proactive planning and management Costs can be controlled Predictive costs can be planned for and budgeted Cars can experience higher utilization More product can be moved with less expense through proper fleet sizing
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