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MEASUREMENT ITEMS veying to measure customer satisfaction, user friend- liness, and compliance with the above measures. Hong Kong Performance targets are set for each franchised Transport Department transit operator. The targets are formulated with regard to the operator's performance in the previous The Hong Kong Transport Department uses sev- 3 years. The operators must compile data on each eral types of performance measures to evaluate pub- performance measure and submit a report to the lic transport in the region. Specific performance Transport Department each year. measures and obligations are written into fran- For each operator, actual achievements are com- chise agreements for each transport provider. pared with the targets. The transport department For monitoring and regulatory purposes, the conducts reviews with operators to determine if department has defined the following six objective adjustments need to be made. If an operator fails to standards: meet the targets, causes are identified, and appropri- Reliability, ate improvements are recommended. Efficiency, If an operator continually fails to meet the mini- Safety, mum standards set forth by the Hong Kong Transport Cleanliness, Department, the franchise can be taken away or not User friendliness, and renewed, which has happened in the recent past. Environmental friendliness. KMB These objectives form the basis for its multimodal performance measures. For reliability, the agency The mission of Hong Kong's KMB is to provide targets bus availability and lost trips as the primary safe, reliable, comfortable, friendly, and value-for- measures. For efficiency and quality of service, the money bus services. While KMB does have a 5-year agency measures the number of buses on the road ver- comprehensive plan, including financial, planning, sus its total licensed fleet. The agency also determines and maintenance strategies, the ISO recertification and evaluates time-of-day frequencies for each of its process guides its performance measurement system operators. process. KMB believes that there is a direct correla- Safety is highlighted as an important goal and is tion between ISO certification, quality management, measured by implementation of operator training pro- and superior customer service. grams. New hire and ongoing driver training pro- The ISO certification process requires the estab- grams are required for each transport provider. The lishment and use of performance measures. At KMB, transit providers must submit reports on how many each department has specific performance measures operators are being trained annually. that relate back to the ISO process. Each depart- For the cleanliness objective, the Transport ment has regularly scheduled meetings to review Department requires vehicles to be cleaned on a daily the numbers and trends. Both quarterly and annual basis, including daily bus washing and floor sweep- performance targets are set for each department. ing twice per day. The performance targets are primarily set by evalu- The Hong Kong Transport Department has also ating past trends, with an emphasis on setting achiev- developed environmental standards for its transit able and realistic targets. Besides a desire to achieve providers, which includes defining the minimum the company's goals, improving performance every percentage of existing vehicles that meet Euro 2 emis- year is equally important. sion standards. There is also a requirement that While each department at KMB has set perfor- all new buses comply with latest Euro emission mance measures and targets, there is a strong empha- standards. sis within the company on operational performance, The Transport Department requires that opera- primarily safety and service reliability. Much of this tors respond to complaints and inquiries in a mini- is set by the franchise agreement with the Hong Kong mum timeframe. Transit providers must also conduct Transport Department, but KMB attempts to go much bimonthly passenger liaison meetings and provide beyond the required standards. passenger information at stops and terminus loca- KMB sets a high standard for peak on-time per- tions. The Transport Department uses extensive sur- formance, with a nearly 100% goal of on time depar- 14

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tures from terminal locations. Similar high standards In many areas, targets are set to achieve "contin- for vehicle reliability are targeted, with a minimum uous" improvements rather than to respond to over- number of breakdowns that require passengers to arching strategic goals. Nevertheless, KMB identifies be transferred. In 2008, KMB achieved 51,605 km targets and employs measures to ensure that passen- between mechanical breakdowns, well above the set gers are satisfied, which is assessed by a quarterly goal of 45,000 km. In terms of overall vehicle safety, telephone survey. The survey includes questions that KMB has a set standard of 3.35 million vehicle-km address system reliability (adherence to schedules), between accidents. cleanliness, comfort, and so forth. KMB achieved ISO 9001 certification in 1994. KMB has several processes to ensure the quality The company focused first on the performance of its of the data, including both internal and external audit- operating and maintenance facilities, but eventually ing. Under the franchise agreement with Hong Kong improved the performance of the entire system so Transport Department, independent auditing of the that it was fully ISO 9001 compliant by 1999. KMB regulatory requirements is necessary. also recently met ISO 14001 environmental stan- KMB is a for-profit company publicly traded on dards, which appears to satisfy a tenet established in the Hong Kong Stock Exchange. Its routes often com- its Corporate Social Responsibility Charter. pete with other bus and rail routes, so fast and reliable KMB uses an internal system, referred to as the service is vital if KMB is to successfully attract and executive information system (EIS), to record data retain customers. KMB relies on its performance and assess progress in key areas. The system pro- measures to achieve this goal. vides a clear definition of every indicator and tar- get established for a particular period. The EIS is MTR audited by the regulator (Transport Department) to ensure targets established in KMB's 5-year (rolling) MTR uses a comprehensive integrated manage- plan are being met. Each KMB department provides ment system to measure performance. The founda- monthly progress reports to the board of directors, tions of the performance management system are and progress is reviewed in depth at quarterly depot linked to the company's strategy of safety, reliability, meetings and at annual management meetings. customer service, and cost efficiency. Using the executive information system, KMB MTR's performance management framework is staff can continuously monitor performance. Staff divided into two objectives: members meet regularly to review both the quarterly and the annual performance targets, and each depart- Operating agreement performance require- ment head must submit performance reports to ments established by the Hong Kong Transport directors on a monthly basis. Performance measure- Department, and ments are reviewed and targets can be adjusted if The company's performance goals, which are necessary. The primary goal of this process is to driven by MTR's business strategies and share- continually improve KMB's overall performance. holder requirements. All corporate departments' key indicators are included in the executive information system. The The Hong Kong Transport Department sets stan- intent of the system is to facilitate communication and dards that require MTR to meet customer's needs and provide unification of all performance indicators. expectations. These are written into MTR's franchise KMB uses standard measures to ensure oper- agreement, and the targets must be met annually. ating efficiency. These include mechanical relia- These regulatory measures monitor railway perfor- bility (measured in road calls), operational capability mance for three categories: train service (availability (measured by pullout rates--the scheduled number of and reliability), station service (station equipment/ bus departures in the peak direction during the customer interface), and passenger comfort and care. morning peak period), safety (measured by accident For its internal performance management system, rates), customer feedback management (measured MTR utilizes the balanced scorecard method, which in time it takes to respond to complaints), and ser- integrates nonfinancial performance metrics with vice department indicators (measured by use of traditional financial metrics to provide a more "bal- spare parts and technical and apprentice training anced" view of organizational performance. MTR achievements). has been using the balanced scorecard method since 15

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1999 and has recently integrated it into its strategic also uses its performance measures and targets to rec- planning and budgeting processes. ognize good practice and achievements. MTR integrates three components into its bal- Monthly management meetings are held to review anced scorecard: the key performance indicators. Every month, man- agers must explain any differences between actual and Safety, target performance and identify corrective actions that Operating statistics, and will lead to improvement. Budget variances MTR has set high standards and targets for its operating performance measures. This is partly a These three elements link back to MTR's strategic response to the high level of performance set by the plan and guide day-to-day management activities. Hong Kong Transport Department, but also to the The annual strategic plan drives the performance objectives set forth in the company's own strategic measurement process. The strategic plan determines plan. the goals and objectives for the company. Based on a MTR pledges to ensure trains are always main- top-down performance system, high-level measures tained to provide safe and reliable service. The goal is and targets are set, with "cascading" measures then to have less than one train failure per 500,000 km. determined for each functional department. MTR strives to ensure that at least 99.5% of all sched- For example, safety is one of MTR's objectives. uled trips will be operated and at least 99% of trips High-level targets are set for overall accidents and will be completed within 2 min of schedule. injuries. These measures are monitored by senior For service reliability, MTR's measures and tar- management. More detailed performance indicators gets include are set for each operational unit and geographical area. Then even more detailed safety measures are Train service delivery (provided service) developed and used by each discipline and job cate- > 99.5%, gory. The cascading performance measures allow Passenger journeys on time > 99%, each functional department to be directly involved Train punctuality > 99%, and in striving to meet the safety objective. This method Train reliability > 500,000 car-km/incident. also provides accountability and enables manage- For station equipment and customer comfort and ment staff to identify specific areas where perfor- care, MTR's targets are mance is not being met. AVM reliability > 99%, MTR staff stated that their balanced scorecard Ticket machine reliability > 99%, method improves the understanding of business Ticket gate reliability > 99%, processes. An example was given of where the pre- Ticket reliability > 99%, ventive maintenance target of 97% was not being Escalator reliability > 99%, met. Through comparing and analyzing the depart- Passenger lift reliability > 99.5%, mental performance measures, they found out they Light rail platform octopus processor reliabil- were not meeting their goal because of their existing ity > 99%, training methods. Because of the long-term financial Light rail on-vehicle air-conditioning failures and passenger impacts attributed to a lack of preven- < 3 times/month, tive maintenance, alternative training procedures were Temperature and ventilation > 97% reliability developed. on trains and > 90% in stations, and MTR places a large importance on the defined Railway cleanlines > 98.5% in train compart- measurement targets. Management believes that set- ments and > 99% on train bodies. ting the "right" targets is important. If targets are too high, then they will prove too costly to achieve. If the MTR uses a variety of data sources for the operational targets are too low, then the company will not meet performance measures. Much of the data is collected their passengers' expectations and requirements. through automatic sources connected with the train MTR also uses the targets to motivate improvement. control system. For the temperature and ventilation, It was stated that precise and clear performance mea- MTR has monitoring units at each station and train. sures and targets help frontline employees understand For its customer satisfaction indicators, MTR makes the company's goals and business processes. MTR use of frequent customer surveys. 16

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Data quality is an important component of the reported weekly and is adjusted for uncontrollable MTR performance measurement system. In addi- issues, which results in more objective statistics. tion to its internal standards, MTR data are audited The Land Transport Authority plans to double externally, as required by both the Hong Kong the rail network by 2020, enhance capacity on Transport Department and the Hong Kong Stock existing lines by increasing train frequencies, and Exchange. enhance safety by installing screen doors on all rail The balanced scorecard method has been station platforms. The plan also calls for creating a extremely successful for MTR. Over the years, the central bus network with enhanced traffic priority, company has been able to maintain a high level of including all-day exclusive bus lanes and other service and sustain profitability. MTR staff says that preferential treatments. The overall goal is for the key to their success has been management's com- 85% of door-to-door transit trips to be made within mitment to the performance measurement process 60 min. and the employees buy-in to the company's overall LTA grants two franchise licenses to two rail strategic goals. operators. Currently these operating licenses are for 30 years. Under the agreement, the operators are to manage the transit system in accordance with spec- Singapore ified operating performance standards. The perfor- Singapore's measurements are simple but effec- mance standards relate to three primary functions-- tive, and center on the following: service quality, safety assurance, and equipment performance. Train availability at 98%, Under service quality, LTA defines standards On-time performance at 94%, for on-time performance, train service availability, Accidents limited to no more than two every passenger loading, severity of service disruptions, 4 weeks, frequency of service disruptions, minimum train Ticket machines are operable 95% of the time, headways, and span of service. Escalators are in service 99.9% of the time, For safety assurance measures, LTA defines four Elevators are in service 99% of the time, main standards--passenger injury rate, mainline ser- The number of service collisions is nil, and vice collisions, service derailments, and fire inci- The number of fires at stations is nil. dents. These measures have very high standards, with large penalties for failing to meet the targets. The data collected include failures and delays, as well The entire journey experience is important to as loads and safety and are collected using a home- LTA, including equipment performance at station grown system. Within a day of each incident, the cus- platforms. Standards have been set for the reliability tomer service department at SMRT contacts those of general ticketing machines, automatic fare gates, who were involved in an incident to determine how and escalators and lifts. they were affected and what could be done to avoid a Each of these performance measures relates back similar situation in the future. The company relies to LTA's goal of making public transport a choice heavily on public input, and their track layouts are mode. Frequent, reliable, and safe service is LTA's designed for efficiency and effectiveness. Closed primary public transport policy goal. loop systems ensure safety, and train loading is mea- There are large penalties associated with transit sured in 15-min blocks for service development and operators not meeting the standards set by LTA; for planning. SMRT staff plan, implement, measure, and example, LTA had recently assessed a $300,000 fine correct as necessary. Their analysis is done just as on one of its rail operators for a 7-hr delay caused by much after adding a train as it is done before. Their overnight track work not being completed on time. measurements are reviewed daily, and they can adjust PTC has six quality of service performance service up to four times a year. categories: Many detailed reports feed into key categories that are based on the SMRT strategic plan. The Reliability, measurements are collected from smartcards and Passenger loading, from surveys. Their goals have been adopted by, and Safety, are supported by, their board of directors. Data are Availability of service, 17

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Integration and span of service, and These include train availability, on-time arrival and Customer information. departure at terminals, station equipment reliability, and accidents and safety. Under each of these six categories are a variety of spe- SMRT also participates in, and utilizes the infor- cific measures that each bus operator must achieve or mation gleaned from, a customer satisfaction survey else incur a financial penalty. For example, under the conducted and analyzed by the Singapore Man- reliability category, minimum standards are set for agement University, which is based on the Ameri- three specific measures--actual to scheduled bus ser- can Customer Satisfaction Index developed by the vice operated on each route, headway adherence, and National Quality Research Center at the University bus breakdowns. of Michigan. PTC has set up a penalty framework, with fines The rail operations division relies on a variety of for breaches in each of the quality of service stan- automatically generated data for their performance dards. For example, a bus operator can incur a $100 measures. Besides using smartcard data for estimated penalty for each day on each route where the mini- loads, SMRT relies on a computer tracking system for mum reliability standards are not met and be assessed logging incidents and delays and a web-based train a $10,000 penalty for not meeting each monthly deviation system that logs and shows train on-time requirement. performance. The data for the train deviation system The rail operations division uses numerous per- comes directly from the central train control system. formance measures to monitor and improve its tran- Data from all these systems is validated weekly. sit service. SMRT has two primary objectives with SMRT has a monthly performance process that performance measurement--namely, to meet the reviews the key financial and operating performance regulatory requirements established by LTA and to standards. Each month, division managers must provide customer satisfaction. report on each performance measure and trend. The SMRT has an annual planning cycle that develops intent of the meetings is to improve customer satis- each division's performance measures and targets. faction and meet the high standards set forth by To meet both the internal and external requirements, Singapore government. monthly and quarterly reports are produced. In one of the team's meetings with SMRT staff, a The rail operating division performance measures senior manager noted, "there is no room for slack, focus on capacity, reliability, safety, and customer because the Singapore government can take away the service. For customer service, the agency developed franchise." With the aggressive rail expansion plans a "Customer Integrated Feedback System" that mon- by the Singapore government, SMRT also realizes it itors and tracks customer complaints. SMRT requires needs to perform at high level to compete for these that all issues must be resolved within 14 days and franchises. that a reply must be made within 3 days. SMRT also uses its customer service system to Kuala Lumpur track types of complaints and uses this information in The study team met primarily with RapidKL's formulating priorities for specific performance mea- bus operations division. The bus operations division sures and tracking systems. Over the past few years, had reviewed its key performance indicators and had one of biggest complaints has been overcrowding. As developed a new strategic performance measurement a result, rail operations developed the "trainload esti- system for 2009. A "bus operations scorecard," which mation system." This system uses data from smart- incorporated key performance indicators and targets, cards to estimate trip and station level passenger was developed with the intent to change behavior and loads. This interactive tool allows SMRT staff to improve quality of service. monitor system performance, and it graphically com- The bus operations scorecard has four main areas pares actual data with the performance standards. The of emphasis (pillars), and each pillar has one or more passenger loading performance measure is such a objectives: main concern that senior management uses the graph- ical tool on a regular basis. Internal process: The SMRT rail operations division uses a vari- To achieve and monitor daily bus schedule ety of performance measures and standards as well. (on-time performance); 18

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To implement a bus ticketing system; percentage. Their operators actually pay for any short- To develop standard operating procedures fall in fare collection at the end of each shift. The plan for operations; and is to automate the entire process through a total inte- To fully satisfy operations quality standards. gration with rail, while developing standard operating Financial goals: procedures, increasing revenues and customer satis- To achieve the targeted budgeted revenue; faction, and improving cleanliness. The company is and embarking on a new training program for apprentices, To maintain operating costs within budget. who will eventually become bus captains (drivers). Customer: RapidKL is in the process of hiring consultants to To provide safe and efficient bus service. measure and verify statistical data. Learning and growth: RapidKL provides operators with a base salary To retain quality, skilled employees; and plus bonuses for the number of trips they perform, To develop skilled employees. the number of customers who are left behind, atten- A total of 21 key performance measures and targets dance, punctuality, revenue, accidents/incidents, were developed for these objectives. Management and customer complaints. Employee availability is a has realized that to be successful in achieving these huge problem for RapidKL, with high rates of absen- targets, a limited number of key performance mea- teeism and a staggering shortage of drivers and traf- sures are required. fic regulators (being short 350 drivers and 150 traffic A consolidated effort from all departments is regulators). involved in meeting the performance standards. The intent is to monitor these targets monthly and to make Taipei adjustments and improvements as necessary. It was impressive to hear the process that Taipei Metro RapidKL went through to develop the bus operations Taipei Metro operates the entire rail network in scorecard and key performance indicators. Manage- Taipei, which includes heavy rail and fully automated ment recognized that the bus division was not operat- medium capacity rail. Strategic goals and objectives ing at a high or satisfactory level, and through its are part of the foundation of Taipei Metro. The finan- corporate and strategic planning efforts it identified cial and customer satisfaction success has been based priority actions that would help the company improve upon a history of extremely reliable and efficient and succeed. service. The performance indicators were determined by Over the course of the study team's visit, Taipei utilizing what they had learned from their visit to Metro presented three separate performance man- Vancouver, peer evaluations, and benchmarking, agement systems used to achieve their objectives: as well as a comparison with Dublin's LRT (Luas). (a) responsibility centers, (b) quality management, When asked how they measured performance and and (c) reliability growth program. how the measurements relate to objectives, the staff answered that the measurements are based on con- Responsibility Centers tractual requirements, customer needs, shareholder experiences, and regulations. Taipei Metro's responsibility center system is a The data collection method incorporates main- management tool for motivating employees to work tenance management systems, delays, on-time collectively to reach the company's goals and objec- performance, stops, and number of work orders tives for the year. The organization is divided into dif- reflecting maintenance performance. RapidKL also ferent responsibility units, and each unit is assigned benchmarks itself against SkyTrain and the AirTrain specific targets. Each unit is then evaluated and JFK, in addition to Luas, and has an automated data assigned a score based on its actual performance collection system with built-in quality checks and against the set targets each year. The motivating balances. They manage by measurements outside the driver is financial. When the company earns a profit, standard deviation range. its employees are rewarded with bonuses, and the RapidKL currently has a 99% cash fare basis, but bonuses are allocated across the responsibility units the company is planning to significantly reduce that based on the scores earned by each unit. The intent 19

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is for the unit to work as a team to reach the perfor- Reinforce Human Resource Development: mance goals. Enhance employee satisfaction, The initial step to developing the key perfor- Timely hiring and training of employees, mance indicators is to identify the company's busi- Increase core professional ability, and ness strategies and strategic objectives, so that each Enlarge international exchange and learning unit will understand what needs to be achieved to suc- programs. cessfully execute the strategies. These strategies and objectives are identified in the annual business plan. Based on these business strategies, performance For 2009, Taipei Metro established six business objectives are developed for each responsibility strategies, as follows: unit. All the performance indicators are developed in conjunction with each other, and are aligned with Enhance customer service, the company's strategic plan. Everyone then works Strengthen safety management, collaboratively toward the objectives. Taipei Metro Fortify internal management, management believes teamwork is the key to suc- Improve transfer service, cessfully achieving the objectives. The financial Develop diversified management, and reward is very attractive, with the bonuses being Reinforce human resource development. quite substantial (in some cases equalling 4 months of salary); this creates peer pressure to meet the For each of these business strategies, Taipei Metro targets. has developed individual objectives. Enhance Customer Service: Reliability Management System Enhance service quality, One of Taipei Metro's top goals is "to be one of Enhance service attitude and efficiency, the best metros in the world." The staff takes this mis- Provide high-quality metro environment, and sion very seriously and has developed comprehensive Promote quality of life and improve commu- performance metrics to measure performance. In nity care. order to achieve this goal, the company uses a perfor- mance system based on the four points of their qual- Strengthen Safety Management: ity policy, namely Reduce accident rate, Safe, Increase availability rate and system reliability, Reliable, Improve equipment reliability, Comfortable, and Enhance safety precautions, and Fast service. Improve crisis management abilities. Fortify Internal Management: Overall, Taipei Metro has 34 high-level quality objectives and 85 division-level objectives for the Accelerate application of info-tech, four quality goals. Strengthen internal management system, and For the safety objective, Taipei Metro uses met- Improve employee productivity. rics on: Improve Transfer Service: Deaths and major injuries, Increase customers' willingness to transfer, Minor injuries, and Establish comprehensive transfer service, and Incidences of crime. Expand operational scope. For reliable service, Taipei Metro's metrics involve Develop Diversified Management: trains and customer equipment, including Provide diverse socio-economic environment, Train reliability (train car-kilometers between Strengthen budget control, delays of more than 5 min), Expand reinvestment and affiliated business, Cars available for peak hour service, Review important expenditures, and Train punctuality, Provide Metro consulting service. Elevator reliability, 20

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Escalator reliability, System Reliability Growth Ticket vending machine reliability, and Taipei Metro's commitment to reliable and fast Gate, token, and easy card reliability. service is evident in the company's system reliability growth program. This program was established by the To measure customer comfort, Taipei metro relies president of Taipei Metro to ensure that system delays on five performance metrics: are minimized and that trains run on schedule and run Train interior cleanliness, as efficiently as possible. Train exterior cleanliness, The system reliability growth program was Station cleanliness, started in 2003 after a series of significant delay- Temperature and ventilation of its trains and causing incidents. In that year, Taipei Metro had a stations, and total of 83 incidents resulting in delays of more than Jerk rate (rate of change of acceleration) on the 5 min, including six major incidents causing delays train. up to 1 hr. The program was designed to focus on the customers' highest concern--namely, reducing the For fast service, the following four metrics are number of train delay incidents in order to increase used: system reliability and service quality. The program's objective is to reduce the occur- Train service delivery, rence of train delays of more than 5 min. In order to Peak hour headways, achieve this goal, every delay-causing incident is Off-peak headways, and reviewed by an investigation team, consisting of the Passenger inquiry response time. operations, safety, and maintenance departments. The review team conducts an "improvement and cor- Taipei Metro staff believes it is important to set real- rection process" that investigates the direct or indi- istic targets. Therefore, targets are based on the rect cause of the delay. All factors are investigated, previous year's performance. Understanding that including human error, lack of preventive mainte- improvement is important, challenge values are also nance, and procedural errors. The team determines if set for each performance measure. These challenge the delay is an isolated case or a systematic problem values are set based on the previous year's third-best- and presents the findings at the weekly operation reli- performance month. ability review meeting. Taipei Metro uses a variety of sources of data for At the weekly meeting, there is a review of the performance metric system. For train reliability weekly operations, including reports on individual and equipment performance, data are collected auto- incidents, as well as the status of ongoing improve- matically from a variety of computer systems, ment measures by each division. As evidence of the including the central train control and the electronic high priority placed on reducing delays, the president fare machines. These data systems are validated of Taipei Metro chairs these weekly meetings. monthly in accordance with the internal ISO 9000 The program has been very successful. Taipei audit process. Each month a project audit is per- Metro has not only been able to significantly reduce formed on all equipment and systems, including the delays, but has also increased the number of kilo- rolling stock, escalators, and station broadcast and meters between incidents to 2,910 in 2009, up from radio systems. The results of the audit are reviewed 615 in 2003. Taipei Metro has also been rated the by the quality assurance section and are presented at most reliable metro system among 26 CoMET and the bimonthly quality management system control Nova consortiums6 for 4 years running. meeting. Taipei Metro staff attributed a number of factors Every 2 months, directors from all the divisions to the success of the program. These include a firm and the vice president of Taipei Metro meet to review determination and support by top management, a the performance of the quality objectives. Based on clear and simple stated goal, the continuing and effec- the review, any necessary corrective and preventive actions are identified and implemented, and recom- 6CoMET and Nova are transit international benchmarking con- mendations for improvement are developed. The sortiums. CoMET includes the world's large urban rail opera- team also reviews customer feedback and the results tors, and CoMET consists of medium sized urban rail operators. of the project audit. Taipei Metro is a member of Nova. 21