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tive weekly review meeting, and a special award sys- To develop standard operating practices for tem for reliability target accomplishment. bus operations; In meetings with the team members, Taipei Metro To fully satisfy operations quality standards President Dr. Huel-sheng Tsay said that the company (number of internal audits from divisions; per- places such a high emphasis on reliability because centage of summonses); "reliability is the best indicator of quality." He To achieve the budgeted revenue (budget ver- pointed out that "reliability is a combination of good sus actual and a shortage-recovery plan); maintenance, good customer service, and safety" and To maintain operating costs within budgets that "reliability relates to profit." (actual versus budget and fuel consumption During their visit with Taipei Metro, it was obvi- efficiency rate); ous that employees have bought into this performance To provide safe and efficient bus services to management process and are working together to the public (customer satisfaction index, num- meet Taipei Metro's goal of providing the most reli- ber of fatalities, cleanliness, and reduction of able and efficient system in the world. driver's misconduct); Taipei Metro's operational strategy is to expand To retain quality, skilled employees (percent- relationships with customers, strengthen safety age of staff recruitment filled positions based management, and strengthen internal management, on budget); and while expanding transportation services, developing To develop skilled employees (staff training diverse businesses, and growing manpower assets. requirements, satisfactory completion of the The internal supervisory mechanisms they use to division's periodic performance management control this are cycle in a timely manner, and percentage of variance of actual training man-days versus Strategic management--responsibility center target by division). achievement assessment; Daily ISO management--an internal control system to ensure compliance; QUALITY CONTROL Project management--stepwise assignment units and interdepartmental organization com- The study team defined quality control as the mittees; extent to which organizations ensure the data they Employee-motivated improvement--proposal are collecting accurately reflects what it is supposed system, quality control circle activities, and to measure. It also reflects the extent to which there self-motivated research; and is a system of checks and balances to ensure data High-level diagnosis--management meetings integrity. It is about ensuring that the data being col- and high level meetings. lected is accurate. All of the above are overseen by operational achievement assessments, governmental manage- Hong Kong ment plans, ISO investigation and certification, and Performance measurement data for KMB comes operational maintenance and safety assessments. from mostly automated systems. Manual logs or forms exist but are rare and are quickly being Taipei Bus System replaced with direct input systems (using personal The Taipei bus system has nine measureable data assistants, or PDAs, for example) and auto- objectives: mated direct measures (such as the automated fuel- ing system). KMB staff did not report the accuracy To achieve and monitor daily bus pre-planned statistics or detailed quality control procedures for and scheduled trips (number of buses avail- automated data collection systems; however, their able for service, percentage of daily buses, data collection systems appear to be quite advanced service levels by route, reduction in accidents, and mature. For example, the Octopus contactless and the implementation of a bus capital over- fare payment system has been in place for several haul program); years and provides a stable source of ridership and To implement a bus ticketing system; fare information. 22

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The strongest form of quality control for KMB sufficient time to refine measures and data sources. comes from external sources. As a publicly traded MTR has built upon and refined its management company, KMB is subject to scrutiny from share- system over the past 20 years. In contrast, many U.S. holders and the stock exchange. As a regulated fran- agencies have cycled through multiple, conflicting chisee, KMB is subject to inspection and audit by systems in that time. the Transport Department of Hong Kong. As an ISO 9001 and ISP 14001 certified company, KMB is subject to annual certification audits of its quality Singapore and environmental management systems. LTA owns and controls the EZ Link contactless KMB submits an annual report on performance payment system, which provides the regulator with to the Transport Department. The Transport Depart- direct access to information on ridership, trainload, ment audits and analyzes the report, conducts site and revenue. LTA and PTC perform regular inde- observations, and conducts its own surveys. The pendent audits of SMRT's performance. For exam- Transport Department directly surveys customer sat- ple, PTC performs monthly random field audits of isfaction and vehicle condition. Each year, approx- system condition and performance, yearly process imately 80 of KMB's buses are randomly pulled out audits, and triennial system audits. LTA performs an of service for an unannounced inspection by the independent customer satisfaction survey of all tran- Transport Department. Since the consequences of sit operators in Singapore. On-time reliability infor- providing erroneous information are high--the mation is extracted directly from the automated train potential loss of the franchise--KMB has a big control system. incentive to ensure that its performance information Data from the electronic fare system is validated is accurate. with passenger surveys. New services or schedules are modeled with a software program, implemented, MTR measured, and compared with model projections. When asked about procedures for auditing and SMRT reports its performance to the public and verifying performance information, MTR execu- is subject to audit by LTA, PTC, and the stock tives reported that they had multiple external audit- exchange. Station managers review system perfor- ing and verification requirements. Because MTR is mance weekly, and senior management reviews per- listed on the Hong Kong stock exchange and the formance information monthly. FTSE Sustainability Index, it's financial and sus- tainability results are subject to verification. In addi- Kuala Lumpur tion, MTR maintains ISO management systems, which require internal auditing of quality and envi- Rapid KL recognizes that it needs to improve the ronmental practices. The Hong Kong Transport amount and quality of performance information Department verifies MTR's performance informa- it supplies to management. The integrated ticket tion and conducts its own customer satisfaction mechanism was implemented in 2009, and projects surveys. to automate bus reliability reporting are currently The nagging issues of data accuracy and valida- being planned. The Malaysian government does not tion that plague many U.S. transit agencies, whether have a program of verifying or auditing performance for passenger counting, reliability reporting, vehicle information, nor is there a program of independent maintenance tracking, or costs, are not evident assessment of service quality. Rapid KL does con- with MTR. This is probably due to MTR's level of duct customer surveys and reports results through investment in its automated measurement systems the balanced scorecard system. and databases and the maturity of its integrated man- agement system. MTR began to adopt ISO standards Taipei in the early 1990s. It created its integrated manage- ment system in the mid 1990s and added the balanced Quality control of performance measures is scorecard in the late 1990s. The current structure of achieved through a combination of external audits, its management system is now over 10 years old-- internal audits and reviews, coordinator verification 23

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of data, and reviews by the quality assurance section. the performance information database. Annual per- As indicated in Figure 4, the Taipei city government formance reports submitted by departments are monitors and evaluates safety and maintenance per- reviewed by a performance management committee. formance. Since departments and employees receive An internal audit of measures is performed as part of significant performance bonuses based on informa- the ISO 9001 quality management system. A monthly tion in the performance measurement system, Taipei process audit of individual systems is also performed. Metro has established several levels of review and The experience of improving train reliability verification of performance information. Depart- showed how Taipei Metro systematically improved its mental coordinators verify data as it is submitted to performance information system while working to Figure 4 Top-level elements of Taipei Metro's performance management system. 24