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Taipei rective and preventive actions, customer feedback, and results of audits. At the same time, recommenda- The Taipei city government's Department of tions for improvements and other issues are dis- Rapid Transit Systems staff compile most of their cussed. Each director leaves the meeting with action own performance data. items and targets for his/her own division in terms of For the most part, Taipei Metro's performance what they can contribute to improving the overall sys- measures are reported by the operating divisions. To tem performance. If the present indicator is below ensure accuracy, electronic data systems are used to goal, the difference is apportioned out and distributed validate manually entered data, and the results are among all responsible divisions. This gives each divi- subject to audit by the divisional management, the sion a quantitative sense of ownership of the problem. senior management's internal audit office, and the Because Taipei Metro is a quasi-private com- industrial safety division, as well as municipal and pany, performance data (both financial and operating) national regulators. For data that can be automatically are issued at the end of the year to shareholders. These collected (predominantly automated fare collection annual reports are typically compilation of data from and automatic train control systems), the electronic throughout the year. data system is used. Taipei Metro's quality management system pro- At Taipei Metro, a proactive approach is taken motes the efforts of service quality in accordance with for quality and reliability management. Corrective ISO 9001:2008 standards. The quality management actions related to declining performance indicators or system is reviewed annually, with the company pres- conditions that may cause a decline in performance in ident serving as chair of the review meetings. Direc- the future are taken at many levels. For the manually tors of all the different business units are required collected data, the data collection process is itself an to attend the meeting. The quality performance indi- opportunity to take corrective action--the data col- cators are reviewed and discussed, and any course lection is part of the quality management process. correction needed is identified at this meeting. In Automatically collected data (such as schedule per- addition, the passenger satisfaction survey is dis- formance) is monitored in real time through video cussed. Quality indicators and regulatory measures feeds from more than 5,000 cameras throughout the are defined. Quality management system data are col- system. This enables "rapid response teams" to be lected, audited, and then reported. Bimonthly meet- immediately dispatched to problem locations to ings are held to discuss the data. address any incidents or possible delays in service. The next level of review is a working group that meets periodically to address performance issues. COURSE CORRECTION For production-oriented measures, this is part of the This section describes the motivating factors for quality management system process, and meetings making course corrections, how the various agen- are held monthly. For operations reliability, a spe- cies carry out course corrections, and the keys to cial meeting is held weekly (on Friday mornings) to successfully using performance information to make review all incidents for causes, direct and indirect, course corrections. The transit operators and regula- controllable and uncontrollable. This search for root tory agencies visited during the mission provided cause, together with learning from after-the-fact the following four reasons for using performance incident analysis, has enabled Taipei to substantially information to make course corrections: reduce delay-causing incidents. For the required regulatory reporting of the License and regulatory requirements, 21 key performance indicators, Taipei Metro meets Attainment of agency goals, monthly with the Taipei mayor's staff to go over the International standards and benchmarks, and report and discern any apparent trends. Follow-up Customer input. action items from the previous meetings are also discussed. License and Regulatory Requirements At the highest level, the quality management sys- tem staff hosts a bimonthly control meeting with Performance standards that were part of franchise directors from all divisions to review the status of cor- license agreements and other regulatory requirements 28

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were the most common reasons mentioned for course provides oversight through the administration of the corrections. In Singapore, the Ministry of Transport Road Traffic Ordinance, legislation for monitoring regulates public transit services through two bodies: traffic flow and public transit operations, and legis- LTA and PTC. Together, these two agencies allocate lation on vehicle safety requirements. To enforce license and operating agreements that allow private these regulations, the Transport Department inspects companies to run transit services. The license agree- vehicles for roadworthiness, issues speeding tickets, ments set standards for operations, maintenance, and prosecutes drivers of vehicles that have been safety, asset replacement, grants, and insurance cited for safety defects. The Transport Department through specified operating performance standards also requires private transit providers to submit per- and require a safety and management system. formance reports. On a monthly basis, the Transport Currently, SMRT is licensed to operate bus, rail, Department publishes data on ridership, service taxi, and other public-transport services. To fulfill miles, fleet size, and carrying capacity. The Trans- the license and operating agreement, SMRT submits port Department also monitors accident data on a monthly performance reports. LTA also conducts monthly basis. In response to accident data, the random spot and field audits. To meet service stan- Transport Department may revise legislation, increase dards, SMRT reviews data weekly to determine if ser- police enforcement of laws, adjust road designs, cre- vice adjustments are needed. SMRT staff said that ate educational programs, and/or initiate publicity they altered service four times in 2008. By analyzing campaigns. trend data, SMRT can also adjust service to accom- The Transport Department's safety initiative is modate seasonal peaks or decreases. Given that an example of how the regulatory agency imple- service reliability standards are set in the license ments course corrections. In response to high acci- agreement, SMRT adjusts its maintenance manage- dent rates, the Transport Department developed a ment practices to avoid breakdowns and subsequent safety awareness campaign, with a goal of zero acci- delays. If standards are not met, LTA and PTC will dents (Figure 5). impose fines. For example, just before the study The Transport Department credits its efforts, team's visit, SMRT was charged a fine for a 7-hour along with those of the transportation providers, service disruption. Operators can provide an explana- with a 50% decrease in transportation deaths and a tion for the low performance, which is reviewed by 40% decrease in serious injury accidents over the LTA and PTC, and can appeal to the Minister of past 40 years. In other words, even if a transit Transport. provider does not have a franchise agreement, the As part of its franchise agreement with the Hong oversight and guidance of the Transport Department Kong Transport Department, bus operator KMB must is still relevant. One can conclude that agencies meet performance standards in six areas: reliability, are making adjustments to ensure adherence to the efficiency, safety, cleanliness, environmental friend- transportation regulations established by the Trans- liness, and user friendliness. The Transport Depart- port Department. ment holds regular meetings with operators to review data, identify causes of low performance, and jointly Attainment of Agency Goals establish corrective actions. KMB documents adher- ence to these standards in its annual report. To cre- The majority of agencies visited also stated that ate an incentive to implement course corrections, a key motivation for course correction was to make bus captains (drivers) receive a monthly bonus related progress toward their strategic goals. One of the best to safety performance and customer complaints. In examples of a strategy-based management structure addition, the performance appraisals for each of the was that of Taipei Metro (Figure 6). senior directors consider KMB performance statis- tics. KMB is also subject to random audits, as docu- mented in the performance measure "annual number of bus defects found during spot checks by the Trans- port Department." Figure 5 Hong Kong Transport For the nonlicensed transit services in Hong Department's logo to accompany its Kong, including MTR, the Transport Department goal of "Zero Accidents on the Road." 29

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Vision: Taipei Metro--First Class in the World cific measures, and those are incorporated into each department's measures as appropriate. A committee reviews each department's measures, and the com- pany president then gives final approval. Taipei Metro's mission and vision set the long-term direc- tion for Taipei Metro and, as such, are not frequently changed. The strategic goals are also rarely adjusted. The strategic objectives and performance measures, on the other hand, change annually to reflect current business focus. Every Friday morning, members of Taipei Metro's senior management team meet with the com- pany president to review performance information. The meeting typically focuses on the number of inci- dents, the cause of each incident (malfunction, human error, procedure failure, maintenance, external, etc.), and the corrective action to be implemented. When Taipei Metro first began tracking performance infor- mation, establishing the cause of an incident was very controversial. As a result, tracking and surveillance equipment (more than 5,000 digital cameras in 70 sta- tions) was set up as a tool for solving disputes. Now after each incident, all involved departments (e.g., operations, safety, and maintenance) document their assessment of the incident and then meet to discuss and establish responsibility for each incident prior to each week's Friday meeting with the president. If the incident appears to be a systemic problem, then a management alert is released. By linking a perfor- mance measure to agency goals, analyzing the data, and identifying corrective actions, Taipei Metro has seen notable improvement in the number of car- kilometers between every delay of more than 5 min (Figure 7). In addition, each employee can receive a bonus based on their department's performance. Taipei Metro's senior management views the bonus as a key motivator for employees to identify course corrective action throughout the year. Figure 6 Taipei strategic framework. MTR (Hong Kong) is another agency that effec- tively makes course corrections based on agency goals and performance information. Every year, MTR As illustrated in Figure 6, Taipei Metro has holds a strategic planning workshop to establish developed a mission, a vision, six strategic goals, and goals, identify key business issues, determine its related objectives. Together these elements provide strategic direction, set performance targets, estimate the strategic direction for Taipei Metro. Every year, budgetary needs, and outline an action plan. The out- each department develops its own performance mea- come of these annual workshops is documented in sures for tracking their contribution to the agency's MTR's customer service pledge. Progress is tracked achievement of each objective and goal. Depart- through an integrated management system, which is ment-specific performance measures are guided by an internal online performance system for managers. organizationwide measures. In addition, the Taipei The reliability of service, availability of service, inci- government requires Taipei Metro to report on spe- dent response time, and incident recovery time are all 30

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Car-Km (1000s) Between Incidents (causing a delay of 5 or more min.) 3500 2910 3000 2500 Car-Km (1000s) 2000 1809 1851 1752 Year 2004 Reliability 1665 Growth Program 1508 1500 1000 615 489 528 500 292 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Mar-09 Year Figure 7 Trend data for Taipei Metro reliability measure. tracked by system performance standards, while mance targets set for 21 measures. However, during the customer service pledge outlines 18 customer- our visit, RapidKL staff stated that the performance oriented measures. High-level targets are broken targets were conservative and not difficult to meet. down into operational targets for each department. Historically, performance data were collected and The division directors meet monthly to discuss per- analyzed mainly to support getting the buses out on formance information and evaluate progress toward the street. RapidKL would analyze data on bus rider- the strategic goals. For example, the causes of service ship, mode share, fleet size, and number of routes delays (rolling stock, track, signal, power) are ana- to make bus route determinations. More recently, lyzed to pinpoint the source and identify a remedy. RapidKL has also begun to use performance data to MTR takes some elements of the integrated manage- manage assets. They have developed a computerized ment system and produces a quarterly performance maintenance management system, which records data report that is distributed publicly at all MTR stations. pertaining to repairs and maintenance work. The data In some agencies, the connection between course are used to set maintenance schedules. RapidKL is corrections and strategic goals was not as clear. considering tracking performance measures on a For example, just prior to the ITSP study mission, monthly basis, tying salary to performance, and even- RapidKL had established strategic goals, objectives, tually adjusting operating budgets based on monthly performance measures, and targets with the assis- performance reports. Staff appeared enthusiastic about tance of a consulting firm. Their vision, "to provide the concept but concerned about the time required to an integrated, safe, reliable, efficient public transport successfully track and use performance information to service in the Klang Valley on a financially sustain- meet strategic goals and objectives. able basis," is now posted on RapidKL's website. The regulatory agencies visited during the mis- RapidKL has mainly been collecting performance sion also presented their strategic plans as motiva- information to meet provisions in their 10-year tions for transit operators to make course corrections. license to operate two light rail lines and bus ser- LTA in Singapore had recently released its Land vices that account for 70% of total ridership in Kuala Transport Masterplan,9 which established a vision of Lumpur. As part of the license agreement, RapidKL must submit a quarterly report that demonstrates to the government that they are meeting the perfor- 9 http://app.lta.gov.sg/ltmp/index.asp 31

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a more people-centered land transportation system tive, the Transport Department recommends several that will meet the diverse needs of an inclusive, liv- strategies, including locating future strategic devel- able, and vibrant global city. The plan established opments along rail alignments, supplementing rail- three strategic goals: making public transport a choice way by feeder services using other public transport mode, managing road usage, and meeting the diverse modes, increasing the number of park-and-ride facil- needs of the people. LTA also outlined several steps ities, and expanding the existing railway network. to accomplish each goal. For example, to achieve (HK$100 billion in railway expansions are planned.) the goal of making public transit a choice mode, The Transport Department has set a target that the LTA will become the central bus network planner, share of public transit trips on rail should increase buses will receive priority on roads, the rail transit from 33% to between 40% and 50% by 2016. system will be expanded, competition will be encour- Although the Moving Ahead document clearly out- aged, and rider experience on public transit will be lines strategies, there was no indication how the improved. The plan also included some performance Transport Department was going to track progress of targets, such as "increase public transit share from these strategies. 56% to 70% by 2020." Although the master plan starts to establish a strategic direction for transporta- tion in Singapore, there is little connection between International Standards and Benchmarks the plan and the franchise performance requirements. The Hong Kong Transport Department conducts Several agencies visited during the mission comprehensive transport studies to establish the proudly displayed ISO certifications. Originally framework for the development of a "balanced trans- developed for manufacturing, ISO standards are now port strategy to facilitate the mobility of people and applied to a wide range of industries, including tran- goods of Hong Kong in an environmentally sustain- sit. To receive ISO certification, an organization able manner."10 The following seven goals were iden- must adopt several management practices, including tified in the most recent study (19992016): the following: Integrate land-use, transport, and environmen- Establishment of procedures for each key tal planning; business process, Accord priority to railways; Monitoring of processes to evaluate effec- Coordinate and enhance public transport tiveness, services; Data validation, and Provide transport infrastructure in a more Inspection of outputs to assess quality and iden- timely fashion; tify corrective actions where necessary.12 Manage transport with new technologies; An external independent audit will confirm that for- Give more emphasis to pedestrian needs; and malized business processes in accordance to ISO Alleviate the environmental impact of trans- guidelines are being applied. port to an acceptable level. KMB staff emphasized that they had received a The Transport Department further refined Hong corporatewide ISO 9001 certification for quality Kong's transportation focus through the strategic management systems and that several KMB depots action plan, Hong Kong Moving Ahead: A Transport had received ISO 14001 environmental manage- Strategy for the Future.11 This document clarifies the ment certification. To qualify for this certification, strategic goals by outlining objectives and recom- KMB must define, measure, and monitor perfor- mending strategies. For example, the goal of "accord- mance criteria. For example, for each maintenance ing priority to railways" is further defined through the depot, KMB tracks mechanical reliability (average objective "railways will form the backbone of Hong number of kilometers operated before a bus break- Kong's transport system." To accomplish this objec- down that requires passengers to be off-loaded). For service delivery, KMB tracks operational capability (percentage of actual bus departures versus sched- 10 www.thb.gov.hk/eng/psp/publications/transport/studies/ uled bus departures). A KMB ISO steering commit- sts2.htm 11 www.thb.gov.hk/eng/psp/publications/transport/publications/ 12 hk_move_ahead_txt.htm en.wikipedia.org/wiki/ISO_9001 32