Performance Measurement and Outcomes (2010) / Chapter Skim
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The members of each study team are fully briefed prior to departure. The intensive, professionally challenging, two-week mission has three objectives: to afford team members the opportunity to expand their network of domestic and international public transportation peers, to provide a forum International Transit Studies Program Report on the Spring 2009 Mission PERFORMANCE MEASUREMENT AND OUTCOMES This TCRP digest summarizes the mission performed March 20 to April 3, 2009, under TCRP Project J-03, "International Transit Studies Program." This digest includes transportation information on the organizations and facilities visited.
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. ABOUT THIS DIGEST The following digest is an overview of a mission that explored how performance measurements are used to achieve organizational goals and enhance quality of service at public transport planning, funding, and operating agencies in Hong Kong, Special Administrative Region of the People's Republic of China; in the city-state of Singapore; in Kuala Lumpur, Malaysia; and in Taipei, Taiwan.
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MTR Corp. Transport Department Kuala Lumpur RapidKL Singapore Land Transport Authority (LTA)
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4 1 The balanced scorecard is a performance measurement system, developed by Robert Kaplan and David Norton, that provides managers with several key measures of agency performance (customer satisfaction, internal processes, and ability to learn and improve) that augment the traditional financial performance measures; the balanced scorecard gives a more complete picture of where a business is, as well as where it is heading.
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The 2009-km roadway system has limited capacity, and there is just not enough land to expand the roadways. The Hong Kong Transport Department recognizes the importance of increasing the freight capacity of its roadways and thus encourages residents to shift to mass transit, and in particular to rail transit.
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The Transport Department grants licenses, or franchises, to private companies, allowing them to operate a variety of public transportation services, including rail and bus service. Although the franchisee's performance is not necessarily related to the renewal of the license, a license can be revoked for "bad behavior." As part of the license agreement, franchisees are required to provide an annual progress report to the Transport Department, as well as maintain a "forward planning program" to address future needs and operations.
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The Transport Department establishes performance measures and targets that are not dissimilar from the business objectives expressed in KMB's internal strategies. The targets include the following: • Reliability, • Bus availability -- the ratio of actual bus allocation to scheduled allocation, • Lost trips -- a maximum allowable percentage of total trips scheduled, • Efficiency, • Bus utilization -- the percentage of the licensed fleet that is actually on the road, • Safety, • Training program for new bus captains (drivers)
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MTR also provides historical data and performance trends as input to the system performance standards. MTR considers multiple factors when establishing performance measures, including the following: • The requirements set by the regulator (Transport Department)
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Process audits of the operators are performed annually, and a system audit takes place every 3 years. For the rapid transit system, the operating performance standards require compliance with comprehensive key performance indicators in service quality, safety, and equipment performance and reliability.
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LTA has set a goal of increasing the public transport mode share to 70% in 2020, from today's share of 63%. The operational key performance indicators that are required in the operator licenses address safety, reliability, accessibility, and customer service -- all key factors in encouraging or deterring ridership.
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The Malaysian government privatized public transportation in the 1990s and issues concessions and licenses that allow private-sector companies to run the mass transit systems. The Malaysian government invests in the initial infrastructure for public transport, but the operator of the system is responsible for maintaining the system.
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Currently, about 90% of the passengers use the smartcard. In addition to operating rail passenger service for the city of Taipei, Taipei Metro collects revenues from leasing space at shops, underground shopping malls, and parking lots.
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But in 1999 the company began refining its organizational management processes using four areas of quality management based on the balanced scorecard approach: finance, customer satisfaction, internal processes, and organizational learning and development. Performance Evaluation of Private Bus Companies in Taipei In contrast to Taipei Metro's well-developed use of key performance indicators, the city of Taipei is only in the early stages of establishing performance measures for its bus franchises.
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While each department at KMB has set performance measures and targets, there is a strong emphasis within the company on operational performance, primarily safety and service reliability. Much of this is set by the franchise agreement with the Hong Kong Transport Department, but KMB attempts to go much beyond the required standards.
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MTR's performance management framework is divided into two objectives: • Operating agreement performance requirements established by the Hong Kong Transport Department, and • The company's performance goals, which are driven by MTR's business strategies and shareholder requirements. The Hong Kong Transport Department sets standards that require MTR to meet customer's needs and expectations.
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This is partly a response to the high level of performance set by the Hong Kong Transport Department, but also to the objectives set forth in the company's own strategic plan. MTR pledges to ensure trains are always maintained to provide safe and reliable service.
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Under the agreement, the operators are to manage the transit system in accordance with specified operating performance standards. The performance standards relate to three primary functions -- service quality, safety assurance, and equipment performance.
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Kuala Lumpur The study team met primarily with RapidKL's bus operations division. The bus operations division had reviewed its key performance indicators and had developed a new strategic performance measurement system for 2009.
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Strategic goals and objectives are part of the foundation of Taipei Metro. The financial and customer satisfaction success has been based upon a history of extremely reliable and efficient service.
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These strategies and objectives are identified in the annual business plan. For 2009, Taipei Metro established six business strategies, as follows: • Enhance customer service, • Strengthen safety management, • Fortify internal management, • Improve transfer service, • Develop diversified management, and • Reinforce human resource development.
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Taipei Metro uses a variety of sources of data for the performance metric system. For train reliability and equipment performance, data are collected automatically from a variety of computer systems, including the central train control and the electronic fare machines.
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Huel-sheng Tsay said that the company places such a high emphasis on reliability because "reliability is the best indicator of quality." He pointed out that "reliability is a combination of good maintenance, good customer service, and safety" and that "reliability relates to profit." During their visit with Taipei Metro, it was obvious that employees have bought into this performance management process and are working together to meet Taipei Metro's goal of providing the most reliable and efficient system in the world. Taipei Metro's operational strategy is to expand relationships with customers, strengthen safety management, and strengthen internal management, while expanding transportation services, developing diverse businesses, and growing manpower assets.
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The Hong Kong Transport Department verifies MTR's performance information and conducts its own customer satisfaction surveys. The nagging issues of data accuracy and validation that plague many U.S.
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A monthly process audit of individual systems is also performed. The experience of improving train reliability showed how Taipei Metro systematically improved its performance information system while working to 24 Figure 4 Top-level elements of Taipei Metro's performance management system.
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Taipei Metro management was then able to identify and correct vehicle failures that had been previously obscured. REPORTING STRUCTURE Hong Kong MTR MTR produces an interim report, annual report, and summary report every year.
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The meetings identify achievements, as well as shortfalls, and identify root causes for performance measures; a discussion on continuous improvement is also held. As part of the license agreement, the Transport Department establishes a set of performance indicators for the franchise companies to report and follow.
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LTA's annual report discusses yearly progress, financial information, and investments. The Public Transportation Council is responsible for delivering performance measures on bus service.
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For the required regulatory reporting of the 21 key performance indicators, Taipei Metro meets monthly with the Taipei mayor's staff to go over the report and discern any apparent trends. Follow-up action items from the previous meetings are also discussed.
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KMB is also subject to random audits, as documented in the performance measure "annual number of bus defects found during spot checks by the Transport Department." For the nonlicensed transit services in Hong Kong, including MTR, the Transport Department provides oversight through the administration of the Road Traffic Ordinance, legislation for monitoring traffic flow and public transit operations, and legislation on vehicle safety requirements. To enforce these regulations, the Transport Department inspects vehicles for roadworthiness, issues speeding tickets, and prosecutes drivers of vehicles that have been cited for safety defects.
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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 company president to review performance information.
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Their vision, "to provide an integrated, safe, reliable, efficient public transport service in the Klang Valley on a financially sustainable basis," is now posted on RapidKL's website. RapidKL has mainly been collecting performance information to meet provisions in their 10-year license to operate two light rail lines and bus services that account for 70% of total ridership in Kuala Lumpur.
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The plan also included some performance targets, such as "increase public transit share from 56% to 70% by 2020." Although the master plan starts to establish a strategic direction for transportation in Singapore, there is little connection between the plan and the franchise performance requirements. The Hong Kong Transport Department conducts comprehensive transport studies to establish the framework for the development of a "balanced transport strategy to facilitate the mobility of people and goods of Hong Kong in an environmentally sustainable manner."10 The following seven goals were identified in the most recent study (1999–2016)
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USING PERFORMANCE DATA TO REFINE STRATEGY When asked how the transit operators and regulatory agencies made course corrections, none of the agencies said that they adjusted their targets. When asked if any target was lowered if performance indicators were not up to expectations, the general answer was "no, we just work harder." From time to time, performance indicators are changed at the Hong Kong bus operator KMB.
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Based on the experience of the agencies visited during the ITSP study mission, the following characteristics support the effective use of performance information to guide course corrections: • Link performance measures back to strategic goals and objectives, • Have the support of senior management, • Regularly schedule meetings to evaluate performance, • Focus on a limited number of measures, • Communicate the results internally and externally, • Present course corrections in a motivational way, rather than in a punitive way, and • Include qualitative narrative to accompany the metrics. The data collected can be used to develop longer term strategies needed to improve the business.
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Vidaurri, Manager of Performance Information, Capital Metropolitan Transportation Authority, Austin, TX Roberta Yegidis, Administrative Officer, Greater Bridgeport Transit Authority, Bridgeport, CT Kathryn Harrington-Hughes (Mission Coordinator) , Manager, International Transit Studies Program, Harrington-Hughes & Associates Inc., Easton, MD APPENDIX B -- HOST AGENCIES Hong Kong Transport Department Joseph Tsui, Chief Transport Officer, Bus and Railway Branch Michael Ng Shi-hung, Chief Transport Officer, Corporate Communication Daniel Hue Ka-yiu, Transport Officer, Corporate Communication Kenneth Mok Ying-kit, Chief Transport Officer, Ferry and Paratransit Division MTR Corporation Limited Felix Ng Kwok Wah, Acting S&Q Systems and Knowledge Management Manager Jane Wong Mei Chun KMB Tim Ip Chung, Operations Director Stella Lam, Manager, Customer Service Louisa S
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(Taipei Metro) Huel-Sheng Tsay, Ph.D., President Sally Kao, Planning Division Otis Sheu, Deputy Manager, Operations Control Center, Train Operations Division Alex Su, Manager, Quality Assurance Section, Industrial Safety Division Ya-Fen Huang, Manager, Development and Evaluation Section, Planning Division Henry Yang, Director, Train Operations Division Ching-Shinn Huang, Center Chief, Training Center Chen-yu Chen, Planning Department Phoebe Lee, Planning Division Shi-Tsung Chan, Director, Planning Division Benjamin Kang, Deputy Director, Administration Division Kai Yu, Associate Engineer, Industrial Safety Office, Quality Assurance Section National Chiao Tung University William Jen, Ph.D., Professor, Department of Transportation Technology and Management Taipei City Government Chi-Wei Lo, Assistant Director, Traffic Engineering Office APPENDIX C -- ABBREVIATIONS AVM -- add-value machine CoMET -- Community of Metros CTS -- comprehensive transport studies EIS -- executive information system EMU -- electrical multiple unit IC -- integrated circuit ISO -- International Organization for Standardization KMB -- Kowloon Motor Bus Co.
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Subscriber Categories: Public Transportation ISBN 978-0-309-11829-3 9 780309 118293 9 0 0 0 0
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