Developing an Airport Performance-Measurement System (2010) / Chapter Skim
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From page 92... ...
120 Airport Economics Manual (ICAO Document 9562) and Report of the Conference on the Economics of Airports and Air Navigation Services (ICAO Document 9908)
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Those airports with commercial airline operations and annual enplanements of fewer than 2,500 passengers (the minimum number of enplaned passengers necessary to be categorized as a small hub) are referred to as commercial service airports.
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• 7.7% Small Hubs • 23.0% Medium Hubs • 46.2% Large Hubs Exhibit III-1.1 lists the selected airports and provides their classification and approximate geographical location. Learning Objectives Through the 13 airport case studies, information was gathered on the following topics: • Airport approaches to performance-measurement systems and the relationship of the performance-measurement system to size and governance; • Industry understanding of the relevance of performance measures in monitoring outcomes and reaching goals; • Best practices and industry trends; 98 Part III: Field Research on Performance Measurement Map of Performance Measurement Case Study Airports Exhibit III-1.1.
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The airport has evolved into an economic engine -- developing a commerce park that is the home of 17 organizations, including Sebring International Raceway, which attracts thousands of race fans from around the world every year. Sebring Regional Airport is run by a five-member staff, and all services are outsourced to the private sector.
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. Performance measures under discussion that are related to potential airport goals are the following: • Increased number of organizations in the airport commerce park, increased airport revenues, and expanded airport property; • City and County grants received by Sebring Regional Airport in relation to grants received by other airports; • Florida Department of Transportation and FAA grants; and • The results of an economic impact study Monitoring and Reporting Because there's no performance-measurement system in place and the airport staff is small, monitoring and reporting are done by management on a weekly basis.
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The city performance-measurement manager works with the management teams of each city department to develop service profiles that include very broad strategies and some high-level performance measures. The airport performance measures are compiled via a collaborative effort involving the city performance-measurement manager and the Mahlon Sweet Field management team and used as part of the annual city budget document.
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The benchmarking survey is the most time consuming and includes the annual distribution of an MS Excel survey to the study partners. The monthly activity report is gathered from Mahlon Sweet Field's financial reporting system and monthly tenant submissions and is managed 102 Part III: Field Research on Performance Measurement Mahlon Sweet Field has defined overarching strategies with a mission, targets and action plans, outcomes, and operating principles, and the airport tracks performance measures.
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Measures, Standards, and Targets Mahlon Sweet Field has defined 17 performance measures that monitor core processes and the total system. Core processes are the following: operate and maintain the airfield, provide traveler support facilities and services, provide GA facilities and services, and plan and develop regional air service and facilities.
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Dayton International Airport measures are limited to tangible assets and are determined based on what is important in the industry and what other airports measure in order to benchmark. Dayton International 104 Part III: Field Research on Performance Measurement Core Processes Short-Term and Intermediate Measures Operate and Maintain the Airfield Landing fees per 1,000 lb of landed weight Total aircraft operations Meeting FAA safety requirements Provide Traveler Support Facilities and Services Customer satisfaction rating or quality and importance of terminal services Airline passenger-related revenue per enplaned passenger Meeting TSA security requirements Provide General Aviation Facilities and Services Change in based aircraft Gallons of fuel sold Plan and Develop Regional Air Service & Facilities Market demand for air service Demand triggers as identified in the Airport Master Plan Percent of regional trips through Mahlon Sweet Field Total System Short-Term and Intermediate Measures Efficiency Average airline cost per enplaned passengers Effectiveness Number of passengers using Mahlon Sweet Field Percent of regional trips through Mahlon Sweet Field Financial Performance Operating expense per enplaned passenger Customer Satisfaction Customer satisfaction rating of signage, cleanliness, and appearance of the terminal Number of Mahlon Sweet Field passenger top-10 destination markets receiving direct service from Mahlon Sweet Field Exhibit III-1.3.
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With a new airport director in 2006, Dayton International Airport increased the number of enplaned passengers by 6.85%. By 2007, the increase in enplaned passengers was 8.4%, and this trend continued throughout 2008.
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However, measures of intangible assets such as aesthetics, sense of space, shuttle bus waiting time, or distance between the parking lot and the terminal building, to name a few, need to be incorporated into performance-measurement systems in 106 Part III: Field Research on Performance Measurement Dayton International Airport appointed a dedicated person to be in charge of the performancemeasurement system and other related strategic issues. Dayton International Airport selects performance measures that are being tracked by peer airports for use in benchmarking studies.
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Airport Case Studies on Performance-Measurement Systems 107 Source: Dayton International Airport Ke y Performance Measures FY 07 Goal Cost Performance Actual % Change Actual % Change Actual % Change Meet "Target" Budget 95% of Approved Budge t 65% 46% 60% 58.33% 68% 58% Total Airline Cost Per Enplaned Passenger* $12.00 $8.42 43% $8.42 43% $8.42 43% Total Operating Costs Per Enplaned Passenge r $22.70 $18.40 23% $13.88 64% $16.12 41% Total Operations & Maintenance Costs Per Enplaned Passenge r $8.4 6 $7.11 19% $5.92 43% $5.22 62% Operations & Maintenance Costs Per Terminal Square Foo t $16.2 7 $6.24 161% $6.15 165% $5.30 207% Public Safety Costs Per Enplaned Passenge r $2.25 $2.64 -15% $1.88 20% $1.81 24% Fire Safety Cost Per Enplaned Passenge r $1.94 $1.86 5% $1.73 12% $1.50 29% Soft Costs of Projects 20% 11% 82% 0% 0% 0% 0% Revenue Performance Non-Airline Revenue to Airline Revenue 50% 51% 2% 49% -2% 51% 2% Total Non-Airline Revenue Per Enplaned Passenge r $12 $16.46 37% $12.99 8% $12.93 8% Cargo Space Lease d 100,000 sf 0 0% 0 0% 0 0% Concessions Performance Total Concessions Revenue per Enplaned Passenge r $5.00 $5.62 12% $5.44 9% $5.58 12% Total News & Gifts Revenue Per Enplaned Passenge r $1.62 $1.42 -12% $1.40 -14% $1.50 -7% News & Gift DBE 25% 25% 0% 25% 0% 25% 0% Food & Beverage Revenue per Enplaned Passenge r $3.65 $3.84 5% $3.67 1% $3.72 2% Food & Beverage DBE 3% 0% -100% 0% -100% 0% -100% Parking Revenue Per Enplaned Passenge r $7 $9.60 37% $9.08 30% $8.82 26% All Other Concessions Revenue Per Enplaned Passenge r $0.20 $0.37 85% $0.37 85% $0.36 80% All Other Concessions DBE 3% 1.46% -51% 1.46% -51% 1.46% -51% Efficiency & Effectiveness Change Order Costs /Project Costs 5% 0 100% 0 100% 0 100% Number of breaches of airport security pla n 0 1 -100% 0 100% 0 100% Number of violations airfield/runway incursion s 0 0 100% 0 100% 0 100% Customer Service Customer Satisfaction-Parking & Signage 85% 70% -18% 70% -18% 70% -18% Customer Satisfaction-Appearance 85% 70% -18% 70% -18% 70% -18% Customer Satisfaction-Concessions 85% 72% -15% 72% -15% 72% -15% Customer Satisfaction-Complaint Response Tim e 72 hours 72 hours 100% 72 100% 72 100% *
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In the words of President Roosevelt, it is the "joy of achievement and the thrill of creativity" that provides them with ultimate job satisfaction. Dayton International Airport management strongly believes that people follow success; as such, they have not had the need to implement an employee reward program.
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Program Goals and Objectives Dallas/Fort Worth International Airport developed a strategic plan with a clear mission, vision, and primary business goal and four strategic focus areas derived from the airport's mission. The airport's primary business goal is to grow the core business of domestic and international passenger and cargo airline service.
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• Strategic Focus Area 1: Keep Dallas/Fort Worth International Airport Cost-Competitive – Total Airline Costs – Airline Cost per Enplaned Passenger (CPEP) 110 Part III: Field Research on Performance Measurement Goals and actions are assigned toplevel outcome measures referred to as "Level 1" measures.
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• Clearly defined, measurable, strategic focus areas and primary business goal. • A good set of top-level performance outcome measures, with near-term (Fiscal Year 2008)
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The current development of the Dallas/Fort Worth International Airport performancemeasurement system reflects good top-level outcome measures and targets. At a later stage, the airport will cascade measures to link them to programs at lower levels, thus aligning the entire organization with the primary business goal and its four strategic focus areas.
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Snapshot of a dashboard implemented by San Diego International Airport.
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The Airport Authority, however, fully expects that with continued use and ongoing refinements, the full functionality of the system will greatly exceed all expectations. Toronto Pearson International Airport Abstract Toronto Pearson International Airport is located in Ontario, Canada, and is governed by the GTAA.
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Measures and targets also allow managers to base their decisions on performancemeasurement results and take action to improve outcomes. There are five key objectives in the present GTAA performance-measurement system: • To understand cost drivers, efficiency, and reliability of airport operations • To measure progress • To improve performance Airport Case Studies on Performance-Measurement Systems 115 Toronto Pearson International Airport implemented a Balanced Scorecard strategically aligned with the airport's vision and three strategic themes.
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The board monitors three key performance indicators to assess the overall airport performance. Because Toronto Pearson International Airport's performancemeasurement system is being reviewed and adjusted annually to ensure strategic alignment, it serves as a continuous improvement system to the organization.
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Exhibit III-1.6 presents the full business cycle at Toronto Pearson International Airport. One of the benefits that the performance-measurement system has brought to the GTAA is the confidence the board has gained in airport management.
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This aspect of the performance-measurement system is a work in progress. 118 Part III: Field Research on Performance Measurement Source: Toronto Pearson International Airport Exhibit III-1.6.
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This effort resulted in the creation of The Baldrige National Quality Award in 1987. The criteria used in awarding this trophy have been widely used as a performance framework by corporations and government at all levels.
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27, dedicating Chapter 3, Section C, to discussing performance measurement as a financial management tool for airport managers, regulators, and users. The document stresses that performance measures can be applied to all aspects of an airport, not only to its airside and landside operations, but also to safety, security, and commercial practices.
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The ACI is actively involved in performance measurement as a tool to improve customer service and overall airport performance. Among the many efforts pursued by the organization, two have been successfully deployed: ACI-NA Airport Performance Benchmarking Survey and the ASQ Survey.
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All airports use the same questionnaire and methodology. The ASQ Survey Main Programme is tailored for The ACI-NA Airport Performance Benchmarking Survey generates operating and financial data of participating airports.
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Regional, State, and Federal Applications of Performance-Measurement Systems 123 Exhibit III-2.1. ACI-NA Airport Performance Benchmarking Survey30 sample.
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ASQ Unique is distinguished from ordinary customer satisfaction surveys in that it offers benchmark indices to allow airports to place their results in perspective and compare themselves against the industry average. ASQ Unique is fully compatible with the ASQ Main and ASQ Regional Programmes and permits airports to "test drive" the ASQ management tools.
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One of the core roles of the ASQ Management service is to assist airports in the implementation of best practices identified through the ASQ Survey and ASQ Performance. By analyzing and collating the results of hundreds of airports' customer satisfaction surveys and through regular meetings and discussions with the airports, the ASQ initiative is building a best practice model of service quality in an airport.
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From page 122... ...
Whether performance measures are legislative or gubernatorial iniCANSO's global benchmarking program supports the establishment of performance-based ATM, improved decision-making and facilitate target-setting. Global performance indicators in air navigation service productivity, costeffectiveness, quality of service and safety metrics are being developed by CANSO.
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These indicators of performance, when publicly reported, are yardsticks that can be used to figure out whether government is working well or poorly, or somewhere in between. The approach to incorporate performance measures is individualized
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The UK Centre was created in 2005 as the result of recommendations in a high-profile government report that determined that the lack of performance measures was damaging the national economy and government management. The UK Centre's specific duties are the following: • To ensure that the measures of key government services in the national economic statistics are accurate and meaningful; • To keep improving performance measures, working with government departments, managers and other stakeholders; • To conduct rolling reviews of methods of measurement of different public services, ensuring methodology keeps pace with changing circumstances and modes of delivery; • To continue publishing a regular series of authoritative "productivity" articles describing the output and productivity performance of the main public services; and • To develop and publish credible and coherent individual reports on specific government program areas.
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