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TRANSPORT OPERATORS
Jenny Mageean
Corinne Mulley
John Nelson
1.
INTRODUCTION
The next section of the paper concentrates on the 'objectives of the EQUIP
project and summarises the way in which the principal output, the EQUIP
Handbook, has been developed. The nature of the EQUIP Handbook follows
before the section on the EQUIP Network, consisting of public transport
operators and local authorities, which provided the validation of EQUIP's work
and ensured that the Handbook was relevant and useable.
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The final sections of the paper concern the future. The institutionalising of
benchmarking is discussed, as is the further development of the Network. The
paper concludes by offering a potential way forward to ensure that local public
transport operators reap the benefits offered by entering the Continuous
Improvement Process.
2.
BENCHMARKING
Benchmarking has been a key tool in the business improvement armoury for
many years (Zairi, 1996). It is the search for industry best practice, leading to
improvement in performance. It is an ongoing technique for measuring and
improving products, services and practices against the best that can be
identified in any industry anywhere. It requires data gathering, goal setting and
analysis.
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In the public transport sector, little benchmarking has been carried out to date.
Notable exceptions are the COMET and Nova Benchmarking Clubs facilitated
by the Railway Technology Strategy Centre at Imperial College, London, UK,
involving 16 urban railway operators from around the world. The COMET Club
of operators was established in 1995 and it comprises BVG (Berlin,
Germany), MTRC (Hong Kong), LUL (London, UK), STC (Mexico City), MoM
(Moscow, Russia), NYCT (New York, USA), RATP metro and RER (Paris,
France), MSP (Sao Paulo, Brazil) and TRTA (Tokyo, Japan). The Nova Club
of urban railways was established in 1998 and consists of SPT (Glasgow,
UK), KCRC (Hong Kong), Metrepolitano de Lisboa (Lisbon, Portugal), Metro
de Madrid (Madrid, Spain), Nexus (Newcastle, UK), AS Oslo Sporveier (Oslo,
Norway) and SMRT (Singapore).
The Key Performance Indicators (KPIs) used in the COMET and Nova
Benchmarking Clubs are grouped into six key areas: asset utilisation,
efficiency, cost, reliability, service quality and safety. Detailed definitions of
the indicators used in each cluster are confidential to the two Clubs.
In Mongolia, the national Ministry for Transport Infrastructure, supported by
the World Bank, implemented the Urban Passenger Transport project (19951997) which had an objective to achieve sustainability of the urban transport
sector in Ulaanbaatar, as well as a significant increase in service quality (Finn
& Barrett, 1997). The project provided an efficiency review, including the
development of indicators with current and target values.
In Finland, one of the first initiatives towards benchmarking in public transport
was the project for developing and realising competitive transportation
services (KiPa). The project was led by Bussialan Kehitt~imispatvelut Oy
which is a development company owned by the Finnish Bus and Coach
Association. In the KiPa project there are 14 inter-urban bus companies
working together with the aim of assessing their level of competitiveness and
finding ways to improve their business. The indicators used in this study are
grouped into six areas: customer satisfaction, employee satisfaction,
efficiency of operations, acquisition of resources, financial performance,
strategic status and know how. A fundamental difference between this study
and the EQUIP project is that the KiPa system is designed to be implemented
by an outside organisation (the suggested timetable is 4 weeks for planning,
data collection and reporting), whereas the EQUIP Handbook is suitable for
completion by the operators themselves.
2.3
Recognising the need to encourage a modal shift from the private car to the
more sustainable forms of transport (public transport, walking, cycling), the
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European Commission published its Green Paper "The Citizens' Network fulfilling the potential of public passenger transport" (COM (95) 601) in 1995.
In this Paper, ways of making public passenger transport more attractive and
usable were suggested, such as improvements to vehicles and rolling stock,
system integration, information provision, quality of service, increased
convenience, and planning priority for public transport. In total, 176
organisations responded to the Green Paper's consultation process and a
further 250 representatives of public authorities, transport operators and user
groups took part in the Citizens' Network Forum in Brussels in June 1996.
From these sources, and other work assessing potential for improvements in
passenger intermodality, arose a Communication from the Commission
entitled "Developing the Citizens Network - why good local and regional
passenger transport is important, and how the European Commission is
helping to bdng it about" (COM (98) 431) in 1998. This described the
Commission's 1998 to 2000 work programme as being designed "to support
the role of local and regional passenger transport in contributing to economic
development and employment, reducing congestion, using less energy,
producing fewer pollutants, making less noise, reducing social exclusion and
improving quality of life". The work programme was to be integrated and to
include the support for stimulating benchmarking in local and regional
passenger transport and to establish a policy and legal framework that
promoted better use of local and regional passenger transport systems.
The Commission sponsored work to identify the best organisational structures
for public transport operations in European countries - the ISOTOPE (1998)
project (Improved Structure and Organisation for Transport Operations of
Passengers in Europe). A subsequent step of the Commission's plan to
support the actors in public transport was the funding of the QUATTRO (1998)
project (Quality approach in tendering urban public transport operations).
QUATTRO made specific recommendations to authorities, operators and
manufacturers to enhance public transport quality and this included the use of
benchmarking. QUAI-rRO then teamed up with experts from the European
Committee for Standardisation (CEN) to define service quality in public
transport. CEN TC 320 WG 5 issued draft recommendations for the definition,
targeting and measurement of service quality in March 1999. These criteria
represent the customer view of the service provided.
Public transport operators form one strand of the local transport system as a
whole. In the context of the local transport system it should be recognised
that there are many issues outside the operator's own control, for example
traffic management or land-use planning, but which clearly affect their
performance. During 1998, the Commission set up a pilot benchmarking
exercise for local passenger transport systems, working with 15 urban areas
across the EU from which a new initiative is expected to increase the number
of cities involved to over 100.
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3.
3.1
The EQUIP project takes place within the Transport Research programme of
DG TREN within the broader Fourth Framework Program for R&TD of the
European Commission.
The core objectives of EQUIP are to develop a toolbox in the form of a
Handbook for the self-assessment of internal quality performance by local
passenger transport operators and to ensure, by means of awareness raising
activities and liaison activities, that potential users are aware of its existence.
EQUIP has focused primarily on the provision of local public transport. The
concepts and principles are likely to be equally applicable to the provision of
planned or procured inter-urban services as well as in the wider total
passenger transport system, although the reference values are likely to be
different.
Achievement of higher quality and consistency in passenger transport
requires the operator to implement systems of continuous improvement based
on measuring performance, setting targets, developing strategies and
implementation plans, and monitoring their implementation. The use of
benchmarking is an invaluable tool to guide operators towards achievable
high-quality objectives. Ultimately, EQUIP wants operators to utilise the
approach developed within the project, and in this way, to achieve quality,
effectiveness and efficiency gains In addition, EQUIP wants decision takers,
procurers of passenger transport services and associations of transport
operators to be aware of the EQUIP approach and to promote the
achievement of better quality by individual operators.
The major, and most tangible, output of EQUIP is the Handbook which has
been developed through an iterative process with deep participation of the
industry sector. An extensive search was carried out to identify relevant
indicators which were then refined and clustered, and supported by a
comprehensive measurement methodology. The first version of the Handbook
was developed and used by the EQUIP Network of operators for selfassessment. This provided validation and needed feedback to produce the
final version for public release.
3.2
Programme of Work
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EQUIP has carried out an extensive literature search to establish the baseline
of current knowledge in benchmarking the internal efficiency of local public
transport operators. In this context EQUIP has identified some 139 literature
references, 16 projects, 11 workshops and 10 benchmarking projects which
provide both research and real-world source material which is now available
on a publicly available website (httpllwww.europrojects.ielequipl).
This
website will later contain all the EQUIP output. EQUIP provides an in depth
and mode based analysis and builds on builds on prior work within the
Transport Research programme of DG TREN.
This collective of contextual work involving literature and previous projects has
been combined with the direct participation of industry to assure a high level
of completeness and stability for the EQUIP Handbook
4.
The Method
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types of records and surveys are discussed. In the Method, three examples
demonstrate the rationale for sampling.
4.2
The Guide
The Indicators
This is the second part of Part II of the EQUIP Handbook. This contains a full
list of indicators and their definitions in an Excel format that is ready to be
completed by the operator. A separate Handbook is available for each of the
five modes. The layout of the indicators is the same in all modal versions, but
additional information differs in some cases.
Table 1 shows the eleven clusters which collate the 91 indicators which form
the EQUIP Handbook.
Cluster
1
2
3
4
5
6
7
8
9
10
11
Cluster title
Company profile
External influences on operator
Revenue and fare structure
Asset/Capacity utilisation
Reliability
Production costs
Company performance
Technical performance
Employee satisfaction
Customer satisfaction
Safety and security
Total:
Number in
cluster
21
13
9
8
5
3
4
6
12
7
3
91
9?
Passengerjourney
Passenger trip
Premium services
Route length
Service areas
Service journey
Service kilometres
Special transport services
Vehicles
Vehicles hours
Vehicle Idlometres
Bus systems
Dead (or light) kilometres
Demand responsive transport services
Employees (staff)
Employees, number of
Mode
Network length
Night services
Operationalarea
Operator
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operators and local authorities. The EQUIP Network was an important part of
the development of the Handbook: it was the forum for meeting key transport
actors and to ensure that the work in EQUIP was relevant to potential users.
The first version of the Handbook was developed and used by the EQUIP
Network of operators for self-assessment. This provided validation and
needed feedback to produce the final version for public release. The EQUIP
Network thus offered the opportunity to focus on a series of comparison
procedures amongst operators in order to identify the most suitable indicators
to measure the strength aspects and the areas needed to be improved
EQUIP was successful in building a Network spanning all the Consortium
member countries, as well as other EC countries and Eastern Europe. The
creation of a benchmarking Handbook was timely for both operators and
authorities in terms of a response to changes in their working environment.
However, the experiences of the EQUIP Network in the different countries
highlighted some important issues.
Whilst operators in each country were overtly interested in participating in
benchmarking activities, many were clearly felt isolated at the start of a new
exercise.
EQUIP organised National Workshops and these fora for
communication demonstrated the principle of benchmarking at the highest
level, i.e. the need for face-to-face discussions.
For lower level
benchmarking, where personal interaction is not envisaged, an established
external helpline mechanism to assist with completing the Handbook would be
very beneficial.
The greatest problem facing operators in the EQUIP Network was the lack of
resource - time and manpower to establish the necessary systems to collect
and record data for the Handbook. This issue was present in all types of
company, whether large or small, privately or publicly owned. The impetus for
assisting the companies could come from several institutional sources, e.g.
support from national governments, support from national and international
organisations that represent the interests of public transport operators, and
support internally from decision makers within the organisation.
-
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benchmarking exercise should lie with the operators, who need to bear the
responsibility for the cost of improvements. Management of the database
should lie in the public sector or with members of a benchmarking club or
network.
However, institutionalisation is not straightforward and five scenarios have
been identified as possible models for institutionalising benchmarking.
Scenario
1 International
Interest Group
One private
company at
international
level
National
associations
(e.g. chamber of
commerce,
quality groups,
public transport
consortia)
Several private
companies on
national level
A mixture of
private
companies and
interest groups
Advantages
Developing tailor-made
indicators for clients
Very convenient for public
transport operators
Professional management
Disadvantages
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8.
CONCLUSIONS
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BIBLIOGRAPHY
CEC (1995) The Citizens' Network- fulfilling the potential of public passenger
transport. European Commission Green Paper, COM (95) 601.
CEC (1998) Developing the Citizens' Network: Why good local and regional
passenger transport is important and how the European Commission is
helping to bring it about. Communication from the Commission, COM (98)
431.
CEN (1999) TC320 WG5 Transportation services - Public passenger
transport- Service quality definition, targeting and measurement, draft of 11th
March 1999.
DG TREN (1997), EU Transport In Figures Statistical Pocketbook, 2nd Issue.
EQUIP Consortium (1999), State-of-the-Art of Benchmarking in Public
Transport, Deliverable 3, DG TREN.
Finn, B., Barrett, I. (1997), Mongolian Urban Passenger Transport Project,
Internal Report to World Bank.
Hanman, R (1997) "Benchmarking your firms performance with best practice",
International Journal of Logistics Management, Volume 8(2), ppl-8, 1997).
ISOTOPE (1998) Improved Structure and Organisation for Transport
Operations of Passengers in Europe, Final Report by ISOTOPE Consortium
on behalf of European Commission DG TREN, Luxembourg, Office for Official
Publications of the European Communities.
OECD (1980), Urban Public Transport: Evaluation of Performance, Pads,
France.
QUATTRO (1998) Quality Approach in Tendering Urban Public Transport
Operations, Final Report by QUATTRO Consortium on behalf of European
Commission DG TREN, Luxembourg, Office for Official Publications of the
European Communities.
R0nnqvist, T. (1999), New tool for measuring the competitiveness of the bus
company. (Bussiyrityksen kilpailukyvyn mittaamiseen uusi ty6kalu),
Bussiammattilainen, Vol 3 (in Finnish).
R0nnqvist, T. and Keskitalo, J. (2000) Report on the EQUIP Draft Handbook
(Confidential). Trans Control, Finland.
Zairi, M. 1996), Benchmarking for Best Practice: Continuous Learning
Through Sustainable Innovation, Butterworth Heinemann, Oxford, UK.
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ACKNOWLEDGEMENTS
The authors of this paper recognise the contribution of the other EQUIP
Consortium partners (Viatek Ltd, Tampere, Finland, ASM Brescia SPA, Italy,
Universit~it fur Bodenkultur, Austria, European Transport and Telematics
Systems Ltd, Eire, and Erasmus University, Rotterdam, The Netherlands)
and all the members of the EQUIP Network for their input.
The European Commission for funding the EQUIP project under the Transport
RTD Programme of the 4th Framework Programme
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