Proposed New Key performance Indicators (KPIs)

For

AALRTS Operation, Maintenance and Management Contract

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A. INTRODUCTION

What Is KPI?
Key Performance Indicators are measurements or tools used to measure progress toward goals of
a company and demonstrates how effectively a company is achieving key business objectives.
KPIs link organizational vision with individual goals and actions. Organizations use KPIs at
multiple levels to evaluate their success at reaching goals and objectives. High-level KPIs focus
on the overall performance of the enterprise, while low-level KPIs focus on processes in
departments.

Figure 1 Different types of KPIs

Different Types of KPIs in a Business

There are three major types of KPI within a business:

1. Overall business KPIs (company KPIs)

At an organizational level, a Key Performance Indicator (KPI) is a quantifiable metric that
reflects how well an organization is achieving its stated goals and objectives. These are the KPIs
that the whole business is working towards. They will be broad and will be metrics which
everyone in the business can identify with and understand. These are what the overall success of
the business relies on.

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2. Departmental / team KPIs
Whilst the whole business needs KPIs that enable them to focus on a common goal, each
department or team within a business also requires KPIs that unite them around a goal. The
important thing is that these departmental or team indicators feed into the overall business
reaching their KPIs.

3. Individual KPIs
These are KPIs for individuals within a business to measure employee goals and objectives
which are cascaded from corporate strategy. This helps people work in such a way that their
activities are aligned with corporate strategy.

Supporting Metrics
Metrics are the detailed measures that feed and augment the KPIs. KPIs reflect strategic value
drivers while metrics may represent anything that is measurable. Supporting metrics are not
KPIs, but measurements that compliment KPIs by providing helpful context and define if KPIs
are hit in an effective way.

B. Key performance Indicators for AALRTs Management contract

The scope of the management contract is to operate, maintain and manage AALRTs in
dependently. Therefore, the KPIs for AALRTs Management Contract has to be high level KPIs
that reflects how well the Management Contractor is achieving the stated management contract
objectives.

The general objective of the Management Contract is to test, take over and operate the Addis
Ababa Light Rail Transit construction Project upon completion and Commissioning under the
oversight of the ERC for limited period of Contract. Besides, to manage the business in the short
term to assure the provision of safe and high quality service in an efficient way as well as to
broaden and enhance the capabilities of its organization.

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1. Contractual KPIs proposed by the Management Contractor
Comments and suggestions on the contractual KPIs proposed by the management contractor:
It is not necessary to have separate KPIs for Operation and Infrastructure management
services. It is better to have a set of KPIs for the management contract service only.
The KPIs do not reflect how well the Management Contractor is achieving its stated goals
and objectives.
Regarding the existing timetables, resources utilization and the availability of service are
low so the timetable has to be improved and each timetable has to be approved by ERC.
KPI targets are too low, need fine tuning based on the actual performance as shown
below in table 1.
Service level targets are too low in accordance with the actual performance level as show
below in table 2.

Table 1: Semester two KPI score

S/N KPI Target Actual KPI score
1 Infrastructure 25 accidents per million 0 accidents per 25
safety train Km 1,050,473Km
2 Workplace safety 30 weighted number of 0 weighted number of 25
accidents per year accidents per semester
3 Network 15% cancelled trains 0.21% cancelled trains 25
availability
4 Network 35% delayed trains after 5 0.28% delayed trains after 5 25
reliability minutes minutes tolerance
5 Infrastructure Management Service performance 100
6 Passenger 25 accidents per million 0 accidents per 25
operations safety train Km 1,050,473Km
7 Workplace safety 30 weighted number of 0 weighted number of 25
accidents per year accidents per semester
8 Passenger service 15% cancelled trains 0.05% cancelled trains 25
availability
9 Passenger service 35% delayed trains after 5 1.79% delayed trains after 5 25
reliability minutes minutes tolerance
10 Operation Management Service performance 100
Operation & Maintenance Management Service Performance 100

Table 2: Semester two Operation & Maintenance Management Service Performance

Minimum
service level
for 100%
S/N Service Target payment Actual service level
1 Operation & Maintenance Management 80% 72% 100%
Service Performance Level

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2. Proposed New KPIs

Based on the management contract objectives, new KPIs listed in table 1 below are proposed
to monitor and evaluate the performance of the Management Contractor how well it is
achieving its stated management contract objectives.

Table 1: Proposed New KPIs for AALRTs Management Contract

S/N Management contract Performance KPI
Objectives measure
Category
1 Provide safe service Safety Accident rate
Weighted number of accidents
2 Provide high quality Availability Percentage of vehicle kilometer
service Reliability Departure punctuality
Delay
3 Manage resources Effectiveness Operating ratio
efficiently Utilization Percentage of rolling stock idle

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 INTERPRETATION OF KEY PERFORMANCE INDICATORS

KPI Table 1
Objective and result
Objective Provide safe service
Intended result All trains run safely
Key performance indicator
KPI name Accident rate
Description Accident rate is the number of operating accidents that occur per million train kilometers
driven. Operating accident and train kilometer are defined in the KPI guide line.
Unit of measure Number
Target 0 accidents per million train kilometer driven
Major factors Driver safety training and follow-up, vehicle condition (e.g., maintenance history and age),
stop/station condition (e.g., cleanliness and design), scheduling speed, infrastructure condition
etc.
Owner
Calculation Accident rate/mTKM = ( Operating accidents )/TKM
Where:
mTKM means million train kilometer driven
TKM means train kilometer driven
Data source and Data source: Accident records
metrics Metrics:
Number of operating accidents and Train kilometer driven
Reporting Monthly
period

KPI Table 2
Objective and result
Objective Provide safe service
Intended result Reducing or preventing the risk of causality, main track traffic interruption and economic
losses (property damages)
Key performance indicator
KPI name Weighted number of accident
Description Weighted number of accident is used to measure fatalities, major injuries, minor injuries,
economic loss (property damage), and main track traffic interruptions.
Unit of measure Weighted number
Target 0 weighted number of accidents per semester
Major factors Driver safety training and follow-up, vehicle condition (e.g., maintenance history and age),
stop/station condition (e.g., cleanliness and design), scheduling speed, incident response time
Owner
Calculation The sum of weighted number of accidents in a semester. The detail of calculation is shown in
the KPI guide line.
Data source and Data source: Accident record data from AALRT Safety Department
metrics Metrics:
Fatalities, major injuries, minor injuries, Main track traffic interruption
Property damage and economic losses
Reporting Monthly
period

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 KPI Table 3
Objective and result
Objective Provide high quality service
Intended result Improved service availability in terms of frequency and passenger carrying
capacity.
Key performance indicator
KPI name Percentage of vehicle kilometer
Description Percentage of vehicle kilometer is used to measure the availability of services
in terms of frequency and passenger carrying capacity. It measures the
percentage of vehicle kilometer actually operated in revenue service. This
measure provides a generalized indication of the amount of service provided.
Unit of measure %
Target > 95%
Major factors Frequency
Owner
Calculation Percent of vehicle kilometer operated = (vehicle kilometer operated/ vehicle
kilometer planned)*100
Data source and Data source: OCC and timetable
metrics Metrics:
vehicle trips planned,
vehicle trips operated
Reporting period Monthly

KPI Table 4
Objective and result
Objective Provide high quality service
Intended result All trips depart on time
Key performance indicator
KPI name Departure punctuality
Description Departure punctuality is used to measure the percentage of trains departing a
terminus with in 1 minute. A train is considered on time if it departs a
terminus with in 1minute after and/or before the scheduled time.
Unit of measure %
Target >95%
Major factors Traffic congestion, number of stops, passenger volumes, schedule accuracy,
operator diligence, operator availability, driver motivation, supervision, degree
of right-of-way control, length of route, maintenance practices, and mechanical
problems.
Owner
Calculation Departure punctuality = (Operated number of trips which are punctual at
departure / total number of trips operated)*100
Data source and Data source: OCC and timetable
metrics Metrics:
Total number of trips operated (completed full route)
Operated number of trips which are punctual at departure and
completed full route
Reporting period Monthly

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 KPI Table 5
Objective and result
Objective Provide high quality service
Intended result All trips run on time
Key performance indicator
KPI name Delay
Description Delay is used to measure the percentage of passenger on board trips arriving at
terminus >5 minutes from the scheduled travel time. A passenger-onboard train
arrived at a terminus >5 min against timetable in a single trip shall be deemed
as delayed.
Unit of measure %
Target <5%
Major factors Network capacity, congestion levels, demand, traffic controls, fleet
management (e.g., reliability improvements), schedule accuracy, etc.
Owner
Calculation Percentage of trains delayed after 5 min tolerance = (total number of
passenger-onboard trains completed full route number of passenger-onboard
trains arriving within 5 min tolerance but completed full route) / total number
of trains completed full route 100%
Data source and Data source: OCC and timetable
metrics Metrics:
Total number of passenger-onboard trains completed full route
Total number of passenger-onboard trains within 5 min tolerance but
completed full route
Reporting period Monthly

KPI Table 6
Objective and result
Objective Managing resources efficiently
Intended result Improved total operating revenue and minimized total operating cost
Key performance indicator
KPI name Operating ratio
Description Operating ratio is cost-effectiveness performance measure which evaluates a
transit systems ability to perform its core functions: transport people in a cost-
effective fashion. This is an indication of the amount of subsidy required, after
non-fare revenue (e.g., advertising and lease revenues) is accounted for.
Unit of measure %
Target >_____
Major factors Operating budget, passenger volumes, passenger demand, service type,
business development, advertisement, operating efficiency, trip distance, labor
costs, maintenance costs, administrative costs, vehicle costs, and productivity
Owner
Calculation Operating ratio = (total operating revenue/ total operating expense)*100
Data source and Data source: Finance
metrics Metrics:
Total operating revenue and Total operating expense
Reporting period Monthly

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 KPI Table 7
Objective and result
Objective Managing resources efficiently
Intended result Improved utilization of rolling stocks
Key performance indicator
KPI name Percentage of rolling stock idle
Description Percentage of rolling stock idle is used to measures how efficiently the rolling
stocks are being utilized to provide revenue.
Unit of measure %
Target <____
Major factors System size, service area size, number of employees, fleet size, route length,
vehicle miles traveled, maintenance effectiveness etc.
Owner
Calculation Percentage of rolling stock idle = (total number of rolling stock idle /Total
number of rolling stocks)*100
Data source and Data source: Dispatcher log, OCC,
metrics Metrics:
Total number of rolling stocks idle
Total number of rolling stocks
Reporting period Monthly

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