An Application of the Balanced Scorecard to Public Transit System Performance Assessment

An Application of the Balanced Scorecard to Public Transit System Performance Assessment

JASON KEITH PHILLIPSTransportation Journalp.26-55, Winter 2004

指導老師：任維廉報告人：盧思瑜

運輸科技與管理學系盧思瑜

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Self introduction•盧思瑜•高雄人•姚銘忠老師 Lab•吃吃喝喝、逛街、打排球


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Outline• Abstract• Introduction• The Metrics of Public Transit• Rationale for Categorizing Transit Performance Measures• Methodology Used for Categorizing Transit Performance

Measures• Constructs of the Definition of Public Transit

Performance• Conclusions• Questions


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Abstract• To explore the concept of BSC

• To provide a comprehensive list of public transit performance constructs and measures

• To develop a “shopping list” of performance measures for managers to select from while developing BSC


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Introduction

Financial Internal Business

Customer Innovation and Learning

Private

sector

• Kaplan and Norton, Harvard Business Review• A set of measures to give managers a fast but

comprehensive view of their business


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Introduction•Public sector generally only pursue

mission effectiveness and efficiency•Due to the macro effects of public transit

on society

• Efficiency• Effectiveness• Impact

Public sector


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The Metrics of Public Transit• Produces a given output with the least possible

use of resources• Doing things right

Efficiency

• Produced output↔ Intended output• Quantity, location…• Doing the right things

Effectiveness

• Externalities and indirect effects both beneficial and adverse, intended and unintendedImpact


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The Metrics of Public TransitEfficiency Perspective

Goals/Constructs Measures

Effectiveness Perspective

Goals/Constructs Measures

Impact Perspective

Goals/constructs Measures

Are we doing things right?

Are we doing the right thing? Are we producing the externalities we intend?


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Rationale for Categorizing Transit Performance Measures

• Able to indicate the relative performance between transit systems

Efficiency

• Relate more to the relative performance of one system over time in its own environment

Effectiveness

• Allow the effect of public transit on social well-being, economic improvement, and environmental quality to also be assessed

Impact


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Methodology Used for Categorizing Transit Performance Measures

The literature on performance measures

The literature on transit goals and objectives

Duplicate constructs were eliminated

The performance measures to each construct was made on the basis of the

recommendations


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Constructs of the Definition of Public Transit Performance: Efficiency

Efficiency

Input

Labor Efficiency

Vehicle Efficiency

Capital Efficiency

Energy / Fuel Efficiency

Maintenance Efficiency

Output

Public Transit Efficiency


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• Labor costs represent a large proportion of transit system costs

• Labor-related expenses have been estimated to account for over 80% of public transit operating costs

Efficiency Input Labor


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Goals / Constructs Measure

Labor Efficiency

Annual passengers per employee Annual vehicle-hours per annual

employee-hour Passenger miles per employee hour Passengers per driver pay hour …

Efficiency Input Labor


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• Sizable investment

Efficiency Input Vehicle


Vehicle Efficiency

% vehicle operating at peak Annual passenger per vehicle Annual vehicle miles of service per

vehicle Revenue capacity miles per vehicle

mile Total vehicle hours per bus …


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• Profit Maximization / Loss Minimization: Assess the desire of the transit system to operate like a private firm

Efficiency Input CapitalSelf-

Sufficiency

Profit Maximization / Loss

Minimization


Profit Maximization / Loss Minimization

Average cost per vehicle hour Cost per trip Operator cost per passenger Passenger revenue per operating expense …


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• Self-sufficiency: Assess the public’s willingness to pay for a particular operator’s provided service


Self-Sufficiency Operating revenue per operating subsidy Subsidy per passenger …

Efficiency Input CapitalSelf-

Sufficiency

Profit Maximization / Loss

Minimization


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• Transit systems desire to maximize the fuel efficiency of their fleets

Efficiency Input Energy / Fuel


Energy / Fuel Efficiency

Energy consumption per revenue vehicle hour

Energy consumption per revenue vehicle mile

Fuel cost per vehicle-mile Gallons of fuel per passenger Passenger-miles per gallon …


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• How efficiently the transit system maintains its vehicle with regard to cost

• Monetary costs• Customer

satisfaction costs

Efficiency Input Maintenance


Maintenance Efficiency

Lost vehicle-miles per breakdown

Maintenance cost per maintenance man-hours

Maintenance cost per vehicle

Mean time to repair per breakdown

…


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• Distinction between quantity and quality is important

• More Transit Better Transit

Efficiency Public TransitOutput

The Level of Transit Service

Quantity of Service Quality of Service


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Efficiency Output

The Level of Transit Service

Quantity of Service Quality of Service

Maximization of produced output per dollar of cost

Maximization of consumed output per dollar of cost

Public Transit


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Constructs of the Definition of Public Transit Performance: Effectiveness

Effectiveness

Utilization of Service

Security

Accessibility

Operating Safety

Passenger Convenience

Frequency of Service

Reliability of Service

Speed of Service

Service Quality

Passenger ComfortGeneral Public

Satisfaction


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• How many passengers actually use the transit service




Passenger mile per employee hour Passenger trips per peak vehicle Passengers per service area

population Total annual passengers/ service area

population …


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• Crime incidents on transit vehicles and in transit facilities affects public mobility

• Physical injury to users and non-users

• Property damage

EffectivenessSecurity

Operating Safety

Goals / Constructs

Measure

Security Number of crime

incident related to transportation

Operating Safety

Number of accidents per vehicle mile

Number of injuries per vehicle mile

Total revenue miles per accident

1,000,000 vehicle mile per accident

Vehicle miles per accident

…


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• The ability of persons to reach from residence with reasonable expenditures of time and effort

• How easily transit patrons can use a particular transit system▫ Proximity of transit stops▫ Number of transfers required ▫ Transit information availability▫ Availability to parking

Accessibility

Passenger Convenience

Goals / Constructs

Measure

Accessibility

% of residents more than 1 hour from key destinations

Percent employment served

Percent of population served

Percent transit-dependent served

…Passenger Convenien

ce

Citizen perception of travel convenience


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• How often transit service is available to patrons

• The ability of a transit system to provide service to its patrons as promised

• The length of time required to travel between two points



Speed of Service

Goals / Constructs

Measure


Frequency of performance


Deviation from schedule / Ave passenger waiting time

Letter of complaint Lost vehicle-kms On-time performance

Speed of Service

Operating speed Time required to travel

between major origin & destination points


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• How well service is provided▫ Transfer opportunities▫ Vehicle cleanliness▫ Driver performance

• Crowdedness• Noise level• Temperature & odors• Jerkiness of the ride• Forced exposure to inclement weather• Internal cleanliness of vehicles

Service Quality

Passenger Comfort

Goals / Constructs

Measure

Service Quality

% on-time arrivals % transfers Average bus age Number of vehicles

per route mile Percent trips missed …

Passenger Comfort

Index to road surface quality

Citizen perception of travel comfort


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• The satisfaction of transit users and non-users

EffectivenessGeneral Public

Satisfaction


General Public Satisfaction

Citizen perception of overall adequacy of transportation services


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Constructs of the Definition of Public Transit Performance: Impact

Impact

Accessibility of the Transit-Dependent

Urban Development / Revitalization

Attraction and Retention of

Commuter Traffic

Pollution Reduction

Reduction of Congestion

Reduction of Energy Consumption


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• Controlling urban development and revitalizing declining areas is a common goal

• Its positive impact on both transit revenues and those individuals who do not use public transit

Accessibility of the Transit-Dependent

Urban Development / Revitalization

Attraction and Retention of Commuter

Traffic


Accessibility of the

Transit-Dependent

% elderly and handicapped served

% route miles in low income area

Passengers per elderly population

…


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• It can be measured in terms of frequency, duration…

• The vehicles used by transit firms are more energy-efficient that the private automobile on a per-passenger basis

Pollution Reduction

Reduction of Congestion

Reduction of Energy

Consumption

Goals / Constructs

Measure

Pollution Reduction

Cost per vehicle mile of travel reduced

…

Reduction of Energy Consumpti

on

Energy consumption per revenue vehicle hour

Fuel cost per vehicle-mile

Gallons of fuel consumed per mile

…


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Conclusions• BSC approach on public transit

• Efficiency, Effectiveness, Impact

• Develop a “shopping list” of performance measures for managers to select from while developing BSC

• Comprehensive list of public transit performance constructs and measures


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Questions•原本的平衡計分卡的四大構面中的內部流程和創新與學習兩構面，似乎較無包括在公部門的平衡計分卡，如此一來，公部門的平衡計分卡是否會造成不周全 ?

•若讓管理者自行從 Shopping list中挑選需要的測量指標，是否會造成只挑對自己有利的指標來測量呢 ?


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Thanks for your attention

Documents

An Application of the Balanced Scorecard to Public Transit System Performance Assessment