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

An Application of the Balanced Scorecard to Public Transit System

Performance AssessmentJason Keith Philips

Transportation Journal, 43(1), pp.26-55, 2004

報告人：邱羿菁授課老師：任維廉教授報告日期： 2010/01/07

2010/01/07 交通大學運管系碩士班二年級邱羿菁 2

Outline

Introduction

The Metrics of Public Transit– Efficiency, Effectiveness, Impact

Rationale and Methodology Used for Categorizing Transit Performance Measures

Constructs of the Definition of Public Transit Performance

Conclusion


Introduction

Public organizations exist primarily to support a particular mission

Three primary purpose in this article:

1. To explore the concept of BSC and its applicability

2. To provide a comprehensive list of performance constructs and measures

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


Introduction to the BSC Approach (1/2) (Kaplan and Norton 1992)

“What you measure is what you get”

To give managers a fast but comprehensive view of their business

– To look at its business from those perspectives most important for the success of the firm

– To establish tangible objectives and measures that relate to the organization’s mission, vision, strategy


Introduction to the BSC Approach (2/2) (Kaplan and Norton 1992)

The four metrics for private organizations:

1. The financial perspective

2. The internal business perspective

3. The customer perspective

4. The innovation and learning perspective

The metrics of efficiency and effectiveness be used in place of the four original metrics (Arveson 2003)

A third metric －“ impact” (Dajani and Gilbert 1979)


The Metrics of Public Transit

Efficiency －” doing things right”– The extent of a given output with the least possible use of

resources

Effectiveness －” doing the right things”– The comparison of produced output (provided service) to

intended output or objectives

Impact – Externalities and indirect effects both beneficial and

adverse, intended and unintended (Dajani and Gilbert 1979)


Figure 1. The BSC for Public Transit Systems

Efficiency Perspective

Goals/Constructs

Measures

Effectiveness Perspective

Goals/Constructs

Measures

Impact Perspective

Goals/Constructs

Measures

Are we doing things right?

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


Rationale for Categorizing Transit Performance Measures

The fundamental difference between measures of efficiency and effectiveness (Tomazinis 1974)

– Efficiency measures are better able to indicate relative performance between transit systems

– Effectiveness measures relate more to the relative performance of one system over time in its own environment

(Fielding and Glauthier 1976)

– Impact measures allow the effect of public transit on social well-being, economic improvement, and environmental quality to be assessed (Dajani and Gilbert 1978)


Methodology Used for Categorizing Transit Performance Measures

A comprehensive analysis of the literature on performance measures was undertaken

The literature on transit goals and objectives

A review of the literature in business, transportation, political science, and other social sciences

Measurement sets and constructs distilled in two ways


Constructs of the Definition of Public Transit Performance: Efficiency

Input constructs– The ability of transit systems to use their resources, or factors of

production, for transit service.

– Labor, equipment, capital, and energy

Output constructs– The ability of transit systems to maximize their output given

their resources, or factors of production, for transit service.


Input Constructs of Efficiency (1/3)

Labor Efficiency– “Labor productivity” or “Labor utilization”

– Labor-related expenses have been estimated to account for over 80% of public transit operating costs (Sale and Green 1979)

Vehicle Efficiency– “Vehicle utilization” or “Vehicle productivity”

– The sizable, and usually public, investment required to purchase public transit vehicles

Goals/Constructs Measure Source

Labor Efficiency Annual Bus Miles per Operator Allen & Zapalac (1982)

… …

Vehicle Efficiency % Vehicles Operating at Peak Sinha & Jukins (1978b)

… …



Capital Efficiency– “Revenue generation per expense” or “Self-sufficiency”

– Profit Maximization / Loss Minimization

• To assess the desire of the transit system to operate like a private firm

– Self-Sufficiency

• To assess the public’s willingness to pay for a particular operator’s provided service


Profit Maximization/ Loss Minimization

Average Cost Per Vehicle Hour OECD (1980)

… …

Self-Sufficiency Revenue To Subsidy Kern & Weiss (1983)

… …



Energy/Fuel Efficiency– The cost of fuel or its equivalent for transit vehicles is a major

cost component of public transit systems

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

Maintenance Efficiency– How efficiently the transit system maintains its vehicle with

regard to cost

– A breakdown would bear both additional monetary costs and customer satisfaction costs


Energy / Fuel Efficiency

Fuel Cost ($) Per Vehicle-Mile Koushki (1984)

… …

Maintenance Effciency

Annual Bus Miles Per Roadcall Allen & Zapalac (1982)

… …


Public Transit Efficiency (Output Constructs)

The distinction between quantity and quality– More (less) transit does not necessarily imply better

(worse) transit

The categorization of the level of transit service: (Allen and DiCesare 1976)

1. Quantity of service: Maximization of produced output per dollar of cost

2. Quality of service: Maximization of consumed output per dollar of cost

3. Cost/revenue: a component of the capital efficiency constructs


Public Transit Efficiency (cont.)


Maximization of Produced Output Per Dollar of Cost

Cost Per Unit Revenue Sinha & Jukins (1978b)

Labor Cost Per Seat-Mile Sinha & Jukins (1978b)

Labor Cost Per Vehicle-Mile Sinha & Jukins (1978b)

… …

Maximization of Consumed Output Per Dollar of Cost

Annual Rev Passengers Per Annual Operating Expense

Anderson (1980)

Annual Revenue Passengers Per Annual Vehicle Mile

Anderson (1980)

Cost Per Dollar of User Benefit Miller & Kirby (1984)

… …


Constructs of the Definition of Public Transit Performance: Effectiveness

The extent to which the service provide corresponds to the goals and objectives established by government and the needs of citizens

• Utilization of Service • Reliability of Service

• Security • Speed of Service

• Accessibility • Service Quality

• Operating Safety • Passenger Comfort

• Passenger Convenience • General Public Satisfaction

• Frequency of Service


Construct of Effectiveness (1/6)

Utilization of service– “Service utilization” and “Usage levels”

– How many passengers actually use the transit service

Security– Crime incidents on transit vehicles and in transit facilities affects

public mobility


Utilization of Service

Load Factor Allen & Zapalac (1982)

Passenger Miles Per Vehicle Capacity Mile

Anderson & Fielding (1982)

… …

Security Number of Crime Incidents Related to Transportation

Winnie & Hatry (1973)



Accessibility– The ability of persons to reach destinations from residence with

reasonable expenditures of time and effort (Winnie and Hatry 1973, 17)

Operating Safety– Physical injury to users and non-users and property damage


Accessibility Percent of Population ServedFielding, Glauthier, & Lave (1978)

Percent Transit Dependent Served

Miller (1980)

… …

Operating Safety Rate of Transit-Related Accidents Winnie & Hatry (1973)

… …



Passenger Convenience– The effort required in traveling to desired destinations (Winnie and Hatry 1973, 22)– Closely related to constructs: accessibility, frequency of service,

reliability of service, speed of service, and service quality

Frequency of Service– How often transit service is available to patrons


Passenger Convenience

Citizen Perception of Travel Convenience


Frequency of Service

Frequency of Performance Winnie & Hatry (1973)



Reliability of Service– The ability of a transit system to provide service to its patrons as

promised

Speed of Service– The length of time required to travel

– “Operating speed” or “Time required to travel between O-D”


Reliability of Service

Letters of Complaint OECD (1980)

… …

Speed of Service Operating Speed Allen & Zapalac (1982)

Time Required to Travel Between Major Origin & Destination Points




Service Quality– How well transit service is provided and includes factors

– Transfer opportunities per route mile, vehicle cleanliness and condition, driver performance, and headway

General Public Satisfaction– The satisfaction of the public (both users and non-users)


Service Quality % On-Time Arrivals Sinha & Jukins (1978b)

… …

General Public Satisfaction

Citizen Perception of Overall Adequacy of Transportation Services




Passenger Comfort1. Crowdedness (and privacy)

2. Noise level

3. Temperature and odors

4. Jerkiness of the ride

5. Forced exposure to inclement weather

6. Internal cleanliness


Passenger Comfort

Index to Road Surface Quality Winnie & Hatry (1973)

Citizen Perception of Travel Comfort



Constructs of the Definition of Public Transit Performance: Impact

The macro effects of public transit and reflect the efficiency and effectiveness of transit, as well as external and indirect effects on social well-being, economic development, and environmental quality.

– Accessibility of the Transit-Dependent

– Urban Development/Revitalization

– Attraction and Retention of Commuter Traffic

– Pollution Reduction

– Reduction of Congestion

– Reduction of Energy Consumption


Construct of Impact (1/2)

Accessibility of the Transit-Dependent– Advocated by society via government directives

Urban Development/Revitalization– The desires of society and the government– Controlling urban development and revitalizing declining areas

is a common goal (Cervero and Brunk 1983; Potter 1979)

Attraction and Retention of Commuter Traffic– Its positive impact on both transit revenue and non-users


Accessibility of the Transit-Dependent

% Elderly and Handicapped Served

Sinha & Jukins (1978b)

… …


Construct of Impact (2/2)

Pollution Reduction– Provide a negative externality along transit corridors

Reduction of Congestion– It can be measured in terms of frequency, duration, and intensity

(Althuler 1979)

Reduction of Energy Consumption– The vehicles used by transit firms are more energy-

efficient

– Energy conservationGoals/Constructs Measure Source

Pollution Reduction

Air Pollution Attributable To Transportation Sources


… …


Conclusion

This article applied BSC approach to the assessment of public transit system performance

Using efficiency, effectiveness, and impact in place of the original four metrics

To gather a comprehensive list of public transit constructs/goals and their corresponding performance measures

To develop a “shopping list” of performance measures


Thoughts

Catch the essence of BSC

Feedback control


Q & A

Thanks for your attention.

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