1 Performance Indicators: Selection, Application, and Reporting Presented by John M Rodgers Federal Aviation Administration

2 Performance measurement: A process for and by ANSPs

3 Selecting Performance Indicators

4 General Selection Considerations Desirable Characteristics Relationship to ANSP Goals and Objectives Identification of Cost Drivers

5 Desirable Indicator Characteristics Meaningful Accurate Useful Improvement Tool Gradual Implementation

6 Relationship to ANSP Goals and Objectives Goals should focus on improving safety, productivity, quality, and cost effectiveness Performance indicators and targets should be related to the achievement of goals

7 Identification of Cost Drivers Quantity/Complexity of Traffic Outputs Outputs Generate Input costs: Staff Operating Costs Capital Investment General Economic Conditions : Cost of living Availability of labor Scarcity of infrastructure Cost of Capital

8 Safety Indicators Typical Rates: ATC accidents ATC fatal accidents Controlled flight into terrain Separation minima violation Runway incursions MET forecast accuracy

9 Quality of Service Indicators * VERY GOOD ** EXCEPTIONAL *** EXCELLENT

10 Capacity Examples: Operations with minimal delay Alternative weather volume Runway configuration operations Number of congested facilities Duration excess demand

11 Flight Efficiency Potential Measures: Vertical deviation from optimum Horizontal deviations from optimum Theoretical vs. actual block time ATC imposed restrictions

12 Predictability Potential delay measures: Number of delay by cause Percentage of flights delayed Average delay per flight Average delay per delayed flight Average delay by phase of flight

13 Availability Examples Number of outages Duration of Outages Mean Time Between Failures

14 Accessibility

15 Productivity Output / Input = Productivity Examples: Aircraft handled per controller IFR kilometers handled per controller Aircraft handled per sector Flight hours per unit of capital Controllers per support staff

16 Cost-effectiveness ??? Financial Cost-Effectiveness = ( 1/Productivity) x Unit Cost Examples: ATC cost per flight Cost per IFR flight hour Operating cost per sector Economic Cost-Effectiveness = ANSP Cost + Delay & Inefficiency Costs

17 Measurement and ANSP Assessment Benchmarking Best Practices Improve transparency Identify cost drivers Identify potential improvements Communicate with stakeholders Set expectations Comparison over time or between facilities

18 Performance Management, Incentives, and measurement Regulation Based Incentives License Retention Output based price caps Other Incentive Forms Performance measurement and reporting Performance based compensation Savings and profit sharing Service level agreements

19 Reporting on performance Information disclosure needed for performance review Comparison of actual performance with performance objectives Evaluate performance over time Comparison to other facilities or providers Public dissemination of report Prepare reports to serve needs of audience access Anticipate future needs

20 Conclusion Performance measurement can help ANSPs understand how to improve. Performance management can improve service. The processes of measurement and management should promote a culture of cooperation and collaboration and communicate a unified vision of general strategy. Progress generally requires iteration. Remember: The longest journey begins with but a single step !