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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 3 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 4 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 5 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)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 6 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)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 7 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?

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 8 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)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 9 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 10 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.

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 11 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/ConstructsMeasureSource Labor Efficiency Annual Bus Miles per OperatorAllen & Zapalac (1982) … … Vehicle Efficiency % Vehicles Operating at PeakSinha & Jukins (1978b) ……

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 12 Input Constructs of Efficiency (2/3) 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 Goals/ConstructsMeasureSource Profit Maximization/ Loss Minimization Average Cost Per Vehicle HourOECD (1980) … … Self-Sufficiency Revenue To SubsidyKern & Weiss (1983) ……

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 13 Input Constructs of Efficiency (3/3) 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 Goals/ConstructsMeasureSource Energy / Fuel Efficiency Fuel Cost ($) Per Vehicle-MileKoushki (1984) … … Maintenance Effciency Annual Bus Miles Per RoadcallAllen & Zapalac (1982) ……

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 14 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 15 Public Transit Efficiency (cont.) Goals/ConstructsMeasureSource Maximization of Produced Output Per Dollar of Cost Cost Per Unit RevenueSinha & Jukins (1978b) Labor Cost Per Seat-MileSinha & Jukins (1978b) Labor Cost Per Vehicle-MileSinha & 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 BenefitMiller & Kirby (1984) ……

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 16 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 17 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 Goals/ConstructsMeasureSource Utilization of Service Load FactorAllen & Zapalac (1982) Passenger Miles Per Vehicle Capacity Mile Anderson & Fielding (1982) … … Security Number of Crime Incidents Related to Transportation Winnie & Hatry (1973)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 18 Construct of Effectiveness (2/6) 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 Goals/ConstructsMeasureSource Accessibility Percent of Population Served Fielding, Glauthier, & Lave (1978) Percent Transit Dependent Served Miller (1980) … … Operating Safety Rate of Transit-Related AccidentsWinnie & Hatry (1973) ……

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 19 Construct of Effectiveness (3/6) 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 Goals/ConstructsMeasureSource Passenger Convenience Citizen Perception of Travel Convenience Winnie & Hatry (1973) Frequency of Service Frequency of PerformanceWinnie & Hatry (1973)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 20 Construct of Effectiveness (4/6) 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” Goals/ConstructsMeasureSource Reliability of Service Letters of ComplaintOECD (1980) …… Speed of Service Operating SpeedAllen & Zapalac (1982) Time Required to Travel Between Major Origin & Destination Points Winnie & Hatry (1973)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 21 Construct of Effectiveness (5/6) 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) Goals/ConstructsMeasureSource Service Quality % On-Time ArrivalsSinha & Jukins (1978b) …… General Public Satisfaction Citizen Perception of Overall Adequacy of Transportation Services Winnie & Hatry (1973)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 22 Construct of Effectiveness (6/6) Passenger Comfort 1.Crowdedness (and privacy) 2.Noise level 3.Temperature and odors 4.Jerkiness of the ride 5.Forced exposure to inclement weather 6.Internal cleanliness Goals/ConstructsMeasureSource Passenger Comfort Index to Road Surface QualityWinnie & Hatry (1973) Citizen Perception of Travel Comfort Winnie & Hatry (1973)

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 23 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 24 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 Goals/ConstructsMeasureSource Accessibility of the Transit- Dependent % Elderly and Handicapped Served Sinha & Jukins (1978b) … …

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 25 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 conservation Goals/ConstructsMeasureSource Pollution Reduction Air Pollution Attributable To Transportation Sources Winnie & Hatry (1973) … …

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 26 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

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 27 Thoughts Catch the essence of BSC Feedback control

2010/01/07 交通大學運管系碩士班二年級 邱羿菁 28 Q & A Thanks for your attention.