Athens: Use of Key Performance Indicators (KPI) as a ... - SPUTNIC

MARKETORGANISATIONCORPORATEMANAGEMENTCUSTOMERRELATIONSEQUIPMENTANDOPERATIONSATHENS S.A.ATHENS, GREECEUse of Key Performance Indicators (KPI)as a Management ToolBackground/contextThe Public Transport Company of Athens, a subsidiary ofAttiko Metro S.A., is a public service corporation supervisedby the Minister of Transport and Communication. It operatesaccording to the rules of the private economy.The company focuses on the design, development, operationand exploitation of contemporary networks of urbantramway or any other network of fixed-track transportation,along with the necessary facilities and vehicles.Case DescriptionThe case illustrates the use of key performance indicators(KPIs) as a management tool in helping to stay focused oncompany goals and quantify results and thus better manageand operate systems and reduce costs.There are two main types of indicators:• those requiring qualitative data; and• those requiring quantitative data.Overall, the KPIs used by Tram SA can be classified in fourmain categories:1. RELIABILITYPassenger kilometres: Total annual number of passengerkilometresStarting reliability: Percentage of planned departures ofservice journeys that are unreliable, i.e. early, delayed orabandoned at the origin of the serviceExample: Percentage of service journey departures that areat least two minutes earlyTiming point reliability: Percentage of planned servicejourneys that are early, delayed or abandoned at selectedtiming points (stops/stations)Example: Percentage of service journeys departures thatare at least two minutes early at timing pointsAbandoned service journeys: Percentage of planned servicejourneys that are not carried out, categorised by thecause of abandonmentThe service is classed as abandoned if the vehicle or a replacementvehicle does not reach the service destinationor if a vehicle does not leave the point of origin.Example: Percentage of service journeys abandoned becauseno is staff availableDelayed service journeys: Percentage of planned servicejourneys that are delayed at the origin and/or destinationof the service, categorised by the cause of delay.The service is classed as delayed if (i) it departs more thanfive minutes late from its origin or (ii) it arrives more thanfive minutes late at its destination.Example: Percentage of service journeys delayed becauseno staff availablePUBLIC TRANSPORT CASE STUDYStrategies for Public Transport in CitiesSputnic is a projectsupported by theEuropean Union

PUBLIC TRANSPORT CASE STUDY2. TECHNICAL PERFORMANCEFleet reliability: Average number of breakdowns that makethe vehicle unroadworthy and lead to a delay in the serviceper million vehicle kilometresThe delay could take place at the origin of the service orafter leaving the origin.Example: average number of breakdowns per million vehiclekilometres3. SAFETY & SECURITYIncidents: Number of incidents per million vehicle kilometres.This indicator is concerned with incidents that causedamage to vehicles.4. COSTUMER SATISFACTIONPassenger feedback ratio: Number of recorded positiveand negative comments by passengers per 1,000,000 vehiclekilometres.Cost and FinancingThere is no need for any major investment for setting upsuch a monitoring mechanism.ResultsThe use of performance indicators has provided the opportunityfor following, monitoring and improving the operationsof the company and has also acted as a diagnostictool in improving functions within the organisation.ProblemsGood quality data is important as it enables companies toderive the greatest benefit.Good quality data means that it is fit for the purpose forwhich it is required. It should not contain an inherent bias inthe measurements. Whether using a complete record or asample, it is very easy for bias to affect results. For example:• Although some indicators are not affected by season,others will be affected by time of year in which themeasurement is carried out.• Misinterpreting the definition of an indicator maymean that results are not comparable. Sometimes thishappens by accident, but at other times, it results froman intentional effort to embellish the record, e.g. theunder-reporting of minor accidents.Measurements should be taken with sufficient precision.Transferability and success factorsThe approach is to be used by operators of the most frequentlyused modes of land-based public transport. This includesbus, trolley bus, tram, metro/light rail and local heavyrail operators. The approach is suitable for different types ofoperators, e.g. small, medium-sized, large, urban, rural andinter-urban. It is transferable to other cities. Each city canset up its own key performance indicators based on its priorities,operating environment and other conditions.Lessons learntBy introducing KPIs the management of the company wasable to better follow the operation of the company and toreport it to the City Council with which it has a contractualarrangement.References and contactsContact: Mr. Haris KanakisE-mail: hkanakis@tramsa.grTel: +30-210-997-8019Company: TRAM S.A.Address: Aeroporias Street; 167 77 Elliniko, GreeceWeb: www.tramsa.grSPUTNIC (Strategies for Public Transport in Cities) is a project funded by the European Commission under the 6th Framework Programme.SPUTNIC is dedicated to challenges faced by local and regional public transport systems in transition. These challenges include the emergenceof a competitive environment, changing institutional frameworks and increasingly scarce financial resources. SPUTNIC seeks to help makepublic transport systems more attractive and efficient by providing: support to stakeholders to anticipate and prepare for emergingchallenges; an overview of state-of-the-art knowledge and research; and specific guidelines and practical tools.