TABLE OF CONTENTS. Background Performance Review Guidelines 2. Fleet and Facility Performance Review Guidelines 2 Fleet 3 Facility 4 Guidelines 4

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2 TABLE OF CONTENTS Background Performance Review Guidelines 2 Fleet and Facility Performance Review Guidelines 2 Fleet 3 Facility 4 Guidelines 4 Performance Review - Fleet and Facility Chart 6 Section A Organizational Structure (Responsibility) 6 Section B Policy Goals & Objectives (Asset Management Plans) 7 Section C Procurement & Inventory Management 8 Section D Management Information Systems 9 Section E Vehicle Maintenance 9 Section F Vehicle Servicing 10 Section G Other 11 Section J Facility 12 Performance Management 13 Performance Management Chart 14 Best Practices 14 2

3 Performance Review Guidelines Fleet and Facility Background Performance Review Guidelines In 1984, the Ontario Urban Transit Association and the Ontario Ministry of Transportation introduced the Transit Performance Review Guidelines. In general the Guidelines were intended to assist all Ontario transit systems to maximize the effectiveness and efficiency of their respective operations. The Guidelines served as a self-audit or assessment of an organization s goals, strategies, accountability, programs and process in general and specific to each area of operation. The 1984 Guidelines were developed in three parts, namely: 1. An introduction and background on the purpose of the Guidelines and steps in the performance review process. 2. Establishment of performance guidelines dealing with general management, administration and strategic decision making and planning. These activities determined the overall resources in manpower and equipment needed to run a transit system. 3. Establishment of performance guidelines covering the day to day operation of the system that related to the assignment of operators and vehicles to service on the street and to the maintenance of equipment and plant. The following quote, which formed part of the introduction to the 1984 Guidelines, underscores the importance of the assessment process set out in the Guidelines. In a period of economic constraint, senior governments and municipalities are being forced to examine their priorities in an effort to control or cut costs while maintaining services to the public service it means greater accountability, more competition for public funds, tighter budget control and closer scrutiny in selecting between priorities The quote is as relevant today as it was in The Ontario Public Transit Association is currently in the process of updating the Guidelines, as part of performance management awareness/training initiative. The updated Guidelines provide the basis for completing a critical self-audit or assessment of all areas of a transit operation and establishing a baseline supporting effective performance management. The importance of performance management is underscored by the following: a renewed focus that programs be evidenced based, providing a demonstrated return on investment stakeholder expectations to do the right thing (better service, better value) and to do the thing right (same or less cost, time & effort) renewed focus on defining core business and/or service the economic climate (local, provincial and national impact) the competing demands for constrained public investment the gap between service delivered and service expectations Further, the transit industry is in a state of transition. Changing demographics have seen critical knowledge and experience exiting the industry. The Guidelines can serve as a key source of information for identifying potential knowledge gaps. They also serve as the launch pad for developing training tools and career development. Fleet and Facility Performance Review Guidelines Transit systems rely on a wide range of physical assets (infrastructure) supporting the provision of a safe, convenient, reliable, accessible and efficient transit service. Critical to meeting these service requirements/expectations is an effective asset management policy and program. 3

4 The importance of asset management, specific to fleet and facility is underscored, when viewed in terms of the level of operating and capital investment associated with the two infrastructure requirements. The following pie charts define the percent make-up of fleet and facility investment in comparison to total investment. The percent makeup is reflective of medium to large size municipal transit systems in Ontario operating buses only. The actual costs and percent make up for an individual transit system will depend upon how the system is structured e.g. municipal department, separate entity, how services are delivered (public vs. private sector delivery) and how costs/performance are accounted for (tracked, assigned and reported). Fleet The Guidelines respecting fleet primarily focuses on rolling stock (buses) i.e. the acquisition, repair, maintenance and disposition of buses. Investment in fleet represents the largest capital asset investment made by a transit system, with such investment accounting, on average for approximately 58% of a transit systems total fixed assets. Adding to the investment is related ancillary equipment/technology fixed to the vehicle such as 4

5 fareboxes, AVL, bike racks and security cameras. Investment in such equipment increases the fleet investment to approximately 65% of total capital investment. In terms of operating investment, exclusive of fuel, fleet maintenance and servicing averages approximately 20% of a systems total direct operating cost/investment. Fleet maintenance and servicing costs: Includes all labour costs (salary, wages and employment benefits) and material costs (parts, services and supplies) associated with all scheduled and unscheduled work/tasks associated with the maintenance (inspections, preventative maintenance, operating repair, replacement and rebuilding requirements) and servicing (fueling, cleaning, batteries, tires etc.) of the fleet including ancillary equipment Facility Facility defines the physical structures (owned and/or leased) supporting transit operations. This includes bus maintenance/servicing facilities, storage facilities, offices, passenger shelters, bus stops and bus terminals/stations. As an owned asset, the assets account for, on average, between 30% and 40% of a transit system s capital investment. Related facility operating costs account for between 4% and 6% of total direct operating cost/investment. Facility Cost: Includes all labour costs (salary, wages and employment benefits) and material costs (parts, services and supplies) associated with the operations and maintenance of transit facilities. Facilities include bus stops, passenger shelters/terminals, rented and owned buildings. The parts, supply and service costs include such items utility costs, municipal taxes and purchases services. Guidelines As previously reference critical to an effective asset management plan and program is understanding that the asset itself i.e. fleet and/or facility are not in themselves a core service (business) but rather critical support tools to meeting the goals and objectives of the core business. The Guidelines provide the basis for a self-audit or assessment of the overall effectiveness and efficiency of the support tools The Guideline has been structured as follows: Organizational Structure (responsibility) Policy, Goals & Objectives Procurement & Inventory Management Management Information systems (fleet maintenance) Vehicle Maintenance and Servicing Other Facility (vehicle maintenance, servicing and storage only) Performance Management The Guidelines are structured in a question/answer format. The questions are considered core or overarching in nature and should, based upon the response, trigger secondary questions and follow up. The secondary or follow up questions are determined by the individual(s) completing the assessment as is the response. For example the core question may be, Is there an asset management plan? If the answer is no, a secondary question may be Why isn t there? Responses to the questions will require research, confirmation and assessment. Simple yes or no answers are incomplete. In other words, the Guidelines are intended to serve as a starting point for understanding (awareness and knowledge transfer), development and continuous improvement. They provide the basis for ensuring asset management policy and programs remain are kept current (continuous improvement), understood and delivered upon. The Guidelines support ensuring the right resources are doing the right things, in the right way at the right time. 5

6 Performance Review Fleet and Facility # Description Cross Ref Section A Organizational Structure (Responsibility) 1 Does the organization have a defined mission or vision statement? What is it? Is it supported? Are there established strategies/objectives supporting attainment of and/or reflecting the mission or vision statement? Is there a defined asset management plan (for fleet and facility) and is that plan consistent with the organization s mission or vision statement? 2 Does the organization chart reflect the mandate for fleet and facility management? 3 Is there a defined/discrete department(s) structure (accountability) for fleet and facility? 4 Are related management roles (direct and indirect), responsibilities and accountabilities clearly defined, articulated? Are they understood and how is the understanding demonstrated? 5 Have appropriate human resources been identified (i.e. number, skill set, etc.)? What is the basis for determining human resource requirements and is such basis reviewed from time to time and is same reflective of industry best practices? Do they cover short, medium and long term planning periods? Is there a strategy in place to acquire and maintain defined requirements- (consider succession planning and training and development programs)? As an alternative to employed human resources are there appropriate defined, contracted external support resources to meeting fleet and/or facility needs? 6 Are human resource allocated appropriately to ensure the right people, are doing the right thing, at the right time and in the right manner? Consider: nature and extent of training, retraining, and skills upgrade programs including health & safety complement levels (skilled & general labour) 6 B1 A6, B1 A2 A3 A6 A5 Confirmation/Assessment

7 distribution of resources by shift - i.e. Is shift definition consistent with meeting service requirements? impact of Collective Agreement 7 Are effective communication (formal and informal) protocols defined, articulated and understood? - Consider: within maintenance both on shift and between shifts with service delivery (operations) with service development (service planning) with finance and administration services, etc. Effective communication covers both horizontal and vertical communication. It deals with roles as sender, receiver and medium. This is an area that directly impacts the success or failure of a business. It is critical that all staff, from senior management to front line delivery, understand not only what needs to be done, but why it needs to be done. Communications between shifts is critical particularly in terms of work transfer and ensuring sufficient buses are available for service., Section B Policy Goals & Objectives (Asset Management Plans) 1 Is there is a documented asset management plan? Is the asset management plan congruent with the organizations business plan (corporate goal and objectives)? What are the stated goals for fleet? What are the stated goals for facilities? A1 B4 2 Does the asset management plan cover key areas of asset administration, maintenance/servicing (including regulatory monitoring and compliance) and asset investment? How often is the asset management plan review, updated and approved? (Note: the asset management plan may deal with all assets the focus of the Guidelines is on fleet, related ancillary equipment, equipment related to maintenance and servicing of fleet and the facility.) 3 Does asset administration address: short, medium and long term requirements (asset planning) acquisition protocols/procedures including assessment of repair, replace, rebuild, protocol for procurement process including basis for assessing bids (i.e. consider both operating 7 C3

8 costs and capital implications) risk management (e.g. transfer of risk) protocol/procedures for disposing of assets a life cycle plan for assets that enables informed forecasting of future capital investment requirements 4 What are the goals/strategies/targets for asset (fleet) maintenance and servicing? Consider: setting an average fleet age target spare fleet requirements maintenance protocol re: scheduled vs. reactionary maintenance repair, replace, rebuild decisions fleet availability (buses available for service) fleet reliability mean time between service interruptions, including bus pull-ins and in-service repairs vehicle maintenance cost as a percent of direct operating cost per revenue service hour regulatory monitoring and compliance standards/expectancy for bus maintenance and servicing (by task) E1 5 What are the goals/strategies/targets for asset (facility) maintenance and servicing? Consider standards for building systems (HVAC, air make up etc.) standards for building components (roofs, lots, etc. repair, replace and rebuild decisions cleanliness programs and cleanliness standards 6 Is performance relating to established goals (targets) tracked, monitored, evaluated, followed up and report on (applies to both fleet and facility)? Consider the who/what/when (timing and frequency) and how. C. Procurement & Inventory Management 1 Is there a process for making decisions re: replace vs. repair vs. rebuild outsourced vs. in-house lease vs. buy 2 Do procurement decisions consider: asset specifications (performance based specifications as well as technical specifications) 8 B3/B4/B5

9 assessment of new technology standardization of assets e.g. fleet make up and/or components risk transfer warranty and extended warranty coverage pre-delivery inspections (at manufacturer s plant) delivery schedules total operational and capital cost consideration assessment vs. simply lowest compliant bid 3 Does inventory management (parts/supplies) consider: min/max levels risk transfer parts warranty parts quality assurance delivery expectation real time tracking of parts consumption to fleet (bus specific) accounting for obsolescence linkage to maintenance campaigns inventory ownership owned vs. consignment inventory carrying costs D. Management Information Systems 1 Is the vehicle maintenance management information system: linked to inventory management system linked to payroll management system linked to financial reporting system including budget development, actual to budget performance analysis supportive of legislative reporting requirements e.g. CVOR 2 Does vehicle maintenance management information system support: providing current status of fleet i.e. fleet availability scheduling of fleet maintenance and servicing requirements trend/track vehicle performance by system or component i.e. repair, mileage, downtime etc. track/trend fleet and facility performance key performance indicators track/trend service interruptions i.e. in service repairs and service pull-ins maintenance cost by vehicle (labour parts, etc.) 3 Does the information system support business case assessment re repair/replace/rebuild decisions internal vs. outsourcing initiatives lease vs. buy B4 C1 9

10 E. Vehicle Maintenance 1 Is there overarching or primary maintenance philosophy i.e. scheduled maintenance vs. response/reactionary maintenance? What is the basis for the philosophy and how is it supported? 2 Are there defined/scheduled maintenance programs e.g. MTO safety inspections PIT inspections Warranty requirements Other identified preventative maintenance programs unique to the components of the bus and/or based bus performance 3 What is the process for follow- up on findings coming from MTO safety inspections, PIT inspections? Is the process timely? B4 4 Is there a process for receiving bus defect information/concerns from operations? Does the process provide for: effective and timely repair tracking and trending defects follow-up with operations staff 5 Have reasonable expectancies (or time allocations) standards been established for maintenance? Consider: preventative maintenance programs running repairs 6 Is there follow-up of actual performance against the reasonable expectancy? What process is used to review and effect changes to the standard? 7 Is there a communication protocol between shifts, supporting continuity between shifts? How is work allocated between shifts? How is work transitioned between shifts? 8 What is the process for prioritizing maintenance activities? Consider major campaigns, unscheduled maintenance, and preventative maintenance programs, seasonal programs? 9 What is the process for addressing in-service breakdowns i.e. repair 10

11 (mobile mechanic) vs. bus change-offs? Is activity tracked, trended to determine pattern and/or causes affording the opportunity for corrective action and future avoidance? 10 Is performance tracked respecting the repair, replacement and/or rebuilding of component failures? (i.e. mean kilometers for change off of components) Is the cost of repair, rebuilding and replacement reviewed on a regular basis to ensure best value for money? 11 Is bus maintenance program supported by appropriate equipment and tools and are staff appropriately trained? Consider the provision of the right tool to staff and that staff trained on the effective use of such tools, noting this is particularly important given changes in bus technology. F. Vehicle Servicing 1 Are there documented procedures respecting daily servicing supporting the effective completion of work requirements i.e. what is to be done, when and reasonable expectancies. 2 Is there clear communication between maintenance shifts and operations re parking of buses before and after servicing? 3 Is bus servicing operation supported by appropriate equipment and tools and are staff appropriately trained? (Consider with advances in technology are the right tools being provide to staff and is staff trained on the effective use of such tools) 4 Is there a set schedule for interior bus cleaning? Is there follow up on schedule? Is the schedule appropriate relative to the service provided? Is there a standard for interior bus cleaning? Is related performance tacked and trended? 5 Outside of regulated (MTO) safety inspections, are there set schedules for servicing- batteries tires 11

12 brakes ancillary equipment Are there reasonable expectancies (time commitments) associated with the schedule? Are performances tracked and trended. G. Other 1 Are supportive shop equipment, tools and instruments maintained in a state of good repair? Are equipment, tools and instruments current vs. being dated? 2 Is maintenance staff trained in the safe operations of shop equipment and related regulatory requirements? Are there document procedures/protocol for shop equipment inspections and preventative maintenance programs? Who carries out such inspections? Are they appropriately trained? Are there warranty and/or service agreements in place for such equipment? 3 Is ancillary equipment i.e. fareboxes, radios, cameras, smart bus technology maintained in state of good repair? Are there document procedures/protocol for ancillary equipment inspections and preventative maintenance programs? Has staff been appropriately trained? Are there warranty and/or service agreements in place for such equipment? Is there an appropriate work area(s) for completing such work? J. Facility 1 Is the facility design/layout supportive of maximizing an effective transit operation? - Consider maintenance, servicing and storage requirements. 2 Are buildings and building systems maintained in a state of good repair? 3 Are there established preventative maintenance programs for the facility and, facility systems? 4 Are the facilities designed to take advantage of green technologies e.g. 12

13 recycled bus was water, green/white roof, long life lifting, occupancy sensitive lighting, heating, high speed doors? Are there plans for taking advantage of such technologies when building new and/or upgrading existing? 5 What business continuity plans are in place if the facility is not available e.g. in cases of flood and/or fire? What business continuity plans are in place in the event of fuel pumping/dispensing systems fail? Is there a short, medium and long term facility needs plan? Are there procedures in place for facility evacuation and if yes are they tested from time to time? Is there a generator attached to the facility supporting continued supply of electricity in the event of external power failure? Is it sufficient? 13

14 Performance Management The Guidelines (self-audit/assessment) serve as summary considerations supporting understanding, awareness and knowledge transfer as well as defining improvement and growth initiatives. The Guidelines are predicated on the principle that you can t manage what you cannot measure, which in turn defines performance management. What is performance management? Performance management is a process involving a series of analytical steps supporting where you are, where you re going and where you want to be. Why performance management? Performance management is critical to focusing resources, setting direction and aligning decisions and actions with desired goals, all of which makes progress more likely & the job easier (as evidenced by the following diagram) Performance measures respond to a number of key questions, namely: Who is the customer? Are the customers better off? Are services delivered well? How we are doing (considers the most important of these measures)? Who the partners are (who have a role in doing better)? What works in doing better? Established performance measures must be: meaningful, unambiguous and widely understood owned and managed supported by data integrity (garbage in - garbage out) inherent part of information systems able to identify/support improvement Performance measures by their nature can be competing. Further, they help to sell the good and explain the bad. They provide the basis to compare performance to one-self, to others (where appropriate) and to standards or targets supporting a desired outcome/change. The comparison to others is supported by the establishment of common performance indicators, including standard definition and input to determining the common performance indicator. The trending of performance results supports managing progress and improvement. 14

15 Performance Measures How Are You Doing? Where Are You Going? How Do You Compare? Indicator Target Actual Peers Average fleet age Spare fleet ratio (spare buses divided by peak vehicle requirements) Number of skilled trades (mechanics, body men, painters, etc.) per bus (number of buses divided by number of skilled trades) Number of general (labour) service per bus (number of buses divided by number of general labour staff) Mean kilometers between: in-service repairs (mobile mechanic) service disruptions (bus pull-ins) component failures replace/rebuild ancillary equipment failures internal bus washes Bus availability: number of occurrence late out of garage (bus availability) number of occurrence were no bus is available for scheduled service % of bus (of total requirements) not available for scheduled service Average labour productivity based upon available productive time i.e. annual hours less vacation time, statutory holidays, nonattendance, wash-up and paid lunches Average down time per vehicle pending receipt of inventory parts availability of resources to effect repair maintenance/servicing schedule Average daily bus service cycle time per bus (service lane) Direct vehicle maintenance/servicing costs per km (which can be converted to revenue service hour by using average km travelled per revenue service hour) Fuel economy litres per 100 km or km s per litre Mean time between repair/replace/rebuild building systems repair/replace/rebuild building structures/components Facility operations (maintenance/operations facilities only) facility costs as a % of total direct operating costs facility costs per square foot 15

16 Best Practices A key underlying objective of performance management is continuous improvement. The assessment should be completed on an annual basis, with appropriate trending and provide for a comparison ones performance to oneself as well as to identified peers and/or the industry at large. Continuous improvement necessitates the comparison and in doing so looking at current and evolving best practices. The best source for such solutions and best practices resides within the transit industry as well as related industries e.g. fleet operations consider the trucking industries. 16