ZANZIBAR INSTITUTE OF

FINANCIAL ADMINISTRATION

(ZIFA)

GROUP NO. 1TOPIC: TRANSPORTATION AND DISTRIBUTION

MANAGEMENT.

PRESENTATION: TRANSPORTATION

PERFORMANCE MEASURES

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INTRODUCTION

Transportation: Is the process of movinggoods and people from one place toanother which involve all activities thatfacilitate the movement of goods andpeople.

Transportation provides access tonatural res and promotes trade, allowinga nation to accumulate wealth and powerbecause it’s a vital to a nation’seconomy.

Furthermore, transportation consist theelements such as unit of carriage, theterminal, method of propulsion and theway.

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TRANSPORTATION PERFORMANCE MEASURE

Definition:

Performance Measurement (PM) is the use ofstatistical evidence to determine progresstoward specific defined organizationobjectives. This include both evidence ofactual fact, such as measurement pavementsurface smoothness, and measurement ofcustomer perception such as would beaccomplished through a customersatisfaction survey (Gunasekaram, Petel etal, 2001). In service industry such astransportation, the performancemeasurement process starts by definingprecisely the services that the organizationpromises to provide, including the quality oflevel of service (e.g timeliness, reliability, etc.)that is to delivered. 9 May 2014 ZIFA 3

PM includes the process of assessingprogress toward achievingpredetermined goals, includinginformation on the efficiency whichresources are transformed into goodsand services (output), the quality ofthose output (how well they are deliveredto clients and extent to which clients aresatisfied ) and out comes ( the result of aprogram activity compared to itsintended purpose), and the effectivenessof government operations in terms oftheir specific contributions to programobjectives (Chang and Nojima 2001; Lai,Ngai et al 2002).

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Transportation performance measures

are particularly useful to periodically

evaluate how a transport system is

performing. They provide a valuable

management tool to correct problems

before they get out of hand. Inclusive

design and accessibility features may

also change over time similar to all

aspects of transport operations and

therefore should be subject to periodic

review. (Gunasekaram and Kabu

2007).9 May 2014 ZIFA 5

OBJECTIVE OF PERFORMANCE MEASURE:

The following are the objectives of performance measures:

To helps clarity goals direction andexpectation.

To support strategic business lineplanning by linking broads statement ofdirection to specific operational outputand outcomes.

To monitor the operation of program andmake continuous improvement.

To motivate public servant and to restorepride within the public services thatmaking positive contribution.

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So when we discuss the performance

measures we all most discuss the following

four (4) aspects:

Finance:

If we look in finance we mostly concern on howwe can minimize cost and make the value ofeconomy analysis, in order to deal withcustomers on how to minimize cost and providefully services to customers with right quality andquantity.

Quantity:

The 5Rs of procurement show that right quantityis an important aspect in ordering andpurchasing process so that the organizationcould make sure that they satisfied thecustomers on the right quantity they want.

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Productivity:This is a state on how the performancemeasures can be seen by theproductivity they have due totransportation an organization can orderraw materials at time and can producethe products which are mostly satisfyingit customers.

Response time:This a duration in which a customer’sproducts can be sent at a reasonabletime which he/she desire, this enhancethe efficiency of the organization andmaximization of profit.

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From the above four aspects that are finance,

productivity, response time and quantity the

transportation performance measures can be

determined and discussed on the following issues:

Transit Accessibility:

Measures the ability of people to reach destinationsusing public transportation. Transit accessibility reflectsthe relative convenience of transit as a mode choice. Itcan be measured in terms of distance to transit stops ortravel time on transit. Metrics typically emphasize theavailability of transit where people live, where peoplework, and on routes that connect the two. Both capitalinvestments in transit and enhancements to transitoperations can improve transit accessibility. Thelocation of jobs and housing relative to transit servicesalso has a major impact on transit accessibility. Highertransit accessibility can use energy more efficiently,improve air quality, and make transportation moreaffordable.

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Transportation Affordability:

Measures the cost of transportation relative to income.

Affordability captures the ability of transportation system users to

pay for transportation. Whereas measures of transportation cost

capture only the amount of money that transportation system

users pay, affordability puts cost in the context of income and

other expenditures. A more affordable system is one that

consumes a smaller share of users’ incomes.

Transportation investments and compact development patterns

can make transportation more affordable by reducing travel

distances and providing less expensive options such as walking,

bicycling, and transit. Changes in fares or tolls may have other

cost implications for transit riders and motorists. An affordability

measure tracks the financial impact of such actions on

transportation system users.

Because affordability is particularly important for low-income and

disadvantaged groups, this measure is often included in equity

analyses. It can be calculated and compared across income

groups.9 May 2014 ZIFA 10

Transit Productivity:

Measures the average number of riders ontransit vehicles. Transit productivity is ameasure of return on investment in the transitsystem. It measures how much travelers usethe transit service provided in a region. Forexample many local buses in Tanzania travelwith many passengers, suggesting that transitsystems are providing transportation benefitsconsistent with their capital and operating costs.Having more passengers on each busgenerates more revenue for transit agenciesand can result in better air quality and lesscongestion. Transit productivity is increased bymore closely matching transit capacity (supply)with transit demand. 9 May 2014 ZIFA 11

Average Vehicle Occupancy:

Measures the ratio of passengers to vehicles on the roadway(the average number of people in each vehicle). Averagevehicle occupancy (AVO) (also called average vehicle ridershipor vehicle occupancy rate) captures the number of peopletraveling in each vehicle. AVO is a simple indicator, with broadimplications for the sustainability of the transportation system.A higher AVO indicates that more people are traveling in fewervehicles. As a result, the existing roadway capacity can handlemore passenger travel with less congestion. More passengersper vehicle also means that per passenger emissions arelower. Finally, a higher AVO suggests a more affordabletransportation system, since sharing a ride is typically cheaperthan driving alone.

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IMPORTANCE OF PERFOMANCE MEASURES

The following are the importance of the

performance measures:

Set goals and standards.

Detect and correct the problems.

Manage, describe, and improve

progresses.

Document accomplishments.

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CONCLUTION

Based on the above explanation theperformance measures should besimple as much as possible,understandable to all concerned, andrelevant to the most important goals ofthe project or agency. Managersshould carefully look at tradeoffsbetween the time and cost ofcollecting data for performanceindicators, this will result for a certainorganization to improve itstransportation system.9 May 2014 ZIFA 14

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THANKS FOR LISTENING

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