hid operations strategy
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Executive Management Programme (EMP: Apr 2008)
Term: IX (5 Apr – 27 Jun, 2010)
Management Development Institute - Gurgaon
Operations Strategy
Case-02
Changing lanes of Transport Ecosystem
IDID NameName
11 02 Achal Garg
22 14 Ashok Pershad
33 15 Dhiraj Gaur
44 18 Gaurav Grewal
55 22 Manoj Agarwal
66 51 Umesh Raheja
OSCase Presentation
Presentation Date: 29 April 2010 Presentation Date: 29 April 2010
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TRIP (Mass) transit journey is too tiring
ROUTE Transit routes are very complicated
PLATFORM Transit points are not accessible
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TRIP Collective movement of people
ROUTE Servicing common corridor with greater efficiency
PLATFORM
Facilitated by pooled resources (stations, street signals, dedicated lanes etc)
The single most important competitor to public transport is private transportTaxpayers’ money has not been used to fund common infrastructure to support
public transport the way it is used tobuild and maintain roads for cars.
Operators pitted against each other will take every cost savings they can get away with in absence of any reasonable standards, regulations and enforcement
Mass transit vehicles SHARE travel space with private vehiclesOperators maximize whatever they can squeeze from any loophole in public
infrastructure (i.e. loitering of parked buses, unruly road hogging and speeding)
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TRIP (Mass) transit journey is too tiring
ROUTE Transit routes are very complicated
PLATFORM Transit points are not accessible
MAKE TRIP FAST AND COMFORTABLE
MAKE GETTING TO PLACES SIMPLE AND STRAIGHT FORWARD
MAKE TRANSFERS CONVENIENT AND HASSLE FREE
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KEY PERFORMANCE INDICATORS : Accessibility Availability Reliability Safety Comfort
The measurement of performance is the key, because……•If you can’t measure it, you can’t control it…•If you can’t control it, you can’t manage it…•If you can’t manage it, you can’t improve it.
•But who watches and measures the KPI???
MAKE TRIP FAST AND COMFORTABLE MAKE GETTING TO PLACES SIMPLE AND STRAIGHT FORWARD
MAKE TRANSFERS CONVENIENT AND HASSLE FREE
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TRIP Collective movement of peopleROUTE Servicing common corridor with greater efficiency
PLATFORM Facilitated by pooled resources (stations, street
signals, dedicated lanes etc)
This highly systemic and strategic task should be entrusted toa centralized authority with a high-level of
legislative and enforcement powers
This operational task is typically taken by private orquasi-government operators.
Pooled resources refer to commonly shared infrastructures funded by taxpayers.Ownership by local and regional level authorities is a must.
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Public transport provides 3 functions for society
Mobility for those not using private transport
Development tool to reduce infrastructure costs
A business operation with potential for profits
Building Blocks of the new Ecosystem
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Transformation from auto companies to mobility solution providers
Integration of Various forms of transportation system
Unified access by way of technology Service design to meet supply chain constraints Re-engineering infrastructure to accommodate
scalability requirements
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Transportation system as a seamless system in which travelers can conveniently shift between modes and operators to complete trips that meet their individual and business needs.
Ticketless systems Octopus – Hong Kong Predicting Demand and optimizing capacity, assets and
infrastructure Improving end-to-end mobility experience Reducing the environmental impact Assuring safety and security
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Various private equity players and venture capitalists has shown interest in mobility solutions DLF is designing Rapid Transit System (RTS) a medium
metro rail in Gurgaon which will connect to the Delhi metro
DLF wants an RTS in some of its major project like 10,000 acre township in Bangalore
Infusion of Radio Taxis by V-Link Web-based Indmoto has organised car pooling system
by enabling commuters to find matches based on city, time and pincode
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Bus Rapid Transit (BRT) has reorganised urban traffic and ensured equity in road space allocation. BRT is described as bus priority corridor
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Authority provides & owns all vital infrastructure (incl. routes)
Operators contracted to the Local or Regional Authority for a 3-5 year period
Contract through open tender and KPI Operators are paid a contract fee for services
provided with additional incentives for meeting/exceeding KPI
Feedback from passengers becomes vital
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Public Transport is a “rakyat issue” The people must be engaged to use, support, and
keep watch in public transport A Centralized Authority will:
Create national standards for public transport Integrate planning with National Physical Plan Determine funding needs and provide funds Invest in critical improvements to infrastructure
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Local / Regional Authorities are empowered to carry out the regulation of public transport with public/user feedback Local / Regional Authorities would be integrated with
economic growth regions Focus on local and regional planning as identified in the
National Physical Plan Ownership of crucial public transport infrastructure Provision of investment capital and funding
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KPIs are: Accessibility Availability Reliability Safety Comfort
INPUTSTaxpayers Money
Infrastructure TechnologyResources Labor
CONSUMED OUTPUTS
Passenger/milePassenger/energy unit
Infra. KPIs Service KPIs
PRODUCED OUTPUTS
Journey covered/labor Operational cost/mile
Vehicle seats/mile
COST EFFECTIVENESS COST EFFICIENCY
SERVICEEFFICIENCY
OPERATORS’
SCOPE
AUTHORITIES’ SCOPE
Fair allocation of risks and responsibilities between operators and authorities
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Ministry ofPublic Works
One Stop Transport Solutions20%Equity-80% Debt
Cargo ownersCommutersCompanies
Credit line
Credit Institute of India
National TransportReg. Auth.
Contributes Land andWater rights
Payment for services
Interest payments
Regional Environmental
Office
servicesServices:
Basic non commercial
Complementary
Commercial
RITES (Construction Companies)
Specific contract
MOU
Inspection / cargo control
Environmental Regulation
ManagementFee
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One Stop Transport Solution
ParkingReal EstateDevelopment
CommercialServices
Road to RoadOperation Warehouse
Rail to RailOperations
Revenues from theBusiness or fee
Revenues from theBusiness or fee
Rental tariff for m2and % of business
Fee Fee Fee
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New York City Transport Masterplan 2030 https://www.nysdot.gov/portal/page/portal/main/transportation-plan/repository/masterplan-111406.pdf
IBM Case Paper on Smart Transports http://www.ibm.com/smarterplanet/global/files/uk__en_uk__rail__smarter_system_trasportation.pdf?ca=content_body&met=uk_smarterplanet_rail_examples&re=spc
Bangalore Transportation – Research & Reports http://www.praja.in/en/gyan/bangalore-transportation-research-and-reports
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THANK YOU