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Management Decisions and Performance in Urban Public Transport Systems: Thredbo 9 Case Study

This case study examines the impact of management decisions on the performance of urban public transport systems. It utilizes the Data Envelopment Analysis (DEA) technique to evaluate the efficiency and effectiveness of the STCP (Sociedade de Transportes Colectivos do Porto) in the Porto Metropolitan Area of Portugal. The study analyzes the inputs, outputs, and results of the operator's performance over time, highlighting the major management decisions and their effects.

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Management Decisions and Performance in Urban Public Transport Systems: Thredbo 9 Case Study

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  1. PUBLIC TRANSPORT PERFORMANCE, ORGANISATION AND MANAGEMENT DECISIONSÁlvaro Costa / Teresa Stanislau Thredbo 9

  2. Urban Public Transport System Organisation • Modal Services(Lisbon, Porto, Budapest, Luxembourg, Nicosia, Tallinn,…) • Authority and Operator(Amsterdam, Barcelona, Brussels, Lyon, Munich, Warsaw,…) • Authority and Multiple Operators(Berlin, Dublin, London, Prague, Stockholm,…) • Deregulation(Birmingham, Manchester) Thredbo 9

  3. D1 D2 D3 Decision Making Models Management Decision Performance Management Decisions and Performance Usual Procedure Thredbo 9

  4. D1 D2 D3 Decision Making Models + Past Analysis Management Decision Performance Analysis of the impact of management decision in performance (DEA technique) Management Decisions and Performance Proposed Procedure Thredbo 9

  5. Case Study - STCPPorto Metropolitan Area Portugal Map in http://portugal.veraki.pt/; Porto Map in http://www.amp.pt/turismo.asp Thredbo 9

  6. Case Study - STCPSTCP • Serviços de Transportes Colectivos (1946) • Sociedade de Transportes Colectivos do Porto, S. A. (1994) • Operates in 6 councils of Porto Metropolitan Area • 81 bus lines + 2 tram lines • 18 bus lines+ 2 tram lines integrated fare system (June 2005) Thredbo 9

  7. STCP – Public Service Maximize the outputs to be obtained from available resources DEA Time series Efficiency/Effectiveness Matrix Performance evaluation and resource allocation of public transport operator Case Study - STCPDEA - Efficiency/Effectiveness Matrix Thredbo 9

  8. Case Study - STCPInputs and Outputs Data in STCP’s Reports and Accounts since 1946 Thredbo 9

  9. Case Study - STCPResults Thredbo 9

  10. Case Study - STCPResults Thredbo 9

  11. Case Study - STCPResults • Only major marks can be distinguished: • Council management (50’s) • Social benefits to workers (60’s) • Political Events (70’s) • Single Agent (80’s) • Operational Leasing (90’s) Thredbo 9

  12. Case Study - STCPFirst Conclusions • Data precision and availability conditioned the results. • There are significant lags between management decisions and their effects • It’s not possible to evaluate the effect of every management decisions, only major decisions can be spotted. Thredbo 9

  13. Case Study - STCPDEA and Other Indicators Short Term Capital Effectiveness DEA Effectiveness Labour Effectiveness Ratio Thredbo 9

  14. Case Study - STCPDEA and Other Indicators Capital Productivity Ratio DEA Efficiency Labour Productivity Ratio Thredbo 9

  15. Case Study - STCPDEA and Other Indicators • Another type of indicator which gives other type of information relating both outputs considered in this case study. • Production resources efficiency or effectiveness can not be evaluated with this ratio. • Gives us information about production effectiveness relating passengers served and Vkm produced. • Relates demand and offer Production Effectiveness Thredbo 9

  16. Conclusions • Construction of an EEM can give a general view about the operator performance in terms of aggregate measures. • Analyzing an operator’s EEM together with its management history is useful for identifying effects of certain decisions in terms of company performance . • There’s a variable lag between a decision and its reflex on the performance. Thredbo 9

  17. Conclusions • Considering production resources efficiency it’s equivalent to analyse capital productivity ratio and labour productivity ratio together. • Production resources effectiveness is equivalent to short term capital effectiveness together with labour effectiveness ratio. • It can not be proved that using EEM to evaluate public transport operators performance is more trustful than using all performance indicators together, but it is easy to use and gives a fast view on general performance of the company. Thredbo 9

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