Preface - kmcutindia.org · Preface This Toolkit is prepared by Wilbur Smith Associates, in association with CRISIL for the Ministry of Urban Development, Government of Indi a. The

Volume Volume 11

Bus System Toolkit 1

Preface

This Toolkit is prepared by This Toolkit is prepared by Wilbur Smith AssociatesWilbur Smith Associates, in association with , in association with CRISIL for the Ministry of Urban Development, Government of IndiCRISIL for the Ministry of Urban Development, Government of India. a.

The project is funded by the World Bank through a grant from theThe project is funded by the World Bank through a grant from theDepartment of Foreign and International Development (DFID).Department of Foreign and International Development (DFID).

Preface

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Volume 1 - Index

OPERATIONS PLANNING

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What it DOESNWhat it DOESN’’T do T do ……

Does not provide Technical Guidelines for the development of transport measures

UNDERSTANDING THE TOOLKIT

What does the Bus System Toolkit Do ?What does the Bus System Toolkit Do ?

Provides guidance notes for long-range planning process

Helps in understanding the various terminologies used in Bus Management System

Provides international experiences, case studies, examples and various options available

Takes the user through the process of selecting the appropriate contractual agreements

Helps the government departments and other agencies in dealing with potential private partnerships

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USERS

Who will use this toolkit ?Who will use this toolkit ?

Policy MakersPolicy Makers-- Planning CommissionPlanning Commission

UMTAUMTA

City CorporationCity Corporation-- PlannersPlanners-- EngineersEngineers

ConsultantsConsultants

OperatorsOperators

This toolkit needs to be viewed in totality along with the Institutional and PPP guidelines

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STRUCTURE OF THE TOOLKITThe Bus System Management toolkit is addressed under three main components –

1.Operations Planning

2.Operations Management

3.Contracting

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STRUCTURE OF THE TOOLKITUnder OPERATIONS PLANNING, several topics have been discussed as shown below -

Operations Operations

PlanningPlanning

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STRUCTURE OF THE TOOLKIT

Under OPERATIONS MANAGEMENT, the following topics have been discussed -

Operations Operations ManagementManagement

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STRUCTURE OF THE TOOLKIT

Under CONTRACTING, the following topics have been discussed -

ContractingContracting

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Volume 1Volume 1OperationsOperations PlanningPlanning

Transport TerminologiesTransport TerminologiesSetting Performance StandardsSetting Performance StandardsManagement Information SystemManagement Information SystemPlanning for Man Power Planning for Man Power Planning for FleetPlanning for FleetSchedulingScheduling

THE TOOLKIT

The toolkit is arranged in six volumesThe toolkit is arranged in six volumes

Volume 2Volume 2OperationsOperations PlanningPlanning

Route Network PlanningRoute Network PlanningDemand EstimationDemand EstimationFinancial PlanningFinancial Planning

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Volume 4Volume 4Operations PlanningOperations Planning

Planning for TechnologyPlanning for Technology

Volume 5Volume 5Operations ManagementOperations Management

OrganizationOrganizationBus Station ManagementBus Station ManagementMonitoring and EvaluationMonitoring and EvaluationMarketing StrategiesMarketing StrategiesCustomer ServiceCustomer ServiceRegulationRegulation

Volume 6Volume 6ContractingContracting

Public Private PartnershipPublic Private Partnership

Volume 3Volume 3Operations PlanningOperations Planning

Planning for InfrastructurePlanning for InfrastructureIntegrationIntegration

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A number of additional information like frequently asked questions, examples, case studies etc. are included in Appendix A and Appendix B that are referenced in the main volumes.

For Frequently Asked Questionson Bus System Management, refer toAnnexure 1

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BUS SYSTEM TOOLKITVolume 1

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1. OPERATIONS PLANNING

1. What is Operations Planning ?

• Planning for operations refers to the types of decisions that need to be made to effectively keep an existing transit system operation effectively and efficiently

• Operations planning involves getting a clear understanding of the decisions to be made in the planning process and the use of performance indicators to determine specific problems to be addressed

• It is essential to clearly define the decisions that will need to be made

• A clear definition of the problem will help in determining the scope and direction of the study and method to be used

• Operations Planning is required to take decisions on the design of transit services. Transit services can be designed in two ways:

• Customer Oriented Design – shaping the technology around the customer• Technology Driven Design – making the customer adopt to a technology

OPERATIONSOPERATIONSPLANNINGPLANNING

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Customer Oriented Design


Source: Bus Rapid Transit Planning Guide, June 2007 by GEF, GTZ, UNEP, Viva and ITDP

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Technology Driven Design


Source: Bus Rapid Transit Planning Guide, June 2007 by GEF, GTZ, UNEP, Viva and ITDP

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2. Data requirements for Operations Planning

Different types of data are required for operations planning. The following table gives a list of the data needed.

Data RequiredData Required

Customers at maximum loadAverage duration of standing

Customer boarding by trip

Customer boarding by stop

Landuse at stop

Travel time between time points Street patternsTraffic controlCustomer boarding by segment transfers by routeDemographic characteristics of people along route location

Source: Bus Rapid Transit Planning Guide, June 2007 by GEF,GTZ, UNEP, Viva and ITDP

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OPERATIONS OPERATIONS PLANNINGPLANNING

3. Secondary Data Information Sources

Secondary data required for Planning Process is available at various sources. Some of the sources for collecting the data include -

i. CensusSocioeconomic , demographic and housing data are available in census tracts or block groups , always aggregated , sometimes incomplete.Critical information :

1. Location of place of work2. Income distribution3. Automobile availability4. Mode to work5. Age distribution6. Shopping

ii. Planning AgenciesCurrent and future land use plan Current zoningRaw data

1. Employment Locations2. Centers of Commercial Activity Sales Tax Data

Location of Special Trip Generators1. Elderly Housing2. Medical Facilities3. Schools4. Employment5. Shopping

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iii. Traffic Department1. Traffic volume / Capacity2. Intersection Geometry / control3. Parking and other Regulations4. Construction Plans

iv. In – House Data CollectionRunning time information Time between check points

Schedule AdherenceRunning time on Alternative routesPassenger Comments / ComplaintsDriver Comments / ComplaintsRidership Counts

v. Community SourcesPolitical LeadersOther Community Leaders / Knowledgeable PersonsInformal ContactsTask ForcesPublic Hearings

vi. Private SourcesUtility Records and SurveysNewspaper Surveys and Market InformationChamber of Commerce Surveys , Local Area Promotional Information

OPERATIONS OPERATIONS PLANNINGPLANNING

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Operational /Traffic Terms

Engineering Terms

Inventory Terms

Personnel Terms

Revenue and Financial

Terms

2. TRANSPORTATION TERMINOLOGIES

The terminologies are classified into following categories:

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AccidentsAn accident is an occurrence in the use of the motor vehicle resulting in injury to or death of a person or animal and/or damage to property.Accidents are classified as follows:i. Fatal: A fatal accident is one involving loses of human life, immediately or within

30 days of its occurrence.ii. Major: A major accident is one involving grievous hurt to human beings and/or

loss or damage to property exceeding Rs.5000/-iii. Minor: A minor accident is one involving simple bodily injuries to human beings

and/or loss or damage to property exceeding Rs.300/- but not exceeding Rs.5000/-

iv. Insignificant: All other accidents not included in fatal, major and minor accidents shall be classified as insignificant.

BreakdownsA breakdown is defined as stoppage of vehicle on road due to mechanical defects or other failures rendering the vehicle immobile or unfit for continuation of the revenue earning trip without attention to it, irrespective of the time involved.

Operational /Traffic TermsOperational /Traffic Terms

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Cancelled KilometersScheduled kilometers not operated are called cancelled or lost kilometers.

Carrying Capacity Carrying capacity means the number of seats offered in a vehicle plus the standees

authorized as part of carrying capacity and excluding the seats allotted to the operating crew. The carrying capacity is also known as the ‘Pay Load’ of the vehicles.

Concessional Fare A special fare for children, students, senior citizens or others that is less than the

regular fare.

Dead Kilometers Kilometers covered by public service vehicles in the following circumstances will be

considered as dead kilometers:• Movement between stand and depot and vice-versa• Movement from stand and/or depot to the fueling point and back• Movement of vehicles as relief in case of accidents and breakdowns

• Movement of vehicles sent to start operation from some other depot or operating point

• Movement of vehicles sent to the point of docking, repairing and reconditioning, while not on schedule.

• Movement of vehicles for testing purpose.• Movement of vehicles resulting in such other coverage of non-revenue earning

kilometers, including sometimes for departmental use also

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Delays Running of vehicles behind scheduled time at the starting point and/or at the destination

is a delay

Effective Kilometers Kilometers actually operated by Public service vehicles for purposes of earning revenue

are known as effective kilometers. The effective kilometers are also termed as “Service kilometers”. Total effective kilometers relate to revenue earning kilometers actually operated by vehicles during any specific period for:

• Operation of trips as per schedules• Operation of extra trips fro Fairs, Jathras and other special occasion• Operation of casual contracts.

Fare The authorized payment for a ride on a passenger vehicle whether cash, token, transfer

or pass.

Delays Running of vehicles behind scheduled time at the starting point and/or at the destination

is a delay

Fare Structure A fare structure lays down different fares charged based on:

i) Length of servicesii) Types of services like ordinary, express, deluxe and excursion.

Flat Fare A charge for a trip that is the same regardless of the trip characteristics

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Graduated Fare A fare that is proportional to the distance traveled.

Gross Kilometers The total kilometers covered by public service vehicles for earning revenue and for

other purposes is known as gross kilometers. It is the sum total of the effective kilometers and dead kilometers.

Late Arrivals Arrival of vehicle on scheduled trip (including scheduled extra trip) behind scheduled

arrival time at the destination is known as late arrival. All scheduled arrive also delayed by 30 minutes or more in mofussil services and all

delayed scheduled arrivals in city services shall be considered as late arrivals. Extra trips (non-scheduled) need not be included for purposes of counting late arrivals.

Late Departures Departure of vehicles on scheduled trips (including scheduled extra trips) behind

scheduled time at the starting point is known as late departure.All scheduled trips delayed by 15 minutes in the case of ordinary and express services

on short distance routes and 30 minutes in the case of express services on long distance routes in mofussil (District) services and all delayed scheduled departures of more then 10 minutes in city services shall be counted as late departures.

Load Factor Load factor is the percentage ratio of passenger kilometers. It is also the percentage

ratio of actual passenger earnings to expected passenger earnings at full load including standees allowed.

For estimating the load factor only income from sale of passenger tickets should be taken into account as it is to be done while estimating passenger kilometers.

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Occupation Ratio Occupation Ratio is an important indicator which indicates how the available resources

are utilized. Here the resource is the passenger seat kms., offered. The occupation ration can be calculated in two different ways as indicated below: Earnings per kilometer/Basic fare x Seating capacity x 100Earnings per kilometer/Basic fare x Seating capacity x 100

This is the most widely used and easily understood and being followed in APSRTC The occupation ratio can also be calculated by the formula given below

Occupation Ratio = Passenger Kilometers/Seating Kilometers offerOccupation Ratio = Passenger Kilometers/Seating Kilometers offerededThe ratio is important since it throws light on the volume of traffic and indicates the

extent to which the seats provided were occupied.The ratio reveals the travel habits of the traveling public and is of fundamental value at

the time of revision of timings, augmentation of trips and realignment of routes. The occupation ratio is the most important statistical indicator pertaining to the

adequacy or otherwise of the services offered to the public. A very low ratio may indicate the need for either reduction of trips or change of timings while a very high ratio may indicate change of timings while a very high ratio may indicate either overloading or n on-availability of seats at intermediate points and the need to augment the services.

Passengers A passenger means any person traveling in a public service vehicle, other than the

driver or the conductor or an employee of the permit holder while on duty.

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Passengers Kilometers Passenger Kilometers represents the volume of traffic in terms of capacity kilometers

actually occupied or booked. It is the sum total of the length of journey performed by all the passengers carried. Passenger kilometer is usually calculated by dividing the earnings from passengers by the fare per kilometer, when the fare structure is of a uniform rate. Thus:

Passenger Kilometers = Revenue from passengers/Fare per kilometePassenger Kilometers = Revenue from passengers/Fare per kilometer r For calculating the passenger kilometers, only the revenue from passengers, ie., sale of

tickets should be taken into account. Similarly, passenger kilometer for city and mofussilservices and for Express/Ordinary and Luxury services should be calculated separately as fare charged are different for these different types of services.

Percent of Cancelled Kilometers Percentage of cancellations is the percentage of scheduled kilometers cancelled to the

total scheduled kilometers

Percent of Dead Kilometers to Effective Kilometers The incidence of dead kilometers is always measured in relating to the effective

kilometers performed during the period. It is expressed as percentage to effective kilometers, which is worked out as under.

Total dead Total dead kmskms x 100/Total effective x 100/Total effective KmsKms = Percentage of dead Km. to effective = Percentage of dead Km. to effective KmsKms. .

Percent of Late Arrivals This is the percentage ratio of late arrivals to the total number of trips actually arrived

and is calculated as:

All scheduled late arrivals/Total No of scheduled trips arrived All scheduled late arrivals/Total No of scheduled trips arrived x 100x 100

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Percent of Late Departures This is the percentage ratio of late departures to the total number of trips actually

departed and is calculated as

All Scheduled late departures/ Total no. of scheduled trips depaAll Scheduled late departures/ Total no. of scheduled trips departed x 100rted x 100

Quality of Service IndexQuality of service rendered by Corporation to the passengers cannot be measured in

quantitative terms. However, an index can be worked out, taking the factors which have a b earning on the quality of service. Again, the factors in question – rate of accidents, rate of break downs, the percentage of cancelled Kms. And the percentages of unpunctual operation are more indicative of the degree by which the quality of service is affected. In other words, a zero-level of these factors reflects that the quality of service is not vitiated by any of these factors and is hence exemplary. Inversely, greater the magnitude of these factors, greater is the degree by which the quality of service gets undervalued.

Rate of AccidentsRate of accident are the relative measures of incidence of accidents.

Rate per Rate per lakhlakh on effective Km= Total no. of accidents/Total effective on effective Km= Total no. of accidents/Total effective KmsKms. X 10000. X 10000

Rate of Break DownsRate per 10,000 effective Rate per 10,000 effective KmsKms=Total No. of breakdowns/Total effective Kms.x10000=Total No. of breakdowns/Total effective Kms.x10000

The rate of breakdowns can be worked out for mechanical and other failures separately.

Regularity of Operation Regularity of operations is the percentage of scheduled trips actually operated to the

total scheduled trips as per time table

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RouteRoute means a line of travel which specifies the highway which may be traversed by motor vehicles between one terminus and another

Route KilometersThe actual distance in kilometers between two terminal points of a route as defines above is the route kilometers.The total route kilometers operated by a Depot/Division/Undertaking is the sum total of the actual length or distance in kilometers of all the routes in operation by Depot/Division/Undertaking.

Running TimeThe total time provided for operation of a single journey between the terminals.

Scheduled KilometersThe revenue earning kilometers planned to be operated by a depot/division/undertaking as per the vehicle schedules of the unit is the scheduled kilometers on a given day (viz., last day of week/month/year etc.) It is the sum total of kilometers approved for all vehicle schedules on that day (viz., last day of the week/month/year etc.)

Schedule TripsAll trips planned as per the approved vehicle schedule are known as schedule trips. All the trips to be operated as special scheduled for bazaars etc., specifically provided in the vehicle schedule be taken into account.

Schedule Operated By An Operating UnitThe total no of vehicles required daily for traffic operation of schedule services according to the approved time table is the number of schedules operated by a depot (operating unit).

Seat Kilometers OfferedThe average seating capacity multiplied by the effective kilometers operated gives the seat kilometers offered.

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Trips Actually OperatedTrips actually operated differ from the schedule number of trips to be operated to the extent of (a) cancellations in the scheduled operations and, (b) extra trips operated during the period

TripTrip means a single journey from one point to another and every return journey shall be deemed to be a separate trip

Vehicle ScheduleA vehicle schedule is the program of operation of a vehicle on one or more routes operating one or more trips within 24 hours.

Engineering Terms Indices of Performance a) HSD Oil KMPL• This is an indicator of the level of efficiency shown in conserving fuel ie., HSD oil. The

number of kilometers obtained per liter of HSD oil consumed is otherwise called KMPL. The essential ingredients are: 1. The Kilometers operated. 2. The quantity of HSD oil consumed. But then, depending upon the objective with which the exercise is carried out, the ingredients are identified.

b) Engine Oil KMPL• The total quantity (in liters) of the engine oil issued to the vehicles during the specified

period represents the engine oil consumption during the period. The issue of engine oil is for topping up or for change of oil. The consumption figures should be worked out separately for topping up and for change of oil.

• The performance of vehicles in respect of engine oil consumption is expressed in terms of average kilometers per liter (engine oil).

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c) Tyre kilometers (Total)• This represents the total kilometers covered by the tyre from the date of its fitment on

the vehicle up to the time of its removal either for scrapping or for retreading. In short, it represents the life of the tyre.

• The difference between the progressive kilometers of the vehicle on the date of fitment of the tyre on the vehicle and the progressive kilometers on the date of the removal of the tyre from that vehicle constitutes the kilometers covered by the tyre. If the tyre is changed from one vehicle to another, the difference between the progressive kilometers between the dates of fitment and removal on all the vehicles on which the tyre has been fitted before it is finally removed either for scrapping or for retreading should be added up to get the total kilometers covered by the tyre.

d) New Tyre Kilometers• It is the kilometers given by a new tyre (original life) from the date of its fitment on the

vehicle up to the time of its removal either for scrapping or for retreading. e) Retreated Tyre Kilometers• It is the kilometers given by a tyre from the date of its fitment on the vehicle after

retreading up to the time of its removal either for scrapping or for further retreading. f) Retreadability Factor• The average number of retreads obtained per tyre before finally scrapped is termed

the retreadability factor. Example: Provided out of the 100 tyres removed -80 tyres had …. 1 retread10 tyres had …. 2 retread10 tyres had …. 3 retread

Then the retreadability factor is calculated as follows:(80x1) + (10*2) + (10*3) = 130

For 100 new tyres, we had 130 retreads, retreadability factor is 1.3 per new tyre.

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Productivity of Vehicles Productivity of vehicles in the fleet is usually measured as the average effective kilometers operated per vehicle in a day. The average is calculated on the entire number of vehicles held in the fleet.

Utilization of Fleet Several percentages based on the definition given above can be calculated to assess the utilization of fleet. Some of the percentages are defined in the following items. Fleet utilization, also termed as vehicular utilization, is the ratio of the number of vehicles on road to the fleet held by the unit. Fleet utilization is always expressed as percentage. It indicates how many of the total vehicles held are actually utilized for operations. It can be calculated with the total number of vehicles held after excluding the vehicles meant for scrapping.

Percentage fleet utilization is calculated as follows:No. of vehicles on road/No. of vehicles held x 100 = Percentage No. of vehicles on road/No. of vehicles held x 100 = Percentage fleet utilizationfleet utilization

This percentage can be worked out both in respect of the vehicles in workshops at a point of time or the average number of vehicles in workshops during a specified period. The sum total of the vehicle days lost for all the vehicles which are in the workshops from the date of admission in workshop till the date of count represents the total vehicle days lost for all the vehicles in workshop.

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Vehicles Held This represents the total number of vehicles held by the Depot at a particular point of

time. The vehicles held by a unit will be under any of the following conditions, viz.I. Vehicles on road.II. Vehicles held as spares (road worthy traffic spares)III. Vehicles in workshops – Under routine inspection, in off-road conditionIV. Vehicle awaiting scrappingV. Vehicle in transit.

A vehicle should be counted only once in any of the above categories and the sum total of all these should be equal to the total number of vehicles held.

All vehicles held by the unit either for operation or traffic and workshop spares should be included irrespective of the fact whether such vehicles are in a road worthy condition or not.

Vehicles off Road Vehicles are considered to be off-road when they are not in road worthy condition for

whole day.Vehicles should be considered as off-road when they are in (i) Depot for:

Repairs and undergoing repairsAwaiting spare parts, engines, major assembles and tyres.Awaiting attention or want of labour and/or equipmentAwaiting evacuation to regional workshops.

Vehicles on Road A vehicle (bus) which performs effective revenue Km is a vehicle on road.Vehicles on road are to be counted over a period of one calendar day beginning at

midnight. A vehicle should be counted as on road only once in a calendar day. Thus a vehicle used for operating a schedule on a calendar day and counted as a vehicle on road in that day should not be counted again as a vehicle on road if it is used again to operate a casual contract or any other revenue yielding operation on that day.

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Inventory The materials held in a stock point (auto spares, tyres, tubes, batteries etc.) on a particular day indicating volume and value is inventory held on that day.

Inventory Held/Vehicle Inventory held ------------------------------------ = Inventory per vehicle held. No. of vehicles held on that day

This ratio can be worked out for vehicles on road also.

Inventory Held Per Monthly Consumption (In Rs.)

Inventory held -------------------------------------- = ‘X’ months stock. Average monthly consumption (in Rs.)

Service Level No. of items supplied in full/No. of items indented x 100 =Service level

Inventory Terms

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Average Crew Utilization KilometersThe effective kilometers done per crew on duty per day is the average crew utilization in

terms of kilometers, it is obtained by dividing the total effective kilometers done in a day by the number of crew on duty during that day.

Classification of Staff Traffic Staff: The Drivers, Conductors, and other traffic operational staff such as traffic

controllers, traffic inspectors, Traffic Superintendents, Traffic Officers are to be included under this category. The clerical/ministerial staff working in the traffic section should not be considered at traffic staff.

Workshop & Maintenance Staff: The staff working in regional workshop and central workshop should be classified as workshop staff doing mechanical type of work. The mechanical engineers, artisans and Helpers employed for this purpose are to be counted in the category.

Similarly, the maintenance staff at depot which constitutes workshop superintendent, Charge man or Foreman, Mechanics and Helpers will form this category.

The ministerial/clerical staff attached, to the workshop/depot such as workshop clerk, stores clerk should not be classified as workshop and maintenance staff.

Administrative Staff/Ministerial Staff: All the staff which does not form into the category of traffic staff and workshop and maintenance staff will included in this category. This particular staff may be working at depot, division, region or Head offices.

There is one more way to classify the total staff ie. According to the level of management,i) Operating level managementii) Middle Management, and iii)Top Management.

Personnel Terms

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Crew Utilization The effective utilization of the crew is measured in terms of average crew utilization

which is expressed either in terms of hours of duty or in terms of the kilometers covered. Improvement in crew utilization should not be as a result of crew over-time man hours.

Productivity Per Employee The total effective kilometer operated during a period divided by the total number of

employees on rolls gives the productivity per employees during that period.

Staff Employed The total staff actually working (on roll) in the various units (Depot/Division/Other units)

as on the last day of a specified period will represent the total staff employed. The staff will include the permanent as well as temporary employees, including daily

wages actually working on the specified date, but will exclude the substitutes working against leave/suspension vacancies.

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Average Earning Per Passenger This index reflects the travel pattern of the passengers. It is calculated as follows:Total earnings from passengers/Total number of passengers = Avg. earnings per

passenger.

Breakeven Point Break-even is that point at which the total operating revenue just meets the total

operating cost. It is a point at which neither a profit nor a loss is made. Break-even analysis also shown as ‘Cost-volume-Profit analysis, helps in finding out the

relationship of costs and revenues to volume of operations. It helps to study the general effect of the level of (volume of) operations upon revenue and costs and therefore upon operating profits.

The break-even analysis is usually presented on a break-even chart which enables in understanding the behavior of profits in relation to output and utilization. Such an understanding is essential in planning of operation

Capital Expenditure Capital expenditure represents all expenditure incurred in the acquisition of permanent

assets which are intended to be continuously used in the business of the undertaking for purposes of earning revenue. Thus, the expenditure incurred for acquiring assets such as land and buildings, plant, machinery and equipments, furniture and office equipments, motor vehicles and similar assets by way of permanent equipment for carrying on the business of transportation of passengers are classified as capital expenditure.

Any amount spent on extension or improvement of the existing assets with the aim of increasing their revenue earning capacity is also classified capital expenditure

Revenue and Financial Terms

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.Capital Receipts Capital receipts represent the money received from the participating Government as

contribution towards the capital investment in the undertaking for utilization for acquisition of permanent assets to run the business. Borrowed capital raised through issue of debentures or through loans from banks and other financial institutions and utilized for acquisition of assets also constitutes capital receipts. Similarly, amount financed from internal resources for acquisition of assets also constitutes a source of capital receipt.Cost Of Operation

The total working cost incurred in connection with the business of transportation of passengers is termed as cost of operations. The operating cost includes all items of expenditure incurred in connection with operation of services excluding taxes, interest on capital, appropriation from the net revenue and income tax.

Cost Per Bus Total cost per bus (on road/held) is calculated as follows:

•Total cost during the period•Average no. of buses on road/held during the period•The average cost per bus (on road/held) can be arrived at by dividing the above ratio by the number of days in the period.

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Cost Per Kilometer The cost of operations in absolute terms does not by itself indicate the efficiency or otherwise of the service operated. Cost per kilometer is one of the relative measures, which is computed by selecting effective kilometers as a unit of measurement.The cost per kilometer or CPKM is computed by dividing the total cost of operation by the total effective kilometers (in terms of paise).The CPKM can be worked out either in respect of the total cost of operations or in respect of each component of the cost separately.

The direct or operational or variable costs react proportionately with the change in volume of operations and the cost per unit, ie., CPKM is constant with volume of operation. As indirect or fixed costs do not change with volume of operations the cost per unit, ie., CPKM declines as volume rises or increases as volume falls

Earning Per Bus When the bus is selected as a unit of measurement, the resultant rate will be earnings per bus. Earnings per bus can be expressed either in terms of number of buses on road or the number of buses held as required. It is calculated as follows:

• Total earnings (Traffic Gross) during the period• Average number of buses (on road/held) during the period• The average earnings per bus (on road/held) per day can be arrived at by dividing the

above ratio by the number of days in the period.

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Earning Per Kilometer Revenue in absolute terms without reference to kilometers will not correctly reflect the ‘Profitability’ of the operation. Earnings per kilometer (EPKM) is one of the useful ratios to indicate the earning potential of a route/depot/division/organization. The EPKM is related to the carrying capacity of the buses, fare structure and the earning potential of routes).Total earnings/Total effective Kilometers = EPKMThe EPKM is expressed in terms of paise. The EPKM may be in relation to either traffic or gross revenue.The earnings per kilometer depends upon:

a. The average vehicle utilizationb. The fare structurec. The earnings potential of the route (s). The earnings per Km is a useful

index in indicating the profitability of the operation.

Earning Per Passenger Kilometer The earnings per passenger Km. is a ratio reflecting the utilization of the seat Km. offered. The earnings per kilometer is worked out as under:Total revenue x Occupation ratio/Total effective Km x Average carrying capacity

Gross Profit The excess of the total gross revenue over the revenue expenditure (ie. The cost of operations excluding the cost on depreciation and interest charges) is the Gross Profit Margin.

Gross Revenue Total revenue derived from all the sources constitute “Gross Revenue” or “Total Revenue”.

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Operating Profit The excess of total traffic or operating revenue over the total cost of operations is the

operating profit margin.

Operating Ratio The operating ratio is the percentage ratio of the operating costs to the total traffic or

operating revenue. It is calculated as follows:Operating Cost

------------------------------- x 100 = % Operating ratio Traffic/Operating revenue

Non Traffic Revenue Income from other sources not directly related to transportation of passengers

constitutes miscellaneous revenue. The miscellaneous revenue consists of receipts from:

•Advertisement on vehicle, shelters, terminals tickets etc.•Refreshment rooms and canteen contracts.•Transport of parcels or unaccompanied luggage.•Cloak room•Cycle stand•Royalties•Sale of scrap materials and the difference in the resale value and the net value of the vehicles held. •Rents from hire of property•Repairs/maintenance carried out to outside vehicles/assemblies•Interest on investment, and•Other miscellaneous sources.

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Traffic Revenue Income realized from transportation of passengers and incidental sources related to

transportation of passengers constitutes traffic revenue. The sources of traffic revenue include:

• Sale of passenger tickets• Charges for unaccompanied luggage.• Reservation charges• Casual contract services, and• Postal mail charges

Income from sale of passenger tickets is the main source of traffic revenue. The income from other sources indicated above are incidental and related to the actual conveyance of passengers. For computing traffic revenue (operating revenue) the passenger tax should be deleted. The S.T. undertaking is operating as an agent for collecting taxes on behalf of Government. If however, the S.T. Undertaking is collecting the tax as a part of the fare and paying passenger tax at a compounded rate per seat or bus per quarter or per annum or otherwise, the income should be considered as part of traffic revenue.

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3. SETTING PERFORMANCE STANDARDS

Need for setting up performance and standards of service indicators

The resources employed in bus services should be put to the most productive and efficient use. For this purpose , there is a need to plan for efficient operational performance of bus services and better standard of service to the users.

Performance indicators can highlight the deficiencies of bus services and indicate where improvements are needed

Used as monitoring system, performance indicator will detect changes in operating trends and provide means for evaluating improvements and changes.

Most indicators will be quantitative in nature, but qualitative assessments can also be accommodated through survey work.

Many of the system performance indicators, such as passenger numbers, will be collected automatically through the management control system and the fare collection data system. Other indicators will require direct periodic measurement.

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Fleet Utilization

Vehicle Kilometers

Accidents

The most common Performance Standards that are used in the monitoring and evaluation of a bus system are listed below:

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Passenger Volumes

Basic indicator of productivity is the number of passengers carried in relation to the capacity of the system. This is expressed by the average number of passengers per operating bus per day.

The indicator can be used at the network, operator or service level.

A reasonably well-managed bus company should achieve 1,000 – 1,200 passengers per bus per day for a single-deck bus with a crush capacity of 80.

Photograph Source: Bus Rapid Transit Planning Guide, June 2007

by GEF, GTZ, UNEP, Viva and ITDP

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Fleet Utilization The proportion of a bus fleet that can be put into service each day indicates the effectiveness of bus procurement, maintenance, and staff availability.

A well-run bus company will achieve a fleet utilization of 80 – 90 percent.

The total distance traveled by buses in service, is usually expressed in average kilometers per operating bus per day.

A reasonably run bus service should achieve around 210 – 260 vehicle-kilometers per bus per day.

Vehicle Kilometers

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Fuel Consumption

Staff Ratio

Fuel consumption depends on the size and load of vehicles, fuel and engine type and the gradients and traffic conditions on the route.

Maintenance and driving standards have a considerable influence as well. Fuel consumption of a well run system should be a maximum 20 liters per 100 kilometers for minibuses.

The average numbers of operating, administrative and maintenance staff per schedule (sometimes, per bus) is an important indicator of efficiency at the company level. There is nothing known as ‘IDEAL STAFF RATIO’Staff Ratio depends upon the number of hours of operation, type of services, type of ticketing system and the city’s operations policy.

In general, the staff ratio followed is –Mechanics : 0,95/scheduleDrivers + Conductors : 3.7/scheduleAdministrative staff: 0.1/scheduleHence, staff ratio is 4.75 (source: KSRTC)

Some observed staff ratio values :

Bangalore (BMTC) : 4.5Delhi : 11.5APSRTC: 6.5Kerala (KSRTC) : 7.0Sikkim Transport: 7.0

Photograph Source: Bus Rapid Transit Planning Guide, June 2007

by GEF, GTZ, UNEP, Viva and ITDP

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Accidents

Operations Ratio

The accident rate provides some indication of the standard of driving and maintenance, but is greatly influenced by traffic conditions, in particular the volume of pedestrians. Comparisons should therefore be made with other vehicle types operating in the same area. In a well-run bus company operating under average conditions, accidents are likely to be in the range of 1.5 –3.0 per 100,000 bus kilometers.

Revenues should cover costs and produce a small surplus to provide for investment and growth. The operating ratio is defined as total revenue divided by operating costs including depreciation, and should be around 1.05 – 1.08.

In many countries there is no reliable accident reporting, analysis and publication mechanism so it is difficult to estimate the rate without special surveys.

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4. MANAGEMENT INFORMATION SYSTEM

1. Need of Management Information SystemThe Management Information System (MIS) is based on the system approach by which all the sub-systems of data-collection, data processing, storage and retrieve, are presented in suitable formats to the needy managers to achieve system optimization.

The MIS has to meet the information needs of all the managers throughout the Transport (Bus) undertaking for effective exercise of managerial functions i.e. planning, organizing, staffing, Coordinates, review and control.

2. Functions of Management Information System

The role played by MIS, can be better explained by identifying its functions -For collection of data from bus depots, production units (workshops), accounts and administrative unitsFor processing the data collectedFor presentation of information in the form and manner required by the user managersFor storage of information for the purpose of retrieval at a future date.For providing timely information to improve managerial control and effectiveness.For providing information to fix future “Target” to operational managers.For providing Feed back to the Managers on the performance.

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3. Levels of Management Information System

The MIS has to identify the information needs at various levels of management and design suitable information system. Accordingly, three levels of MIS have been identified -

Top Management

Middle Management

Lower Management

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Top Management The Top management requires information regarding financial outlays, profitability, policy matters regarding wage and fare structure, expansion of bus services, major purchases and infrastructure creation for bus operations.

Middle Management The middle management is concerned on the aspects of Co-ordination and control of activities of various departments like Traffic, Maintenance, Stores, Accounts and personnel with a view to achieve the planned targets and take corrective action, if there are shortfalls.

Lower Management The lower management is more concerned about operational aspects of day to day management. The essential requirement at this level is the desired accuracy of the basic data and highlight the performance of critical parameters.

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5. PLANNING FOR MANPOWER

“Creative thinking is not a talent, it is a skillthat can be learnt. It empowers people byadding strength to their natural abilities whichimproves teamwork, productivity and, whereappropriate, profit.”—Edward de Bono, psychologist and physician

“Creative thinking is not a talent, it is a skillthat can be learnt. It empowers people byadding strength to their natural abilities whichimproves teamwork, productivity and, whereappropriate, profit.”—Edward de Bono, psychologist and physician

Manpower Planning or Staffing involves analyzing and forecasting the talent that bus system companies need to execute their business strategy, proactively rather than reactively. It is a critical strategic activity, enabling the organization to identify, develop and sustain the workforce skills it needs to successfully accomplish its strategic intent, while balancing career and lifestyle goals of its employees.

Strategic workforce planning is aimed at helping companies make sure they have the right people in the right place at the right time and at the right price. Through Strategic staffing, organizations gain insight into what people the organization will need, and what people will be available to meet those needs.

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There are three main attributes related to the staffing process, namely -

RecruitmentTrainingDeployment

STAFFING

CRITICALFACTORS

• HUMAN RESOURCE DEVELOPMENT

• LABOUR WELFARE

• LEGAL SERVICES

RECRUITMENTTRAINING

DEPLOYMENT

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1. Recruitment

Recruitment refers to the process of sourcing, screening, and selecting people for a job or vacancy within an organization.

SourcingSourcing involves 1) advertising, a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) recruiting research, which is the proactive identification of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1. This initial research results in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV, and be screened.

Screening & selectionSuitability for a job is typically assessed by looking for skills, e.g. communication, driving, and other skills. Qualifications may be shown through resumes, job applications, interviews, professional or driving experience, the testimony of references, or in-house testing- such as driving and literacy, through employment tests.

Recruitment Criteria

Should meet required qualifications mandated through legislation and government stipulationDrivers should have valid commercial license and should have passed 10th standardConductors should obtain necessary certificateConductors should have language skills in local language, Hindi and English

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2. Training

Training deals with the design and delivery of learning to improve performance, skills, or knowledge within organizations.

Employees Should Undergo induction training on job skills

Should undergo training on how to deal with passengers

Agencies should have Training Centers with professional trainers

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3. Deployment Deployment refers to the assignment of duties to the recruited staff. Efficient deployment of the staff results in the increased efficiency of bus operations.

Crew duty hours are regulated by the Motor Transport Workers (MTW) Act 1961

Crew Should be given prescribed working hours- 8 hours a day- 48 hours a week

Duties can be split in to two shifts of 4- hours each

Within legal prescription, there should be agreeable arrangements between management and the crew

In the interest of safety, night shifts should not be extended beyond 5 hours

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6. PLANNING FOR FLEET

One of the important factors that contribute towards efficient transport system is the Fleet used in the system. Hence, Planning for Fleet should be given a high priority.

Planning for Fleet is dealt under two topics:1.Fleet Size Determination2.Fleet Maintenance

Fleet Size DeterminationBasic Speed/Fleet Size RelationshipsFleet size Determined by DemandFleet size Determined by Policy

Basic Speed/Fleet Size Relationships

For a given route, where policy is used to determine the level of service, the number of vehicles necessary to provide service at a given headway and average speed can be found as follows:

Source: Understanding Transit: Basic course material on Public Transportation,

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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Cycle time = 2*length*(60/Speed)

Cycle time = (120*L)/S

Cycle time = ((120*L)/S)+TA+TB

1. Cycle time is the time for one vehicle to make a complete cycle of the route. It is twice the route length (L) divided by the average speed (S) plus layover times at each end of the route.

2.In order to allow for layover and terminal activity, add the layover or terminal time in minutes at each end of the route (TA, TB).

3.Vehicle requirements (NV) can be calculated as a function of cycle time and headways.



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Fleet size Determined by Demand

Vehicle needs can also be determined as a function of vehicle capacity and peak point travel demand. The peak point demand is a triple peak, at the peak load point on the route, in the peak direction and at the peak time of day, given in passengers per hour.

1. Calculate the required headway from vehicle capacity divided by the peak point demand (D). Vehicle capacity is the number of seats (C) times the allowable load factor (LF) at the peak point.

The equation is multiplied by 60 to convert hours to minutes.

2. The number of vehicles needed to service a route with a given length (L), terminal times (TA + TB), and average speed (S) can be determined by combining the equation above with the previous equations.



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The capacity of a route can be determined by rearranging terms in previous equations. Note this is the level of peak point demand that can be accommodated on the route (D), not individual vehicle capacity (C).

Fleet Size Determined by Policy

A transit board of commission can set headways by policy. For example the board can declare that all vehicles operate at 30 minute headway. Once that policy set, then the number of vehicles needed is directly determined given the cycle time on each route.

The actual number of vehicles provided is found by rounding up to the next whole number. Thus if there is a cycle time of 100 minutes and a 30 minute headway, four vehicles would be needed. This is somewhat inefficient. The route cycle time could change (a 120 minute cycle time for four vehicles or 90 minutes for three).



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Fleet Size Problems

1.How many vehicles are needed to maintain a 20 minute headway on a route 10 miles long with an average speed of 12 mph?

2.How long should the route be if only four vehicles are available for the route?

3.What would the average speed have to be to maintain a 10 mile route with 4 vehicles at 20 minute headway?

4.For No. 3, what level of demand peak can be accommodated with 50 passenger buses at a 1.0 load factor?

5.How many buses would be needed to accommodate a peak flow of 250 persons (50 passenger buses, 1.0 load factor, speed = 15 mph, 10 mile route)?

6.For No. 5, what is the resulting average headway?

7.For No. 5, what load factor would allow the cutting of one bus?



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Solutions to Fleet Size Problems:



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Interpretation of the Examples:

With the basic data, it takes 5 vehicles to operate a route that is10 miles long on a 20 minute headway and with an average speed of 12 mph (Problem 1). This can be reduced to four vehicles by either making the route shorter at 8 miles (Problem 2) or by operating at a higher average speed at 15 mph (Problem 3). With four vehicles the route has a capacity of 150 passengers per hour (Problem 4).

If the demand was 250 passengers per hour, the route will require 6.6 buses, this is rounded up to seven (Problem 5). Then the average headway is 11.4 minutes (Problem 6). Finally, if you wanted to operate six vehicles and accommodate the demand, the load factor at the peak load point would be 111% (Problem 7).



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Some Facts…In any Bus Company , bus fleet accounts for about 80% of the capital investmentEfficient utilization of this investment is the deciding factor in the success or failure of the organization in meeting its responsibilitiesHealthy fleet underlines the heath of the capital of the bus company!“The objective of Fleet Maintenance is to improve the availability of vehicles for operation at economic cost”

Fleet Maintenance

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Preventive Maintenance Schedules

Preventive Maintenance is a routine activity schedule to minimize wear and tear of the fleet.

Types of Preventive MaintenanceSchedule 1 Daily MaintenanceSchedule 2 Weekly MaintenanceSchedule 3 Monthly MaintenanceSchedule 4 Quarterly MaintenanceSchedule 5 Fitness Certificates of VehiclesSchedule 6 Oil Changes at Prescribed Intervals

Typical Maintenance Schedule

Normally maintenance is carried out at two locations

Repairs at DepotsAll preventive maintenance activitiesReplacement of minor assemblies

Repairs at WorkshopsAll major repairs

Docking (D1) : 18000 kmDocking (D2) : 36000 km

Maintenance schedules are different for different types of buses

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Float Assemblies and Vehicles

Depots should be provided with adequate number of Float Assemblies

Unit assemblies be held in stock at depot stores to replace the defective ones

Major Assemblies – Engines, Front Axles, Rear Axle, Gear Box, steering Box, FIP, Self Starter, Alternator

Sub Assemblies – Injectors, P.P Shafts, Air Compressor, Clutch, Water Pump Assembly, Radiator, Cylinder Head Assembly etc

Scrapping Policy

It is essential to lay down a rational scrapping policy

In the absence of scrapping policy over-aged vehicles accumulate and increase running costs besides operational delinquencies like frequent breakdowns

Generally urban transport fleet operates up to 7 lakh kilometers or about 10 years in most companies

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7. SCHEDULING

Scheduling is a form of decision making that plays an important role in Bus Operations. The objective of scheduling is to optimize performance parameters and customer satisfactionScheduling Criteria

Bus routing considers the number of passengers desirous of availing the service at defined intervalsVariation of passenger demand, at the required timings is the primary input for schedule preparation.Passengers arrival at time intervals at each of the designated bus stops expecting bus arrivals to be computed.

Policy OrientationProvide a basic service level and maintain it or do nothing at allGenerally used to set minimums for a system or provide enough service to a certain area of the cityDemand OrientationLook at current level of demand and provide enough seats to meet the demandAt times or places where demand doesn’t exist to cover cost of service ,don’t provide it

Basic Approaches

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Viewpoints

ManagementWants to meet demand at lowest possible cost. Costs are proportional to vehicle hours and vehicle miles; demand varies by time of day, day of week, time of year.

Drivers / CrewDrivers want schedules that are easy to meet, convenient layovers, short work days, convenient starting time, pleasant passengers, good days off, high pay. They need to take breaks during the day and have meal times.

CustomersTo be at their destinations at a given timeTo avoid waiting and long travel timesReliable serviceTo have a safe place to wait

Bus SchedulingCriteria

Assignment of buses to different routes.Number of trips each bus to perform in a given route.Origin and destination of each trip .Computation of idle (dead) kilometers.

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Bus scheduling is aimed at :Providing optimal frequency of buses at each of the given stops.Operational efficiency for the operator by optimal utilization of resources.Passenger focus to meet the demand while minimizing the waiting times.

Crew SchedulingCriteria

Allotment of crew to the bus .Arrangement of change over crew at intermediate points.Regulating time requirement at the commencement, completion and rest time for a given schedule.Productivity in terms of kilometers performed/ effective duty hours.

Assignment of Crew Route wise Vehicular deployment.Shift wise manpower requirement.Minimize total wages .Maximize the duty hours.

Objectives

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Scheduling Process

Five Step Process

Determine Headways (frequencies)

Prepare Headway Table (specific trips)

Create Vehicle Assignments (blocking)

Create Driver Assignments ( run cutting)

Estimate Driver Requirements (rostering) effective duty hours.

For Sample Scheduling Process, refer Annexure 2

(Source: Public Transport Service and Operation Planning, PPIAF & World Bank)

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BUS SYSTEM TOOLKIT

Ministry of Urban Development

Volume 1

Documents

Preface - kmcutindia.org · Preface This Toolkit is prepared by Wilbur Smith Associates, in association with CRISIL for the Ministry of Urban Development, Government of Indi a. The