Bus System Toolkit 1

Preface

This Toolkit is prepared by Wilbur Smith Associates,

Associates, in association with
CRISIL for the Ministry of Urban Development, Government of India.
India.

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

Preface

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Volume 1 - Index

OPERATIONS PLANNING

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UNDERSTANDING THE TOOLKIT

What does the Bus System Toolkit Do ?

ƒ Provides guidance notes for long-range planning

process
ƒ Helps in understanding the various terminologies used
in Bus Management System
ƒ Provides international experiences, case studies,
examples and various options available
ƒ Takes the user through the process of selecting the
appropriate contractual agreements
ƒ Helps the government departments and other
agencies in dealing with potential private partnerships

What it DOESN’
DOESN’T do …

Does not provide Technical Guidelines for the

development of transport measures

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USERS

Who will use this toolkit ?

ƒ Policy Makers
- Planning Commission

ƒ UMTA

ƒ City Corporation
- Planners
- Engineers

ƒ Consultants

ƒ Operators

This toolkit needs to be viewed in totality along with the

Institutional and PPP guidelines

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STRUCTURE OF THE TOOLKIT

The 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 TOOLKIT

Under OPERATIONS PLANNING, several topics have been discussed as shown below -

Operations
Planning

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STRUCTURE OF THE TOOLKIT

Under OPERATIONS MANAGEMENT, the following topics have been discussed -

Operations
Management

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STRUCTURE OF THE TOOLKIT

Under CONTRACTING, the following topics have been discussed -

Contracting

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THE TOOLKIT

The toolkit is arranged in six volumes

Volume 1
Operations Planning

ƒ Transport Terminologies
ƒ Setting Performance Standards
ƒ Management Information System
ƒ Planning for Man Power
ƒ Planning for Fleet
ƒ Scheduling

Volume 2
Operations Planning

ƒ Route Network Planning

ƒ Demand Estimation
ƒ Financial Planning

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Volume 3
Operations Planning

ƒ Planning for Infrastructure

ƒ Integration

Volume 4
Operations Planning

ƒ Planning for Technology

Volume 5
Operations Management

ƒ Organization
ƒ Bus Station Management
ƒ Monitoring and Evaluation
ƒ Marketing Strategies
ƒ Customer Service
ƒ Regulation

Volume 6
Contracting

ƒ Public Private Partnership

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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 Questions

on Bus System Management, refer to
Annexure 1

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BUS SYSTEM
TOOLKIT
Volume 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
• Operations Planning is required to take decisions on the design of transit services.
PLANNING 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

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Customer Oriented Design

OPERATIONS
PLANNING

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

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Technology Driven Design

OPERATIONS
PLANNING

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 Required

Customers at maximum load

Average duration of standing

Customer boarding by trip

OPERATIONS Customer boarding by stop

PLANNING
Landuse at stop

Travel time between time points

Street patterns
Traffic control
Customer boarding by segment transfers by route
Demographic 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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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. Census
Socioeconomic , demographic and housing data are available in census tracts or
block groups , always aggregated , sometimes incomplete.
Critical information :

1. Location of place of work

2. Income distribution
3. Automobile availability
4. Mode to work
5. Age distribution
OPERATIONS 6. Shopping
PLANNING
ii. Planning Agencies
Current and future land use plan
Current zoning
Raw data
1. Employment Locations
2. Centers of Commercial Activity Sales Tax Data
Location of Special Trip Generators
1. Elderly Housing
2. Medical Facilities
3. Schools
4. Employment
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iii. Traffic Department

1. Traffic volume / Capacity
2. Intersection Geometry / control
3. Parking and other Regulations
4. Construction Plans

iv. In – House Data Collection

Running time information
Time between check points
Schedule Adherence
Running time on Alternative routes
Passenger Comments / Complaints
Driver Comments / Complaints
Ridership Counts

OPERATIONS v. Community Sources

Political Leaders
PLANNING Other Community Leaders / Knowledgeable Persons
Informal Contacts
Task Forces
Public Hearings

vi. Private Sources

Utility Records and Surveys
Newspaper Surveys and Market Information
Chamber of Commerce Surveys , Local Area Promotional Information

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2. TRANSPORTATION TERMINOLOGIES

The terminologies are classified into following categories:

Operational
/Traffic Terms

Revenue and
Engineering
Financial
Terms
Terms

Personnel Inventory
Terms Terms

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Operational /Traffic Terms

Accidents
An 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.

Breakdowns
A 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.

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Cancelled Kilometers
Scheduled 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 services
ii) 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 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 offered
offered
The 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 kilometer
kilometer
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 mofussil
services 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 kms x 100/Total effective Kms = Percentage of dead Km. to effective Kms.
Kms.

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 x 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 departed
departed x 100

Quality of Service Index

Quality 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 Accidents
Rate of accident are the relative measures of incidence of accidents.
Rate per lakh on effective Km= Total no. of accidents/Total effective Kms.
Kms. X 10000

Rate of Break Downs

Rate per 10,000 effective Kms=Total
Kms=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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Route
Route means a line of travel which specifies the highway which may be traversed
by motor vehicles between one terminus and another

Route Kilometers
The 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 Time
The total time provided for operation of a single journey between the terminals.

Scheduled Kilometers
The 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 Trips
All 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 Unit

The 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 Offered

The average seating capacity multiplied by the effective kilometers operated gives
the seat kilometers offered.

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Trips Actually Operated

Trips 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

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

Vehicle Schedule
A 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 retread
10 tyres had …. 2 retread
10 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 fleet 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 condition
IV. Vehicle awaiting scrapping
V. 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:
ƒ Repairs and undergoing repairs
ƒ Awaiting spare parts, engines, major assembles and tyres.
ƒ Awaiting attention or want of labour and/or equipment
ƒ Awaiting 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 Terms

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

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Personnel Terms
Average Crew Utilization Kilometers
The 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 management
ii) Middle Management, and
iii)Top Management.

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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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Revenue and Financial Terms

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

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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 = EPKM
The 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 utilization
b. The fare structure
c. 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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The most common Performance Standards that are used in the monitoring and evaluation
of a bus system are listed below:

Fleet Utilization

Vehicle Kilometers

Accidents

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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.

Vehicle Kilometers

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.

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Fuel Consumption
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.

Staff Ratio

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/schedule
Drivers + Conductors : 3.7/schedule
Administrative staff: 0.1/schedule
Hence, staff ratio is 4.75 (source: KSRTC)

Some observed staff ratio values :

Bangalore (BMTC) : 4.5

Photograph Source: Bus Rapid Transit Planning Guide, June 2007
Delhi : 11.5
by GEF, GTZ, UNEP, Viva and ITDP
APSRTC: 6.5
Kerala (KSRTC) : 7.0
Sikkim Transport: 7.0
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Accidents
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.

In many countries there is no reliable accident reporting, analysis and publication

mechanism so it is difficult to estimate the rate without special surveys.

Operations Ratio
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.

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4. MANAGEMENT INFORMATION SYSTEM

1. Need of Management Information System

The 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 units
For processing the data collected
For presentation of information in the form and manner required by the user managers
For 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

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.

“Creative
“Creative thinking
thinking is is not
not aa talent,
talent, itit is
is aa skill
skill
that
that can
can be
be learnt.
learnt. ItIt empowers
empowers people
people by by
adding
adding strength
strength to
to their
their natural
natural abilities
abilities which which
improves
improves teamwork, productivity and,
teamwork, productivity and, where
where
appropriate,
appropriate, profit.”
profit.”
—Edward
—Edward de de Bono,
Bono, psychologist
psychologist and and physician
physician

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There are three main attributes related to the staffing

process, namely -

Recruitment
Training
Deployment

STAFFING

• HUMAN
CRITICAL RECRUITMEN RESOURC
TRAINING
FACTORS T E
DEPLOYMENT DEVELOP
MENT
• LABOUR
WELFARE
• LEGAL
SERVICES

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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.
Sourcing
Sourcing 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 & selection

Suitability 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 stipulation
Drivers should have valid commercial license and should have passed 10th
standard
Conductors should obtain necessary certificate
Conductors 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 Determination
2.Fleet Maintenance

Fleet Size Determination

Basic Speed/Fleet Size Relationships
Fleet size Determined by Demand
Fleet 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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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.

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

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

2. Inorder 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.

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

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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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.

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

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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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).

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

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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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?

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

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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Solutions to Fleet Size Problems:

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

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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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).

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

Center for Urban Transportation Studies, University of Wisconsin - Milwaukee

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Fleet Maintenance

Some Facts…
In any Bus Company , bus fleet accounts for about 80% of the capital investment
Efficient utilization of this investment is the deciding factor in the success or failure
of the organization in meeting its responsibilities
Healthy 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”

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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 Maintenance
Schedule 1 Daily Maintenance
Schedule 2 Weekly Maintenance
Schedule 3 Monthly Maintenance
Schedule 4 Quarterly Maintenance
Schedule 5 Fitness Certificates of Vehicles
Schedule 6 Oil Changes at Prescribed Intervals

Typical Maintenance Schedule

Docking (D1) : 18000 km

Docking (D2) : 36000 km

Maintenance schedules are different for different types of buses

Normally maintenance is carried out at two locations

Repairs at Depots
All preventive maintenance activities
Replacement of minor assemblies

Repairs at Workshops
All major repairs

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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
satisfaction
Scheduling Criteria

Bus routing considers the number of passengers desirous of availing the service at
defined intervals
Variation 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.

Basic Approaches
Policy Orientation
ƒ Provide a basic service level and maintain it or do nothing at all
ƒ Generally used to set minimums for a system or provide enough service to a certain
area of the city
Demand Orientation
ƒ Look at current level of demand and provide enough seats to meet the demand
ƒ At times or places where demand doesn’t exist to cover cost of service ,don’t provide
it

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Viewpoints
Management
Wants 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 / Crew
Drivers 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.
Customers
To be at their destinations at a given time
To avoid waiting and long travel times
Reliable service
To have a safe place to wait

Bus Scheduling
Criteria
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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Objectives
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 Scheduling
Criteria
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.

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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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Volume 1

BUS SYSTEM TOOLKIT

Volume 1
Ministry of Urban Development