ManageMent balanced scorecard approach for urban transport fleets

Maintenance is one of the largest expenditures for the urban transport companies together with fuel (or energy) costs and drivers (personnel) [16], but is the most important one from the view of controllability, attending that fuel and labour costs are more externally driven (crude prices volatility, taxes, personnel policies and salaries, etc.). A proper maintenance policy, managerial processes and planning and optimization of maintenance decisions, scheduling and execution of work can lead to reduce costs, improve vehicle effectiveness, reliability and performance. Consequently, maintenance function is therefore vital for sustainable performance of any urban transport fleet. Attending the responsibility of ensuring that urban fleet achieves the expected performance, maintenance managers requires a tracking system for maintenance operations performance and results [3, 6, 20, 21]. Furthermore, it is in the interest of maintenance managers to know the relationship between the input of the maintenance process and the outcome in terms of total contribution to vehicle fleet performance and strategic objectives. The measurement of maintenance performance is indeed an essential requirement for any industry of today. This tracking action can be done through development and implementation of a proper and accurate performance measurement system and indicators that are able to quantify important elements of maintenance function performance [5, 15]. Moreover, without having a formal measurement system for maintenance performance, it is difficult to control, plan and improve the maintenance process and consequently can be considered that tracking the performance operations must be a key management issue in any industrial organization. In summary, a proper maintenance performance measurement system shall contribute to: Assess the maintenance function to the strategic company tar• gets. Detect the strengths and weaknesses on the maintenance strat• egy applied. Using quantitative and qualitative data for helping to define and • stablish a continuous improvement process for maintenance. Let us to apply a maintenance benchmarking analysis within and • outside the business related with urban fleet transport.


Introduction
Maintenance is one of the largest expenditures for the urban transport companies together with fuel (or energy) costs and drivers (personnel) [16], but is the most important one from the view of controllability, attending that fuel and labour costs are more externally driven (crude prices volatility, taxes, personnel policies and salaries, etc.).A proper maintenance policy, managerial processes and planning and optimization of maintenance decisions, scheduling and execution of work can lead to reduce costs, improve vehicle effectiveness, reliability and performance.Consequently, maintenance function is therefore vital for sustainable performance of any urban transport fleet.
Attending the responsibility of ensuring that urban fleet achieves the expected performance, maintenance managers requires a tracking system for maintenance operations performance and results [3,6,20,21].Furthermore, it is in the interest of maintenance managers to know the relationship between the input of the maintenance process and the outcome in terms of total contribution to vehicle fleet performance and strategic objectives.The measurement of maintenance performance is indeed an essential requirement for any industry of today.This tracking action can be done through development and implementation of a proper and accurate performance measurement system and indicators that are able to quantify important elements of maintenance function performance [5,15].Moreover, without having a formal measurement system for maintenance performance, it is difficult to control, plan and improve the maintenance process and consequently can be considered that tracking the performance operations must be a key management issue in any industrial organization.
In summary, a proper maintenance performance measurement system shall contribute to: Assess the maintenance function to the strategic company tar-• gets.
Detect the strengths and weaknesses on the maintenance strat-• egy applied.Using quantitative and qualitative data for helping to define and • stablish a continuous improvement process for maintenance.
Let us to apply a maintenance benchmarking analysis within and • outside the business related with urban fleet transport.
Different frameworks have been defined and used in the past for measuring performance and until the 80s in last century mostly based on financial measures.The original balanced scorecard defined by Kaplan and Norton [14] had four perspectives for analysing: financial aspects, customers, internal processes and innovation and learning.Later, different approaches has been defined by other authors considering other non-financial measurements and intangible assets to achieve competitive advantages [2,4,25].

Vicente MAcián Bernardo TorMos Jesús Herrero
Maintenance ManageMent balanced scorecard approach for urban transport fleets

ZarZądZanie utrZyManieM ruchu w Zakładach koMunikacji Miejskiej w oparciu o Zrównoważoną kartę wyników
Attending the important role of maintenance function in any production or service provider company, the measurement and assessment of maintenance performance is crucial for competitiveness and future survival.That situation is even more critical in urban transport fleets where some specific boundary conditions and special characteristics will affect maintenance policy and implementation.This paper presents a deep review of different studies worldwide to define the most proper and effective maintenance performance indicators, selecting and refining the most important ones to obtain a reduced maintenance management balanced scorecard.That balanced scorecard is proposed as a main tool for urban transport fleet maintenance managers to assess efficiency and effectiveness of maintenance processes and will be used as a basis for a future benchmarking process for this type of companies.

sciENcE aNd tEchNology
Last, but not least, benchmarking is used for business development and also for improving efficiency and effectiveness of maintenance processes in any type of industry.The analysis performed on this work provides a basis for learning from the top class business companies and offers a road map for performance improvement [12].As a prior requirement to begin a benchmarking analysis obviously is required a set of proper, reliable, accurate and well defined performance indicators for the industrial sector considered, as it has been previously mentioned.
This paper presents a deep revision of key performance indicators for maintenance management in the specific and very important sector of urban transport fleets in the section 2. In section 3 authors propose a reduced selection of key parameters that can be considered the most important for this application grouped into three main categories.Later, in section 4, those selected parameters are developed and it is presented how can be calculated and managed.Finally, in section 5 the balanced scorecard proposal is presented combining the previous parameters defined.

State of the art regarding KPIs for maintenance management in transport fleets.
In order to perform a review of the state of the art regarding maintenance management KPIs, authors have focused firstly on more general documents, mainly international standards, with a more general approach to that problem and later have focused on more specific literature regarding public transport fleets.In this way, publications and documents coming from UITP (Union International des Transports Publics or International Association of Public Transport), and other information from international transport associations have been managed.Next, a complete summary of the review performed is presented.

EN 15341 Maintenance -Maintenance Key Performance Indicators
This is a European standard [9] and is the most general standard referred to maintenance KPIs.The Spanish version is the UNE EN 15341:2008.As it is stated on the introduction, this standard: "provides Maintenance Key Performance Indicators to support management in achieving maintenance excellence and utilize technical assets in a competitive manner.The majority of these indicators apply to all industrial and supporting facilities (buildings, infrastructure, transport, distribution, networks, etc.)".This standard defines a set of indicators structured on a three different levels: economics, technical and organizational and mainly are presented such a relation between factors (numerator and denominator) related with activities, resources or events.Maintenance performance and consequently key performance indicators can be affected by internal factors such as group, company, factory, plant that are outside of the maintenance manager control but inside of the company management control.On the other side, external factors such as location, market, laws and regulation, etc. are variable conditions outside company management control also affecting maintenance performance.
Most indicators can be used at different levels depending on whether they are used to measure the performance of plant production, one production line, or a given equipment or item, i.e. are structured from a more general to a more detailed point of view.
On this standard are summarized 24 economic indicators, 21 technical indicators and 26 organizational indicators.Each company must select the most proper indicators attending own characteristics and objectives expected.
As it has been mentioned, that standard is very general and can be applied to any type of industry and consequently perhaps have not into account specific characteristics more related with a urban transport fleet company; but after the analysis of that standard, the Key Parameters Indicators more proper for that companies would be: Economic indicators: E3, E14, E15, E16 and E17.Technical indicators: T1.T2, T6 and T21.
Next, as a reminder, general definition of that indicators are presented on Table 1.

EN 13816-Transportation-Logistics and services -Public passenger transport service quality definition, targeting and measurement.
This standard [8] is mainly focused to promote a quality approach to public transport and focus interest on customers' needs and expectations.This standard collect the quality criteria representing customer view of the service provided divided into eight categories.It can be considered that there are three of them directly related with vehicle maintenance: comfort, security and environmental impact.That general quality criteria are subdivided on more specific items and for those selected previously the next Table 2 present the most important ones from the point of view of authors related with maintenance.

Others indicators at interna tional level
A deep review has been performed on scientific papers published, consultancy works, Transport associations, good practices, etc. Next, a summary of the most relevant documents found related specifically with urban transport fleets are presented on Table 3.
Most documents reviewed present a lot of indicators for a complete fleet management, ranging from general company International Bus System Benchmarking: Performance Measurement Development, Challenges, and Lessons Learned.[22] International Bus Benchmarking Group (IBBG) The IBBG is a comprehensive programme of benchmarking urban bus operations.Currently the consortium is made up of 16 medium and large bus organizations located around the world.
2004 UK management, customer satisfaction, security, finance, environmental aspects and maintenance.Some of them are very similar, with just a little variation on the definition attending mainly to the data availability in order to obtain the indicator.For this work, authors have just considered those related with maintenance at economic and technical level.Next, a summary can be observed in Table 4 with those indicators mainly considered and a number representing how many times appears on the ten previous literature sources considered: It is necessary to mention that the Life Cycle Cost (LCC) more than an indicator is a tool in order to help the decision makers to define if a fleet renovation is required based on real data.

Key Parameters Selection
After a deep revision of the state of the art, it is necessary to take into account that KPIs selected must led us to quantify the maintenance process to control and assess its performance and must contribute to process improvements and also for helping decision makers.With that initiative, it would be possible to apply a continuous improvement policy and define control boundaries and "non conformity" limits, with cause's analysis and solutions definitions.
Some major characteristics must be accounted for KPIs selection and definition in order to assure future usability and validity and consequently to obtain a clear, relevant and reliable indicator: Easy and quick procurement of data involved on the indicator.As it can be seen, authors have tried to avoid a vast number of indicators that consequently requires an extensive amount of human resources and financial budget and which may not be feasible for a long-term process.Furthermore, the indicators defined as advanced can be used or bring into play after a first approach with more simple indicators and training people involved on that process, in order to assure success on that more difficult performance metrics.

Indicators definition
Right now, the proposed indicators are going to be defined in a detailed way in order to be comparable between different fleet companies in future benchmarking activities.Attending that data can be obtained by different ways, different alternatives will be defined for a same indicator (if required) that will be noted with different sub index.
For an easier process, we are going to use a record card that will help for simple calculus and future auditing.Target value Target value should be between 6 and 7 years depending on the optimal fleet replacement value obtained by the LCC analysis.

Calculus frequency Annual
Additional comments Average age can be obtained per vehicle models or types and even define different target values depending on that differences assuming a specific LCC analysis.

Calculus frequency
Monthly measurement and annual monitoring and assessment attending the indicator seasonality.

Additional comments
That is a parameter that led us to assess the maintenance efficiency and could be very useful for abnormal situation detection considering that there a lot of different factors affecting it.That parameter of maintenance cost per kilometer and all of the costs considered sorted by different items such as models or vehicle technology can be very useful to help in strategic company decisions.

Availability
Name DS-Availability Definition Percentage indicator representing the time that vehicle is available to perform as and when required for fleet service.
Formulae 1 1 1 100 % total time for vehicles inmobilizationin hours DS x total vehicles fleet required timein hours 100 % total time for vehicles inmobilizationin days DS x total vehicles fleet required timein days Target value Target value should be higher than 90% and can be considered optimum at 95%.

Calculus frequency Monthly
Additional comments That is a great indicator to assess the maintenance policy and management efficiency.Additionally, some variations could be defined for considering vehicles on reserve, vehicles on demand, etc.

Failures per 10.000 km
Name KA-Failures per 10.000 km Definition That is a typical indicator for transport fleet representing the inverse of MTBF.Failures computed are all those that send the vehicle to the workshop and are no related with preventive or predictive maintenance activities.Target value Target value should be lower than 2 and can be considered optimum between 1 and 1.5 failures/10000 km.

Calculus frequency
Monthly but annual monitoring and assessment annual attending that there is a seasonality effect.

Additional comments
That indicator can be customized o modified to obtain more specific info such as: failure type (mechanical, electric, etc.); by vehicle model or powertrain, for a specific period of time or mileage, so on.

Accidents per 10 000 km
Name SN-Accidents per 10 000 km

Definition
That indicator computes all the accidents reports performed during service for the complete fleet.Typical indicator must take into account all the accidents reports; but for maintenance assessment it can be considered a slightly modification, considering just those reports related with accidents derived from a vehicle failure such as: brakes, direction and suspension, so on.

Target value
Target value should be defined as a trend, trying to obtain energy consumption reduction as a consequence of fleet renewal or fuel consumption reductions initiatives.

Calculus frequency
Monthly measurement and annual monitoring and assessment attending the indicator seasonality.

Additional comments
That parameter also can be estimated sorting by vehicles models or manufacturers, and additionally can be referred not just to mileage and also to users or passengers transported leading to possible benchmarking comparison with similar companies.
Target value Target value should be defined as an annual reduction target depending of the fleet renewal and other programs for fleet fuel efficiency improvements.

Calculus frequency
Monthly measurement and annual monitoring and assessment attending the indicator seasonality.

Additional comments
That parameter assess the environmental fleet impact and can be sorted by vehicles types and/or models and also be referred to mileage performed or travelers transported for future benchmarking activities.

Target value
Attending that this parameter can be affected by so many factors such as: vehicle age, vehicle type, etc.; it is suggested to perform a trending analysis.

Calculus frequency
Monthly measurement and annual monitoring.

Additional comments
MTTR is a technical indicator for maintenance management and led us to obtain as estimation of vehicles maintainability sorting by models or vehicles types.

Maintenance delay
Name RT-Maintenance delay Definition That indicator quantifies the delay regarding real preventive maintenance actions and the theoretical referred to the base reference period for preventive maintenance action expressed in terms of engine oil drain period. Formulae

Target value
Target value must be lower than 15% and could be optimal lower than 5%.

Calculus frequency
Monthly.

Additional comments
That indicator should be assessed in combination with other ones such as: maintenance fulfilment.

Optimal vehicle period replacement
Name ER-Optimal vehicle period replacement Definition That indicator determines the optimal moment for a vehicle replacement using a Life Cycle Cost Analysis (LCC).
Formulae TR 1 For this indicator, calculus cannot be performed in just one equation.Authors suggest some bibliography for development.[7,17] Units Years with two decimals (xx.xx years)

Target value
Value obtained by LLC analysis.

Calculus frequency
Monthly measurement and annual monitoring and evaluation.

Additional comments
That indicator must be obtained for each vehicle model on the fleet, attending that there are differences between them than can led to different optimum value for each model.
sciENcE aNd tEchNology

Balance scorecard proposal
Attending the previous parameter definition and some important comments, next it is presented a balance scorecard proposal for fleet companies (Table 6).

Conclusions
This work has presented a balanced scorecard approach for maintenance management in urban transport fleets.Although the BSC defined has not presented the KPIs explicitly in the classical classification attending: financial, costumers, environment, so on, they are presented in an implicit manner.Attending the modern society requirements for a sustainable mobility and the huge importance for that related with urban transport companies in cities, that approach is a contribution step for reaching expected targets.This proposal must be understood such a basis for a subsequent benchmarking approach based on the indicators proposed leading to exchange good practices and collaborations in areas of common interest between different urban transport companies both private and publics.The final target of that work must be understood as defined by Wireman "performance measurements, when used properly, should highlight opportunities for improvement, detect problems and help find solutions" [26].

Table 1 .
Definition of KPIs (following EN 15341) more suitable for urban transport fleets

Table 2 .
Quality criteria and sub-items more related with Maintenance aspects in urban transport fleets

Table 3 .
Summary of the most relevant documents managed for that study

Table 4 .
Summary of indicators presence on different international studies.Higher presence is a clear clue of relevance and meaningful Note (*).These parameters are fleet operational data but are required for assessment and monitoring of other keyindicators.

Table 5 .
Main parameters defined for BSC proposed

Number of vehicles per maintenance personnel
Parts costs related directly to vehicles (not included fuel and ad-blue that are considered operational costs).MAC-General parts.General parts costs not related with specific vehicles such as screws, rags, air conditioner refrigerant charge, etc. ACN-Lubricants, cooling liquid and tires.ITG-Legal required inspections.Cost relates with complimentary legal inspections to be performed on vehicles plus other ones required for some specific design (for instance, high pressure deposit inspection for CNG vehicles).Target valueAttending that it will depend on several factors such as: fleet age, type of vehicles, etc.; it should be obtained trends and minimum and maximum values to define a target value.
Name CM-Maintenance cost per kilometer Definition That is the cost for manpower, parts and legal inspections fees devoted to maintenance.It would include: MOD-Direct manpower.Manpower directly related with corrective, preventive, condition monitoring or modification in vehicles.It could be included vehicles cleaning and refueling although usually are externalized tasks it is highly recommended consider it in other specific item.MOI-Indirect manpower.Manpower cost considered but not directly referred to a vehicle such as: maneuvers drivers, interchanging parts repair, so on.TEX-External workshops.Costs related with maintenance actions performed on external workshops and not included in other items (such tires or legal inspections) MAT-Parts.Units Euros (€) per kilometer including 4 decimals (xx.xxxx €/km)

Energy consumption kWh/100 km (Diesel, CNG, Hybrid or Electric)
Calculus frequencyMonthly but annual monitoring and assessment annual attending that there is a seasonality effect.Additional commentsThat indicator can be specified for more accurate analysis by parameters such as: vehicles models, service line, for a specific period of time or mileage, so on.the preventive maintenance program execution versus planning, giving an indication of how far is the real situation versus ideal or complete fulfilment of that program.

4.3.2. Total CO 2 emissions
be obtained following the EN 16258 standard (Methodology for calculation and declaration of energy consumption and GHG emissions of transport services (freight and passengers)).It should be considered emissions at local level that is referred as tank to wheel and using conversion factors depending on the fuel in use.
That indicator is computed in a discrete way adding all repair times (in hours or days) used on corrective maintenance and divided by the number of failures.Repair time have to consider parts unavailability time.Preventive, predictive or modification activities are not computed as a repair.

Table 6 .
Final structure for the BSC defined