Assessing the technical efficiency, service effectiveness, and technical effectiveness of the world’s railways through NDEA analysis

This paper presents an approach to include both the unstorable feature of transportation service and the technological differences within railway companies in efficiency and effectiveness measurements. We explore efficiency and effectiveness for a group of 40 global railways in the year 2002, using traditional data development analysis (TDEA) and network data development analysis (NDEA). Comparing the results obtained from the NDEA model with those from the TDEA indicate that performance measures are quite different in terms of the magnitude, and even using different DEA type models to evaluate railway system performance does not distort the ranking of their performance. We also analyze the inter-related effects among three performance measures, finding that transportation service characteristics have positive effects on the evaluation of performance. Generally speaking, the NDEA model provides deeper insight regarding the sources of inefficiency and process-specific guidance to railway managers so as to help them improve their railway’s performance.     

Estimating the inefficiency in the Norwegian bus industry from stochastic cost frontier models

A stochastic cost frontier function based on data from 170 of the 175 Norwegian subsidized bus companies is estimated under two alternative presumptions regarding the distribution of the inefficency among the bus operators. When the inefficiency is assumed to be half-normally distributed, the average inefficiency in the industry is estimated to be 13.7 per cent. This calculated value is nearly halved (7.2 per cent) when the exponential distribution is applied, while the ranking of the companies according to inefficiency is unchanged. By regressing the estimated inefficiency values for each company on some exogenous variables describing its ownership structure and the subsidy policy which it faces, it is seen that inefficiency of the companies which negotiate with the public authorities over the subsidy amounts is slightly higher than the inefficiency of the companies which face a subsidy policy based on cost norms. Our analysis gives, however, no significant differences in the efficiency between privately owned bus companies and publicly owned bus operators, and shows only minor economies of scale.     

A data envelopment analysis model for evaluating the performance of taxi operators: a case study in Harbin,China

ABSTRACT

This paper measures the performance of taxi operators using data envelopment analysis (DEA) and the improvement of performance based on benchmarks. This includes basic DEA models and a cross efficiency model. In the present work, a sample set of 20 taxi operators are considered, and an evaluation indicator framework is constructed, which mainly involves the identification of decision-making units (DMUs) and the determination of input-output variables. The combined results of multiple DEA models are used to evaluate the performance of taxi operators in a case study of Harbin. The results highlight the significance of the combined application of multiple DEA models, especially a cross-efficiency model that can obtain more objective efficiency values. Finally, the benchmarking method is used to capture the achievements of best-performing operators and provide valuable improvement recommendations for inefficient operators. Conclusions provide a suitable basis for the operation and management of the taxi market.     

How to assess sustainability of suppliers in volume discount context? A new data envelopment analysis approach

In this paper, we reformulate conventional data envelopment analysis (DEA) models and propose a novel method for evaluating sustainability of suppliers in the presence of interval volume discount offers, fuzzy data, and ordinal data. To this end, we convert all data into interval data. To convert fuzzy data into interval data, we use nearest weighted interval approximation by applying weighting function and we convert each ordinal data into interval one. Then, using enhanced Russell model, interval efficiencies are obtained. After that, using preference degree approach, we rank suppliers. Finally, a case study is presented to illustrate our proposed approach.     

Performance indicator analysis: A management tool for the improvement of bus transit operation in Bangkok

This paper intends to demonstrate that the performance indicator analysis technique can be successfully used as a diagnostic tool to identify operational inefficiency and ineffectiveness at the route level of transit operation. The technique has been applied on 14 bus routes of Bangkok Mass Transit Authority to reveal the inter-route differences in operational efficiency and effectiveness. Twenty performance indicators relating to costs of services, fuel consumption, staff ratio, crew productivity, fleet utilization, service output per bus, daily revenues, etc., were selected to represent the resource efficiency, resource effectiveness and service effectiveness of the bus system. Results of the analyses revealed that considerable variations existed across the routes against many of these 20 selected indicators. These included variations in terms of labor and capacity utilization, maintenance expenditure, etc., many of which can be improved through suitable managerial measures. Based on these findings, specific recommendations have been made for improvement in the deficient areas that are considered to be within the operator domain. These indicators also provide a basis for comparison over time, with other operators and standards. A ranking scale was also developed to determine the over all attractiveness of the routes.     

Non-parametric analyses of efficiency of airports

This paper estimates the efficiencies and productivity changes of 12 international airports in the Asia-Pacific region based on data from 1998 to 2006. We apply stochastic frontier analysis (SFA) to compute efficiency estimates and use the Malmquist productivity index (MPI) to analyze productivity changes. We use the SFA model with a translog-type production function after testing the statistical hypotheses. According to the results of the SFA hypothesis tests, airports have experienced a technological regression; the deviations from the efficiency frontier are caused more by technical inefficiency than random noise. However, the inefficiency was found to decrease. The MPI reveals a declining trend resulting more from technological change than from efficiency change, with a decrease in inefficiency. Taken together, both the hypothesis tests and the MPI not only provide consistent conclusions, but also suggest that airports should concentrate on technological progress.     

Performance based clustering for benchmarking of US airports

Managing service operations is gaining significant attention in both academic and practitioner circles. In this broad area, performance evaluation and process improvement of airlines and air carriers has been the focus of several studies. Although efficient airport operations are critical for improved performance of airlines and air carriers, few studies have focused on airport performance measurement. This study evaluates the operational efficiencies of 44 major US airports across 5 years using multi-criteria non-parametric models. These efficiency scores are treated by a clustering method in identifying benchmarks for improving poorly performing airports. Efficiency measures are based on four resource input measures including airport operational costs, number of airport employees, gates and runways, and five output measures including operational revenue, passenger flow, commercial and general aviation movement, and total cargo transportation. The methodology presented here can be generalized to other industries and institutions.     

Port privatization,efficiency and competitiveness: Some empirical evidence from container ports (terminals)

Few studies have investigated the quantitative relationship between port ownership structure and port efficiency with mixed results. This study applies a stochastic frontier model proposed by Battese and Coelli [Battese, G.E., Coelli, T.J., 1995. A model for technique inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20, 325–332], which incorporates the inefficiency effect, to show whether port privatization is a necessary strategy for ports to gain a competitive advantage. While this stochastic frontier model has been used to a wide number of industries where the technical inefficiency effect is required, this method has rarely been employed to port industry. This study also investigates the determinants of port competitiveness. Both the principal component analysis (PCA) and the linear regression model are used to examine the effects of identified key factors on port competitiveness. Based on a sample of selected container terminals around the world, the results of this study have shown that private sector participation in the port industry to some extent can improve port operation efficiency, which will in turn increase port competitiveness. Another important determinant of port competitiveness is the adaptability to the customers’ demand. All these results provide some policy implications and guidance for port authorities and port operators in formulating effective strategies to improve their competitiveness vis-à-vis rivals.     

Performance assessment of transport services with the ERM-NDEA model: evidence from a domestic airline in Taiwan

Abstract

This paper estimates comprehensive operational performance measures for transport services. A network efficiency approach is used to analyze the production efficiency, service efficiency, and operational efficiency in a unified framework to reflect the transportation service characteristics of airline operations. We show how a modified version of the network data envelopment analysis model can be utilized for evaluating the performance of air route operations. This study considers 15 air routes operated by a domestic airline in Taiwan to highlight the value of the approach. The results of the analysis show the inputs and consumed outputs leading to production inefficiency and service inefficiency respectively as well as the magnitudes of excesses and shortfalls.     

Measuring production and consumption efficiencies using the slack‐based measure network data envelopment analysis approach: the case of low‐cost carriers

One of the most important outcomes of the deregulation of air transportation policy is the emergence of low‐cost carriers (LCCs) around the world. Although LCC airlines have been in operation for more than 30 years, not every LCC is successful. In order to reduce the inefficiencies of LCCs, this paper measures the performance of LCCs by using slack‐based measure network data envelopment analysis. This model combines both the production process with input orientation and the consumption process with output orientation into a unified model. Furthermore, envelopment map analysis LCCs are performed to determine the reasons for the LCCs' inefficiency and how improvements can be made. A sample of 16 low‐cost airlines from Europe, the USA, and Asia were selected for operational performance analysis. The results show that the main reason for easyJet's, US Airways', and Virgin Blue's inefficiency is production inefficiency, so these LCCs should reduce their input quantities to increase efficiency. Jet2, Aer Lingus, and JetBlue were, by contrast, found to be consumption inefficient; these LCCs should increase their output quantities in order to enhance performance. Copyright © 2012 John Wiley & Sons, Ltd.     

A scalable non-myopic dynamic dial-a-ride and pricing problem for competitive on-demand mobility systems

We propose a competitive on-demand mobility model using a multi-server queue system under infinite-horizon look-ahead. The proposed approach includes a novel dynamic optimization algorithm which employs a Markov decision process (MDP) and provides opportunities to revolutionize conventional transit services that are plagued by high cost, low ridership, and general inefficiency, particularly in disadvantaged communities and low-income areas. We use this model to study the implications it has for such services and investigate whether it has a distinct cost advantage and operational improvement. We develop a dynamic pricing scheme that utilizes a balking rule that incorporates socially efficient level and the revenue-maximizing price, and an equilibrium-joining threshold obtained by imposing a toll on the customers who join the system. Results of numerical simulations based on actual New York City taxicab data indicate that a competitive on-demand mobility system supported by the proposed model increases the social welfare by up to 37% on average compared to the single-server queuing system. The study offers a novel design scheme and supporting tools for more effective budget/resource allocation, planning, and operation management of flexible transit systems.     

A simulation-based vessel-truck coordination strategy for lighterage terminals

Lighterage contributes significantly to the maritime industry since thousand tons of necessary supplies have to be delivered to mother vessels anchored near sea every day. A single lighter waits to receive cargoes from multiple suppliers at the berth, while the trucks wait for their turns to enter the terminal. Due to the limited space, the terminal operation becomes vulnerable to the lack of coordination of their arrivals. In this study, despite a traditional industry, we are interested in applying the emerging technologies to improve the operation efficiency. We develop a simulation-based coordination strategy to construct coordinated schedules for both the lighters and suppliers to reduce congestions in the lighterage terminal The discrete event simulation model is developed based on understanding the real-world terminal in Singapore, and the controlled arrival method, determining coordinated arrival schedules of trucks, is introduced and embedded to the simulation model. The simulation model is tuned up with a benchmark setting of 6-month historical data. To find the optimal strategy, an advanced bi-objective simulation optimization algorithm is employed. According to our findings, the proposed strategy could significantly improve the efficiency of both lighters and trucks in various indicators. At the end, a mobile application prototype is proposed to deliver the coordinated schedules to different parties, and improve the communication between parties.     

Transportation and economies of scale in recycling low-value materials

This study investigates the economic incentive-drivers used in various configurations in green supply chains. The configurations of competitive suppliers and integrated transportation are studied for recycled materials with low economic value but high environmental impact. Arguments are embodied in a competitive game that manifests interactions among competing manufacturers, suppliers of virgin materials, suppliers of recycled materials, and the government. Because of market size and technology limitation, long hauling to few remote treatment facilities is observed in practice. Demand-dependent transportation efficiency arisen from economies of scale thus affects the equilibrium states in the game of this recycling system. Managerial insights are provided to encourage the use of low-value recycled materials. A tax-subsidy system is conditionally effective when using recycled materials maintains quality. When quality becomes compromised by mixing recycled materials, we find that integrating suppliers of recycled materials with those of virgin materials can make the tax-subsidy system effective again.     

The benefits of a monitoring strategy for firms subject to the Emissions Trading System

This study tests the impact of Internal and External Environmental Management on performance in firms subject to the European Union’s Emissions Trading System (ETS). A conceptual model is drawn up based on the existing literature, and tested on a large sample of Italian firms. The unit of analysis is single firms subject to the ETS that are involved in Green Supply Chain Management (GSCM). The ETS mechanism has been shown to be marginally beneficial for some firms while supply chain relationships are also influenced by such system. Firms need to identify suitable practices to boost the effectiveness of their environmental strategies. We propose the implementation of a monitoring strategy as a useful practice for firms to be environmentally and economically better off. Our results show that firms subject to the ETS should rely on their own (internal) Environmental Management alone for improving environmental performance, as collaboration with suppliers only has a positive impact on economic performance. However, implementation of a monitoring strategy allows a firm subject to the ETS to partially offset the inefficiency created by the system. We show that environmental collaboration does not become more effective when a monitoring practice is put in place.     

An integrated sea–land transportation system model and its theory

To enhance the efficiency of intermodal transportation for large quantities of goods, the current sea–land transportation system has been reviewed and systematically analyzed, and a bottleneck is pinpointed in the linkage or goods transfer between the waterway and railway. The bottleneck impacts the efficiency of the goods through transportation combining the two modes. To eliminate the existing bottleneck and inefficiency towards intermodality, a new type of flexible double-rail track has recently been invented together with innovations both in trestle bridges and in train ferries. The outcomes of the research in progress show that the flexible double-rail track is feasible from the viewpoints of both geometry and engineering mechanics, it can be used to improve the compatibility of a trestle bridge with various types of train ferries and hence it can support the development of train ferries on a large scale. Based on the innovations, an integrated sea–land transportation system model is proposed as a systematic solution, which is expected to effectively overcome the existing bottleneck and to enhance the efficiency of the whole sea–land combined transportation. Further research on this system model and its major components is also addressed in the paper.     

Organisation form,scale effects and efficiency in the British bus industry

The British bus industry is examined in light of fundamental reform in ownership and regulation. The industry is divided between privately and publicly owned companies, with the private sector further split between publicly listed owned subsidiaries and private limited companies. The change in ownership structure since privatization is analysed, and Data Envelopment Analysis used to estimate the extent of returns to scale and technical efficiency, as defined by one output and three inputs. Technical efficiency is further divided into managerial and organisational components, and comparisons made of median efficiency levels using a Mann Whitney statistical test.Increasing returns to scale are found for smaller companies, but the size of such returns varies with the company type. A minimum efficiency scale is identified, with constant returns above this point. A high degree of technical inefficiency is found to be present in the industry, which may initially suggest a lack of competition and reflect the oligopolistic structure that has emerged since privatisation. Privately owned companies are identified as more technically efficient, however this is due to significantly less organisational constraints, and considerable managerial inefficiency exists in this group. It is finally concluded that the high level of inefficiency may not reflect ownership, but rather industry characteristics, and rather than a lack of competition may be indicative of wasteful competition. It is suggested therefore there may be a need to make the market contestable rather than openly competitive.     

Multi-criteria analysis of optimal signal plans using microscopic traffic models

Increasing concerns on environment and natural resources, coupled with increasing demand for transport, put lots of pressure for improved efficiency and performance on transport systems worldwide. New technology nowadays enables fast innovation in transport, but it is the policy for deployment and operation with a systems perspective that often determines success. Smart traffic management has played important roles for continuous development of traffic systems especially in urban areas. There is, however, still lack of effort in current traffic management and planning practice prioritizing policy goals in environment and energy. This paper presents an application of a model-based framework to quantify environmental impacts and fuel efficiency of road traffic, and to evaluate optimal signal plans with respect not only to traffic mobility performance but also other important measures for sustainability. Microscopic traffic simulator is integrated with micro-scale emission model for estimation of emissions and fuel consumption at high resolution. A stochastic optimization engine is implemented to facilitate optimal signal planning for different policy goals, including delay, stop-and-goes, fuel economy etc. In order to enhance the validity of the modeling framework, both traffic and emission models are fine-tuned using data collected in a Chinese city. In addition, two microscopic traffic models are applied, and lead to consistent results for signal optimization. Two control schemes, fixed time and vehicle actuated, are optimized while multiple performance indexes are analyzed and compared for corresponding objectives. Solutions, representing compromise between different policies, are also obtained in the case study by optimizing an integrated performance index.     

Using the sustainability footprint model to assess development impacts of transportation systems

A review of the sustainability literature reveals the lack of viable frameworks and management tools that can be used to accommodate both spatial and temporal variability in how stakeholder entities meet their sustainable development goals, taking into account the fact that different entities may need to pursue different priorities and also deal with different constraints and schedules at different stages of their development. This paper presents a sustainability footprint framework and model that may be used in analyzing the impacts of transportation and other infrastructure systems on regional sustainable development. A specific application of the framework is in the quality of life contributions that transportation systems may make to communities as a function of their impacts on natural assets that contribute inputs and absorb the byproducts of development. The application is illustrated in a case study that uses data from the Atlanta and Chicago Metropolitan Areas to demonstrate how this model may be applied in real life situations. The implications of this model for transport systems research, policy and practice are discussed. The value of this framework and model lie in introducing both spatial and temporal flexibility that may enable stakeholders with widely different priorities to reach consensus on interim goals for sustainable development to ultimately attain sustainability.     

The performance of route modification and demand stabilization strategies in stochastic vehicle routing

A key concern in managing vehicle routing operations under stochastic demands is whether, on the basis of travel distance, route modification yields materially greater logistical efficiency than fixed routes. This research uses statistical calibration as the primary technique to develop a robust and tractable model for estimating this difference in logistical efficiency. Based on features such as the models predictive accuracy and generalizability, it constitutes a substantive improvement over existing models. The present study also expands the range of predictive models relevant to vehicle routing under stochastic demands with models to estimate the transportation and inventory effects of persuading customers to stabilize their ordering patterns.     

Deciding whether and how to improve statewide travel demand models based on transportation planning application needs

Many states in the USA have developed statewide travel demand models for transportation planning at the state level and along intercity corridors. Travel demand models at mega-region and provincial levels are also widely used in Europe and Asia. With modern transportation planning applications requiring enhanced model capabilities, many states are considering improving their four-step statewide demand models. This paper synthesizes representative statewide models developed with traditional four-step, advanced four-step, and integrated micro-simulation methods. The focus of this synthesis study is as much on model applications and data requirements as on modeling methods. An incremental model improvement approach toward advanced statewide models is recommended. Review findings also suggest model improvement activities should be justified by planning application needs. For statewide model improvement plans to be successful and financially sustainable, the return on model improvement investment needs to be demonstrated by timely applications that rely on improved model capabilities.