bpr in pakistan railways

PAKISTANRAILWAYS

To-Be DesignKPIs Travel time as a % of total planned time

(Travel time as a percentage of total planned time. Minimum.)

IT to Total Employees Ratio (Max)

No of reservations per hour 10 persons(Avg)

Simplified reservation process by

computerization

Fixing inside problems of each compartment

Complete bar through out the rail track

Underpasses after every 10 kilometer

Improve and make new railway Lines

Improve Police and Security arrangements

To-Be Design

Process Mapping (To Be Design)

Cost of To-Be Design (Thousands) People awareness program cost - 29150

Construction of new lines (500) - 20000000

upgrade (4000) - 30000000 Cost reduction process (Externally) - 1500000

Police and security - 9000000

Fencing through out railway line cost - 8743500

Under pass between 5-12 km (1000) - 10000000

Total Development Cost - 79272650

People Awareness ProgramRoute Kilometer - 7791

Railway Track Now - 11658

No. of person employees – 1166 (Approx.)

Responsibility Kilometers - 5-10 Kms

Job Description (People educationAbout railway)

Salary per person- 25000

Total Cost- 29150000 (PKR)

Track ImprovementConstruction of New Line from Multan to Quetta and complete Link between Quetta and Peshawar.

Cost 20000000 Completion time 1 year

Improvement of existing lines

Cost 30000000 Completion time 1 year

Cost Reduction processShould be done externallyTime will be 1 yearEliminate redundant and ghost employees

Cost 1500000(thousands)

Completion time 1 year

Pension payment/year - 4364471Cost of employees/year - 9414211

After cost reduction process

Reduction in pension 40% - 1745788Reduction in salary 30% - 2824263

Save amount from pension 4570051and salary costReduction in operating expense - 702405 Total amount save in a year - 5272456

Police and security Improvement

Improve security through out the track

Benchmark Pakistan Motorway Police

Cost 9000000 (thousands)

Underpasses

Make under pass average after 5-10 kilometers

To doesn’t become hurdle for Road traffic

Cost 10000000 (thousands)

Fencing through out Rail TrackTo enhance the speed and end railway line

Violation by the people

Cost 8743500 (thousands)

Marketing Activity to cater private Investor (companies) Attracting private investor foreign and local companies

Freight servicesAverage per ton per kilometer 3 Pak RpsMarket rate transportation by road

Pakistan railway is charging Approx 1 rupees /km

Pakistan railway will charge 1 rupee / km

Passenger Business

Average rate charge to 1.5 per kilometer Passenger from road trafficPer kilometer

Average rate charge by 0.48 per kilometerRailway to passenger

Pakistan railway will charge 0.5 per kilometer

Year first (thousands)

Total Profit / Loss - (-)16854789

Operation cost reduction after 5272456 Cost reduction process

11582333

Second Year (thousands)

Profit or loss (-)11582333

Revenue earned 3093650From private investorsIn freight businessCharging 1 Rps per ton / km

Reduction in operational cost 1592914

4686564

Profit and loss (-)6895769

Third Year (Thousands)

Profit and loss (-)6895769 Revenue from passenger Buss. 6182682 Private investorCharging 0. 5 / kilometer

Reduction in operational cost 3283465

Reduction in operational 10% 1422440Cost reduction due to people Education program and Reservation process

10888587

Profit and loss 3992818 Profit

Barriers

Government itself a barrier Change management aspect Communication gap Lack of resources (Financial , human, etc) Management is not supportive Regional differences Lack of education of personnel

Addressing Barriers

Design a training program for employees (region wise)

Promote education among employees or build knowledge organization

Pay for performance Hire skilled staff for each department

Key Actors

Change Agents (person or group which gives a new vision and initiates a change)

Sponsors (people who supports the change and provide resources for it)

Advocates (people who advocate the change but may not necessary provide resources for it

Catalyst (people who invest their time and energy to make the change happen) or Internal Managers

Organizational changes needed to support BPR

Qualified top Management team Department wise change Hire BPR team of Specialists & change

agents Eliminate Corruption Interdepartmental Computerization

Technology Support Replace obsolete existing computers with new one Install digital display for Arrival & Departure timings

(LCD Terminals) Use Unix based server & Sybase database for

recording customers information The service will be further enhanced as the data will

also be available on cell phones through SMS/IVR (interactive voice response) service around the clock

Railways’ Train Monitoring system as well as through GPS technology for error free data directly from locomotives.

Cont. Further step was e-tickets, for which you just need to

carry printout of ticket and a photo-identity of one of the traveler. This was really convenient. Book your ticket in advance and take printout when ever required

The next major step was to start Pakistan Railways website and online reservation. It was very convenient to book your railways ticket online and get them delivered to your place in one day with some extra charge which is easy to bear if you do not want to be part of a big queue at reservation center.

To Be implementationTwo phase implementation

1) Railway track fencing & new tracks addition(19 months)

2) 2)Computerization(05 months) Require managing a massive amount of information about the processes data

and systems Step by Step change and radical change is required Use of a good BPR/documentation tool is vital

for success Effective communication at each level is mandatory Organizational Behavior must be considered

Complete business proposal to government to take funds of

79272650(thousands)

Government plan to invest in Pakistan railways with amount of

142400000 (thousands)

Dated 10-06-2009

Source : Daily times

Impact of BPR

Customer satisfaction will improve a lot Increase revenue Human Safety will improve and accidents

reduce Greater control on the operations Standardization of processes and procedures Efficiency increase