bpr in pakistan railways
TRANSCRIPT
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