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BPR in Pakistan Railways

BPR in Pakistan Railways

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Published by: salman2605751 on Jun 14, 2009
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11/09/2012

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PAKISTAN

RAILWAYS

To-Be Design
KPIs

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)

To-Be Design
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

Process Mapping (To Be Design)

Cost of To-Be Design
People awareness program cost Construction of new lines (500) upgrade (4000) (Thousands) 29150 20000000 30000000 1500000 9000000 8743500 10000000 79272650

Cost reduction process (Externally) Police and security Fencing through out railway line cost Under pass

between 5-12 km (1000) -

Total Development Cost

People Awareness Program
Route Kilometer Railway Track Now No. of person employees – Responsibility Kilometers 7791 11658 1166 (Approx.) 5-10 Kms

Job Description (People education About railway) Salary per person- 25000 Total Cost29150000 (PKR)

Track Improvement
ØConstruction of New Line from Multan to Quetta and complete Link between Quetta and Peshawar. Cost 20000000 Completion time 1 year ØImprovement of existing lines Cost 30000000 Completion time 1 year

Cost Reduction process
Should be done externally Time will be 1 year ØEliminate redundant and ghost employees ØCost 1500000(thousands) Completion time 1 year Pension payment/year Cost of employees/year After cost reduction process Reduction in pension 40% Reduction in salary 30% 1745788 2824263 4364471 9414211

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

Police and security Improvement
ØImprove security through out the track ØBenchmark Pakistan Motorway Police Ø Cost 9000000 (thousands)

Underpasses
ØMake under pass average after 5-10 kilometers ØTo doesn’t become hurdle for ØRoad traffic ØCost 10000000 (thousands)

Fencing through out Rail Track
ØTo 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 services
Average per ton per kilometer Pak Rps Market rate transportation by road Pakistan railway is charging 3

Approx 1 rupees /km

Pakistan railway will charge rupee / km

1

Passenger Business
Average rate charge to kilometer Passenger from road traffic Per kilometer Average rate charge by kilometer Railway to passenger Pakistan railway will charge kilometer 1.5 per

0.48 per

0.5 per

Year first
(thousands)

Total Profit / Loss Operation cost reduction after Cost reduction process 11582333

(-)16854789 5272456

Second Year
(thousands)

Profit or loss

(-)11582333

Revenue earned

From private investors In freight business Charging 1 Rps per ton / km

3093650

Reduction in operational cost 4686564 Profit and loss

1592914

(-)6895769

Third Year
(Thousands)

Profit and loss Revenue from passenger Buss.
Private investor Charging 0. 5 / kilometer

(-)6895769 6182682

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

3283465 1422440

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 implementation
Two phase implementation 2) 3)
  

Railway track fencing & new tracks addition(19 months) 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

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

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