AbstractThis 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 route
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