i PERFORMANCE INDICATORS FOR THE HIGHWAY NETWORK IN SRI LANKA MASTER OF SCIENCE W.J .WEERAWARDANA DEPARTMENT OF CIVIL ENGINEERING UNIVERSITY OF MORATUWA SRI LANKA JULY 2008 ii PERFORMANCE INDICATORS FOR THE HIGHWAY NETWORK IN SRI LANKA W.J.WEERAWARDANA (This thesis was submitted to the Department of Civil Engineering of the University of Moratuwa in partial fulfillment of the requirements for the Degree of Master of Science) Supervised By Prof. Amal S. Kumarage Department of Civil Engineering University of Moratuwa Sri Lanka July, 2008 iii DECLARATION I declare that the work described in this thesis, except where otherwise stated, is entirely my own work and has not been submitted for a degree, at this or any other university. …………………………………….. W.J Weerawardana …………………………………….. Prof. Amal S. Kumarage iv ABSTRACT Highway construction projects go through several processes such as appraisal, design, planning and construction before they reach the operational stage where the project goals intended at the beginning of the project are delivered. A process of a highway project is defined as the collection of all the activities engaged in producing outputs and outcomes through the mechanism of process function by using its inputs. Also these components such as inputs, outputs, outcomes, and process function are considered as the process attributes for the process under consideration. Road sector stakeholders such as government, administrators and road users should play crucial roles in the functional aspects of each of the afore-mentioned processes. In the execution of these processes some of stakeholders are required to provide different types of inputs such as finances, labor and machinery etc. to achieve the target outputs and outcomes of the particular process, while others become the recipients of the outcomes of each of the processes of the project. Therefore the stakeholder involvement and the characteristics of process attributes become critical parameters in determining the performance of a particular process and also the entire project. This thesis develops a paradigm for the stakeholder involvement and characteristics of process attributes for the performance evaluation of each of the process contributing to the progression of project starting from the conception of the project idea until the project goals are delivered at operational stage. Outcome of this thesis is to lay the theoretical platform for the performance evaluation of each of the processes as well as the entire project. For this purpose performance indicators and evaluation functions for each process are developed with respect to the perspectives of each stakeholder. An example with numerical application is presented at the end of the thesis to demonstrate the potential use in an actual road project. Keywords: Process Attributes, Performance Evaluation, Performance Indicators v ACKNOWLEDGEMENT I expressed my sincere gratitude to my supervisor Prof. Amal S Kumarage, for the guidance and encouragement given me for the completion of my work. I am indeed grateful to Senate Research Grant of University of Moratuwa for the support given me to obtain financial assistance for the research work. My appreciation would be incomplete, if I do not mention the support and help extended to me by Mr. R.M. Amarasekara, Planning Director, Road Development Authority and Mr. G. Bandara, Deputy Planning Director, Road Development Authority. I extend my heartfelt gratitude to the staff of the Division of Transport Engineering, University of Moratuwa for their assistance given throughout the research work. Finally, my special thanks go to my dearest mother, brother and wife for their constant encouragement and support extended throughout the study to make this research a reality. -WJ Weerawardana vi TABLE OF CONTENT 1. INTRODUCTION..........................................................................................................1 1.1. NECESSITY OF ROAD SECTOR PERFORMANCE EVALUATION ........................................1 1.2. INDICATOR BASED PERFORMANCE EVALUATION AND ITS COMPLEXITY ......................2 1.3. REVIEW OF INTERNATIONAL PERFORMANCE INDICATORS .........................................4 1.3.1. Australia .............................................................................................................4 1.3.2. Canada................................................................................................................8 1.3.3. Japan ..................................................................................................................9 1.3.4. Hungary..............................................................................................................9 2. PROCEDURAL ANALYSIS OF ROAD PROJECTS.............................................12 2.1. INTRODUCTION.........................................................................................................12 2.2. ATTRIBUTES OF ROAD PROJECT PROCESSES ..............................................................12 2.2.1. Process Function ..............................................................................................13 2.2.2. Inputs................................................................................................................13 2.2.3. Output ..............................................................................................................14 2.2.4. Outcomes .........................................................................................................14 2.3. ROAD SECTOR STAKEHOLDERS & THEIR PERSPECTIVES ...........................................16 2.3.1. Government......................................................................................................16 2.3.2. Administrator ...................................................................................................16 2.3.3. Road Users .......................................................................................................16 2.4. FUNCTIONALITY OF PROCESSES IN ROAD PROJECT PROGRESSION ...........................17 2.4.1. Project Idea ......................................................................................................17 2.4.2. Project Appraisal Process ................................................................................17 2.4.3. Design and Project Planning Process...............................................................19 2.4.4. Construction Process........................................................................................20 2.4.5. Operational Process .........................................................................................21 2.4.6. Maintenance Process........................................................................................23 2.4.7. Rehabilitation Process......................................................................................25 2.4.8. Improvement Process.......................................................................................27 2.5. FLOW MECHANISM OF ROAD SECTOR PROJECT .......................................................29 vii 3. DEVELOPMENT OF PERFORMANCE INDICATORS FOR EVALUATION .31 3.1. APPROACH TO THE PERFORMANCE EVALUATION.....................................................31 3.1.1. Introduction to the Performance of Project & Process ....................................31 3.1.2. Analysis of a Process Functionality.................................................................31 3.2. STAKEHOLDER PERSPECTIVES AND THEIR PARAMETERS ..........................................33 3.3. MEASURES OF PERSPECTIVE PARAMETER AND THEIR INDICATORS ..........................35 3.4. INDICATOR AND PERFORMANCE INDICATOR ............................................................36 3.4.1. Characteristics of Performance Indicators .......................................................37 3.4.2. Types of Performance Indicators .....................................................................38 3.5. DEVELOPMENT OF PERFORMANCE INDICATORS FOR EVALUATION OF STAKEHOLDER PERSPECTIVES.................................................................................................................39 3.5.1. Project Appraisal Process ................................................................................39 3.5.2. Design and Planning Process ...........................................................................43 3.5.3. Construction Process........................................................................................45 3.5.4. Operational Process .........................................................................................48 3.5.5. Maintenance Process........................................................................................51 3.5.6. Improvement Process.......................................................................................52 3.5.7. Rehabilitation Process......................................................................................53 4. HIGHWAY PROJECT PERFORMANCE EVALUATION...................................55 4.1. INTRODUCTION TO PROJECT PERFORMANCE ............................................................55 4.2. FUNCTIONS FOR PERFORMANCE EVALUATION .........................................................55 4.3. ELABORATION OF PERFORMANCE EVALUATION CRITERIA ......................................61 4.3.1. Evaluation of Performance in the Appraisal, Design and Construction processes ....................................................................................................................61 4.3.2. Evaluation of the Performance for the Government (with respect to global perspective) in the Operational Process .....................................................................66 4.3.3. Evaluation of the Performance in the Maintenance and the improvement Processes ....................................................................................................................67 4.3.4. Evaluation of the Performance in the Rehabilitation Process..........................69 4.4. INSTANTANEOUS PERFORMANCE EVALUATION WITH RESPECT TO GOVERNMENT GLOBAL PERSPECTIVE .....................................................................................................69 viii 5. APPLICATION............................................................................................................73 5.1. PROJECT APPRAISAL PROCESS .................................................................................73 5.1.1. Performance with respect to Administrator Perspective..................................73 5.1.2. Performance with respect to Government Local Perspective ..........................76 5.1.3. Performance with respect to Government Global Perspective ........................79 5.2. PROJECT DESIGN AND PLANNING PROCESS ..............................................................79 5.3. CONSTRUCTION PROCESS (AT THE END OF THE CONSTRUCTION PROCESS) ...............79 5.3.1. Performance with respect to Administrator perspective ..................................79 5.3.2. Performance with respect to Government Local Perspective ..........................84 5.3.3. Performance with respect to Government Global Perspective ........................88 5.4. OPERATIONAL PROCESS (AFTER 2 MONTHS OF REHABILITATION COMPLETION).......88 5.4.1. Performance with respect to Government Global Perspective ........................88 5.5. MAINTENANCE PROCESS ..........................................................................................92 5.5.1. Performance with respect to Administrator Perspective..................................92 5.5.2. Performance with respect to Government Local Perspective ..........................92 5.6. IMPROVEMENT PROCESS ..........................................................................................93 5.6.1. Performance with respect to Administrator Perspective..................................93 6. CONCLUSION ............................................................................................................95 APPENDIX 1 ....................................................................................................................97 APPENDIX 2 ....................................................................................................................98 APPENDIX 3 ....................................................................................................................99 APPENDIX 4 ..................................................................................................................100 APPENDIX 5 ..................................................................................................................101 APPENDIX 6 ..................................................................................................................102 APPENDIX 7 ..................................................................................................................103 APPENDIX 8 ..................................................................................................................104 REFERENCES...............................................................................................................105 GLOSSARY OF TERMS..............................................................................................106 ix LIST OF FIGURES Figure 1.1: The Impacts of a road accident ........................................................................3 Figure 2.1: Attributes of road sector project processes.....................................................12 Figure 2.2: Sample of output definition............................................................................14 Figure 2.3: Samples of outcome definition.......................................................................15 Figure 2.4: Operational Process Attributes and their inter-connectivity ..........................15 Figure 2.5: Attributes of Project Appraisal Process and their inter-connectivity.............18 Figure 2.6: Inter-connectivity of attributes in Design and Planning Process ...................19 Figure 2.7: Sample of managerial procedure of Design and Planning Process ...............19 Figure 2.8: Construction (or Rehabilitation) Process attributes inter-connectivity ..........20 Figure 2.9: Sample outcomes of Construction Process ....................................................21 Figure 2.10: Attributes of the Operational Process and their inter-connectivity ..............22 Figure 2.11: Attributes of the Maintenance Process and their inter-connectivity ............24 Figure 2.12: Maintenance Process effect on road structure quality..................................25 Figure 2.13: Attributes of the Rehabilitation Process and their inter-connectivity ..........26 Figure 2.14: Road structure quality variation in the Rehabilitation Process ....................26 Figure 2.15: Attributes of the Improvement Process and their inter-connectivity ...........27 Figure 2.16: Sample of improvement impact to the recurrent cost...................................27 Figure 2.17: Economic value of unforeseen or improperly estimated outcomes .............28 Figure 2.18: Sample of improper estimation of negative outcome..................................29 Figure 2.19: Road structure quality variation with the Improvement Process .................29 Figure 2.20: Sample of inter-links between two processes..............................................29 Figure 2.21: Comprehensive road project progression chart ............................................30 Figure 3.1: General functionality of a road sector project process ...................................31 Figure 3.2: Primary objectives in different processes.......................................................32 Figure 3.3: Perspectives of stakeholders and their parameters for the project .................35 Figure 3.4: Sample measures of quality of data................................................................36 Figure 3.5: Summary of performance evaluation criteria.................................................36 Figure 3.6: Sample of scoring technique in the evaluation of an indicator ......................37 Figure 3.7: Sample of input performance indicator ..........................................................38 Figure 3.8: Sample of input-output indicator....................................................................39 Figure 3.9: Government’s perspective in the Appraisal Process ......................................40 Figure 3.10: Sample external issues affect to the confidence level ..................................40 Figure 3.11: Government and Administrator perspectives in the Appraisal process .......41 x Figure 3.12: Government perspectives in the Operational Process ..................................50 Figure 4.1: Sample of confidence level impact to the performance evaluation................57 Figure 4.2: Road structure quality after different processes ............................................59 Figure 4.3: Sample evaluation of positive outcome..........................................................64 Figure 4.4: Sample evaluation of mitigatory impact of negative outcome.......................64 Figure 4.5: Summary of pre-operational processes performance evaluation ...................66 Figure 4.6: Sample technique for Operational Process performance evaluation..............67 Figure 4.7: Sample improvement of negative outcome....................................................68 Figure 4.8: Sample improvement of existing assets .........................................................68 Figure 4.9: Sample improvement of existing assets .........................................................70 Figure 4.10: Pre-operational Process performances .........................................................70 Figure 4.11: Performance of processes with respect to stakeholders’ perspectives .........71 Figure 5.1: Values for the performances with respect to stakeholder perspectives..........94 xi LIST OF TABLES Table 1.1: Performance indicators used by MRWA ...........................................................5 Table 1.2: Indicators proposed by Queensland Department of Main Roads ......................6 Table 1.3: Pavement condition parameters for Northern Territory Department.................7 Table 1.4: Performance indicators use in Canada by province...........................................8 Table 1.5: Performance indicators used by Japan.............................................................10 Table 1.6: Performance indicators use in Hungary...........................................................11 Table 2.1: Process Attributes and Stakeholders involved in Project Appraisal process...18 Table 2.2: Process attributes and Stakeholders involved in Project Design and Planning Processes………………………………………………….........................20 Table 2.3: Process attributes and Stakeholders involved in Construction Process ...........21 Table 2.4: Process Attributes and Stakeholders involved in Operational Process............23 Table 3.1: Performance related issues in road project process activities..........................34 Table 3.2: Perspectives of stakeholders and their parameters to a process.......................35 Table 3.3: Indicators and Performance Indicators for Mobility........................................37 Table 3.4: Administrator involvement in Project Appraisal Process activities ................41 Table 3.5: Perspective parameters and indicators with respect Administrator’s perspective in Project Appraisal Process ...................................................................42 Table 3.6: Perspective parameters and indicators with respect to government’s local perspective in Project Appraisal Process ...................................................................42 Table 3.7: Perspective parameters and indicators with respect to government’s global perspective in Project Appraisal Process ...................................................................43 Table 3.8: Stakeholders’ perspectives in the Design and Planning process .....................43 Table 3.9: Administrator involvement in Project Planning & Design Process activities .44 Table 3.10: Perspective parameters and indicators with respect to Administrator’s perspective in Project Planning & Design process ....................................................44 Table 3.11: Perspective parameters and indicators with respect to government’s local perspective in Project Planning & Design Process ....................................................45 Table 3.12: Perspective parameters and indicators with respect to government’s global perspective in Project Planning & Design Process ....................................................45 Table 3.13: Perspectives of stakeholders in the Construction Process .............................46 Table 3.14: Administrator involvement in Construction Process activities......................47 Table 3.15: Perspective parameters and indicators with respect to Administrator’s perspective in Construction Process ..........................................................................47 xii Table 3.16: Perspective parameters and indicators with respect to Government’s local perspective in Construction Process ..........................................................................48 Table 3.17: Perspective Parameters and Indicators with respect to government’s global perspective in Construction Process ..........................................................................48 Table 3.18: Process activities in the Operational Process.................................................50 Table 3.19: Perspective parameters and indicators with respect to government’s global perspective in Operational Process ............................................................................51 Table 3.20: Process activities in the Maintenance Process ...............................................51 Table 3.21: Perspective parameters and indicators with respect to Administrator’s perspective in Maintenance Process ..........................................................................52 Table 3.22: Perspective parameters and indicators with respect to government’s local perspective in Operational Process ............................................................................52 Table 3.23: Perspective parameters and indicators with respect to Administrator’s perspective in Improvement Process .........................................................................53 Table 3.24: Perspective parameters and indicators with respect to government’s local perspective in Improvement Process .........................................................................53 Table 4.1: Project goal intensity variation (assumed) while road project progression .....56 Table 5.1: Evaluation of Reliability of the Data ...............................................................73 Table 5.2: Evaluation of applicability of Forecasting Techniques ...................................74 Table 5.3: Evaluation of Capacity Adequacy ...................................................................74 Table 5.4: Performance evaluation of the Project Appraisal Process with respect to Administrator perspective ..........................................................................................75 Table 5.5: Performance indicator values of finance utilization ........................................76 Table 5.6: Values of measure of perspective parameter for finance utilization................77 Table 5.7: Performance evaluation of the Project Appraisal Process with respect to Government local perspective....................................................................................78 Table 5.8: Performance indicator values of quality of secondary inputs..........................80 Table 5.9: Values of measure of perspective parameter of quality of secondary inputs ..80 Table 5.10: Performance indicator values of secondary input investment efficiency ......81 Table 5.11: Measures of perspective parameter of secondary input investment efficiency ....................................................................................................................................81 Table 5.12: Performance indicator values for effectiveness of Construction Process......82 Table 5.13: Values of measures of perspective parameter for effectiveness of Construction Process..................................................................................................82 Table 5.14: Performance evaluation of the Construction Process with respect to Administrator perspective ..........................................................................................83 Table 5.16: Performance indicator values for effectiveness of finance utilization...........84 xiii Table 5.17: Values of measure of perspective parameter for effectiveness of finance utilization ...................................................................................................................85 Table 5.18: Performance indicator values for impact of outcomes ..................................85 Table 5.19: Values of measures of perspective parameters for impact of outcomes........86 Table 5.20: Performance evaluation of the Construction Process with respect to Government local perspective....................................................................................87 Table 5.21: Performance indicator value for the accessibility improvement....................89 Table 5.22: Performance indicator value for the mobility improvement..........................89 Table 5.23: Performance indicator value for community development............................89 Table 5.24: Performance indicator value for mitigatory impact of negative outcomes....90 Table 5.25: Values of measures of perspective parameters for Operational Process .......90 Table 5.26: Performance evaluation of the Operational Process with respect to Government perspective ............................................................................................91 Table 5.27: Performance indicator value for effectiveness of finance utilization ............92 Table 5.28: Performance evaluation of the Maintenance Process with respect to Government local perspective....................................................................................93