A Study of Operational Efficiency Improvement of Kuo-Kuang Motor Transportation Company by Restructure Company’s Resources
Date Issued
2015
Date
2015
Author(s)
Wang, Sharon
Abstract
Due to the high degrees of sunk costs in transport industry, improvements in operational efficiency became an extremely important task for every transport companies. According to the research by the Institute of Transportation, the operation of the Taiwan High Speed Rail (HSR) has had a significant impact on the national expressway transport industry since it started operating in 2007. To analysis Kuo-Kuang Motor Transportation Company’s operational efficiency after national expressway transport in service in recent years, this research has applied Data Envelopment Analysis (DEA) and analyzed two-years data from ten transport service routes, including five national expressways, three provincial highways, and two service routes in Yilan County. By means of distinguishing the input-output discriminating power, it was concluded that estimating ""seat-kilometer"", ""salaries of driving and maintenance staff"", and ""cost of materials caused by driving and maintenance"" as the input measures and using ""incomes"" and ""passenger-kilometers"" as the output measures served as the best method to evaluate the efficiency of the ten routes. The analysis result shows that the average technical efficiency of the five national expressway routes is better than the provincial highways and the routes in Yilan County. The top three efficient routes of the ten all serve on the national expressway, including Taichung - Kaohsiung, Taipei - Taichung, whose two terminals are similar to the HSR’s but more convenient than the HSR for connection to other places, and the Keelung - Hsinchu, which the coverage is wider than the HSR does. Nevertheless, the Taipei - Kaohsiung expressway route has not been as efficient due to the terminals are similar to the HSR’s, but there is no advantage to the HSR in transport connections nor the traveling time. Additionally, on average, the routes served by the provincial highways and Yilan County roads are even less efficient. By adopting CCR and BCC models the reason for the inadequacies of those provincial highways can be found to be pure technical inefficiencies while the cause of those in Yilan County is due to scale inefficiency. In 2013, the inefficiency became more obvious, even the provincial highways are facing challenges as the HSR became more accepted by the travelers. In addition to building up an evaluation model and exploring the efficiency of every route, this research also evaluated the causes for inefficiency and provided directions for improvement.
Subjects
Operational Efficiency Assessment
Data Envelopment Analysis
National Expressway Transport Service
Focus Group
Type
thesis