KKO helps many of its clients with performance audits to evaluate the effectiveness and efficiency of the organization in meeting its goals. To evaluate its effectiveness, KKO objectively measures the organization against its stated goals and benchmarks its performance relative to peers. To evaluate efficiency in achieving organizational objectives, KKO evaluates what resources are consumed pursuing those objectives and compares the results with engineering standards and industry benchmarks.
MBTA Subway Operations Overtime Audit
Rapidly escalating expenditures for overtime by the MBTA Subway Operations Department had become an item of significant management concern. Although budgeted for less than $3.5 million annually, recent annual expenditures for overtime were double the budgeted amount and growing by more than 10% each year. The management of Subway Operations retained KKO to perform a study of departmental overtime expenditures that would achieve the following: document the extent and trends in overtime growth; determine and rank the cause(s) for overtime growth, and recommend changes to curb overtime expenditures and control future growth.
MBTA Absenteeism in Bus Operations Audit
KKO audited the management and reporting of absenteeism for Bus Operations at the Massachusetts Bay Transportation Authority. Working closely with MBTA Bus Operations, Payroll, Budget and Human Resource staff, KKO examined the processing systems involved in tracking and managing absenteeism, worked with Bus Operations to communicate the findings and assisted with implementing recommendations. The MBTA enacted a revised and clarified absenteeism policy and procedures manual; and implemented an automated database to assist managers in tracking and managing employee absenteeism.
MBTA Discipline Process Audit and PeopleSoft Implementation
KKO to provide audit services for the MBTA discipline database, which uses PeopleSoft software to keep track of all disciplines and grievances. The primary focus of the audit was to insure that the MBTA was using the software properly and to increase the Authority’s use of the data. Specifically, KKO was tasked to evaluate the data content of the database, the data entry procedures and to create supervisor reports from the data. Over the course of the audit, KKO identified correctable deficiencies within the existing database and employee training. Practices to improve the existing discipline recording process were developed.
MBTA Rapid Transit Station Leasing Audit
KKO worked with the Real Estate Department of the MBTA and its property manager, Transit Realty Associates, to systematically review commercial leases at seven MBTA rapid transit stations. Over the last 15 years, uses and occupancies at these stations have evolved and changed. KKO was responsible for a review and analysis of the property master lease, all subleases, revenue, and expense and rental records. KKO helped the MBTA determine if the current uses were consistent with MBTA guidance outlined in the master lease agreement. KKO’s work identified a number of locations where the Commonwealth was not receiving fair value for the use of this commercial real estate.
Metrorail (South Africa) Network Optimization
KKO, working with Mercer Management Consulting, provided on site commuter planning and consulting services to improve the efficiency of South Africa’s Metrorail commuter rail system. The service design work was focused on achieving a better match between service supply and service demand, and providing more attractive service. More specifically, service changes were made to reduce overcrowding, shift under-utilised service to more productive lines and/or times, reduce travel times, and to eliminate transfers and improve transfer convenience.
SuperVia (Rio de Janeiro) Performance and Operational Audit
KKO worked with Mercer Management Consulting and SuperVia to identify strategies that would allow SuperVia to increase ridership while rebuilding the infrastructure and rolling stock it acquired from the government in 1998.
KKO evaluated the ability of the organization to deliver service improvements given the constraints of the infrastructure and rolling stock condition. Based on this evaluation, KKO then proposed a phased implementation of service modifications which incorporate a combination of service improvements, running time reductions, security improvements, and marketing initiatives.
Commuter Rail Study for Amtrak
In conjunction with Amtrak’s Planning and Development Department, KKO conducted a study of the seven commuter rail services provided by Amtrak. The focus of the study was to identify the current methods and procedures used for fulfilling reporting requirements by the seven commuter rail operators:
- Boston’s MBTA service
- Virginia Railway Express
- San Diego Coaster service
- Maryland’s MARC service
- Los Angeles’ Metrolink service
- Connecticut Shoreline East service
- Peninsula Commuter service
To conclude the study, KKO conducted a video conference to share its findings with representatives of each service and offered recommendations for new records management methods and performance measures.
Delaware Otsego Management Audit
For the Delaware Otsego short line railroads, KKO, with Mercer Management Consulting, conducted a management audit that focused on several functions of the rail administration including staffing and compensation levels of management and administrative staff, purchasing and procurement procedures, and the suitability of computer systems in use for the support of operations.
Telephone Rate Evaluation System
For a private client in the telecommunications industry, KKO participated in a Cambridge Systematics project to develop a computerized rate evaluation system. For this project, KKO implemented programs to estimate consumer responses to changes in telephone rates. This “nested logit” model is used to evaluate alternative rate policies via microcomputer.
Wisconsin Airport Cost Benefit Project
For the Wisconsin Department of Transportation, KKO, as a subcontractor to Cambridge Systematics, Inc., completed a system of Fortran programs for the evaluation of alternative airport investment strategies.