Improve Performance and Save Costs

By examining services and budgets within scope of project requirements, organizational goals, stakeholder needs and best practices, we identified quantifiable cost reduction opportunities which improved the overall effectiveness and efficiency of operations for the client. (Calgary, AB)

Transit Core Service Review

Leading the Way to Cost Savings

Knowing valuable information about the current state of your city’s/agency’s services and programs; how these services and programs have changed over time; and what services and programs may, or may not, be desired going forward, may not be clear. This can present challenges when trying to make every dollar count.

We are not simply consultants, but peers with real transit management experience who understand the critical need to find quantifiable solutions that produce efficient, effective and innovative enhancements to your transit business. Our Core Service Review is a discovery process to cost savings, new dollars and ways to stretch the maintenance, operational and capital dollars already within your budget. We provide you with options outlining how challenges may be undertaken and how opportunities can be achieved.


Potential Key Benefits of a Core Service Review

  • Greater effectiveness and efficiency of services delivered
  • Operating Cost Savings
  • Capital Cost Savings / Avoidances
  • New revenue sources identified


Core Service Review in Action

Zero-Based Review (ZBR) of Calgary Transit, Calgary, AB
Morrison Hershfield was retained as Lead Transit Advisor to the City of Calgary, Corporate Initiatives Department, for the in-depth study of several strategic portfolios of Calgary Transit. With the objective of improving overall effectiveness and efficiency of operations the study examined Procurement, Fleet Maintenance, Transit Revenues and Alternative Service Delivery (ASD) model assessments. The study was able to identify significant capital and operating savings opportunities for the client.


Scope: Examination of services and budgets within scope of project requirements, organizational goals, stakeholder needs and best practices to identify quantifiable cost-reduction opportunities.


Audited Study Areas: Procurement & inventory management, fleet maintenance, business model assessment, transit reviews (Janitorial & Outside Maintenance Services, Bus Fleet Service Lanes, Rail System Communications), Transit Revenues.


Results: Investment cost of $330K yielded actual cost savings of $2MM, Capital Cost Savings/Avoidance of $7.8M and new potential revenues of $18M.  Total Opportunities of $27.8MM = ROI over 8000%


Core Service Review Examined:

  • Procurement & Inventory Management
    • Effectiveness review of relationship between Procurement Services and Fleet Management
  • Fleet Maintenance
    • Current business practice analysis for higher performance options
    • Scalability for future growth
    • Impact of technology choice
  • Fleet Service Lanes (Daily bus & LRT fleet servicing)
    • Internal efficiencies and alternate service delivery models
  • Janitorial and Outside Maintenance Services
    • Internal efficiencies and alternate service delivery models
  • Rail System Communications Maintenance
    • Business case to validate functional distribution between in-house/contracted service
  • Transit Revenues
    • Assessed revenue & cost drivers to develop sustainable revenue strategies

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