Improve efficiency is a measure that leads to improved profit by reducing waste and reducing personnel and funds necessary for operation.
In order to operate a train or bus, it costs expenses such as personnel expenses and equipment maintenance expenses. If such useless expenses increase, the profit will be reduced, and it will be an obstacle to company management. Therefore, this method reduces useless expenses and reduces costs as much as possible to improve management.
There are several ways to improve efficiency. For example, it is reducing waste by reducing running costs and maintenance costs such as introducing new cars and renewing facilities, implementing one-man operation, reducing staff by making the station unmanned, and drastically revising the number of operations.
Efficiency of tangible
New vehicles and new equipment are more efficient than traditional vehicles and equipment. Therefore, running cost can be lowered by replacing conventional vehicles and equipment with new ones.
Efficiency of intangible
A thorough transport revision according to demand also leads to more efficient operation.For example, it is to improve situations where there are a small number of users in many time periods when there are many customers, and that a large number of passengers are operating during a few hours of customers.
Also, staff reduction leads to a reduction in personnel expenses. For example, by introducing one-man operation, personnel expenses for conductor are unnecessary.
The merit of improve efficiency is that you can expect a drastic profit improvement. This method leads to long-term improvement of management, unlike temporary revenue improvement measures such as reduced flights and subsidies.
In addition, by introducing new vehicles and new equipment, it can expect cooling, improve ride comfort and can also improve the satisfaction of users.
Also, if you reduce waste in terms of software such as personnel reduction, it will need a small amount of investment funds. Therefore, it is relatively easy for business operators with poor management situation and difficult to make large investment.
If you introduce new models and new equipment, it will be necessary to continue investing afterwards.
Even after introducing the latest equipment, there is no point unless it continues to introduce new equipment steadily after investing, the company must continue to introduce new equipment continuously. As a result, it is necessary to invest heavily in facilities. Especially in the case of small and medium private railways and small bus companies, it may be necessary to invest more than the increase in profits, conversely it may cause management deterioration.
In addition, it is thought that a worker's repulsion will occur by staff reduction. Moreover, some people think that a decline in personnel leads to a decrease in safety and a decrease in service.