1994 — Page 32

Operational Review

PRODUCTIVITY, EFFICIENCY AND TECHNOLOGICAL DEVELOPMENT

THE PERFORMANCE PLEDGES

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To further strengthen its commitment to provide a reliable public bus service, Company established its Performance Pledges on mechanical reliability and operational capability - the two core competencies in bus operation in May 1993.

Mechanical reliability is assessed by the average number of trips operated before a bus would experience one mechanical breakdown on the road while passengers are on board.

The 1993-94 target was 1350:1.

Operational capability is measured by the ratio of actual to scheduled departure trips travelling in the peak directions within the overall bus network during the morning peak hours, i.e. 7:00 a.m. - 9:00 a.m.. The 1993-94 target was 97%.

The 1993-94 actual performance in relation to these targets was 1588:1 and 97.48% respectively. Overall, the performance in operational capability is in line with the pledged target while some visible gains have been made in mechanical reliability. As an operator that always aims at achieving the best, the Company will strive to maintain its high performance records in the coming year.

COMPUTER LINK TO TRANSPORT DEPARTMENT

A computer link was established with the Transport Department to provide on-line access by the Department to the Company's operating data. The objective of the computer link is to enhance communications and data flow from KMB to the Transport Department. A personal computer and a printer have been installed at the NT Regional Office of the Transport Department, and a data link connects the hardware with KMB's central computer at KMB Headquarters. With the installation of this computer link, KMB's operational data are more readily available to the Transport Department.

ISO 9002

In view of the need for a consistent and systematic approach to establish and maintain a quality service, the Company has decided to adopt ISO 9002. The Kowloon Bay Depot is currently engaged in the development of the ISO 9002 quality management system with the assistance of a firm of consultants. The Company plans to seek ISO 9002 certification for the Depot in the latter half of 1995 and also to extend the system to other depots progressively.

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The Kowloon Motor Bus Company (1933) Limited