Research and Explore Assignment: Analyzing Myki Project (Research Paper Sample)

Myki Project
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Case background
The ticketing system in the public transport operations of Victoria depends on various forms of services. Passengers may use the myki for buses, v/line and metropolitan commuter trains or regional buses. Paper tickets are also used for long distance transport, regional buses and V/Line coach services (Ptv.vic.gov.au, 2015). The myki was developed in July 2005 after the state of Victoria entered into a contract that initiated the smartcard technology into the ticketing system. The contactless smartcard system is valid in the public transport in Melbourne and Victoria regions. The myki was developed to replace the metcard system and other ticketing systems used on regional buses. According to the contract terms, the myki was to be operational beginning July 2007.
The myki system uses the myki smart card that which is used for travel payments. The smart card technology stores money value and travel pass. Another component in the system is operational devices such as card vending, payment devices, hand-held devices, and top-up equipment (Ptv.vic.gov.au). Apart from facilitating payments, these devices enable the translation of information stored in the cards and promptly transmit it to the back office. The back office is the third component which supports operations and communication in the myki project (Operational Effectiveness of the myki Ticketing System, 2015 p.2).
Strategic objective of the project
An efficient and well-designed ticketing system is the pillar for a properly functioning public transport system in Victoria. Apart from replacing the Metcard system, the justification of the initial investment on the myki project was that it would benefit the Victorians significantly by providing an attractive and efficient transport system. In terms of economic benefits, the project was expected to give $6.3-$10.8 million annually to the state that would enhance public transport, provide the best value-for-money at low costs of living (Operational Effectiveness of the myki Ticketing System, 2015). The revenues would also facilitate continuous operation of the new system after expiry of the Metcard. Additionally, the users and transport operators would also benefit from convenient payment options, efficient boarding operations, and flexible user patterns due to the various fare structures and differential pricing. Myki being an open-architecture system it would also allow additional upgrading components gradually. This would assist the state to avoid overreliance on a few vendors.
The Public Transport Victoria (PTV) aims at improving tourism in the state through excellent customer service and attractive travel experience. Since the Melbourne trains and regional buses are a convenient way to explore the city’s historic sites, tourist attractions, sporting and shopping venues, Myki would make transport easier and enjoyable for visitors and residents hence encouraging tourism that would increase the city’s revenues. Providing necessary information that agencies need for effective management and planning was another objective of the project.
Project organization/structure
There are various organizational strategies that sought to introduce the system across the states transport sector. The myki ticketing system was initially implemented in the metropolitan regions including Hong Kong, London and Singapore and adjacent regions. However, there is the challenge of merging a range of different transport charges across rural and metropolitan areas.
In metropolitan Melbourne, the myki project has been incorporated in:
20 train lines and 208 stations
500 trams in 24 routes
1753 buses in 346 routes
127 routes used by regional buses
Additionally, the myki system has a broad range of ticketing charges that apply zoned and time –based modes in charging with frequent discounts. Each card scan produces approximately 150 Transportation rules and a million transportation transaction permutations making it an advanced smartcard technology globally (Ptv.vic.gov.au, 2015).
Initial implementation was on regional buses in 2008.In December 2009, the system was implemented in Metropolitan trams then in July 2010 the buses used the system. By December 2012, the myki was the only valid public transport system which led to the abolishment of the Metcard system. The myki also replaced the use of paper tickets across several services in Victoria (Operational Effectiveness of the myki Ticketing System, 2015 p.4).
The initial overall development and delivery phase was an addition of nine years to the initially expected period of two years. Research reveals that the average time taken for similar smartcard projects is often five years or more.
Evaluation of options /alternatives early in the project and choice made
The performance of the front end planning phase of the myki project was complex and its application in project development was challenging. Performance measures were to be used upon completion of the project. Monitoring and performance evaluation was necessary for effective development of the project. TV developed a revised performance strategy that has motivated the contractor through incentives hence addressing faults and system upgrades are done effectively. Additionally there was emphasis on the credibility of the system’s financial information (Operational Effectiveness of the myki Ticketing System, 2015).
Critical success criteria
Although a project may be completed within the set budget and required timelines, there are other factors that contribute to long-term success of the project after implementation. Success criteria of a project are mainly measured by the level of satisfaction it yields to various stakeholders including users, contractors, foreign clients and project team. In regards to the myki project, one of the main objectives was to benefit the economy by generating profits. Its success was evident in 2014 as it produced $800 million worth of revenues from active cards (Operational Effectiveness of the myki Ticketing System, 2015 p.4). However, there was a significant increase in operation costs compared to the original budget. Amendments made to the operating budget resulted to increase in expenditure by 55 per cent until 2016.The additional costs over the initial budget were due to the parallel operation of the Metcard system with the myki system which continued beyond the agreed termination timeline.
Another success criterion was that the new system operated was quickly adopted in the initial areas of implementation. It was evident that commuters were willing to use the new system since, by December 2014, the project had issued around 13 million myki cards with 7 million transactions being processed weekly from active cards (Operational Effectiveness of the myki Ticketing System, 2015). The smartcard system is also easy to use and convenient since it is applicable across Victoria. The cards are also easy to access and are rechargeable by phone, vending machines, online or retail outlets. Additionally, the myki system can calculate lowest travel fare charges by touching on and off for every travel. However, lack of a satisfactory experience from the project team limited the success of the myki project. Due to changes in time and costs estimates significant amendments were made to the contract which affected its viability and caused conflict among the contractors and management because of delayed payments (Pro, IT and Labor underestimated myki cost and complexity).
Criteria success factors
The factors that contribute to the success of a project can be influenced by the project team to eventually achieve a positive outcome.
Initial planning of a project
Although contractual amendments were necessary for the continuity of the myki project, they caused increased costs and delays which reduced the scope of the project and compromised the expected benefits. The changes indicate that initial planning and designing of the project failed to consider its complexity and more time should have been taken to define precisely responsibilities and milestones in the contract (Pro, IT and Labor underestimated myki cost and complexity).
Specified functional performance and responsibilities
The initial myki project contract was quite large and complex hence it was unclear whether the functional responsibilities were within the scope. The principal responsibilities of fundamental agencies in the project were not well defined. This caused a delay in decision making especially in the initial stages of development and implementation of the myki system
Manageable Timeframes
Another factor that limited the success of the project was the initial unrealistic time frames. The termination of the Metcard system by 2007 was a time frame of two years which proved to be unrealistic and affected the contract since contractors were unable to meet requirements.
Monitoring Performance of contractors
The structure of the myki project contract gave limited flexibility to suspension or termination of the project to address any major challenges or underperformance. Any arising issues had to be addressed in the course of building the project which affected the contractors’ ability to meet the needed milestones for effective project delivery.
Financial management
The planning and operating phases of the contract were not financially viable. It was clear that unplanned commencement of operations would have significant cost implications because the project scope also included card distribution, revenue collection and system maintenance that had not been accommodated in the initial contract (HeraldSun).
Management, involvement, and interaction of stakeholders
The Transport Ticketing Authority (TTA), established in 2003...