Barclays Cycle Hire utilise simulation and scheduling software
Company: Serco
The logistics behind the redistribution effort for 6,000 bikes around 400 docking stations involving more than 10,000 docking points, with massive ebbs and flows of demand as each day unfolds, is an enormous challenge. During the first six months of operation, Barclays Cycle Hire members travelled the equivalent of ‘thirteen times to the moon and back’ – over 10 million kilometres in 2.5 million journeys. Production Modelling have been working with the service provider, Serco, to identify the best ways to manage the redistribution of bikes both now and as the scheme expands – with remarkable results.
The challenge - moving complexity away from the point of delivery
It is important to understand the scale of the operation. Fifteen per cent of the day’s demand takes place in just one hour, between 8.00 am and 9.00 am, totalling something like 3,000 hires. Most of that activity is generated by commuters arriving at mainline stations. With an average hire of 20 minutes, each bike is re-docked across an expansive geography, particularly concentrated in the city. To maintain good customer experience, these vehicles have to be returned to high volume demand locations as quickly as possible. As the day unfolds the flow reverses and commuters, who make up the bulk of users, expect availability of bikes near their place of work. All this against stringent Key Performance Indicators designed to keep things as simple and as efficient as possible for users.
Modelling and simulation
Graham Bright, Customer Experience Manager at Serco, joined the project in April 2010 and quickly recognised the role that planning, modelling and simulation systems could play in making informed decisions. A detailed tender document was prepared and Production Modelling’s Service Model was selected from a shortlist of three offerings. According to Graham, the proposal from Production Modelling was shown to provide best functionality and best cost performance. The real unique, though, was an extra software solution, Orchestrate, that goes beyond simulation into visualisation.
Service Model helps Serco work out how efficiently they have used their redistribution vehicles, while Orchestrate allows them to drill down to see why different areas are performing differently. They can run ‘what if’ scenarios based on validated data.
They are also able to feed simulations with real data for a day, including numbers and types of vehicles, where they had been allocated, and the tasks assigned to them. Managers can then look at performance in terms of traffic at docking stations, running simulations with data they can trust. Thereafter, it is easy to extrapolate the implications of, say, a 25,000 or a 30,000 hire day.
From day-to-day operations to strategic decision making
Simulation is used when making strategic decisions as well as helping in the day-to-day operations. Literally from the simplest level - should this docking station in Westminster be allocated more bikes? – to investment decisions . These might be; What is the financial case for procuring extra storage in Waterloo? What would be the implications of replacing large trunking vehicles with smaller trailers? What if we were to scrap the current redistribution system and replace it with a new model? What if we were to extend to 40,000 bikes? What impact might the Olympics have?”
The systems from Production Modelling allow managers to incorporate KPIs so that every decision is an informed one. What they have found particularly reassuring is the fact that very quickly they discovered that the best ways of achieving optimum balance between competing KPIs could often be counterintuitive. That is a real measure of the value of the systems, demolishing preconceptions.
Based on the success of the project an extension of the cycle hire scheme has been announced, increasing the number of bikes by a further 2,000 and expanding the docking points to more than 14,000. The extension is timed to cater for the Olympic Park, towards Canary Wharf. Serco will be using simulation to determine how the scheme could best interact with the eastern extension.
A great partnership
“We are keen to extend the simulation principles into a new area, the maintenance element of our contract,” says Graham. “When users report faulty bikes we have to respond within a given time. Simulation will help us understand where to position resources across the scheme to respond quickly. It will also help us ensure an efficient maintenance workshop in terms of crew, planned maintenance and repairs.”
“We are so committed to Production Modelling’s systems that we are about to purchase a development license, and Production Modelling are working very closely with us, coaching us in simulation and modelling. If I were asked to sum up their working relationship with us, I would say it is a true partnership. Rather than focusing simply on their product, they are very much part of the team, really looking for the best outcomes. Much the same way we work work with our clients.”
