Overall Service Effectiveness on Urban Public Transport System in the City of Addis Ababa

Overall Equipment Effectiveness (OEE) concept has been practiced in the manufacturing sectors. However, there is no model so far in the service sector to measure its system performance. This paper is therefore tries to develop an Overall Service Effectiveness (OSE) model for service industries by extending the concepts from OEE model which is used in the manufacturing system. The OSE model was fitted and tested using data collected from the Anbessa City Bus Service Enterprise (ACBSE), Addis Ababa, Ethiopia. The findings of the study show that, the OSE of the ACBSE system is found to be low (41.83%) indicating that the overall service performance systems of the enterprise is very low as compared to the world class standard that is 85% to 95%. This is resulted from the fact that, the enterprise has exhibited low availability, poor performances and low passengers’ satisfaction, which requires the enterprise to improve its operational plan so that it will improve its availability and level of customer satisfaction.