Revising the existing Performance Indicator system for small water supply utilities in Japan

Abstract

97.5% of the water utilities in Japan serve less than 50,000 customers, and are called small water utilities. The Performance Indicator system in Japan, used to evaluate the performance of various aspects of the supply system, currently has 137 items, which are too many in number for the small utilities to adopt because of resource and financial constraints. The objective of this study is to, thus, revise the existing PI system to arrive at a reduced, relevant and practical structure that provides enough information to rationally evaluate small water supply systems in Japan. Principal Component Analysis was used to reduce the dimensionality of the original data. The results suggest that only nine components, consisting of 33 items (called 9-cPIS), are sufficient for evaluating the small water utilities. The effectiveness of the 9-cPIS in benchmarking, evaluating business models, and the planning and management of the water utilities has been discussed further.