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NORMALA BT HAMZAH
MAR DEWI YUHANA
STUDENT ID :
2009746927
2009
COURSE
LECTURER
Recommendation:
1)
Implement Fleet Management System
In order to solve the problem of hijacking or missing tankers, FHSB can implement
the Fleet Management System (FMS), which introduced by Sidhu Brother Group to
track on tankers. The FMS is a modified system from Malasyia Company which
located at Petaling Jaya Selangor.
FMS device installed in the cab of a CPO tanker which allow the company to track
rogue drivers. The system marks the date and time the tankers enter a hot spot and
how long they stop at rest areas and eating shops. The system also allowed the
company to locate more than 70 hot spots in peninsular where CPO siphoning was
rampant. With this, PHSB might allocate any hot spots of their drivers by using FMS.
One of the advantage of the PMS is enables the drive to alert headquarter if the
tankers are hijacked or experiencing of any difficulties.
By using FMS device, PHSB can save thousands of ringgit because they can track all
of their tankers, avoid from missing of tanker and terminate any rogue drivers that
involve in theft activity.
Problem 2:
2)
The quality of delivered CPO is not accordance to required pumping
temperature which will affect the quality of the CPO. The temperature has to be
precisely to maintain during loading, travel and pumping. The can compromise on the
quality of the CPO if there any changes in consistency of temperature. If the oil
solidifies in the tankers, it cannot be liquefied again, even by forced heating. If forced
heating is attempted, the oil can end up melted, scorched, discoloured and rancid.
With this problem, PHSB will lost the clients due to the poor quality of the CPO and
the revenue (income statement) will be reducing as well. Meanwhile, PHSB might
need to compensate to their clients on the claimed of poor quality of CPO. Thus, the
expense of the company will be increasing.
Recommendation:
Train the driver on how to monitor on the temperature of CPO. There are 4 stages of
CPO which is loading, travel, solidification and pumping. Each stage has different
temperature requirement. The changes of the temperature will compromise the
quality of CPO. Thus, to overcome on this, the driver must need to monitor on the
temperature while traveling to mills or sending to customers in order to minimize the
oxidation processes. Below is the temperature ranges:
Designation Temperature Range
Loading temperature 40C
Favorable travel temperature 30 - 35C, not < 25 C
Approx 35 C
Solidification temperature 41 - 31C
Approx 35 C
Pumping temperature 49 - 50C, not > 55C
Approx 50 C
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Problem 3:
3)
PHSB also faced the problem of shortage of the driver and high absenteeism
of the driver. There are other transportation companies might offer different
remuneration with higher pay to the driver, thus, the drives might accept their offer
and work as part time job to earn the extra money while working at PHSB.
Recommendation:
Improve on remuneration packages
The compensation cost of 2009 has increased 31.69% compared with 2008. The
reason of high pilferage might due to attractive of pay by syndicates which the drives
can earn the extra money. Besides that, other transportation companies offer
lucrative packages to the drivers, thus, it has caused shortage of drives in PHSB.
To solve the problem, PHSB need to relook into the offer remuneration packages to
drivers. PHSB might review on the remuneration package of the drivers. PHSB offer
the salary to the drivers based on the salary guide from Malaysian Industrial
Development Authoritys (MIDA).
Based on the income statement of 2009, the expenses of salary is RM 8,033,421. If
PHSB offer the maximum salary of RM 1,770 (refer to salary guide of MIDA), PHSB
can save the salary cost by RM 5,484,621.
RM 1,770 * 160 drivers * 9 months = RM 2,548,800
RM 8,033,421 RM 2,548,800 = RM 5,484,621
Besides, PHSB also include others benefits included medical, social security, annual
bonus, accident protection, pension scheme and Employer Contribution Fund (EPF).
The annual increment is based on percentage of the basic salary and performance.
Problem 4:
4)
PHSB did not send the tankers for services and repairs regularly. PHSB only
sent the tankers to repair after the driver feedback or broke down which has incurred
the higher vehicles maintenance cost.The expenses (income statement) will increase
due to higher maintenance cost.
The maintenance cost has been increasing 82.87% which is around RM 2.5 M.
Reccomendation:
Improve on the maintenance service of the tankers. As Aliah has tight up with their
workload, PHSB can improve the system, to computerize and monitor on the tanker
maintenance service via the system with the proper schedule. Besides that, Aliah
also can plan the drivers schedule and allocation via the system. With this, it will be
more systematic and prevent from miss-sending the tankers for service.
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Conclusion
With the recommended solutions to En Rosly, we believe that the faced problems by
PHSB will be solved in the near future and the Yearly Financial Statement will
continue to show the positive result.