The CMO Survey - Highlights and Insights Report - Spring 2024
High cost of maintenance
1. The Pirates of the Silverland
NUR ASYILAH BINTI KHILALUDDIN 2012217072
NORHAFIZAH BINTI KASSIM 2012482738
NURFAEZNA BINTI AHMAD HASRULHISHAN 2012483922
ADIBAH ALIA BINTI HAIRUL FADILAH 2012258936
NORATIQAH BINTI BUANG 2012600166
NUR SAKINAH BINTI KAMBALI 2012634078
PRESENTED FOR:
PUAN EZHAWATI BINTI
ABDUL LATIF
9. Problem Statement
• Compensation paid to
refineries
• due to the shortage of CPO
during the transportation
• the recorded quantity
delivered is differ from the
order recorded
• CPO had been contaminated
with water or sludge.
Recommendation
• Install tankers trucksecure’s
system that has the ability to
measure minimal fuel loss and
detect suspected internal theft
secretly via GSM text message.
• Cooperate with oilene to check
and control of CPO such as
purchase orders, receipt and
etc.
10. Problem Statement
• Compensation to the staff
• Possibility of increased due
to many festive seasons
during the year’s end
Recommendation
• Gross pay register report for
each employee’s paycheck
salaries and allowance.
• Prepare the statement of
activity to monitor and review
staff ’s activity.
• Prepare monthly financial
report to take action on any of
regularity of expenses.
12. Problem statements Recommendations
Siphoning caused to higher direct cost
incurred to refineries
• Had to reserve huge sum of money
• Loaded tankers were not delivered to the
refineries
• Contributed to the high compensation paid
• Increase of compensation cost led to
narrower of gross profit margin
Implementation of Fleet Management System
(FMS)
• Minimize the risk associated with tankers in
consignment
• Improve the operation efficiency
• Reduce in compensation cost
• Siphoning cases will be drastically reduced
because able to detect the location of
tankers
• Help to reduce the fuel consumption
• Abandoned tankers will be eliminated as
the drivers will be red-handed with serious
punishments
13.
14. Problem statements Recommendations
Increase of insurance premium
• Bad track records because the tankers left
abandoned
• Brought to higher operation risk of PHSB
• Insurer charge greater insurance
premium to cover inconsistency of
operation in PHSB
• Cost of sales of PHSB will risen due to the
Good-In-Transit insurance
Serious disciplinary action will be taken
against drivers
• Irresponsible drivers must be taken to
penalized them
• To reduce or eliminate such cases to be
happened repetitively
• If the drivers ignore the action,
termination of service will be given to the
drivers
• The insurer will reduce the insurance
premium in future when the abandoned
tankers cases decline
• Contribute to greater profit margin of
PHSB in long term
16. Problem Statement Recommendation
• Transport companies
were pressured to
deliver CPO to the
refineries on time.
• PHSB operate closer to
just in time.
• PHSB should have well plan on
when the CPO ready for
deliver to customer.
• They should inform the
transport companies or driver
in charge two days before due
date.
17. Problem Statement Recommendation
• Driver shortage and
problem with smaller
transport companies
(outsource).
• Most of the drivers be on the
road for days at a time.
• PHSB should recruit for new
driver.
• Apply GDL license for driver
who are not have that license.
• Stop outsource to other
companies to deliver CPO to
their customer.
18. Problem Statement Recommendation
• Unable to provide an
attractive remuneration
package to the drivers.
• Compete with big
companies which have
better remuneration
package.
• PHSB should improve
remuneration package.
• E.g: Provide meal allowance,
commission, extra holiday if
involve in long journey, year
end bonus based on
performance & etc.
20. ISSUE
• The maintenance cost incurred for the three quarter of year 2009
and 2008 are RM 5.5 millions •
and RM 2.3 millions. Thus, PHSB
faced a 143.8% increase in maintenance cost for 2009 compared
to 2008.
21. Problem Statement
• No regular upkeep and
maintenance of the tanker
It was found that PHSB did not
regulate the maintenance of its
tankers. The tankers were only sent
for service and repairs when the
drivers complain of breakdown. At
times, the damages occurred were
severe, hence resulting in high cost of
repairs.
Recommendations
• Scheduled maintenance program
PHSB should practice more systematic
method of maintaining its tankers.
PHSB could overcome this problem by
out-sourcing maintenance service from
the market.
22. Problem Statement
• No standardized administrative
mechanism
It was found that PHSB did not regulate
the maintenance of its tankers the
tankers were only sent for services and
repairs when the drivers complained
of breakdown. At times, the damages
occurred were severe, hence resulting
in high cost of repairs
Recommendations
• Computerized Scheduling
A computerized scheduling method will
be convenient.
Some of Transportation Management
System (TMS) software that are widely
used include RoadNet Technology,
TMW Systems and Precision. PHSB
could employ any of these software to
manage its operation and
administration mechanism
23. CONCLUSION
It is highly recommended to PHSB to use fleet management
system to manage their transportation service. Other than
that, direct cost such as compensation, upkeep &
manitenance, and employee welfare must be review to help
PHSB to reduce the expenses and improve their
performance in the industry.
25. REFERENCES
• Catalytic Converter Theft and Fuel Theft Alarm Systems by Tucksecure. (n.d.).
Retrieved October 12, 2014, from Trucksecure: www.trucksecure.co.uk
• How Networkfleet Works. (n.d.). Retrieved October 12, 2014, from Falcom
Communication Solutions Inc.: www.falconcom.net/fleet/how-fleet-works.
shtml
• Idris. (2014). Reducing Risk of Ganoderma Infection in Oil Palm. MPOB
Information Series , 4.
• Online Electronic Sampling of CPO. (n.d.). Retrieved October 12, 2014, from
Palm Oil Quality Monitoring: www.palmoilquality.com/online-electronic-sampling.
html
• Verizon. (n.d.). Retrieved October 12, 2014, from Fleet Management: How It
Works: www.networkfleet.com/fleet-solutions/how-it-works.htm
