Palm Haul Sdn Bhd Case Study

Superior Essays
Register to read the introduction… Ramli Ali stated that, PHSB was unable to offer an attractive remuneration package to their drivers. With more attractive remunerations offered by big companies, drivers tend to bite the bait. Therefore, PHSB needed to hire and train new drivers more frequently. This activity had made increment in the Administration and Operation Expenses for year 2009. The pilferage activities are recognized to happen during year end. This was identified that most of the drivers more likely needed money during this period of time. Hence, the temptation siphoning the CPO was high.
Issue of irregular routes and tight scheduling also arise
Besides, Ramli also declared that irregular routes and tight scheduling were the factors of drivers’ high absenteeism and shortage. By having this problem, it has affected the quality of operation service where refineries claimed that the CPO had not been delivered on time. Lack of drivers means that same driver might be running several deliveries. Each delivery requires them to stay away from home for a few days. They also may stay away from their family for a long time. Thus, some drivers might not get well rested and home away more than they supposed to be.
…show more content…
CONCLUSIONS
Based on the financial statements of PHSB, the loss of RM 1.8 million marked as the worst performance ever throughout seven years back. This circumstance shall not be repeated if PHSB wishes to remain its competitiveness and roles in the industry. PHSB must take a correction action to ensure their company gets the contract from Oilene Refineries Sdn. Bhd. Besides, the management of the company should consider the reasonable salaries and allowances of driver in order to encourage them are honest and efficient in their work.
Further, the upkeep and maintenance must be thoroughly monitored to ensure that the company can estimate their expenses accurately in the future. As mentioned in the case, most of the tankers are fully depreciated. In other words, these aged tankers may lead to higher possibility of breaking down during delivery of PHSB. It is considered cost inefficient when high maintenance cost incurred repeatedly because it will cost a boom to PHSB. As a good recommendation, the tankers must be properly scheduled for regular maintenance checks. This is because preventive maintenance can avoid high repair and replacement

Related Documents

  • Improved Essays

    However, if there is a problem that requires more repairs, it may take longer. The final criterion, to prevent maintenance delays from reoccurring, would also be met because Toyota used reliable machines and tried to keep the machines in good shape to reduce future problems. This process is beneficial because it is successful at reducing the amount of machine issues in an efficient way and has been proven to work. The only problem with this solution is that it requires employees to have a large role in how effective this solution is. If employees are not trained properly or do not follow instructions, there will still be delays in production and it slows down the whole process.…

    • 808 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    After the first bankruptcy, Hostess tried to reinvent itself, but was unable to due to their poor management and weak sales. Hostess was in a time of transition by hiring new upper management, which does lead to a loss of time and money. This is because when new leaders are appointed they have to adjust and learn the values of the company and also create their own. After the first bankruptcy, there were new positions filled on the board of directors. In 2010, the CEO Craig Jung left Hostess and was replaced by Brian Driscoll.…

    • 1170 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    It could mean limited time for family and friends when they go for work and work as long as they can to earn the maximum income. Sometimes individuals might be holding several jobs and in the midst of juggling everything on his plate, he might overlook his family and let them feel neglected. There is no work-life balance here as mentioned by Harvey and Fleming (2008) on work-life balance which is to adjust your work and home priorities to ensure that you are able to combine your work, family and interests for a happier life. Although Harvey and Fleming (2008) suggested allowing employees to do job-sharing and teleworking, it might affect different workers differently depending on their background. After a prolong period of time working this schedule, many workers tend to feel that no matter how much he works, he never seems to be progressing.…

    • 924 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    one in the store. This is due to the fact that TheStore has trimmed the company employees down below an acceptable level for conducting normal business operations. The lack of employees has produced an initial increase in monetary savings but the prolonged effects of not having adequate employees will yield a large decrease in the revenues over an extended period Fd gqert q4tq gqert notice a lack of employees manning the store. If you have a question about a product arted a joke Which started the whole I st someone down to assist you with your inqucdtrt;qwerkqwe’r233343240234l’iry. Often times you will feel as if you are the only one in the store.…

    • 52230 Words
    • 209 Pages
    Improved Essays
  • Superior Essays

    These errors caused FoxMeyer to dig deeper into their pockets trying to keep the business afloat, causing them to spend much more than they had budgeted for. As a matter of fact, due to increasing debt, the huge expenditure that came with the new ERP and the cover charges for unsuccessful shipping, FoxMeyer had to file for bankruptcy (“FoxMeyer case”, n.d). The end users of this system needed to be involved in the process so as to clarify what the complete requirements were. This example illustrates that a feasibility study was not properly done. Both parties also needed to manage their expectations when it comes to these kinds of projects.…

    • 1397 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    The Minimum Wage Debate

    • 1023 Words
    • 4 Pages

    The major problem with this debate is that it has been done before and the results were not beneficial to most. This debate has been going on for the past years and if this law is passed, it will affect everyone around the country. A majority of small businesses will either go out business or cut part of their staff because of the labor costs. As for non-profit organizations, some will fail because they will be forced to spend more for labor than to keep their current level of services. For those in international competition, it will be more difficult for them to compete with foreign manufactures once prices increase (Root).…

    • 1023 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Right now, the future of labor unions is not looking promising. People are choosing to find work that is not union represented. They don’t trust that unions will have their best interests at heart. With private union membership declining so much over the past several decades, something has to give or unions as they stand today will no longer exist (Rusk, 2012). Since union membership has declined so much in the last 40 years, unions are going to have to change the way it communicates with workers, and the way it organizes.…

    • 2013 Words
    • 9 Pages
    Improved Essays
  • Superior Essays

    Strategic goals are set into place to compensate for Boeing’s setbacks that they come across. Strategic planning also allows them to see the big picture as a whole and set goals to enhance production. Tactical planning is just as equally important, it separates the different departments within Boeing. By using tactical planning Boeing can make sure that each department is performing in the most efficient way possible. With operational planning, managers of Boeing make sure the tasks are being completed correctly by their employees.…

    • 1104 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    SWOT analysis reveals that one of the reasons behind the increasing loss of Flex n Gate’s market share is payment system used. In other words, customers do not have the later payment option and instead they need to pay immediately after the purchase is made. This is especially inconvenient in making large volume purchase which can be a decisive factor for the client to change their seller. This practice is the remnant of the early-stage period when for the Flex n Gate Company it was important to have the cash flow. However longer-establishment and enough money in the budget can help the company to acquire competitive edge in the form of 100-day payment period which is already being used by some large competitors.…

    • 1642 Words
    • 7 Pages
    Great Essays
  • Superior Essays

    This includes negotiation time and effort by both parties and related labour costs, professional fees on drafting and reviewing the contracts, Sometimes there is some extreme case that the market firm does not execute to deliver the parts to you according to contract, instead they sell these parts in the market, at a higher profit margin, and such holdup problem will break the collaboration relationship as well as bringing you further lost in time for buying parts from another supplier, drafting another contract, and the time and labour cost while waiting for the parts to deliver from the new supplier. These are all transaction costs and can be of very huge…

    • 1391 Words
    • 6 Pages
    Superior Essays