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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
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