THE PIRATES OF THE SILVERLAND

PALM OIL PIRACY

Prepared By:
NorMALA HamZah
MarDEWI YuHana

MA F 6 8 0

MAF 680 CASE STUDY

FOUNDER
DATUK
S.NAJEED

FAMILY
ORIENTED
COMPANIE
S

Problems:
1. Poor Quality of
CPO delivered by
PHSB
2. Might Lost
Contract

ESTABLIS
HED IN
2002

MAJOR
CUSTOMER
OILENE
REFINERIES
S/B

MA F 6 8 0

SME
CO
RECENT
CEO
H.ROSSLY
2

issue

Analysis/I
mplication

Recomme
ndation

MA F 6 8 0

SHORTAGE OF DELIVERED OF CPO AND

CONTAMINATION WITH WATER SLUDGE

Loaded with the amounts stated in delivery

The drivers might sell to syndicates
PHSB need to compensate to their customer
Bearing the losses of the tankers
Tankers found abonded and empty by the roadside with
missing driver
Compensation Analysis as Appendix A
IMPLEMENT FLEET MANAGEMENT SYSTEM
Advantages
- Reduce fuel consumption
- Eliminate unauthorized vehicle used
- Increase route efficiencies with live tracking
- Reduce vehicle operating expenses
- Provide reliable measurements to reward
productive employees
- Enforce safe driving techniques.
- http://www.mygps.my/fleet.php
- Quotation from MyGPS

issue

THE QUALITY OF DELIVERED CPO IS NOT ACCORDANCE TO

REQUIRED PUMPING TEMPERATURE WILL AFFECT THE
QUALITY OF THE CPO.

Analysis/I
mplication

The temperature has to be precisely to maintain during loading, travel and

pumping. The temperature 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, discolored and
rancid.
Paul
Haul Sdn
lost the clients
due to the poor quality of the CPO
MONITOR
ONBhd
THE will
TEMPERATURE
OF CPO
and this will increase the compensation and it will affect the profit.

Give training to driver on how to monitor the temperature .

Recomme
ndation

MA F 6 8 0

-Four stages of handling CPO which is loading, travel, solidification and

pumping which 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.
-Below is the temperature ranges:
Designation Temperature Range
Loading temperature 40C
Favorable travel temperature 30C-35C, not < 25C
Approx 35C
Solidification temperature 41C-35C, approx 35C
Pumping temperature 49C-50C, not >50C approx
4
50C

issue

Analysis/I
mplication

SHORTAGE OF THE DRIVER AND HIGH

ABSENTEEISM OF THE DRIVER.
OFFER FROM OTHER COMPANIES
Other transportation companies might offer different
remuneration with higher pay to the driver.
Drivers might accept the offer and work as part time job
to earn the extra money while working at PHSB
IMPROVE ON REMUNERATION PACKAGES.

Recomme
ndation

Revise drivers remuneration package.

Offer salary to the drivers based on Malaysian Industrial
Development Authoritys (MIDA) guide.
Include benefit included medical, social security, annual bonus,
accident protection, pension scheme and employer contribution
fund.
The annual increment is based their performance.
Bonus Incentives based on decreasing on compensation to the
client which for 2009 the compensation increased to 31.60%

http://www.mida.gov.my/home/human-resource/posts/
MA F 6 8 0

issue

Analysis/I
mplication

TANKERS WAS NOT SERVICE AND

REPAIRS REGULARLY
The tankers was repaired after the driver feedback or
breakdown.
Incures higher maintenance cost.
The expenses increased by RM2,521,951 (83%) in year
2009

Recomm
endation

MA F 6 8 0

Implement maintanance job card for every tanker.

Advantages of preventive maintenance:-Provides increased component operational life and availability
Allows for preemptive corrective actions
Results in decrease in equipment and/or process downtime
Lowers costs for parts and labor
Provides better product quality
Improves worker and environmental safety
Raises worker morale
Better energy conservation
Results in an estimated 30% cost savings
Creates a pro-active culture
Elimination of breakdown 80%
Replace existing tanker with new Cost RM180,000. Info:
http://www.mpoc.org.my/Modern_Tracking_Devices_Help_Curb_Crude_Palm_Oil_Thefts.aspx

APPENDIX A :
TURNOVER VS COMPENSATION

YEAR
REVENUE

COMPENSATION
MA F 6 8 0

2006

2007

2008

2009

RM

RM

RM

RM

17,555,333

19,322,443

20,433,865

24,876,333

345,111

645,222

1,567,554

2,064,333
7

APPENDIX A :
TURNOVER VS COMPENSATION

Year
Turnover
Net Profit
MA F 6 8 0

2006
17,555,333
1,803,110

2007
19,322,443
1,248,533

2008
20,433,865
669,257

2009
24,876,333
(1,818,137)
8