ABSTRACT
The objective of this research is to investigate the
operations of TOTAL Petroleum Ghana Limited and the challenges faced by fuel
stations in their operations. The study also examines the use of a fuel
management system to achieve business competitiveness and organizational
performance. A web-based application was developed labeled “Fuel Manager” using
Microsoft visual studio environment using SQL server that connects as the
database. Design research is the methodology used for this thesis because the
purpose of this research is to investigate the operations of TOTAL Petroleum
fuel stations and all those design components of fuel station management system
which influence the overall productivity of the system and propose a new
improved framework for the fuel station enterprise systems. Agile development
approach was adopted together with Unified Modeling Language (UML) techniques
and analysis which are useful in analysing and building information system. The
study uses primary data collected through interviews with station managers and
supervisors. Questionnaires were also distributed to managers and supervisors
of TOTAL Petroleum fuel stations. The data was analysed using SPSS. The
findings indicate that even though these fuel stations are aware of the
importance of a fuel management system, their knowledge about fuel management
systems is limited. Once TOTAL Petroleum Ghana Limited have clearly recognized
and defined these opportunities, they must then implement the tools and
methodologies to help develop an information system which will assist them in
enhancing their competitive strategy. The fuel station management system allows
for monitoring and enables TOTAL Petroleum Ghana Limited to track various
petroleum products at each fuel station, produce sales reports, stock level
reports and supply reports. Future work will explore in more detail a broader
set of advanced technology for fuel management system.
CHAPTER ONE
INTRODUCTION
1.0 Background to the Study
Fuel is a valuable commodity, so
designing and installing a Fuel Station Management System for fuel station
managers has become necessary in recent times. This software package ones
installed enables the industry to keep inventory of stock, fuelling and fuel
usage. Once such an effective Fuel Station Management System (FSMS) is
installed, efficient monitoring, control and dispense of fuel to vehicles are
resolved through effective generated reports. A Fuel Station Management System
(FSMS) is a technology which enables a manager to supervise and monitor fuel
from the point of entry into the fuel station to the point of use. With so many
tools and monitoring devices available on the market, a need to select the
right one is critical. Fuel Station Management System with automatic
underground tank gauges, electronic line leak detection system, monitoring
software and an option to generate notifications with real-time status
information or access to all data improves the efficient management of a fuel
station.
It is therefore important for fuel
stations to adopt and install effective management control systems with on-time
accurate reporting systems. Accurate and efficient monitoring ensures the
necessary input to the decision-making process. It also helps management to
develop, implement, and evaluate a design for monitoring of performance
objectives of the fuel stations. Globally effective and efficient management
systems help managers to measure their strengths, weaknesses, opportunities and
threats (SWOT) in the industry in which they operate. Again well organized and
good management control systems guides management in organizations to deliver and
take key decisions
in their businesses.
Effective management control
enables organizations to adjust to price
changes, product branding and analyze suppliers. An efficient Management system
by exception ensures that the right reports are generated and delivered to the
right people in the organization in a variety of formats via email or SMS.
A management system is an
organizational framework for managing and continuously improving an
organizational process, policies and procedures. It encompasses information
sharing, working with teams, benchmarking and working to the highest quality
standards and organizational procedures. A management system according to
Scheldt and Bachman (2010) helps an organization to achieve its goals and
objectives through a couple of strategies via process optimization and
management focus.
Schiedt and Bachman has indicated
that the fuel station management system (FSMS) is required to capture the daily
accounting inventories and creation of reports based on the data captured to
serve as a baseline and guidance for transactional activities. These fuel
management systems according to Prieto and Stadler (2008) “are used to monitor,
control and maintain fuel consumption and stock in any type of industry that
uses transport as a means of business”. Fuel management systems are designed to
efficiently measure, control and manage the use of fuel within the
transportation and construction sectors of the economy. They are usually used
for fleets of vehicles, railways and aircraft. So many methods and technologies
are employed to monitor, control and track fuel dispensed, inventories and
purchases. This information can always be stored in a computerized system so
that reports can be printed or generated for management decision making.
Information systems has expanded
its role in all types and sizes of business enabling managers, engineers and
manufacturers to adopt new and emerging technologies in their companies. The
management of Total Petroleum Fuel Stations in terms of fuel supply, sales and
stock taking has been a manual system in the sense that order of fuel products
is done by the fuel station managers filling an order form from various fuel
sites. The form is then sent by road to the Head office by the managers of the
fuel stations or supervisors, no telephone call or email is used as
correspondence.
Replenishing stocks at various fuel
stations takes 48 hours. If there is no supply at the fuel stations after 48
hours, the station managers or supervisors follow up at the Head office. In
Ghana, the current stocks measurement at Total Petroleum Ghana Ltd is done by
using dip sticks and the meter reading from the fuel pump. Fuel tanks are
measured with Dip Sticks to check the level of fuel quantity in the tanks.
Meter readings of various fuel pumps are taken and subtracted from the fuel
tank level to know the actual level of fuel left in the tanks. Reconciliation
of the fuel management is done manually by checking the stock level and the
amount of money received using the meter readings from the fuel pumps. For
example, the products sold by TOTAL Petroleum Limited are super, diesel,
kerosene, super effimax and diesel effimax. Reconciliation is based on the
principle of stock control system that is, measuring the amount of stock
delivered into the storage or underground tanks and subtracting the amount
sold, and measuring what is left in stock. Any variances that may arises may be
due to evaporation, leaks, losses or theft of fuel. Daily sales are recorded in
the sales book which can lead to inaccurate data recorded. The problem with the
existing system includes lack of provisions of protected and secured system to records against
natural disaster such as fires, flood, earth quake and a lack of recovery system in the event of
disaster. There is also delay in locating and retrieving records during audit
and lack of security and access control to records to ensure integrity of
records.
Currently, existing fuel management
system that has been designed precludes a mechanism that helps managers to
generate stocks, supply and sales reports of their fuel stations at various
fuel sites. Also, the current existing system lacks the inclusion of technological
properties that enables managers to analyse trends of products that sells
faster in a particular fuel site and to track the stock level of products to
know when to replenish stocks. In view of these challenges, there is a need for
the development of an improved version of fuel management system that addresses
these challenges.
It is against this background, and
also considering the existing shortfalls in the current design of fuel
management system, that a real-time fuel management system for monitoring and
tracking products and sales at each fuel station needs to be developed to know
the level of products left in order to replenish stocks quickly to avoid
shortages at the fuel stations. With the developed fuel management system, the
Head office and station managers can generate stock reports, supply reports and
sales reports of each station without requesting it from the station managers.
It can also help in auditing purposes and reconciliation of products received
by fuel stations.
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