case studies

Mountain Transport

The Company

Mountain Transport Limited is in the business of tanker haulage of petroleum- based products for various companies, making deliveries across PNG to various mine sites. It is based on several sites, has a number of operating centres in PNG, and employs 63 people. Mountain Transport obtained ISO 9000 registration in December 2006 and has operated its quality management system since then.

The Issues

A number of drivers were responsible for the company seeking ISO 9000 registration:

• Customer driven – a major customer at the time, said that its suppliers must have it.
•Having moved from being a general trucking company to one specializing in a higher value-added market in 2005, a quality management system was seen as necessary for the business.
•To help achieve the company’s objectives – to grow geographically and to acquire a larger customer base Communication with all employees has improved as a result of ISO 9000 registration – a news bulletin has been introduced which routinely includes performance figures.

In addition, the graphs of data and performance trends are also on display in the drivers’ area. Appraisals and training have been addressed and an incentive scheme introduced to encourage employees to request training, and recognize it as a benefit rather than a punishment.

The Benefits

• In the past year since obtaining ISO 9000, the turnover of the company has increased 2-fold.
•Performance standards are set with customers and trends reviewed every 3 months.
•Delivery failure rates, measured for each customer, are down by 79 – 83%.
•At a time of rapid growth, when many new people joined the company, training programs enabled them to come on board and get up to speed very quickly.

As a result of obtaining ISO 9000 registration, Mountain Transport’s business, turnover, has been protected. In addition, in the 1 year since obtaining ISO 9000, the turnover of the company has increased 2-fold.

Having ISO 9000 meant having a prescriptive set of procedures to control the business, so that everyone knew what they had to do, why and how. During a time of rapid growth, when many new people joined the business, it enabled them to come on board and get up to speed very quickly.

Management began to measure service performance and introduced an objective measurement framework to measure parameters such as on time deliveries, accidents, etc, against standards. Standards are agreed with customers at the start of a contract and the data collected, presented in graphical form, and reviewed with the customer every 3 months.

The Operations Managing, says, “It focuses the mind on what you need to do to keep the business”. Regular management reviews are held where the data, graphs and related costs are discussed.

Customer satisfaction is measured in terms of delivery failures per $100k of business, broken down for each customer in to driver-related or vehicle-related. For one customer, in 2005, there were 14 failures, down to 4 by 2006.

For another, there were 6 vehicle-related failures in 2005, down to 2 in 2006 and 2.5 drive-related failures in 2005, down to 1 in 2006. An analysis of such data, plus discussions with the customer, revealed that vehicle-related failures were aligned to the age of the vehicle, and so Mountain Transport introduced a vehicle replacement program.

Compliance Australia’s Role

CACS was chosen as the registering body because of its name and reputation, which Mountain Transport assumed to be the best. CACS personnel have conducted audits at Mountain Transport for the last year, also advising and facilitating discussions on ways to help the business improve. Management feel they have been very supportive, and the continuity, by having only 1 assessor in that time, has helped the CACS personnel understand the business and be very constructive. The assessor also talks to the staff.

CACS Mountain Transport Case Study
CACS Mountain Transport Case Study

Scope —

Transportation of liquid petroleum and general cargo fleet maintenance, Supply of logistical support.

Sites

Buambub Plantation 10 Mile Okuk Highway Lae

Employees — 67

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CACS

Related Links

CACS Mountain Transport