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Essay: Installing an FSMS: Benefits and Strategies for Efficient Fuel Station Management

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Introduction

Fuel is a valuable commodity, so designing and installing a Fuel Station Management System for fuel station managers has become necessary in recent time. This software package ones installed will enable the industry to keep track of stock, fueling and fuel usage at all times. Once such an effective Fuel Station Management System (FSMS) is installed, issue of fuel to vehicles of both customers and vehicles of the company is made easier due to effective reports tracking or monitoring system. A Fuel Station Management System (FSMS) is a technology that enables a manager to effectively track and wield or manage fuel supply from creditors and sales within an organization and in a specified time period. However, proliferation of many alternative fuel monitoring mechanisms challenge managers to be wary of the need to carefully opt for or select the right method in order to aid smooth operations. Fuel Station Management System with additional services such as automatic tank gauges and notifications, electronic line leak detection and monitoring software will be a major step toward efficient and improved conditions of work as well as in management of a fuel station.

It is therefore important for fuel stations to adopt and install effective management control systems with prompt and accurate reporting or feedback systems. Prompt feedback or monitoring system is important since it serves as a major input in decisions undertaken by management in fuel industries. It also aids management to develop, implement, and evaluate a design for monitoring of performance objectives, such as monitoring overhead and estimation accuracy. Globally effective and efficient management systems help managers to measure their strength, 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 analyzes suppliers. 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.

What is Management System?

A management system is an established or validated framework for wielding and improving  policies, procedures and processes of a given organization. It encompasses information sharing, benchmarking, teamwork and concern for quality. A management system according to Scheldt and Bachman (2010) helps organization to achieve its goals through a number of strategies via process optimization, management focus and disciplined management thinking.

Scheldt and Bachman (2010) 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 maintain, control and monitor fuel consumption organizations (for instance transport) that use fuel as a primary resource to aid operations. Thus, fuel management systems (FMS’s) are mostly orchestrated to effectively manage fuel use in transportation and construction industries or firms. Essentially, such systems are applicable to transport systems that require fuel to operate. Diverse approaches are used to monitor the inventories, purchases and dispense of fuel in given or specified organizations.  Information gathered from such controlled systems are subsequently kept on electronic or computerized systems for further retrieval when the need arises.

Aims and Objectives of this Creative System

The purpose of this creative process is to develop and implement a system to analyse the real-time monitoring of fuel stations operators in Ghana with a specific emphasis on GOIL Petroleum Limited.

General objectives:

• Develop and implement an efficient web-based fuel management system.

• Develop a management system that will assess and analyse the performance and profitability made by GOIL Petroleum fuel stations.

Specific objectives which are:

• To determine the accuracy and reliability of reports generated by real-time management system.

• To determine whether the management system would lead to greater profitability and efficiency for the organisation.

• To contrivance an efficient fuel management system that can be utilized by management of GOIL Petroleum Limited.

• To develop an effective, efficient, user friendly fuel management system that could help GOIL Petroleum Limited meet it objective and improve performance.

Statement of the Problem

Information systems has expanded its role in all types and sizes of the business enabling managers, engineers, manufacturers to adopt the new emerging technologies in their companies. The management of GOIL Stations in terms of fuel supply, sales and stocks taken has been 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 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 measurement model of GOIL 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 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 petrol, diesel, kerosene, super effimax and diesel effimax. Reconciliation is based on the theory of stock control system that is, measuring the amount of stock delivered into the storage tanks and subtracting sales and fuel left in stock. As a result, inconsistencies regarding quantities of expected left over stock may be is consequent on factors such as losses, leakages, evaporation or theft. Daily sales are recorded in the sales book which can lead to inaccurate data recorded. The problem with the existing system include lack of provisions of protected and secured system to records against natural disaster such as fires, flood, robbery and lack of recovery system in the event of disaster. Also delay in locating and retrieving records during audit and lack of security and access control to records to ensure integrity of records.

It is against this background that a real-time fuel station management system for monitoring and tracking products and sales at each fuel station is needed 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.

1.3 Identification of Key Managerial Issues

Over the past decades, most fuel stations have crumbed and folded up, just as new ones are being resurrected and many more have gone through merger and acquisitions. The reason is that most leaders today lack operational excellence management Systems.

These systems are very complex and multidimensional in nature which every manager must be abreast with. The system establishes expectations and requirements for business units and guides leader behaviours to manage prioritize and continuously improve performance. This is fundamental in facilitating maximum compliance among operating companies and business units across the enterprise. Managers therefore have to integrate Operational Excellence into their daily operations.

These management systems should be able to focus on:

• Reducing the risk of incidents

• Enhancing performance

• Fostering compliance

• Guarding against for potential emergencies and unplanned occurrences’

In Ghana and the rest of the African continent, organizational managers are faced with the problem of management information systems, quality of output and adaptation of new technology due to the micro and macro-economic environment we live in. Again most managerial failures on the continent are attributed to misappropriation of funds, managerial incompetency and mismanagement. On the African continent most of the fuel stations including GOIL limited have failed to adopt and implement efficient and effective fuel management systems such as the Franklin Fuelling Systems because of managerial decisions and directives which emanate from their parent companies in Europe, America, and etc. Many a time decisions are centralized and prevent employee participation in management operations.

Literature review

Fuel Stations Management Systems Overview

Fuel management like any other businesses faces new challenges like changes in patterns of customer demand, effective and efficient management systems, technological innovations and advancement and customer satisfaction. Fuel companies are no exception to the challenges in  in the retail business. The threats and challenges facing the fuel and petrol stations in today’s economic climate significantly affect performance of service stations. With rapid increment in fuel bills, it is important to understand and manage fuel efficiency. It is important to realize that multiple factors affect fuel consumption therefore awareness of these at all levels of an organization. Henceforth, clearly defined monitoring process is vital in order to manage fuel use.

 In order to achieve the vision of autonomic management for large and small-scale networked systems, it is necessary to move from primitive (centralized approaches) to a more open (decentralized approaches). The fundamental basis for such a change stem from the need for growth, adaptability to changing environment and increased robustness to different types of failures and mismanagement in the fuel industry. In traditional approaches to network management, responsibilities are executed by committed management mechanism that is stationed outside the network. However, concern for efficiency makes it worthwhile to reorganize management intelligence into an intertwined or networked system where most management tasks are executed inside the network. Undoubtedly, self-monitoring network will be a fertile ground for rapid or continuous real-time monitoring.

As networked systems increase in size and complexity overtime, it is imperative to simplify management in order to reduce operational costs to effectively adapt to the changes in environment. Concern for complexity calls to the need for autonomic management (autonomic computing) systems. Holding to autonomic computing vision enables managers to may specify goals or high-level of his or her objectives for networked system, which may be expressed in the form of norms and general attitude towards work. In other words, managers do not only specify what has to be done, but also standards and means for attaining stated objectives. Such clearly defined goals serve as input to the management system, which subsequently design appropriate or necessary course of action to attain them (Kephart, & Chess, 2003).  For this reason, the approach to real-time monitoring. To centralize the monitoring task and performing it inside the network, which in order words can be applied in fuel management system.

Every fuel has its own management system needs and specifications. Synergon an American Fuel station has it management system controlled via cash registers. The system is well adapted or suited in controlling and monitoring of operations of filling stations. Transactions with cash register is executed and monitored by computer systems, which then transfer data to the company’s central system afterwards.

Again in America, the CNG fuel Station has management software that helps the owners to manage and keep records on all ongoing activities of the station like gas sale, gas meter, monthly credit billing and accounts book preparations up to profit and loss and balance sheet. The modules in this software according to management of CNG fuel station includes; Sale Management Module, Accounts Management System, Membership Sale Management Modules and SMS Integration System

In other places in the World such as Saudi Arabia, Shell Stations employ a smart card based fuel dispensing system, El Fuel, Electronia’s Petrol Station, rationalizes the fuel allocation in a feasible interface – safeguarding firms the trouble of lengthy (mostly expensive) and fraudulent transactions. Fundamentally, this system of fuel dispensing is rooted in ISO/IEC 14443 ( a standard contactless smart cards) together with other salient and similar monitoring softwares such as the Web-based, Arabic Fuel Management.

Methodology

Manual System Description

With the manual system, fuel stations filling an order form from various fuel sites do supply of products. The form is then sent to the head office by transport, no telephone call or email is used as correspondence. Replenishing stocks at various fuel stations takes 48 hours. After 48 hours and there is no supply at the fuel station after 48 hours, the station managers or supervisors follow up at the head office. Measurement of stocks at the fuel stations is accomplished through the use of dipsticks. There is a daily tank dipping to check the level of the tank and the meter reading of the fuel pump to enable the station check the stock left and the variance. Daily sales are recorded in the sales record book which can lead to inaccurate data entry record.

3.2 Requirements Gathering Approach

The requirements gathering approach that will be adopted in the organizational management will be an agile development methodology. Agile method is a software development method that is:

 People-focused and communication-oriented

 Flexible (Ready to adapt to expected changes at any time)

 Rapid acceleration (promote gradual development of the product)

 Lean (compacting or reducing timeframe, cost and an improved quality)

 Responsive (Reacts effectively both to anticipated and unexpected changes)

 Learning (Focuses on upgrading before, during and after product development)

Automated System Description

With the automated system, the head office with the aid of the fuel station management system software manages supply of fuel products to various fuel stations that tracks products sold at each station without station managers filling and sending order forms. Fuel station attendants have a login page to key in amount of money and volume sold to each customer and the attendants only access the sales and volume page to see how much volume and amount generated by each attendant. They cannot access any other pages. This system will processed the entire data key in by the User/Manager daily and will produce reports for the day. The system provides complete data for management as well. The system is user friendly as the User/Manager has to log in to his/her page to perform any work. Users will be authenticated or identified by username and password. The automated system gives real-time information to management. Management will be able to make managerial decision in time. At a glance on their computer they can view how much has been sold at each station and the volume needed to be replenished. The automated system ensures more control and better accountability. This system enables an individual to analyze data of fuel stations from the comfort of a computer to create accurate reports easily and efficiently. Manual error of recording in books is eliminated which ensures that real-time electronic reports generated.

Web Services

A web service is an interface that outlines or depict cluster of activities that are network available or accessible through standardized web protocol. The intriguing aspect about this service interface is that the actual implementation or execution logic is hidden from the users, which enables or making it possible for the service to be used on different platforms (other than or aside ones) for which it was implemented. One significant aspect of the web services is that they will allow program-to-program communications. The major difference between the web services and other technologies is that, the web services are accessed through pervasive web protocols such as Hypertext Transfer protocol (HTTP) and Extensible Markup Language (XML). Obviously the unique capacities that come with the web services can yield good outcomes to GOIL Limited as when implemented. Due to the tendency for accessing various types of data or information from any TOTAL fuel station is accessible using the web service.

System Architecture

The system architecture defines the infrastructure common to the developed systems and the interfaces of components that will be included in the system. Designing of fuel station management system architecture is the most critical factor of overall enterprise systems. The fuel station management system architecture is based upon innovative web application service architecture. This system architecture provides access to users, manage data sources, connect them to the fuel manager application and allow users to access them in common formats

SERVER

Figure 2: System Architecture of fuel station management system

3.6 Benefits of Automated System over the Manual system

The principal benefits of the automated system are that site operations can be monitored in real-time, stock figures of each fuel stations are always current and amount generated and volume consumed can be identified immediately. Another benefit is that the fuel station management system assists managers and supervisors of fuel stations with timely information regarding the dispensing of fuels and stock delivery process so that information is easily made available to all interested parties, allowing all parties to run reports and investigate issues. Lastly, the automated fuel management system eliminate error-prone manual entry system, improve fuel tracking for accountability of fuel stations, eliminate misallocation and theft of  fuel and regain control over valuable fuel assets. Data is viewable not only by station managers and supervisors but the head office staff also can access data from each station through a networking of all stations so that issues regarding the fuel are resolved quickly without delay. The manual system takes 48 hours for a request to be delivered and sometimes the request is delayed. With respect to the automated system, since the stations will be inter-networked it will take a shorter time for a request to be delivered. The internet cost of the automated system will be about 100.00 Ghana cedis and the cost of transportation for the manual system is also estimated to be 500 Ghana cedis in terms of fuelling the car which is transportation cost.  Finally, the automated system has the ability to track any transactions and it will give you complete data for reporting financial purposes, management review, analysis and decision-making.

UML Class Diagram

The diagram above depicts the structure of the designed system at the level of classes and developmental phases and anticipated constraints as well as dependencies. Class diagram provides a general overview of the focused system and outline the objects and classes inside the system and the relationships between them. Class diagram show the relationship between classes in a system. Class level is the level on which programming is done; class diagrams do not depict any particular activity or process but only portrays the static features of the system (Kendall & Kendall, 2011)

UML Sequence Diagram

The sequence diagram rather focuses on the message exchange or communication among numbers of lifelines. Sequence diagram describes the interaction by focusing on the sequence of message that is exchanged, along with their corresponding occurrence specifications on the lifelines. UML sequence diagrams model the flow of logic within your system in a visual manner. Most often sequence diagrams are used to depict activities in a use case. They are used to derive the relationships between objects in a system. Sequence diagrams are used to illustrate activities in use scenarios to make the activities follow in a more logical order for analysis. (Kendall & Kendall, 2011).

In conclusion, the objective of this creative process is to develop fuel station management system that aims to support Total Petroleum Ghana Limited. This creative process proposes a system architecture for fuel station management system that integrates the business and information technology environment, more specifically, the fuel station management system allows for real-time monitoring and enables GOIL Petroleum Limited to track various petroleum products at each fuel station, produce sales reports, stock level reports, and supply reports. The system administrator and station managers can access daily sales, view and check the sales made by fuel attendants. Sales records and data from fuel stations can be managed and ensures that right reports are delivered to the right people.

References

Kendall, K.E. and Kendall, J.E. 2002. System Analysis and Design, Fifth Edition. Prentice-Hall International: Princeton, NJ.

Kephart, J. O., & Chess, D. M. (2003). The vision of autonomic computing. Computer, 36(1), 41-50.

Prieto, A. G., & Stadler, R. (2009, June). Adaptive real-time monitoring for large-scale networked systems. In Integrated Network Management, 2009. IM'09. IFIP/IEEE International Symposium on (pp. 790-795). IEEE.

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