BSBSMB405A Monitor and Manage Small Business Operations

The following aspects of a petrol station require day-to-day monitoring by the owner / manager.

Customer service

The petrol station business caters to the customers who live in the nearby localities as well as to those who pass by the area. It is, therefore, important to build a long-term relationship with the customers so that the business reputation can grow with time (Dean 2015). Quick and friendly services make the customers happy and enhance their loyalty towards the station. Staff demeanour and the equipment performance play a vital role in ensuring proper delivery of the services. Downtimes should be minimized and the staff needs to be monitored and trained so that they follow the customer service charter (Scheidt & Bachmann 2012).

Health, safety and environmental

It is imperative to ensure that the environmental compliances are accorded the highest priority. Consequently, it is important to follow the regulatory requirements, ensure timely repair and maintenance of equipment, and also monitor daily activities such as trash removal (Apex Petroleum 2012). General cleanliness of the premises should also be given top priority. The mandatory Emergency Management Plan (EMP) should be tested, updated, and communicated to the employees through messages and regular training (CFA 2013). All relevant licences need to be renewed in a timely manner and displayed as per the requirements.

Inventory

Inventory management is particularly important to ensure that the station does not run out of fuel, lubricants, or supplies in the retail store. For example, the owner / manager must monitor reports related to inventory levels in cigarettes, cold drinks, eatables, etc. This will help avoid unnecessary stock outs and disruption to customer service. While the integrated software solution may provide alerts, it is a must to place orders promptly so that suppliers get adequate time to deliver. It is equally important to test check the quantity of fuel and other supplies upon receipt and on other occasions at random. Good relationships with the suppliers may help obtain better commercial terms and adequate supplies even when there is a shortage (Dean 2015).

 

Employee management

It is important to take care of the staff because one does not have too much bench strength. Therefore, while employee discipline (e.g. attendance, punctuality, customer service level, etc.) must be monitored, the welfare aspects (e.g. proper wages, benefits, leaves, rest and relief, training, uniform, etc.) cannot be ignored. Employees should be treated well because they are the internal customers and it is vital that they should remain committed and loyal to the station’s mission (Dean 2015).

Marketing

Strong competition makes it imperative for the owner to be actively involved in an innovative and customer-focused marketing. Multimedia and other displays should carry promotional messages. The promotional activities should be monitored for results (Scheidt & Bachmann 2012).

Finances

Since a lot of cash is collected and deposited each day, it is vital to keep a track of the inflows and outflows on a day-to-day basis. The owner must keep a tab on the income, expenditure and liabilities so that the finances remain balanced. It is, therefore, vital to monitor the reports generated by the accountant or the software to take timely action to correct any imbalances. This is particularly important because the owner has to ensure that the fuel and other inventory remains adequate (Dean 2015). Proper accounting, recordkeeping, reporting, tax payments, insurance, etc. is a must to ensure that things go smooth (Apex Petroleum 2012). For example, cash has to be counted and deposited everyday (Smith 2015).

Technology & management information reports

To ensure smooth operations, it is important to monitor the performance of the software and look for areas of improvement. An integrated system makes monitoring of finances, employees, inventory, customer service, office management, etc. easier. It is vital to monitor the performance of the station based on predefined Key Performance Indicators. The reports may be developed with experience (Scheidt & Bachmann 2012).

2. 2. Develop an action plan for some of your business objective. This may include a flowchart, time-lined plan or a list of steps that must be taken to achieve your business objectives.

The action plans for Customer Service and Health, Safety and environmental are outlined below:

Customer Service:

• Develop a customer service charter.
• Sensitize the employees, especially during induction, about the importance of customer service in petrol station business through training.
• Emphasize that all employees need to contribute as a team to improve customer service. For example, the maintenance department personnel need to do their job well so that the equipment works well, the premises are clean, etc. This will make it easier for the customer-facing staff to deliver top quality customer service.
• Train all employees in various aspects of the customer service charter through theoretical training, role-plays and periodic tests for reinforcement of the learnings.
• Use repeated messages, team meetings and other forms of open communication to reinforce the importance of customer service from time to time. Welcome new ideas about how to improve the level of customer service.
• Use rewards and other schemes, such as the employee of the month, in the context of customer service.
• Involve employees in decision-making related to operational and marketing matters so that these activities can be planned and executed with a customer service mindset.
• All this will inculcate a spirit of customer service in the organisation.

Health, Safety & Environmental (HSE)

• Know about regulatory compliances and accord top priority to HSE issues.
• Develop procedures and processes, and create detailed station manuals to document various compliances and the steps required to remain compliant on a day-to-day basis. The manuals will also contain checklists for each employee so that all can contribute towards the compliances.
• Train the employees in HSE issues and communicate to them their respective roles.
• Emphasize that achieving compliance is a team effort, and it starts from basic activities such as premise cleanliness, proper waste disposal, proper delivery of fuel, adherence to safety procedures, etc. Consequently, all day-to-day activities should be done by the book.
• Maintain a culture of safety so that on site accidents are minimized.
• Submit timely reports to the regulatory authorities and report any incidents / failures.
• Prepare an Emergency Management Plan (EMP) describing how the station and its occupants will deal with emergency situations. The EMP should include preparedness, response and recovery actions. It will also describe the roles and responsibilities of personnel and the supporting systems during emergency situations.
• Train employees in emergency procedures and conduct regular drills to ensure optimal preparedness (CFA 2013).
• Make adequate safety arrangements at site to protect employees against any possible vandalism (Scheidt & Bachmann 2012).
• Build a culture of safety and environmental compliance at the station.

 

3. Develop a customer service charter. Remember customers can be both internal and external.

A customer charter makes the customers confident that they can expect certain services when they come to the petrol station. Further, the charter ensures that there is a mechanism to file complaints and get them redressed. So the customers are forthcoming with their opinions about the level of customer service. The charter is based on the customer service standards that the organisation aims to maintain. Broadly, all employees of the station must endeavour to deal with customers courteously and professionally irrespective of the department to which they belong.

From the point of view of external customers, the outline of the customer service charter is as follows:

• Licenses and certificates will be displayed prominently so that the customers feel confident that they are dealing with a professional and a compliant organisation.
• All employees must be dressed appropriately in the prescribed uniform as long as they are within the station premises. The uniform will include batches to indicate the name and the department of the employee.
• The station premises will be cleaned and maintained at all times to ensure the highest standards of hygiene and regulatory compliances. A housekeeping check list will be displayed to ensure that the premises are being cleaned regularly.
• All equipment will be kept in the best possible condition to ensure seamless delivery of top-quality services. Maintenance schedule and record will be appropriately displayed.
• Signage about the various facilities (e.g. washrooms) and visual cues regarding type of products (e.g. type of fuel) will be appropriately displayed and maintained.
• Information about all the products (e.g. fuel specifications and price) will be displayed prominently.
• All customers will be acknowledged with a smile and greeted based on the time of the day.
• All dealings with the customers will be done in a courteous and professional manner.
• Customers will be provided services and information without any delay. If an employee is unable to deal with an issue raised by the customer, he will request the help of a superior immediately.
• Customers may complain about any issues to the manager verbally, or in writing in the complaints / suggestions register available in the office. The complaints can also be sent vial emails.
• The complaint / suggestions register will be checked and initialled by the manager at least twice in a day.
• Steps will be taken to address customer complaints and to accept their suggestions to improve customer service.
• The payment details and personal information of the customers will be treated with strict confidence and not shared with anyone for marketing or any other purpose.
• All employees will be trained in all the above aspects from time to time

(Twomey 2012).

4. Develop some benchmarks for the products or services your business supplies. When benchmarking you will need to consider the quality standards you want to achieve and the systems you can put in place to achieve and monitor these standards.

The owner should endeavour to set very high standards for all aspects of the petrol station management, with special emphasis on HSE and customer service. The long-term objective must be to minimize the possibility of accidents and customer complaints. For the first 3 years of business, the objective should be to build systems and processes based on the relevant regulation and best practices in the industry. Companies such as Shell and BP accord very high importance to quality, customer service, safety and environmental issues. Consequently, the objective of the petrol station is to achieve the following standards in HSE and customer service:

Health, Safety & Environmental (HSE)

• Zero fire accidents, untoward incidents and impacts related to fuel storage and delivery. This will be achieved through proper fuel storage control measures to avoid fire, explosion, and adverse environmental impact. Employees will be suitably protected when they handle fuel and hazardous material. This will require regular training of staff and protective clothing, timely maintenance of equipment, tanks and other infrastructure, and proper disposal of waste.
• Zero vehicle related accidents. This will require adequate vehicle movement control practices to avoid accidents that involve vehicles, structures, employees, customers or other visitors. The flow of the traffic will be controlled and signs will be placed prominently to direct vehicle movement. Vulnerable materials or equipment will be provided additional physical protection.
• Zero accidents due to slips and trips. This will require prompt cleaning of any spillages and display of appropriate signs during cleaning operations.
• Zero accidents due to infrastructure issues such as equipment malfunction, electrical shocks, etc. This will require proper maintenance of infrastructure, equipment and proper training of staff / handlers. All relevant safety measures will be followed (HAS 2015)

In addition, vapour loss will be minimized and vapour recovery equipment and techniques will be used to minimize air pollution and fuel loss. The alarm systems will also be regularly monitored and maintained. Diesel and petrol spills, stormwater pollution, soil and groundwater contamination and greenhouse gas emissions will be prevented. The regulatory requirements in respect of water, air, land pollution, hazardous material and waste, noise and waste will also be met at all times. There will be special efforts to achieve a high level of resource efficiency in the use of raw materials, water and energy (DECC 2008).

Customer Service:

• Maximum 3 customer complaints in a month.
• Respond to serious customer complaints within one week of the complaint. The response will include details of corrective action taken.
• Address customer complaints within the shortest possible time based on the type of complaint.

Fuel Quality:

• Quality of fuels and fuel quality information standards prescribed under The Fuel Quality Standards Act 2000 will be followed at all times. The standards pertain to petrol, diesel, biodiesel, autogas and ethanol E85. The fuel quality information labelling standard relate to Ethanol (in petrol) and ethanol E85 (DOE 2015).

5. Develop a staff management plan.

An outline of the staff management plan is presented below:

Designation	No.	Status	Weekly hours	Skills and experience.
Petrol Station Manager	1	Full time	38	Experience: Minimum 10 years in the same capacity. Skills: Knowledge of entire operations of a petrol station including facilities management, inventory management, marketing, finance, regulatory compliances and customer service. Advanced level of relevant computer skills and a proven ability to develop, generate and analyse management information reports.
Retail Store Manager	1	Full time	38	Experience: Minimum 5 years in the same capacity at a petrol station. Skills: Expertise in all aspects of operations of a petrol station store including store management, inventory management, finances, regulatory compliances, customer service and promotions. Advanced level of relevant computer skills and a proven ability to develop, generate and analyse management information reports.
Accountant	1	Full time	38	Experience: Minimum 5 years as an accountant in a petrol station. Skills: Thorough knowledge of accounting principles and practices in an ERP environment. Ability to develop, generate and analyse management information reports.
Cashier	3	Full time	38	Experience: Minimum 5 years in a similar capacity at a petrol station. Skills: Thorough knowledge of cash handling, accounting and deposit in a manual and a computerised environment.
Customer service representatives – Retail store	6	Part time	25	Experience: Minimum 3 years in a similar capacity at a petrol station. Skills: Thorough knowledge of customer service, stock placement, point of sale service, cash handling, cash accounting and deposit in a computerised environment.
Office assistant	1	Full time	38	Experience: Minimum 3 years in a similar capacity at a petrol station. Skills: Good knowledge of office management to ensure that the office runs smoothly.
Helper/pantry boy	1	Full time	38	Experience: Minimum 2 years in a similar capacity.
Service/Gas Station Attendants	12	Full time	38	Experience: Minimum 2 years in a similar capacity at a petrol station.

(Apex Petroleum 2015; FWO 2015).

The following tasks will be outsourced, or will be the responsibility of the respective vendors:

1. Housekeeping and maintenance of premises: Outsourced
2. Security of the premises: Outsourced
3. Equipment maintenance: Under annual maintenance contract with the respective vendors and agencies.
4. ERP / software maintenance: Under annual maintenance contract with the respective vendors and agencies.

The ERP will include a module for payroll. The module will contain details about employee ID, personal details, joining date, attendance, salary/wages, shift details, benefits, leaves, payments, etc. The module will be dynamic and will be updated by the accountant from time to time (Amarnath et al. 2014).

References

Amarnath, MV, Bipin, NN, Ajit, SN & Babaso, YP 2014, ‘Resource planning system for petrol station (petro-hash)’, International Journal of Advanced Research in Computer and Communication Engineering, vol. 3, no. 2, pp. 5428-5433.

Apex Petroleum 2012, Service station business plan, Apex Petroleum Corporation, Maryland, viewed 25 July 2015, <http://www.apexpetroleum.com/pdf/business-plan.pdf>.

CFA 2013, Guidelines for service / petrol stations meeting Dangerous Goods Regulations requirements for emergency planning, Country Fire Authority, Victoria, viewed 25 July 2015, <http://www.cfa.vic.gov.au/plan-prepare/dangerous-goods/CFA-DG-GLines-ServiceStations.pdf>.

Dean, SL 2015, An introduction to buying a gas station, Dynamis Ltd, Sydney, viewed 25 July 2015, <http://india.businessesforsale.com/indian/search/Gas-Petrol-Service-Stations-for-sale/articles/an-introduction-to-buying-a-gas-station>.

DECC 2008, Environmental action for service stations, Department of Environment and Climate Change NSW (DECC), viewed 25 July 2015, <www.epa.nsw.gov.au/resources/clm/2008552ServStations.pdf>.

DOE 2015, Fuel quality standards, Department of the Environment, Australian Government, viewed 26 July 2015, <http://www.environment.gov.au/topics/environment-protection/fuel-quality/standards>.

FWO 2015, Casual, part-time & full-time, Fair Work Ombudsman, Canberra, viewed 26 July 2015, <http://www.fairwork.gov.au/employee-entitlements/types-of-employees/casual-part-time-and-full-time>.

HAS 2015, Petrol station safety, Health and Safety Authority, Ireland, viewed 26 July 2015, <http://www.hsa.ie/eng/Your_Industry/Petrol_Stations/>.

Scheidt & Bachmann 2012, Petrol station management from A-Z: Proven solutions for today’s forecourt retailer, Scheidt & Bachmann GmbH, Germany, viewed 25 July 2015, <www.scheidt-bachmann.com/uploads/media/brochure_Tank_EN.pdf>.

Smith, C 2015, How to run a successful gas station business, Hearst Newspapers, LLC, Texas, viewed 25 July 2015, <http://smallbusiness.chron.com/run-successful-gas-station-business-3182.html>.

 

Twomey, S 2012, Customer service in Ireland, Gill & Macmillan, Dublin, viewed 25 July 2015, http://www.gillmacmillan.ie/AcuCustom/Sitename/DAM/059/Customer_Service_in_Ireland_3rd_ed_-_Look_Inside_Sample.pdf.