1. i
TABLE OF CONTENTS
ACKNOWLEDGEMENTS.............................................................................................................ii
LISTS OF ABBREVIATIONS.......................................................................................................iii
CHAPTE ONE .............................................................................................................................. 1
1:0 Introductions. ............................................................................................................................ 1
1.1 Historical background............................................................................................................... 1
1:2 Types Of Business Organisation............................................................................................... 2
1:3 Organication Structure of Koml Company............................................................................... 2
3.2 Activities Performed by Transport Department........................................................................ 2
3:2:1 Responsibilities of Drivers .................................................................................................... 3
3.4 Activities Performed by Workshop Management..................................................................... 3
3.5 Activities Performed by Fuel System Officer in Transport Department .................................. 4
3.5 Activities Performed by Human Resourse Manager. ............................................................... 4
2.2 Level of Technology at Koml. .................................................................................................. 5
2.3. Mission and Vision of the Koml. ............................................................................................. 5
2.3.1 Mission................................................................................................................................... 5
2.3.2. Vission .................................................................................................................................. 5
CHAPTER FOUR......................................................................................................................... 6
MAIN BODY.................................................................................................................................. 6
4.0. Fleet Availability...................................................................................................................... 6
Table No; 1. Heavy Trucks Available at the Company With Their Fuel Consptions In Km/Ltr. . 6
Table No; 2.Passenger or Light Vehicles Available and Their Fuel Consuption Per Kms. ........... 7
4.1. Fleet Utilization at the Company. ............................................................................................ 7
4.2. Observation of Vehicle Depresiation Policy............................................................................ 8
4.3. Observation of Vehicle Replacement Policy ........................................................................... 8
4.4. Log Sheet Analysis .................................................................................................................. 8
4.5. Budgeting System and Control Merchanism For; ................................................................. 10
4.6. How Job Evaluation is Done in the Organisation so as to Come Up With The Current Salary
Structure........................................................................................................................................ 12
4.7. Labour Turnover .................................................................................................................... 12
4.8. Driver Recruitment, Selection, Management And Training Modalities At The Company. .. 12
CHAPTER FIVE ........................................................................................................................ 13
5.0 Conclussion and Recomandations .......................................................................................... 13
5.1 Conclusion .............................................................................................................................. 13
5.2 Recomandations...................................................................................................................... 13

2. ii
ACKNOWLEDGEMENTS
First of all, I would like to thank God for being with me during my field work, also I would like
to acknowledge the acceptance, advice, assistance and encouragement which I received from
many people during the field work up to the preparation of my field work report. Also I would
like to take this opportunity to thank my lovely family father and my mother for their valuable
support especially in financing me during the whole period of my industrial training.
Through the preparation of this report, I would like to thank my supervisor Mr. Deus Shatta for
his advice, guidance and being accessible for assisting me in producing this filed report. The last
but not least thanks are to the whole management of the National Institute of Transport (NIT)

3. iii
LISTS OF ABBREVIATIONS
KOML- Kahama Oil Mills
TCB - Tanzania Cotton Board
TCA - Tanzania Cotton Association
DRC - Democratic Republic of Congo
T. O - Transport Officer

4. 1
CHAPTE ONE
1:0 INTRODUCTION.
Kahama Oil Mills Limited is best and largest private company located at Nyihogo/Nyasubi
Industrial area, along Isaka-Lusumo Tarmac Road at Kahama district in Shinyanga region.
The ginnery and oil activities are carried out in the company premises. I conducted my field
study at the KOML Company in Logistics and Transport department and other departments
when I was redirected with my supervisor. The company activities aimed to serve both
consumer customers and business customers with the quality goods manufactured by the
company. The aim of the field work was to learn different activities related to transport
issues. More information concerned with transport operations I got it through Interviews,
Observations, Reading and direct practical engagement by assisting some of the activities
especially Tally power of simplicity used to insert all information of every vehicles used by
the company. It was somehow difficult to get some of the required information for the reason
that were treated as confidential. However, I was not disappointed to continue with my field
work, I managed to learn some activities from different departments of which they enabled
me to know systematic procedures of managing transport sector. I also managed to observe
some challenges facing the transport at the company and come up with suggestions to solve
them.
1.1 HISTORICAL BACKGROUND OF THE COMPANY
Kahama Oil Mills Limited is the largest private company founded by Ndegesela and
established in 2002 in the Kahama district, Shinyanga Tanzania. The company is private
liability incorporated in Tanzania under companies ordinance Cap “212” having certificate of
incorporation no.4492 issued on 2nd December, 2002. The company is licensed by the
Tanzania Cotton Board (TCB) to carry on cotton business and is active member of Tanzania
Cotton Association (TCA). A company provides both product and services as it based on
operation of the major business which is correlated in the agriculture includes ginning and Oil
Milling. .it has been a highly successful and profit making industry in the private sector.
KOML enjoys domestic and international markets as it supplied in Tanzania and also export
cooking oil product to DRC, Burundi, Rwanda, Kenya and Uganda, also supplied cotton
bales to China and India country.

5. 2
1:2 TYPES OF BUSINESS ORGANISATION.
The company operates the major business which is correlated in the agricultural as follows;
i. Ginning: the company under this business procures seeds cotton from farmers,
carrying to the ginnery, then gin and sells cotton lint bales while cotton seeds are
being transformed to the Oil Mills.
ii. Oil Milling: the Mill Factory does oil extraction by producing edible cooking oil,
cotton cakes thereafter sales the products at market competitive prices.
1:3 ORGANICATION STRUCTURE OF KOML TRANSPORT COMPANY
Source:Kahama Oil mills Limited, August 2014
3.2 ACTIVITIES PERFORMED BY TRANSPORT DEPARTMENT
The main activity of Transport department is to manage drivers and fleet of the organization,
in order to manage that activity the following sub activities performed;
i. To request for fuel used in the Transit fleets by using a tally system.
ii. To prepare trip sheet details form, and gate passes of the vehicles.
iii. To make sure each Driver has submitted their log book after return of their
routes.
MANAGING DIRECTOR
GENERAL MANAGER
TRANSPORT MANAGER
OPERATION MANAGER
FINANCE MANAGER
HUMAN RESOURCE
MANAGER

6. 3
iv. To collect and secure road toll documents.
v. To prepare daily arrival report for arrival drivers.
vi. To know how many fleets available for daily usage.
vii. To know how many fleets need services this may be minor or intensive
maintenance.
viii. To know if a driver get all documents for transportation of a certain goods or
equipment’s.
ix. To make sure that a driver is not delaying when he receives all documents
x. To receive all emergence information in case when accidents occurs or any
other emergency and then call workshop department for breakdown.
xi. To receive and arrange for order of other group company.
xii. To make a proof if a cargo delivered safely or not, the document which is
used for this purpose is delivery document.
3:2:1 RESPONSIBILITIES OF DRIVERS
i) To Make sure the vehicle is clean all the time,
ii) Every morning, the driver has to check tyre pressure, acid water, hydraulic fluid, and
indicator, brake fluid and oil level.
iii) To do other job as assigned by their superior e.g. to report in case of accident, to make
sure that he get all documents needed for transportation and also to report in case if a
vehicle need minor maintenance.
iv) To keeps safe all important documents which he travel with.
3.4 ACTIVITIES PERFORMED BY WORKSHOP MANAGEMENT
i. Control all vehicle maintenance.
ii. Prepares vehicle maintenance report and submit it to the respective body.
iii. Estimates cost incurred when repair for vehicle,
iv. To looks for which vehicle spare parts equipment’s like Tyre are best and
profitable for organization

7. 4
3.5 ACTIVITIES PERFORMED BY FUEL SYSTEM OFFICER IN
TRANSPORT DEPARTMENT
i. To make sure that a driver is given a required fuel as requested by a transport
department.
ii. To prepare fuel consumption monthly report.
iii. To make sure that fuel tanks are clean and safe all the time.
iv. To order for fuel and to prepare for fuel daily report.
v. To checks for daily balance of fuel manually and by using a tally system.
3.5 ACTIVITIES PERFORMED BY HUMAN RESOURSE MANAGER.
i. Evaluating human resource requirement and advices accordingly
ii. Writing monthly report of the human resource department
iii. Ensuring and implementation of company policies and procedures of operation.
iv. Ensuring all new employees receive effective induction course about their respective
working position.
v. Assisting and advising on employee’s promotions and career growth within out the
organization.
vi. Advise the company in legal matters particularly on labor law
vii. Compiling and updating personnel records in the organization.
viii. Follow up and insurance of staff national insurance funds and to coordinate transport
welfare activities
ix. Administer company vehicles and their movement
x. Selection, schedule, organize interviews, recruitment and selection of new employees.
xi. Preparation of contracts to the new employees and keeping records of all employees
xii. Preparation of all kinds of internal memos and administrative letters concerning
Human Resources issues such as salary deductions letters, warning let and promotion
letters.

8. 5
2.2 LEVEL OF TECHNOLOGY AT KOML.
The company has normal developed in technology as it is using IT system to run its day to
day operations and other technological equipment shown as follows;
KOML have the..
i. Computing system work station with Internet access
ii. Fleet costs and maintenance management system(road base)
iii. Fuel utilization per each vehicle using tally system
iv. Daly reporting (fleet management system)
v. Ordering of different equipment and goods are done through e-mails or website.
vi. Telephone services are availability all time in different offices.
vii. Customers are provided web access to this system for the purpose of tracking the
progress of their consignment from point of loading to destination.
2.3. MISSION AND VISION OF THE KOML.
2.3.1 MISSION
To ensure and sustain the living standards of Tanzanian by providing them with essential
product and services of globe quality at affordable price to exceed customers’ satisfactions
through innovation the new technology.
2.3.2. VISSION
To be the best among of the internationally respected and professionally companies in the
East African countries based on the production of raw materials and Food materials.

9. 6
CHAPTER FOUR
MAIN BODY
4.0. FLEET AVAILABILITY
Total fleets available.
i. Passenger vehicles
ii. Haulage/ heavy trucks
A company possesses over 87 total fleets which includes 55 cargo transportation (haulage)
vehicles and 32 fleets (light vehicles) for passenger transports. The available fleets in the
organization range from different shapes and size depending on their usage and size of a
cargo to be carried. Most of fleets available in the organization are both brand new, new
models and also old model vehicles.
TABLE NO; 1. HEAVY TRUCKS AVAILAB LE AT THE COMPANY
WITH THEIR FUEL CONSPTIONS IN KM/LTR.
NAME OF TRUCKS TOTAL CAPACITY RATIO OF FUEL
UTILIZATION
FUEL KMS
IVECO STALIS 10 1LTR 2.4
IVECO EURO
CARGO
7 1LTR 4
TATA
OLD
TATA
7 1LTR 4
NEW
TATA
20 1LTR 3.5
FAW 10 1LTR 2.5
SCANIA 10TONS 12 1LTR 3/2(semi)
FUSO 1 1LTR 4
TOTAL TRUCKS 67
Source: Kahama OilMills limited, September 2014

10. 7
TABLE NO; 2.PASSENGER OR LIGHT VEHICLES AVAILABLE AND
THEIR FUEL CONSUPTION PER KMS.
VEHICLE NAME TOTAL
CAPACITY(AVAILABLE)
RATIO OF FUEL
UTILIZATION
FUEL KMS
LAND CRUISERS.
i. L. CRUISER 77
5 1LTR 6
ii. L. CRUISER 75 4
iii. L. CRUISER P/UP 3
NOAH 2 1LTR 8-10
FORD RANGER 10 1LTR 7
RAV 4 8 1LTR 8-10
TOTAL VEHICLE 32
Source: KOML, September 2014.
4.1. FLEET UTILIZATION AT THE COMPANY.
How many ton kilometers are produced per day/week or month and hence
annually against determined available capacity.
According to the company’s level of operations that it covers different areas with different
distances, the total kilometers are known through referring to the log book or to the tally
system of vehicle fuel account which shows fuel utilized with total kilometers covered.
Therefore, the tally system account shows that the total kilometers produced per day are
2530kms/day. This includes both short and long distance, the total kilometers produce per
week are 17710 calculated for seven days because the company operates its activities from
Monday to Sunday. Also the accumulation of weekly report provide information for
monthly report in which further more will facilitate in the provision of annually report for
kilometers covered by each fleet available.

11. 8
4.2. OBSERVATION OF VEHICLE DEPRECIATION POLICY
Depreciation is the decreasing of value of a vehicle according to the number of days it is in
operation which is rated by percentage. Depreciation is used to determine financing
requirements for replacing a vehicle/ vessel at the end of its economical viable life.
The company calculates vehicles depreciation annually and keeps records of those
depreciated fleets so as when they dispose the fleet they will be aware with the depreciated
price. The company fixes depreciation cost as 8% per annually.
The depreciation is calculated by use of the following formula.
Depreciation = Cost-estimated disposal value
Number of expected year of use
After that calculation procedure the vehicles and other items are then valued at their original
costs then the price found is the price for disposal. The depreciation system is still valid and
there is no problem there.
4.3. OBSERVATION OF VEHICLE REPLACEMEN T POLICY
For the company to be more profitable they decided to replace their fleets after four years for
heavy trucks and three years light vehicles in order to continue to perform well in their day to
day activities. fleets can be replaced depending on the condition it is currently, When the
vehicles operated on the right condition that fleet will be replaced at the maximum years of
depreciation, but when a driver keep their fleet roughly that fleet will be replaced any times
when becomes more maintenance costly than profits generated. The company decided to fix
those years in order to avoid unnecessary maintenance cost.
4.4. LOG SHEET ANALYSIS
i. Rate of fuel utilization
Fuel consumption the number of kilometers traveled for each liter of fuel used. Rate
of fuel consumption depends on the engine of the given vehicle and it can vary from
one to another. The company the vehicles which using diesel and other which using
petrol.
For the heavy trucks, the average of fuel consumption is 1litre per 3.5kilometers. And
for the light vehicles, the average of fuel consumption is 1litre per 7.5 kilometers.
Fuel consumption of the vehicle = Total distance travelled
i. Total fuel used.

12. 9
ii. Scheduled kilometers
The company is scheduling the kilometers when doing the routes scheduling over a
certain period. In order to schedule easily, the company using the data from the fuel
managing officer who are responsible of issuing the fuel of each vehicle within the
company, which includes name of the vehicle, total kilometers to cover and total tons
wants to carry. The company fixed their schedule for all fleets then they use a system
to do follow up if those arranged schedules are followed up or not. Hence, the
transport manager prepares daily report and send it to General Manager.
iii. Dead kilometers
Dead kilometers are those kilometers in which a vehicle cover without having a cargo,
or this sometimes is called unproductive kilometers. Due to high expansion of the
company, there is less deadly kilometers incurred the company because it is not easy
for the truck to turn back without any cargo. For example, in 2300 kilometers covered
per day, deadly kilometers are only 15km. The average of loading factor of the
company is almost 85% which is very profitable. To conclude I can say that
company’s dead kilometers is almost lower with the range of 10% compared to total
revenue kilometers generated.
iv. Revenue kilometers(Productive kilometers
Revenue kilometers are those kilometers in which a vehicle covers when loaded a
cargo, revenue kilometers for a company are so many because a company has many
fleets and also some of those fleets return with the cargo so it increases the level of
productive kilometers as it includes large percentage of loading factor.
v. Revenue km produced.
Revenue km is the amount of money produced by the fleet for each kilometer
travelled, thus
Revenue = Cost x total number of tons loaded
Total Km traveled

13. 10
4.5. BUDGETING SYSTEM AND CONTROL MERCHANISM FOR;
Fuel acquisition consumption control and reporting procedures.
i. Fuel acquisition consumption control
The company’s development depend more on fuel acquisition consumption control,
when the fuel are of good quality and with lower price the company benefit more, so
due to that the company decided to employ big and available fuel consignor in order
to provide quality fuel. The company employs consignor which is Olympic
petroleum; which have two branches at Kahama district. So Olympic petroleum
company provides oil services to more than 65 fleets per day.
ii. Fuel reporting procedures
In the company fuel reporting procedures is done by a system known as tally power of
simplicity which preserves all information of inflow and out flow of fuel. So when a
fuel manager bring out fuel he fill all required information on the tally system and
under this system fuel manager can be able to prepare fuel intake report and fuel
outtake report. Fuel Intake report is a report which shows all details about fuel inflow
while fuel outtake report is a report which shows all details about fuel outflow.
Always a fuel manager should be carefully in order to avoid loss of fuel.
iii. Fuel utilization
The company’s vehicles use an average of one litre of fuel per 6km on tarmac roads
and an average of one litre of fuel per 5km on rough road for the heavy vehicle. While
one litre of fuel per 9km on a tarmac road and one litre for 7km on a rough road for
the light vehicles.
iv. Vehicle maintenance budget, control and reporting procedures.
In the organization vehicle maintenance done depending on kilometer coved by a
vehicle, when the vehicle reach 20,000kms major services is done for that fleet but
also minor services is done when a driver report for a breakdown or a vehicle reaches
5,000kms.

14. 11
Procedures for vehicle maintenance
i. The vehicle is inspected first by the driver to detect and write down any break down
observed.
ii. Secondly, the T.O. reviews the inspection and approves the inspection form.
iii. Third, T.O prepare a job card including the problem(s) of the vehicle
iv. Fourth, the drivers take the vehicle to garage with the job card.
v. When the vehicle reach to garage maintenance is done depending on information
indicated on job card and the system.
Tyre acquisition, control and reporting procedures.
i. Tyre acquisition
The company is more sensitive on tyres issues due to the need of higher amount of
tyres and also before a company decides to which kind of tyre to buy they first looks
for a performance of that tyre. The tyre which perform better are the one which are
going to be used more in the organization’s fleet. According to investigation done by
the organization they decide to purchase Super doll tyres, continental tyres, and
Michelline tyres. Furthermore the company likes to purchased new tyres, used tyres
and also retrenched tyres, in additional the company prefers most those tyre which
cover more than 30,000kms before they scrap.
ii. Tyre control
In order to be benefited with tyre, organization decides to employ specialist who deal
with tyre so as to control it effectively. In order to control all tyres in the
organization, tyre control report must be prepared daily and that report shows all
details about the tyre like date of use, kilometer covered, position, and model. Tyre
thread depth is the main determinant which is used to control the tyre, when the depth
are deep the tyre is at good position but when the tyre depth is shallow the tyre is at
bad situation, when a tyre reach a depth of 0.3mm it is not used and also the
instrument which is used to measure the depth of the tyre is depth gauge instrument,
Tyre replacement is done after 35,000kms of travel and should be noted from the
odometer.

15. 12
4.6. HOW JOB EVALUATION IS DONE IN THE ORGANISATION SO
AS TO COME UP WITH THE CURRENT SALARY STRUCTURE
The company decided to looks for some factors so as to looks for worthiness of the job and
come up with current salary structure. The followings are those factors which the company
considers when they set up a current wage structure as follows;
i. Experience
The more experienced worker especially working at the company for many years is
paid more than less experienced workers.
ii. Education level
A worker who has the higher level of education is paid more than a worker who has a
low level of education but also experience are adding values to educated employee.
iii. Job rotation
A worker who stays in a job for a long time is paid more than a worker who stay in a
job for a short time like those employed depends to the harvesting period from June to
September each year.
4.7. LABOUR TURNOVER
Staff turnover is normally caused by retirement regulation which is 65yrs old. However a
staff may request to work under contract bases. Staff turnover is very minimal to compare to
others because of comfort ability of working environment and also staff given chances to
attend courses to uplift their carriers.
4.8. DRIVER RECRUITMEN T, SELECTION, MANAGEMENT AND
TRAINING MODALITIES AT THE COMPANY.
Because the company is more famous many drivers came alone to the organization daily and
apply for a job so the company does not incurs the cost of recruiting the coming drivers.
Under a recruited drivers selection is done by using a practical test and written test depending
on a performance of a drivers. And when a driver is selected he normally receive On The Job
Training so as to be familiar with the environment and after a time when new fleets
purchased in the organization, Off the Job Training is done for some drivers who received
those new fleets.

16. 13
CHAPTER FIVE
5.0 CONCLUSSION AND RECOMANDATIONS
5.1 CONCLUSION
During my field study I realized that all departments around the company are normaly
interdependent they are working by depending each other. For example Transportion
department send the information of a need of new Drivers to Human resource department. On
the other hand Logistics department send fuel request information to fuel department.
Generally, the whole department at the Organization are inseparable.
5.2 RECOMANDATIONS
For any transport organization to develop it need to have effective controlled fuel
consumption, controlling spare parts and short time run out that is absence of fleet delay.
KOML Company is developed daily because it managed to control fuel consumption, spare
part and short time run out and it having its own workishop for maintenance of their fleets. In
additional for the company to be more developed it needs to utilize its vehicles for three or
five years then it replace that vehicle in order to avoid expensive repair.

17. 14
NATIONAL INSTITUTE OF TRANSPORT
DEPARTMENT OF LOGISTICS AND TRANSPORT MANAGEMENT
HIGHER DIPLOMA IN LOGISTICS AND TRANSPORT MANAGEMENT
FIELD WORK REPORT CONDUCTED AT KAHAMA OIL MILLS LIMITED
FROM 04th
march, 2014 – 28th
November, 2014
STUDENT NAME : ALPHONCE EMMANUEL B.
REG NUMBER ; NIT/BLTM/2013/172
ACADEMIC YEAR : 2013/2014
SUPERVISOR : MR. DUES SHATTA.