LEVERAGING TECHNOLOGY FOR BUSINESS FLEET APPLICATIONS: A CASE STUDY OF FLEET MANAGEMENT SYSTEM IMPLEMENTED IN KENYA POWER & LIGHTING COMPANY LIMITED
By
Author
Presented To
Department of Transport and Logistics
ABSTRACT
This study aimed to evaluate the effectiveness of a modern fleet management system
in improving the logistics of transporting staff, goods and materials in Kenya Power &
Lighting Company, a utility firm in power distribution. In today’s competitive marketplace
which is characterised by rapidly changing business requirements, leveraging leading edge
technologies and adopting best practices are essential in order to ensure sound logistical
support that guarantees both effectiveness and efficiency in the transportation processes.
The sampling procedure of one-stage, cluster sampling and the use of the simple
random sampling technique were used in this study to select a sample size which was
sufficiently representative of the whole population. Both the descriptive study approach and
the survey research strategy were adopted to enable the collection of data in a manner that
allowed in-depth examination while gathering information that explained the relationships
between constructs, in particular, cause and effect relationships.
The main purpose of this dissertation was therefore to establish that the use of
information technology is feasible in transport industries, explain possible obstacles and also
any major advantages of its implementation. Secondly, as regards the theoretical aspect, a
broadened view on the use of online tracking for vehicles using a global positioning system is
presented, together with practical examples, to illustrate its successful implementation in a
fleet management system. The study concludes by offering suggestions and recommendations
from the research results and the researcher’s experiences for future studies.
_________________________________________________________________________
Keywords
Global positioning system, information and communication technologies, fleet management
system, Global System for Mobile Communications and Intelligent transport systems
TABLE OF CONTENTS
DECLARATION - - - - - - - - - - - - - - - - - - - - - - - - - i
APPRECIATION AND ACKNOWLEDGEMENTS - - - - - - - - - - - - - - - ii
ABSTRACT - - - - - - - - - - - - - - - - - - - - - - - - - - iii
TABLE OF CONTENTS - - - - - - - - - - - - - - - - - - - - - - iv
LIST OF FIGURES - - - - - - - - - - - - - - - - - - - - - - - - viii
LIST OF TABLES - - - - - - - - - - - - - - - - - - - - - - - - ix
LIST OF ABBREVIATIONS - - - - - - - - - - - - - - - - - - - - - xi
DEFINITION OF KEY TERMS, CONCEPTS AND VARIABLES - - - - - - - - - - - xii
CHAPTER ONE - - - - - - - - - - - - - - - - - - - - - - - - - 1
1 Introduction - - - - - - - - - - - - - - - - - - - - - - - - 1
11 Introduction to the Research Study - - - - - - - - - - - - - - - - - - 1
12 Background to the Research Study - - - - - - - - - - - - - - - - - - 3
121 Intelligent Fleet Management System Use in Kenya - - - - - - - - - - - - - - 4
122 Profile of Kenya Power & Lighting Company (KPLC) - - - - - - - - - - - - - 5
123 Requirement for a GPS Fleet Management System in KPLC - - - - - - - - - - - - 6
13 Statement of the Research Problem - - - - - - - - - - - - - - - - - - 7
14 Objectives of the Study - - - - - - - - - - - - - - - - - - - - - 8
15 Research Questions - - - - - - - - - - - - - - - - - - - - - - 8
16 Scope of the Research - - - - - - - - - - - - - - - - - - - - - - 9
17 Research Methodology - - - - - - - - - - - - - - - - - - - - - 9
18 Chapter Outline - - - - - - - - - - - - - - - - - - - - - - - 9
CHAPTER TWO - - - - - - - - - - - - - - - - - - - - - - - - 11
2 Literature Review - - - - - - - - - - - - - - - - - - - - - - 12
2 1 Introduction to the Literature Review - - - - - - - - - - - - - - - - - 12
22 Leveraging ICT in Transport Business Processes - - - - - - - - - - - - - - 12
23 Insight into the Future of Technology from Top Industry Analysts - - - - - - - - - - 16
24 Impact of ICT on the Supply Chain Process in Transportation - - - - - - - - - - - 18
25 Fleet Management Systems in the Transport Industry - - - - - - - - - - - - - 22
26 Real-time Fleet Management Technologies - - - - - - - - - - - - - - - - 25
261 Mobile Emerging Technologies - - - - - - - - - - - - - - - - - - - 27
262 How GPS Fleet Management Systems Work - - - - - - - - - - - - - - - 30
263 Global Positioning Systems and Telematics - - - - - - - - - - - - - - - - 32
264 The Main Characteristics of Fleet Management Systems - - - - - - - - - - - - 33
265 Types of GPS Navigation Systems - - - - - - - - - - - - - - - - - - 35
27 Challenges when Choosing and Implementing Technology - - - - - - - - - - - - 36
271 Choosing Technology to Support Business Continuity - - - - - - - - - - - - - 37
272 Organisational Impact of a Real-time It-logistics Solution - - - - - - - - - - - - 38
273 Consequences of Implementing Technology in Transport Logistics - - - - - - - - - 39
274 Critical Success Factors - - - - - - - - - - - - - - - - - - - - - 41
28 Benefits of Implementing a GPS Fleet Management System - - - - - - - - - - - 41
281 Reduction in Accident Rate and Improvement in Incidence of Safe Driving - - - - - - - 43
282 Increase in Fleet Availability and Staff Productivity - - - - - - - - - - - - - - 43
283 Fuel Savings and Other Environmental Factors - - - - - - - - - - - - - - - 44
284 Reduction in Overall Transport Operational Costs - - - - - - - - - - - - - - 44
285 Improve Accountability and Information Flow - - - - - - - - - - - - - - - 45
286 Improved Recovery of Stolen Motor Vehicles - - - - - - - - - - - - - - - 45
287 Increased Customer Satisfaction - - - - - - - - - - - - - - - - - - - 46
29 Limitations of a GPS Fleet Management System - - - - - - - - - - - - - - 47
210 Chapter Summary - - - - - - - - - - - - - - - - - - - - - - 49
CHAPTER THREE - - - - - - - - - - - - - - - - - - - - - - - 51
3 Research Methodology - - - - - - - - - - - - - - - - - - - - - 52
31 Introduction - - - - - - - - - - - - - - - - - - - - - - - - 52
32 Research Process - - - - - - - - - - - - - - - - - - - - - - - 52
33 Research Design - - - - - - - - - - - - - - - - - - - - - - - 53
34 Research Philosophy - - - - - - - - - - - - - - - - - - - - - - 55
35 Research Approach - - - - - - - - - - - - - - - - - - - - - - 56
36 Research Strategy - - - - - - - - - - - - - - - - - - - - - - 60
37 Time Horizon - - - - - - - - - - - - - - - - - - - - - - - 62
38 Target Population and Sampling Techniques - - - - - - - - - - - - - - - 63
39 Data Collection Techniques and Research Instruments - - - - - - - - - - - - - 69
310 Data Analysis and Interpretation Methods - - - - - - - - - - - - - - - - 71
311 Validity and Reliability - - - - - - - - - - - - - - - - - - - - - 72
312 Ethics - - - - - - - - - - - - - - - - - - - - - - - - - - 73
313 Chapter Summary - - - - - - - - - - - - - - - - - - - - - - 73
CHAPTER FOUR - - - - - - - - - - - - - - - - - - - - - - - - 76
4 Data Collection and Data Analysis - - - - - - - - - - - - - - - - - 76
41 Introduction - - - - - - - - - - - - - - - - - - - - - - - - 76
42 Data Collection Using the Questionnaire - - - - - - - - - - - - - - - - 77
421 The Random Sampling Procedure - - - - - - - - - - - - - - - - - - 77
422 The Selected Sample Size - - - - - - - - - - - - - - - - - - - - 78
43 Implementation of the GPS Fleet Management System - - - - - - - - - - - - - 79
44 Data Collection and Data Analysis Method - - - - - - - - - - - - - - - - 80
441 Response Rate - - - - - - - - - - - - - - - - - - - - - - - 80
442 Consolidation of Data for Analysis - - - - - - - - - - - - - - - - - - 80
45 Data Collection and Analysis from the North Rift Sub-Region - - - - - - - - - - - 83
451 Number of Accidents - - - - - - - - - - - - - - - - - - - - - - 83
452 Fleet Availability - - - - - - - - - - - - - - - - - - - - - - - 85
453 Fleet Costs and Fuel Efficiency - - - - - - - - - - - - - - - - - - - 87
454 Frequency of Vehicle Breakdowns - - - - - - - - - - - - - - - - - - 90
455 Rate of Theft and Recovery of Motor Vehicles - - - - - - - - - - - - - - - 92
456 Perceptions of Staff towards the Implementation of the GPS - - - - - - - - - - - 94
457 Implementation Expenditure and Cost Reduction Achieved - - - - - - - - - - - - 95
46 Data Collection and Analysis from Mt Kenya North Sub-Region - - - - - - - - - - 96
461 Number of Accidents - - - - - - - - - - - - - - - - - - - - - - 96
462 Fleet Availability - - - - - - - - - - - - - - - - - - - - - - - 98
463 Fleet Costs and Fuel Efficiency - - - - - - - - - - - - - - - - - - - 100
464 Frequency of Vehicle Breakdowns - - - - - - - - - - - - - - - - - - 103
465 Rate of Theft and Recovery of Motor Vehicles - - - - - - - - - - - - - - - 105
466 Perceptions of Staff towards the Implementation of the GPS - - - - - - - - - - - 107
467 Implementation Expenditure and Cost Reduction Achieved - - - - - - - - - - - 107
47 Data Collection and Analysis from Central Office - - - - - - - - - - - - - - 109
471 Number of Accidents - - - - - - - - - - - - - - - - - - - - - 109
472 Fleet Availability - - - - - - - - - - - - - - - - - - - - - - 111
473 Fleet Costs and Fuel Efficiency - - - - - - - - - - - - - - - - - - - 113
474 Frequency of Vehicle Breakdowns - - - - - - - - - - - - - - - - - - 116
475 Rate of Theft and Recovery of Motor Vehicles - - - - - - - - - - - - - - - 118
476 Perceptions of Staff towards the Implementation of the GPS - - - - - - - - - - - 119
477 Implementation Expenditure and Cost Reduction Achieved - - - - - - - - - - - 120
48 Other Variables and Factors that Influence the Outcome in the three sub-regions - - - - - - 121
481 Limitations and Other Factors that Influenced the Reduction in Accidents - - - - - - - 122
482 Limitations and Other Factors that Influenced the Fleet Availability - - - - - - - - - 122
483 Limitations and other Factors that Influenced the Reduction in Fleet Costs - - - - - - - 123
484 Limitations and Factors that Influenced Reduction in Vehicle Breakdowns - - - - - - - 123
485 Limitations and Factors that Influenced the Recovery of Stolen Motor Vehicles - - - - - - 123
486 General Assessment of the Perceptions of Staff towards the Implementation and the Effectiveness of
the GPS Fleet Management System in the Organisation - - - - - - - - - - - - 124
49 Chapter Summary - - - - - - - - - - - - - - - - - - - - - - 125
CHAPTER FIVE - - - - - - - - - - - - - - - - - - - - - - - - 127
5 Discussion on Research Findings and Recommendations - - - - - - - - - - - 127
51 Introduction - - - - - - - - - - - - - - - - - - - - - - - - 127
52 Summary of the Research Findings - - - - - - - - - - - - - - - - - - 128
521 Response Rate from the Three Sub-Regions - - - - - - - - - - - - - - - 129
522 GPS Effect on Reducing the Rate of Accidents per 1 Million km Travelled - - - - - - - 129
523 Comparison of the Fleet Availability Achieved in the Sampled Regions - - - - - - - - 132
524 Comparison and Analysis of Summarised Data on Operational Costs - - - - - - - - - 134
525 Overall Reduction in the Frequency of Vehicle Breakdowns - - - - - - - - - - - 138
526 Theft and Recovery of Motor Vehicles - - - - - - - - - - - - - - - - - 141
527 General Assessment on the Perceptions of the Staff towards the Implementation of the GPS fleet
Management System in the Organisation - - - - - - - - - - - - - - - - 143
53 Key Research Findings in Light of the Research Questions - - - - - - - - - - - 149
531 A Generalised Review of the most Important Findings: Summary of the Results - - - - - - 150
532 What is the Effect of GPS in Reducing the Rate of Accidents? - - - - - - - - - - 151
533 What is the Effect of a GPS on Improving Fleet Availability? - - - - - - - - - - - 152
534 How has the GPS Assisted in Reducing the Fleet Operations Costs? - - - - - - - - - 153
535 How has the GPS Assisted in Reducing the Average Vehicle Breakdowns? - - - - - - - 154
536 What is the Effect of GPS in Minimising Theft of Vehicles? - - - - - - - - - - - 154
537 What Benefits arose from the Use of IT Solutions in Fleet Management? - - - - - - - - 155
54 Limitations of the Study - - - - - - - - - - - - - - - - - - - - 156
541 GPS Errors - - - - - - - - - - - - - - - - - - - - - - - - 157
542 Restrictive Satellite Signals - - - - - - - - - - - - - - - - - - - - 157
543 Server Breakdown - - - - - - - - - - - - - - - - - - - - - - 157
544 Damage to the GPS - - - - - - - - - - - - - - - - - - - - - - 157
545 Limited Scope - - - - - - - - - - - - - - - - - - - - - - - 158
55 Recommendations - - - - - - - - - - - - - - - - - - - - - - 158
56 Further Research Recommendations - - - - - - - - - - - - - - - - - 158
57 Outlined Implications of the Research for Academic Understanding - - - - - - - - - 161
58 Chapter Summary - - - - - - - - - - - - - - - - - - - - - - 161
6 Research Summary and Conclusions - - - - - - - - - - - - - - - - 163
61 Introduction - - - - - - - - - - - - - - - - - - - - - - - - 163
62 Research Summary and Overview of the Chapters - - - - - - - - - - - - - - 164
621 Chapter One: Introduction - - - - - - - - - - - - - - - - - - - - 164
622 Chapter Two: Literature Review - - - - - - - - - - - - - - - - - - 165
623 Chapter Three: Research Methodology - - - - - - - - - - - - - - - - - 166
624 Chapter Four: Data Collection, Analysis and Findings - - - - - - - - - - - - - 167
625 Chapter Five: Discussions on Research Findings and Recommendations - - - - - - - - 168
63 Conclusions - - - - - - - - - - - - - - - - - - - - - - - - 169
631 What is the Effect of GPS on Reducing the Rate of Accidents? - - - - - - - - - - 169
632 What is the Effect of the GPS in Improving Fleet Availability? - - - - - - - - - - 170
633 How has the GPS Assisted in Reducing the Fleet Operations Costs? - - - - - - - - - 171
634 How has the GPS Assisted in Reducing the Average Vehicle Breakdowns? - - - - - - - 172
635 What is the Effect of the GPS on Minimising the Theft of Vehicles? - - - - - - - - - 173
636 Benefits that Arose as a Result of the Use of IT Solutions in Fleet Management? - - - - - - 174
64 Concluding Remarks - - - - - - - - - - - - - - - - - - - - - 175
BIBLIOGRAPHY - - - - - - - - - - - - - - - - - - - - - - - - 178
APPENDICES - - - - - - - - - - - - - - - - - - - - - - - - - 195
APPENDIX I: GPS FM questionnaire - - - - - - - - - - - - - - - - - - - 195
APPENDIX II: Letter to respondents - - - - - - - - - - - - - - - - - - - 199
APPENDIX III: Commissioning Report by M/S (BCS) - - - - - - - - - - - - - - 200
APPENDIX IV: Commissioning Report by M/s FTS Ltd - - - - - - - - - - - - - - 209
APPENDIX V: Memo on GPS Fleet Management System Implementation in KPLC - - - - - - 220
APPENDIX VI: Random Number Generator - - - - - - - - - - - - - - - - - 221
APPENDIX VII: Certification of language edit - - - - - - - - - - - - - - - - 222
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