TUESDAY, ADU
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DURING ITS DELIBERATIONS, THE SUB-GROUP ADDED, FOR COMPARATIVE PURPOSES, A FURTHER OPTION DESCRIBED AS THE FULL OPTION, WHICH PROVIDED ACCOMMODATION WITHIN MULTI-STOREY DEPOTS FOR THE WHOLE BUS FLEET WITHOUT THE NEED FOR OVERNIGHT OPERATING AREAS. FOLLOWING AN EVALUATION OF THE FOUR OPTIONS, THE SUB-GROUP RECOMMENDED THAT THE COMPANY BE ENCOURAGED TO PURSUE A DEPOT DEVELOPMENT PROGRAMME BASED UPON THE MAXIMUM OPTION. UNDER THIS OPTION, NO ON-STREET PARKING OF BUSES SHOULD BE NECESSARY FROM 1984 ONWARDS. THE SUB-GROUP HAS ALSO RECOMMENDED THAT THE GOVERNMENT SHOULD USE ITS BEST ENDEAVOURS TO ENSURE THAT SUITABLE SITES ARE MADE AVAILABLE TO THE COMPANY AT THE TIME REQUIRED.
(IV) SPARE PARTS
THE SPARE PARTS SUB-GROUP EXAMINED ALTERNATIVE SOURCES OF SUPPLY OF SPARE PARTS, SPARE STOCK LEVELS, THE COMPANY'S EXISTING SYSTEM FOR TENDERING AND THE ACQUISITION OF SPARE PARTS, AND THE FEASIBILITY OF DIRECT PURCHASE FROM MANUFACTURERS. DURING ITS STUDY THE SUB-GROUP FOUND THAT WHILE THE COMPANY'S SPARE PARTS STOCK CONTROL SYSTEM HAD BENEFITED MUCH FROM ITS CONVERSION IN LATE 1980 FROM A MANUAL SYSTEM TO A MODERN ELECTRONIC DATA PROCESSING BASED COMPUTER SYSTEM, THE
INTRODUCTION OF NEW ADMINISTRATIVE CONTROLS IN LATE 1979 APPEARED TO HAVE PRODUCED UNNECESSARILY COMPLICATED PROCEDURES TOGETHER WITH A DUPLICATION OF WORKLOAD. RECOMMENDATIONS WERE MADE BY THE SUB-GROUP FOR STREAMLINING THESE PROCEDURES. TAKING INTO ACCOUNT THE PROBLEMS WHICH THE COMPANY'S MANAGEMENT FACES IN REGARD TO THE SIZE OF ITS OPERATIONS, THE VARIED LOCATION OF ITS STORAGE FACILITIES AND THE PRESSURES OF THE HONG KONG ENVIRONMENT, THE SUB-GROUP CONSIDERED THAT ITS SYSTEM WAS OF A FAIRLY HIGH STANDARD, LARGELY AS A RESULT OF THE COMPANY'S CONTINUOUS CRITICAL APPRAISAL OF ITS OPERATIONS AND PROCEDURES,
HAVING REVIEWED THE LEVEL OF STOCK HELD BY KMB AT THE BEGINNING OF THE REVIEW, THE SUB-GROUP WAS OF THE VIEW THAT THE LEVEL OF STOCK COULD BE SAFELY REDUCED BY AS MUCH AS 20 PER CENT AND KMB, IN THE COURSE OF THE REVIEW, TOOK ACTION TO REDUCE THE STOCK LEVEL BY 20 PER CENT.
SUGGESTIONS
THE SUB-GROUP CONSIDERED THAT THE PRESENT METHOD OF DETERMINING THE STOCK-HOLDING WAS INADEQUATE, AND RECOMMENDED A MORE SCIENTIFIC METHOD USING BOTH FINANCIAL AND QUANTITY CONTROLS TO REPLACE IT. TO STREAMLINE THE PURCHASING PROCEDURES WERE ALSO PUT TO KMB AND A LARGE NUMBER OF THESE HAVE SINCE BEEN
IMPLEMENTED BY KMB.
(3) CHINA MOTOR