Introduction

An Investigation into how the Logistical Process Employed at The Jamaica

Public Service Company Limited Ensures that the Product is at its Lowest

Possible Cost to its Consumers

 

Name: Tashae O’Connor

Center: 100033

Date: May/June 2016

Territory: Jamaica

School: Excelsior High School

Teacher: Mr. Burrell  

This project is aimed at investigating the cost efficiency of the logistical process employed at

The Jamaica Public Service Company Limited. Throughout out this project it is hoped to

determine the cost efficiency of the logistical process.

The Jamaica Public Service Company Limited (JPS) is an integrated electric utility company and

the sole distributor of electricity in Jamaica. The Jamaica Public Service Company came into

action in a time dated back to 1892, when Jamaica first gain electricity . In that year, the first

electricity service in the island was supplied by the Jamaica Electric Light Company which

eventually became, Jamaica Light and Power Company. In 1897, another company, West India

Electric Company, established an office in Down-town Kingston, Jamaica. The company built a

hydroelectric plant on the Rio Cobre River in Bog Walk. In early 1907, a dreadful earthquake

demolished a section of Kingston, and disrupted the public services. Subsequent to this West

India Electric leased the property and businesses of the Jamaica Light and Power Company Ltd,

and integrated the Gold Street station into the Bog Walk Supply system. Jamaica Public Service

Limited emerged through a process of consolidation, buy-outs and amalgamations and was

registered in 1923. At that time The Jamaica Public service had 3,928 customers. In 1966 JPS

was granted an all-island franchise and today remains the sole public supplier of electricity.

The Jamaica Public Service is a partnership, which since 2007 has majority shares in favor of

Marubeni Caribbean Power Holding, Inc., a subsidiary of Marubeni Corporation of Japan. 80%

of the company is owned by Marubeni with the Government of Jamaica retaining almost 20%

and the remaining amount of less than 1%, is owned by a small group of shareholders. 

The Jamaica Service Company Ltd. aims to provide and supply electricity to meet the growing

demands of Jamaican consumers; conduct their operation in a manner that contributes to

sustainable development, ensuring that the company meets the needs of the present generation

without compromising the the quality of life for future generations, and to be key partner in

Jamaica’s long term development. All through providing a first class energy service, which is

safe, reliable and reasonably priced, thereby achieving a high level of customer satisfaction;

supporting the preservation of the environment; making a reasonable rate of return for

shareholders, while being a good corporate citizen. 

Profile of the Business

Three logistical components that are present in the management of Jamaica Public Service Ltd.

(JPS) include: information processing, demand forecasting, and customer service. Information

processing is what links all areas of the logistical system together. Demand forecasting addresses

the need for accurate information on future customers. While customer service is a

predominately essential process as it provides significant value added benefits to the supply

chain.

JPS an integrated electric utility company and the sole distributor of electricity in Jamaica. They

also offer an array of other products which include: installation of solar panels and loan

granting; however, the provision of electricity island wide is their dominant economic activity.

Methodology

This research was conducted amongst the employees of The Jamaica Public Service Ltd. as a

primary source of data collection. Interviews were conducted along with the issuing of

questionnaires to a members of each department involved in the logistical operations of the

business . All interviews and questionnaires were issued on April 7, 2016 with a total of seven

employees participating in the interview process and fourteen completed questionnaires. Each

interview consisted of a series of (10) ten short answer question, while the questionnaires were

fitted with (15) fifteen questions, short answer questions and an option to choose the most

appropriate response.

In an effort to ensure validity of the presented information; published books, websites, articles

and other secondary sources were used to assure the a credibility of the study. This provides the

researcher with sufficient information to analyse the data garnered about each logistical

component of the business and their effectiveness and cost efficiency.

The researcher encountered numerous limitations. Some of which were; a great difficulty in

arranging the interviews and the interview process was extensively time consuming. The

formation of questionnaires proved some great difficulties due to the fact the questions were

formally designed to suit another institution then later had to be altered to suit JPS. And in the

conversion of this information minute details that may have had an impact on the data received

ma have been left ashore hence compromising the quality of responses. But despite those issues,

the choice to use interviews and questionnaires as the medium of data collection provided to be

most fulfilling because it gave the researcher the opportunity to ask follow up questions, the

researcher was able to interact with the individual and was fully able to understand what was

being said and the questionnaires were cost efficient.