A practical approach to improving OER – Golden Hope’s experience
SHAWALUDDIN Tahiruddin , JAPRI Giman , MOHD HASHIM TajudinLow oil extraction rate (OER) have been observed nationwide since 1992 and the decline is continuing. Revenue losses to the whole industry have been very considerable. While many theories have been put forward on the reasons for the decline, no significant achievement has been made to date in reversing the trend. As is the case with most plantation companies, golden Hope has been similarly affected. This paper describes the methodology used in addressing this problem in one of the oil mills. A practical problem-solving approach was adopted taking into account the prevailing local conditions. A team comprising members directly associated with the problem was formed to undertake the exercise. All major estate and oil mill operations were closely studied for a period of six months. Various root causes contributing to the low OER were identified and appropriate remedies were formulated for implementation. Suitable control system were also instituted ensure that recommendations were implemented conscientiously. Following successful implementation of the recommendations, a significant increase of more than 1.5% OER was realized.
Author information: