PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOME …pmg-assets.s3-website-eu-west-1.amazonaws.com/151013GPW.pdfeffectiveness and improve customer service Strategic outcome oriented

PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOME AFFAIRS

ANNUAL REPORT 2014 /2015

Professor A D MbewuChief Executive Officer

13 October 2015

CONTENTS

1. Legislative Mandate and Strategic Outlook

2. Situational Analysis

3. Strategic Objectives 2015/2019

4. Progress with Key Projects

5. Production Statistics

6. Financial Results

7. Human Resources

8. Performance Information

9. Conclusion

2PRESENTATION 13 OCTOBER 2015 |

Legislative Mandate and Strategic Outlook

1


• The Ministers of Finance, Home Affairs and Public Service and

Administration approved the business case and GPW was established

as a Government Component on 9 October 2009 (Government

Gazette 32616). As a Government Component the GPW delivers

security printing services to government.

LEGISLATIVE MANDATE OF GPW


STRATEGIC OUTLOOK: PRINT AND MEDIA COMPANY

Vision• To be the State’s

mandated security printer

Mission• To provide cost effective, reliable and

timeous services in security printing to all spheres of Government

• To provide the public with valuable information

• To disseminate Government information through technology, innovation and service excellence

Values• Reliability• Integrity• Accuracy • Stakeholder

satisfaction


Situational Analysis

2


• Transformation into a Government Component complete after the

process started in 2009.

• Revenue has doubled since then and now exceeds one billion.

• Six unqualified audits and for the first time ever a clean audit.

• Achieved vision of ‘Security printer of choice’, although still to be

enshrined in legislation.

• Complete the transformation journey through the promulgation of the

State Printers Bill.

• Consolidated position as a government owned entity running on sound

business principles.

SITUATIONAL ANALYSIS


• Profits ploughed back into purchase of new equipment and renovation of

Visagie Street.

• GPW fully supports the objectives set out in the National Development

Plan and specifically Chapter 13 on building a capable and developmental

State.

• Through clear governance structures and stable leadership this

Government Component is committed to achieving developmental

potential.

• The GPW’s financial viability is dependent on its ability to generate

revenue from services rendered.

SITUATIONAL ANALYSIS - continued


• Although GPW can report on increased outputs, service delivery is still

negatively affected by human and material resource constraints.

• The lack of experienced and qualified senior managers, artisans and

administrative personnel impacts on service delivery, resulting in the

GPW being compelled to outsource certain functions.

SITUATIONAL ANALYSIS - continued


Strategic Objectives2014 - 2019

3


Strategic outcome oriented goal 1 State-owned Company

Goal statement To further develop the Government Component to become a State-

owned Company

Strategic outcome oriented goal 2 Optimise processes and facilities

Goal statement To optimise processes and facilities to increase operational

effectiveness and improve customer service

Strategic outcome oriented goal 3 Developed workforce

Goal statement To have an efficient, effective, well-trained and developed

workforce; and a special remuneration dispensation for the

Government Component.

STRATEGIC OUTCOME ORIENTED GOALS


Key Projects

4


• Ongoing printing of the smart ID card, with 1,660,280 produced in 2014/15

• Business transformation – ICT increasingly used for both internal and

external services and products

• Past mid-way point in the R600 million asset recapitalisation programme

• Commenced with the design and development for Pavilion 3 – examination

printing section as well as a dispatch centre for passports and smart ID cards

• Continued migration of GPW employees to the new GPW establishment

• Pro-active effort placed on human resources development, 2 327 training

days, mainly focusing on employee health, safety and personal finance, with

a special focus on diversity

KEY PROJECTS



3D CONCEPT PERSPECTIVE: SOUTH FAÇADE OF MINNAAR STREET CAMPUS


VISAGIE STREET CAMPUS 2019


Production Statistics

5


PRODUCT 2014/2015 2013/2014 2012/2013 2011/2012

Passports 742 142 656 600 627 152 707 384

Identity Books 920 835 1 884 326 1 995 421 2 395 393

Smart ID cards 1 660 280 134 867 – –

Examination books 21 208 146 21 902 988 16 518 188 26 538 274

Government Gazettes (editions) 2 579 2 573 2 384 2 180

PRODUCTION STATISTICS


Financial Results

6


2014/15 2013/14 2012/13 2011/12 2010/11 2009/10

Revenue 1 013 017 780 659 929 154 692 919 753 443 639 035

Cost of sales (602 212) (500 146) (727 430) (455 548) (473 799) (497 025)

Gross Profit 410 805 280 513 201 724 237 371 279 644 142 010

Other income 52 134 66 014 69 613 68 769 63 427 60 248

Operating expenses (158 123) (196 840) (161 977) (114 358) (128 257) (109 278)

Operating profit 304 816 149 687 109 360 191 782 214 814 92 980

Interest received 2

Profit for the year 304 816 149 687 109 362 191 782 214 814 92 980

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME


Selected Items (R million) 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10

Bank & Cash 1 316,2 1 298,0 1 028,3 958,5 645,5 390,9

Trade Receivables 349,3 211,9 408,6 164,3 212,0 152,6

Debtors Days Outstanding 71 77 88 88 61 63

Property, Plant & Equipment 350,8 266,1 270,6 337,9 351,1 359,4

Lease Improvements 100,1 76,6 72.1 41,7 44,0

Trade Payables 197,0 190,4 298,4 156,5 144,0 85,3

STATEMENT OF FINANCIAL POSITION


Human Resources

7


GPW has undergone great transformation in its business processes, technology, products and services over the past 20 years.

GPW has also undergone dramatic demographic transformation in its workforce of 538 from an organisation that before 1994 was 100% white and predominantly male.

Demographics in March 2015 Numbers Percentages Percentages in population

Male : Female 289 : 249 54 : 46 49 : 51

Black African 353 65% 81%

White 150 28% 8%

Coloured 26 5% 9%

Indian 9 2% 2%

DEMOGRAPHIC TRANSFORMATION


Performance Information

8


KEY PERFORMANCE INDICATOR ANNUAL TARGET PERFORMANCE TARGET ACHIEVED +/-

1. Equipment replacement ratio 12 new equipment items procured

according to the Recapitalisation Plan

6 new equipment procured according to

revised recapitalisation plan -

2. Identity documents produced

according to Quality and Delivery

specifications

97% of identity cards produced must

conform to the clients specifications

1 660 280 identity cards personalised conformed to clients specifications. 1.5 % incorrect documents were replaced prior to delivery

+

97% of identity documents produced must conform to the clients specifications

100% of 920 835 identity documents

produced conformed to clients

specifications

+

100% of identity cards distributed must conform to the clients specifications

100% of identity cards distributed must

conform to the clients specifications +

Identity documents /cards delivered at a turnaround time of 2 days

Identity cards delivered at an average turnaround time of 3.0 days

-

BRANCH: OPERATIONS AND PRODUCTION



3. Quantity of passports spoiled

during booklet personalisation

Maintain or reduce spoilage percentage 1.2% spoiled passports emanating from

the 742 142 (good passports)/ 751 273

(total passports) booklets personalised

+

4. Quantity of examination scripts

printed

Produce 100% of the required number of

examination scripts within the client’s

specified timeframes

100% of 21 208 146 examinations script

delivered within clients specified

timeframes

+

100% of examination papers distributed

must conform to the clients specifications

100% of 21 208 146 examination scripts

distributed conformed to client

specifications.

+

5. Develop and maintain standard

operating procedures for all

security printing material

Maintain Standard Operating Procedures

for all security printing material

All Standard Operating Procedure

maintained +

BRANCH: OPERATIONS AND PRODUCTION - continued



6. Loss indicator Passports, ID,

Exams and Face Value documents

Maintain or reduce loss indicator No losses occurred +

7. Develop and Implement E-

Gazette system

Implement, review and refine E-Gazette

system

E-Gazette Go-Live was 9 March 2015 +

BRANCH: OPERATIONS AND PRODUCTION - continued



8. System availability 98% system availability 99.8% system availability +

9. Number of security breaches <5 incidents No incident +

10. Number and impact of major incidents

<300 minutes impact 60 minutes impact +

11. Mean time to respond to call <4 hours to respond to call 3.5 hours average to respond to call +

12. Mean time to resolve call <48 hours average to resolve call 22.5 average hours to resolve calls +

13. % of calls resolved within SLA >90% of calls resolved within SLA 98.3% on average calls resolved within SLA

+

14. % of ICT staff attended ICT service management training

>99% of ICT staff attended service management training

100% of ICT staff attended training +

BRANCH: STRATEGIC MANAGEMENT



15. Developed and launched brand Develop brand (and logo) GPW Brand Strategy completed Brand Audit completed

+

16. Measured awareness of GPW 60% awareness of GPW per targeted platform

70% awareness per targeted platform +

17. No. of new products One new product developed 4 New products developed. +

18. Completed, approved and implemented marketing strategy

Completed and approved marketing strategy

Marketing Strategy completed and approved

+

19. Developed and implemented risk management system

Refine and further develop security risk management system

Refine and further develop security risk management system

+

20. Percentage of annual internal audit plan implemented

85% of annual internal audit plan implemented

94% of annual internal audit plan implemented

+

BRANCH: STRATEGIC MANAGEMENT - continued



21. Clean audit report Maintain unqualified audit opinion Maintain unqualified audit opinion for 2014 +

22. Reduction in external audit findings on non-compliance to financial related policies

2% reduction of 2013 audit findings 55% reduction of 2013 audit findings +

23. Turnaround times (working days) in monthly financial management reports

10 working days turnaround times for financial management reports

8 working days turnaround times for financial management reports +

24. Operating cost as percentage of revenue

17.8% operating cost as percentage of revenue

15.6% operating cost as percentage of revenue +

25. Gross profit margin 21.8% Gross profit margin 40.6% +

26. Debtor collection period 80 days debtor collection period 71 days +

BRANCH: FINANCIAL SERVICES



27. Maintain a positive working capital ratio

8.7 9.3 +

28. R-value of procurement between BBBEE and non-BBBEE

BBBEE 70%Non BBBEE 30%

BBBEE 69%Non BBBEE 31% -

29. Inventory turn-over ratio 2.5 inventory turn-over ratio 4.05 inventory turn-over ratio +

30. Revise supply chain management framework and policy

SCM Framework and Policy implemented Approved SCM Framework and Policy implemented and aligned to strategic plan and budget

+

31. Improve stakeholder management

Conclude SLAs with 3 external customers 3 suppliers

3 SLAs were concluded with external customers and another 3 with suppliers +

32. Investment in additional production assets

R217 005m investment in additional production assets

R134 168m investment in additional production assets

-

BRANCH: FINANCIAL SERVICES - continued



33. Return on capital investment 18% return on capital investment 68% +

34. Completed construction of secured facilities

Complete Pavillion 3. Complete Site Development Plan for rest of facilities

Pavilion 3 development plan was completed and implemented -appointment of a professional team & detailed design of the facility

+

BRANCH: FINANCIAL SERVICES - continued



35. Developed and implemented Human Resource Staffing Plan

Implemented Human Resource Staffing Plan

Establishment was revisited, staff migration plans adopted, job evaluations completed & all identified posts advertised

+

Revised job descriptions and job evaluations 15 new job descriptions and job analyses & job evaluations for a total of 61 positions completed

+

Filled posts in accordance with HR staffing plan

The total posts advertised is 70. Total posts filled for the year is 43 -

36. Developed and implemented Learning and Development Plan

Complete Learning and Development Plan The learning and development plan was completed and approved +

1 842 training days were provided 2,327 training days, an average of four training days per person

+

BRANCH: HUMAN RESOURCES



37. Develop & implement Employee Relations Management policies, processes

Implement measures to reduce absenteeism rates

Training was rolled-out to all employees on absenteeism

+

38. Employee health and wellness policy and programmes

Develop & implement employee health and wellness policy & programmes

Wellness programmes presented to all employees

+

BRANCH: HUMAN RESOURCES - continued


BRANCH TARGETS PLANNED TARGETS ACHIEVED %

Operations & Production 11 9 82%

Strategic Management 13 13 100%

Finance 14 12 86%

Human Resources 7 6 86%

Total 45 40 89%

GPW: TOTAL PERFORMANCE


Thank you


Documents

PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOME …pmg-assets.s3-website-eu-west-1.amazonaws.com/151013GPW.pdfeffectiveness and improve customer service Strategic outcome oriented