Douglas Comrie

Chief Facilitator, DAC

Managing Director, B&M Analysts

7 August 2013

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Cost competitiveness

Access to increased scale of

production

Access to product &

process technology

Competitive operating

efficiencies

Competitive skills

Enabling infrastructure

Growth in MVA

Competitively priced input materials

Executive Committee

Market & Technology

Access

Manufacturing Excellence

Skills Development

Infrastructure & Materials

External Affairs

Background

• Access to increased scale of production and appropriate

product and process technology have been identified as key

competitiveness enablers

• This programme therefore aims to facilitate increased scale

of production and investments in new production technology

Outcomes

• Improved access to sector and firm-level growth

opportunities

• Enable global technology affiliations and local innovation

TSC Chair

• Alex Holmes (Commercial Director, Behr)

Highlights

• Automotive Production and Development Programme

(APDP)

• Industry support programmes

• Enabling localisation opportunities and business linkages

Background

• A lack of adherence to best practices was identified as

undermining the ability to attain competitive operating

efficiencies

• This programme aims to reduce waste as percentage of

MVA amongst participating group(s) by 5% over a 12 month

period

Outcomes

• Improved knowledge of manufacturing best practices

• Enable effective adoption of manufacturing best practices

TSC Chair

• Bruce Muggeridge (Feltex Fehrer)

Highlights

• Firm-level benchmarking

• WCM workshops and factory tours

• Supplier coaching programme

• Black owned SME development support

Background

• Employee costs are higher than leading cost countries

and as such the productivity of employees is recognised

as being a key enabler of competiveness

Outcomes

• Effective skills development interventions

• Application of skills in the workplace

TSC Chair

• Toni Acton (Behr)

Highlights

• HR excellence

• Management Development Programme (MDP)

• Graduate Development Program (GDP) for Engineers

• Wellness programme

• Career days

Background

• Material, logistics and energy costs are recognised as being

inhibitors of competitiveness. This programme therefore

seeks to improve competitiveness of industry relevant

material and infrastructure

Outcomes

• Improved cost competitiveness in relation to major material

inputs

• Improved cost competitiveness in relation to energy, utility

and related infrastructure usage

• Competitive logistical access to domestic and export

markets

TSC Chair

• Andrew Velleman (General Manager, Toyota Tsusho Africa)

Highlights

• Logistics

• Critical updates from energy stakeholders

• Energy assessments & access to Eskom support programmes

• Resource projects and carbon footprint

• 38 member firms

• R2.8 m of expenditure in 2012

• Approximately 50% of funding leveraged from the private sector

and sources other than the eThekwini Municipality

• 11 years of solid delivery of services

• 11 successive years of unqualified financial audits

• 89.4% average assessment ratings for workshop related

activities

• Recognised as an exemplar of clustering by various national

and international government, non-government and industry

bodies

Douglas Comrie

Chief Facilitator, DAC

Managing Director, B&M Analysts

7 August 2013

• The annual audit was undertaken by PKF (Durban). The

AFS affirm good management, controls, and

governance.

• Relationships with a number of ‘indirect funding partners’

have been established and leveraged to the benefit of

member firms and the local economy.

• Municipal grant and membership fee income were

consistent with budget commitments. A further R700k

project-related income was also secured.

• Expenditure was managed in accordance with total

available income resulting in a nominal net shortfall of

R10k.

Actual

2012 YE

R

MOU

Budget

2012 YE

R

Total income

eThekwini Municipality 1 339 000 1 339 000

Member fees 673 453 635 400

Project & sundry income 758 427 0

Interest 5 145 26 780

2 776 025 2 001 180

Operating expenditure 2 734 627 1 982 580

Other expenditure 56 663 18 600

Total comprehensive income (loss) (10 120) 0

Retained income from 2011 YE (80 223)

Catalytic funding

Directly leveraged resources

Indirectly leveraged resources

Outputs

Impact

2013 YE

R

2014 YE

R

Total income 2 597 342 2 881 595

eThekwini Municipality 1 419 340 1 504 500

Member fees 751 752 896 633

Project & other income 404 960 457 894

Interest 21 290 22 568

Operating expenditure 2 580 766 2 770 244

Executive 458 231 485 725

Market & Technology Access 262 668 281 280

Manufacturing Excellence 945 571 1 007 000

Skills Development 586 147 648 400

Infrastructure & Materials 328 150 347 839

Transformation - -

Other expenditure 20 500 22 550

Total income (loss) -3 924 88 802