PRESENTATION TO THE PORTFOLIO COMMITTEE OF HOME AFFAIRSSTRATEGIC PLAN 2012/13 – 2014/15

17 April 2012

GOVERNMENT PRINTING WORKS

Overview and Mandate of the Government Printing Works (GPW)

This strategic plan focuses on specific processes :

Where the organisation wants to be in the medium – long term

Critical assessments of its current status

Set measurable targets

Operating Model

The GPW has been converted into a Government Component (GC)

Implement sound financial management (profitable and sustainable) whilst cultivating a commercial oriented culture

Focus on its core business – security printing

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STRATEGIC OUTLOOK OF THE GPW Vision

• To be be State’s Mandate 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 satisfactionThese belief systems motivate our people to provide excellent service to all our

stakeholders

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KEY STRATEGIC OBJECTIVES (1/3)

Production Process Optimisation

Allocated Visagie Street premises

Develop appropriate facilities for efficient and cost competitive production

Best Practice for the high security printing environment

Site survey and needs analysis

Budget R585m over the MTEF period

Asset Replacement Programme

Replacement of outdated technology and machinery

Average life 30 years – majority in poor condition and not economically viable to maintain

Technological advances in the printing industry

Lack of capacity to produce high security printed matter

Security printing in line with International standards

Spending R310m over MTEF period

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KEY STRATEGIC OBJECTIVES (2/3) Technological Migration

ICT Governanceo ICT Legal compliance (MISS, ECT ACT 25 2005, Relationship between PPI, PAIA and RICA

inclusive of NCA and CPA, King III Companies ACT Cobit, ITIL and International Standards such as ISO 27001/2)

Acquire Hardware and Software to accommodate new IT systems and Serviceso Business Continuity solution that supports redundancy and functionality with recovery o Acquire and implement new hardware and softwareo Optimum activities to ensure systems and infrastructure operate at prescribed service levelso Business recovery with failover; and minimise downtime at remote location

Automate Official Gazette Content distributiono Electronic Government Gazette on the Web

Resource Managemento Proper IT Sourcing Strategy and related vendor management processeso People Management :

Attract and train and technical people to have depth in their respective areas and breadth across other areas in IT

Link individual and team objectives to a shared GPW IT vision & strategy and reward according to performance

o Effective IT asset management

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KEY STRATEGIC OBJECTIVES (3/3) GPW Establishment

Fully implement new GPW structure

Migrate staff to new approved structure

GPW aligned policies

Talent management and leadership development

Special dispensations

Performance management

Marketing

Consolidation of business opportunities and customer focus

Develop GPW Brand

Local Customer Retention

Local Business Development

Develop an aggressive regional marketing strategy on face value documents

These objectives are the bedrock of a sustainable GPW which will ensure organic growth and financially vibrant organisation.

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Strategic Implementation Plan (1/6) Operations Management

Replacement of outdated technology and machinery

Optimisation of production capacity and efficiencies – cost competitive

High quality security products

Achieve product/service excellence

Financial Management

Accurate planning and forecasting

Maintain optimal cash flows and working capital

Manage financial risks

Implementation of new ERP System

Reduce AG findings and qualifications

Cost Management

Change/review the cost/product pricing system/strategy

Reduction in wastage and spoilage

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Strategic Implementation Plan (2/6) Information and Communication Technology Management

Governance

o Enablement of high level information security and control

o Minimise harm to GPW business from potential vulnerabilities and threats

Strategy Formulation and Planning

o Common framework for inclusive, business aligned operational and tactical decision-making.

o IT that is security minded, performance based and aligned to GPW Business

Architecture Managemento Integrated environment with scalable and optimised processes

ERP and IT Technical Delivery

o Properly coordinated portfolio of IT projects

o Efficient and ERP running on secured infrastructure on a self defending network

o Centralised and efficient help desk and service management processes

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Strategic Implementation Plan (3/6) Information and Communication Technology Management (continued)

Resource Management

o Proper IT sourcing strategy and related vendor management processes

o Attraction, development and retention of good IT skills

o Effective IT asset management

Service Delivery

o Effective IT services delivery and support

o Well coordinated user training and support

o Centralised and efficient help desk and service management processes

Supply Chain Management

Reduce Stock Levels

Phase out slow moving items and redundant stocks

Strategic supplier management; adherence to revised BBBEE guidelines

Update and develop electronic suppliers database and order information

Contract and SLA management

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Strategic Implementation Plan (4/6)

Human Resources and Transformation Strategy

Fully implement new GPW structureo Finalise outstanding job descriptionso Continue with job evaluation process

Migrate staff to Government Componento Migration plano Consultations with labouro Communication strategy

GPW aligned policieso Revise, develop and customize policies

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Human Resources and Transformation Strategy (continued) :

Talent management and Leadership developmento Training partnerships o Time spend on training

Special dispensations o Determine critical jobso Determine which category of jobs dispensation is in line with broader public service jobs. o Negotiate with DPSA for special dispensation

Performance management o Job descriptionso Alignment of work plans

Strategic Implementation Plan (5/6)

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Strategic Implementation Plan (6/6) Security

Security risk assessment

New and updated physical, personnel, production and documentation security systems in place

Introduce vetting system for key personnel

Internal Audit

Development of internal audit and risk management plans

Monitor compliance with PFMA and related regulations

Marketing

Expand the range and value of products

Scope for sophisticated printing services - Upgrading of the social security forms

Governments within the SADC often do not have access to the modern printing facilities

The conversion of GPW into a GC will enable the transformation process and turnaround of GPW in the MTEF period

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KEY PROJECTS

Installation and commissioning of new security printing division

New ID Smartcard

Implementation of the E-Gazette

Create capacity to print passport visa pages inhouse

Implementation of new ERP system

Development of new facility at Visagie Street

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Critical equipment that needs to be procured as part of the asset replacement program, includes the following:

DETAILS 2012/13R 000’s

2013/14R 000’s

2014/15R 000’s

Web offset printing presses 38 225

Web-fed kraft press 20 280

Sheet based laser imaging system 11 000

2 x four-unit web-fed printing presses 6 000 6 000

Multi-unit sheet fed printing press 45 750

Four-unit sheet fed printing press 10 850

Complete digital printing system 60 000

Sewing machine 12 000

Polycarbonate material manufacturing line 51 476

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In order to ensure growth and a financially viable organisation, GPW has embarked on the implementation of a new ERP system:

ERP software solutions Hiflex – Production System

Microsoft Dynamics AX – Financial

Microsoft Sharepoint

Intranet & Internet

Phase 1 - Analyis

Completed and all documentation signed of.

Legal requirements completed

Phase 2 - Implementation

Proposals and plans completed

Intranet went live in April 2011

Production solution, business solution including VIP, public web and e-gazette

Go-live 1 October 2012

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Income estimates over the MTEF are summarised as follows :

Statement of Financial

Performance (R million)

Audited Outcome 2008/09

Audited Outcome 2009/10

Audited Outcome 2010/11

Medium-Term

Estimate 2011/12

Medium-Term

Estimate 2012/13

Medium-Term

Estimate 2013/14

Medium-Term

Estimate 2014/15

Revenue 487.0 639.0 753.4 733.0 814.7 863.5 915.4

Transfers Received

160.9 334.5 97.4 129.0 135.2 142.5 Nil

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Expenditure estimates over the MTEF are summarised as follows :

Statement of Financial

Performance (R million)

Audited Outcome 2008/09

Audited Outcome 2009/10

Audited Outcome 2010/11

Medium-Term

Estimate 2011/12

Medium-Term

Estimate 2012/13

Medium-Term

Estimate 2013/14

Medium-Term

Estimate 2014/15

Employee Benefits 86.8 94.0 99.7 113.5 180.5 199.2 221.8

Administrative Expenditure 25.0 19.7 26.0 28.5 52.1 55.0 57.3

Production and Stores 500.7 497.0 473.8 489.4 367.5 363.4 361.5

Equipment 1.4 1.3 1.7 2.1 1.9 2.0 2.1

Professional Services 26.8 24.0 49.1 55.6 67.8 64.7 55.4

Depreciations and Provisions 57.1 66.7 78.3 76.0 128.1 153.9 174.2

Sundry Expenditure 6.5 5.8 3.6 2.6 4.0 4.2 4.4

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WE THANK YOU KINDLY!

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