GOVERNMENT PRINTING WORKS

Transcription

1 GOVERNMENT PRINTING WORKS PRESENTATION TO THE PORTFOLIO COMMITTEE OF HOME AFFAIRS 1. STRATEGIC PLAN ANNUAL PERFORMANCE PLAN AND BUDGET FOR 2015/16 24 March 2015

2 THE STRATEGIC PLAN OF GPW AND THE NATIONAL DEVELOPMENT PLAN The Government Printing Works strives to make a significant contribution to the : 1. National Outcomes of Government 2. Goals of the National Development Plan Specifically our work contributes to the National Outcomes of : Create a better South Africa and contribute to a better and safer Africa and world An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship A skilled and capable workforce to support an inclusive growth path Specifically our work supports Chapter 13 of the National Development Plan : on building a Capable State - A State capable of playing a transformative and developmental role in realizing the vision for 2030

3 LEGISLATIVE MANDATE The Ministers of Finance, Home Affairs and Public Service and Administration approved the business case for the new GPW in 2009 At the time GPW was still a sub department of the Department of Home Affairs On 9 October 2009 the GPW was converted to a Government Component in terms of the Public Services Act of 1999 as amended (Government Gazette 32616) The GPW derives its legislative mandate from the Public Service Act of 1994, as amended in A Government Component is defined as a national or provincial government component as set out in section 7(1) and 7(2)(c) [column 1 of Part A of Schedule 3] of the Public Service Act Nr 103 of 1994 (as substituted by the Proc 59 Government Gazette 32566, 11 September 2009). As a Government Component the GPW delivers security printing services to government. The CEO of GPW reports to the Minister of Home Affairs The Minister has written delegations that prescribe the powers of the CEO as the Accounting Officer for GPW

4 3 Vision STRATEGIC OUTLOOK OF THE GPW 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 These belief systems motivate our people to provide excellent service to all our stakeholders

5 STRATEGIC OUTLOOK OF THE GPW The development of the Strategic Plan was guided by the policy priorities of government and the Department of Home Affairs and is reflected in the three strategic outcome-oriented goals included in the Strategic Plan : Strategic outcome oriented goal 1 Goal statement Strategic outcome oriented goal 2 Goal statement Strategic outcome oriented goal 3 Goal statement State Owned Company Further develop the Government Component (GC) organisation to become a State Owned Company Optimise processes and facilities Optimise processes and facilities to increase operational effectiveness and improve customer service Developed workforce Have an efficient, effective and well-trained/developed workforce

6 STRATEGIC OUTLOOK OF THE GPW Since 2009 the GPW has operated on regular business principles, having to defray all its expenditure from the revenue generated by services rendered The principal clientele of the GPW are State Departments and other Organs of State The GPW has the sole mandate to produce South African passports and identification documents is therefore an important strategic partner of the Department of Home Affairs Procuring security printing business in the rest of Africa remains difficult; but GPW continues to print the African Union passport

7 STRUCTURE Minister CEO GM: Finance GM: Operations and Production GM: Human Resources GM: Strategic Management 6

8 ORGANISATIONAL STRUCTURE The GPW business model provides for the following four branches : Branch: Operations and Production Branch: Strategic Management Branch: Financial Services Branch: Human Resources

9 ANNUAL PERFORMANCE PLANNING PRIORITIES FOR 2015/16 Smart ID card : increase production rate from pm to pm Interactive E-Gazette : go live in March 2015 Implementation of ERP system Development of R 1 billion facility at Visagie Street Construction of examination printing division and Dispatch Centre Conversion to State Owned Company 12

10 STRATEGIC OUTCOME ORIENTED GOALS Strategic outcome oriented goal 1 State Owned Enterprise Goal statement Further develop the Government Component organisation to become a State Owned Enterprise 5

11 STRATEGIC OBJECTIVE 1 : STATE OWNED ENTERPRISE Transformation from a Government Component to a State Owned Company On 9 October 2009 the GPW was converted to a Government Component in terms of the Public Services Act of 1999 as amended This was always intended as a transitional phase on the way to becoming a State Owned Company The role of the Government Printing Works is summarised in its vision : To be the State s Mandated Security Printer This has effectively been achieved over the past 5 years, but this has still to be ratified in legislation

12 STRATEGIC OBJECTIVE 1 : STATE OWNED ENTERPRISE A draft State Printers Bill has been produced The Minister of Home Affairs has included this Bill as one of the three Bills he has tabled with the Deputy President for the legislative process The intent is for GPW to transform from a Government Component to a State Owned Company Government will be the sole shareholder of the company All profits will be ploughed back into asset recapitalisation and development of the facilities This would provide GPW greater flexibility in setting salaries to attract the skilled artisans and professional start needed to complete the transformation of GPW into a modern print and media company This development is part of the formation of a capable and developmental State as the NDP puts it

13 STRATEGIC OUTCOME ORIENTED GOALS Strategic outcome oriented goal 2 Optimise processes and facilities Goal statement Optimise processes and facilities to increase operational effectiveness and improved customer service 6

14 STRATEGIC OBJECTIVE 2 : OPTIMISE PROCESSES AND FACILITIES A. 81 Visagie Street Campus - concept design and viability report complete - detailed plans to be completed in total project cost R square metres - to be funded from accumulated funds in the Pay Master General Account, and from profits to be accrued from tender for contractor to be issued in 2016

15 SATELLITE VIEW OF MINAAR STREET

16 3D CONCEPT PERSPECTIVE: South façade of Minnaar Street Campus

17 VISAGIE STREET CAMPUS 2019

18 STRATEGIC OBJECTIVE 2 : OPTIMISE PROCESSES AND FACILITIES B. Dispatch Centre - the Department of Public Works Central Drawing Archive is being relocated from a building on the Visagie Street Campus - this building is being converted into a Dispatch Centre for passports and smart ID cards - due for completion by mid In the meanwhile 2 automatic dispatch machines will prepare smart ID cards for direct handover to the courier from the smart ID card factory floor - implementation of the dispatch system will mean that there will no human intervention in the production of smart ID cards from the time of live capture of the citizens details to the point of handover to the courier in the Dispatch Centre

19 DPW ARCHIVES : FUTURE DISPATCH CENTRE

20 STRATEGIC OBJECTIVE 2 : OPTIMISE PROCESSES AND FACILITIES C. High Speed Printing and Examination Papers Factory - Pavilion Three on the Visagie Street Campus is being converted into a High Speed Printing and Examination Papers Factory - the total cost of this Factory and the Dispatch Centre is R 257 million - the entire facility should be complete by mid 2016

21 HIGH SPEED PRINTING AND EXAMINATION PAPERS FACTORY AND DISPATCH CENTRE

22 STRATEGIC OBJECTIVE 2 : OPTIMISE PROCESSES AND FACILITIES D. Administration Building - the modern building on the other side of Visagie Street from the GPW will be converted into an Administration Building - cost R 49 million purchase price plus R million renovations cost - completion by end 2015

23 ADMINISTRATION BUILDING

24 STRATEGIC OBJECTIVE 2 : OPTIMISE PROCESSES AND FACILITIES E. E-Gazette The Electronic Government Gazette was launched in 2012 It can be accessed at the website : Uptake of the system by customers of GPW has been very impressive The online component went live in March 2015 : whereby customers will be able to submit material for the Government Gazette electronically using PDF files The system will soon save thousands of tonnes of paper every year F. ERP System The enterprise resourse planning system (ERP) was launched in 2012 It is working well, integrating the financial and manufacturing systems of GPW on an IT backbone

25 STRATEGIC OUTCOME ORIENTED GOALS Strategic outcome oriented goal 3 Developed workforce Goal statement Have an efficient, effective and well-trained/developed workforce 7

26 STRATEGIC OBJECTIVE 3 : DEVELOPED WORKFORCE A. Special Salary Dispensation The Portfolio Committee in 2011 recommended a special salary dispensation for GPW in order to assist the company in recruiting and retaining skilled artisans and professional staff The Minister supported this recommendation In December 2014 the Minister of Public Service and Administration rejected the application by GPW for a special salary dispensation If GPW becomes a State owned company, its employees will no longer fall under the Public Service Act, and it will have greater freedom in setting salaries commensurate with market rates in the printing industry

27 STRATEGIC OBJECTIVE 3 : DEVELOPED WORKFORCE B. Training and Skills Development GPW is increasingly using IT in : - its business processes (such as the ERP system) - in the new machines it is procuring (such as the smart ID card machines) - the products and services it provides such as the smart ID card and the E-Gazette There is therefore a need to continually train and upgrade the skills of the workforce for this modern print and media company There is no alternative to this course of action as the machines have to be replaced as there are no longer spare parts for them; and modern machines that replace them are inevitably high tech.

28 PRODUCTION STATISTICS The GPW is a factory. Production statistics for the past few years are shown below : Product 2013/ / / /2011 Passports (booklets) Identity (booklets) documents Examinations (books) Government (editions) Gazettes Government Gazettes (total number of A4 pages per annum)

29 SMART ID CARD Smart ID card production began on 15 October 2013 Thus far 2 million smart ID cards have been produced Another 36 million smart ID cards will be produced over the next 6 years to replace the current ID books (plus 5 million smart ID cards for those turning 16 each year during those 6 years till 2021) Gradually, printing of green ID books is being replaced by smart ID card production 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.

30 INCOME & EXPENDITURE ESTIMATES (in thousands of rands) Actual 2012 Actual 2013 Actual 2014 Forecast 2015 Budget 2016 Budget 2017 Budget 2018 TOTAL SALES COST OF SALES GROSS PROFIT GP % OTHER INCOME TOTAL EXPENSES Employee Benefits Administrative Expenditure Production and Stores Equipment Professional Services Depreciation and Provisions Sundry Expenditure NET SURPLUS/(LOSS) 692, , , , , , % 21.71% 35.93% 29.62% 27.75% 25.79% 24.57% 68,768 69, , , ,326 60, ,416 32, , ,036 51, ,998 13, ,021 2, , ,

31 RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME-ORIENTED GOALS To achieve the strategic outcome oriented goals the necessary resources need to be available. GPW has provided for this as follows as part of the budget: Specific budget R /16 R /17 R /18 Strategic outcome oriented goal 1: Further develop the Government Component Remuneration (Roll-Out of new Structure) Capital expenditure IT Equipment & Furniture Staff development Strategic outcome oriented goal 2: Optimise processes and facilities Capital expenditure Facilities Capital expenditure Machinery Replacement Programme Strategic outcome oriented goal 3: Developed workforce Staff development

32 ORGANISED CRIME AND SECURITY PRODUCTS Since the introduction of the new South African passports in 2009 with enhanced security features, over 4 million passports have been printed with not a single successful forgery Other security documents have been replaced with new, secure products such as the unabridged birth certificates, asylum seeker documents, refugee passports, road tax discs, matric certificates, etc. gradually reducing the scope for organised crime syndicates to profit from forgeries the new smart ID card in particular cannot be forged, and theft of the card is pointless as the photograph cannot be replaced on the physical card or in the digital version on the chip the impact to the economy of these new security products probably runs to hundreds of millions of rands; in addition to the human suffering averted entailed in identity theft, human trafficking etc.

33 CONCLUSION The GPW has completed its journey, begun in 2009, from a sub department of Home Affairs to a Government Component It has doubled its budget since 2009, and now operates on business principles, defraying all its operations from revenue generated It is now ready to complete the transformation to a State Owned Company over the next few years The launch of the Smart ID Card, GPW s flagship project, has been a great success with 2 million cards printed over the past 18 months GPW is on track to printing 42 million more smart ID cards over the next 6 years to replace all the green ID books in circulation and issue smart ID cards to those turning 16 during those 6 years to 2021 The R 400 million asset recapitalisation project is on track for completion by 2018 The R 1 billion Renovation of the Visagie Street Campus should be complete by the end of 2019, after which the entire organisation will relocate there

34 CONCLUSION Recruitment and retention of skilled artisans and professional staff remains difficult due to GPW salaries being more than 30% below market rates Conversion to a State Owned Company will enable GPW to pay market-related salaries Procuring security printing business in the rest of Africa remains difficult; but GPW continues to print the African Union passport

35 APPENDIX : DETAILED STRATEGIC OBJECTIVES

36 STRATEGIC OBJECTIVES GPW has 15 Strategic Objectives in its 4 Branches Branch : Operations & Production 9

37 Branch : Operations & Production Strategic objective 1.1 Objective statement Baseline Justification Links Production equipment Acquire modern production equipment to satisfy all State security printing requirements Production equipment acquired per set targets The indicator will reflect the progress on acquisition of modern security printing capacity. GPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service.

38 Branch : Operations & Production Strategic objective 1.2 Objective statement Baseline Justification Links Production of security printed materials Produce security printed materials according to customer requirements and local/ international standards Security Product Groups produced within the levels of quality The objective is important due to its contribution and influence on National Security of the State via the design, development and production of secure documents. Areas of impact include: identity fraud, economic and academic fraud, and immigration related issues. Linked to GPW s vision of being the states mandated security printer contributing to national safety and security of the state

39 Branch Strategic Management Strategic objective 1.3 Objective statement Baseline Justification Links Coordination and distribution of government information Coordination and distribution of government information in accordance with quality and delivery specifications Government Gazettes Published according to Quality & Delivery specifications Through coordination and distribution of government information in accordance with quality and delivery specifications the GPW complies with its mandate and improved customer service. Contribute towards fulfillment of mandate and demonstrate customer service delivery

40 Branch Strategic Management Strategic Availability of ICT services objective 1.4 Objective statement Provide high availability of ICT services Baseline Justification Links Current GPW business systems Measure the level of availability of ICT systems provided to business to enable production and operations businesswide GPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service.

41 Branch Strategic Management Strategic objective 1.5 Objective statement Baseline Justification Links Secure and protect ICT environment Provide secure ICT environment Current GPW business systems Measure the level of information security provided to business in the utilisation of ICT products and services Linked to GPW s mission of dissemination of government information; through technology, innovation and service excellence and the strategic outcome oriented goal of optimising processes and facilities to increase operational effectiveness and improved customer service

42 Branch Strategic Management Strategic objective 1.6 Objective statement Baseline Justification Optimize ICT Service offerings Introduce new and or redesign ICT service offerings to enhance GPW business operations. New ERP System developed and implemented GPW Strategic Outcome Oriented Goal 2 - Optimise processes and facilities to increase operational effectiveness and improved customer service. Links Linked to GPW s strategic outcome oriented goal of optimising processes and facilities to increase operational effectiveness and improved customer service

43 Branch Strategic Management Strategic objective 1.7 Objective statement Implement the Marketing strategy Aggressive marketing strategy implemented to retain and grow the market Baseline Justification Links Marketing strategy developed To ensure sustainability and continuous growth of business To contribute towards the strategic outcome oriented goal of developing the Government Component (GC) organisation to perform as a sustainable ring-fenced business entity with flexibility and within regulated parameters

44 Strategic objective 1.8 Branch Strategic Management Product mix diversification Objective statement Diversification of product mix within security printing Baseline New certificate for SARS, Smart ID card, KZN Liquor license, Matric Statement of Results Justification Links To ensure sustainability and continuous growth of business To contribute towards the strategic outcome oriented goal of developing the Government Component (GC) organization into a State Owned Company that operates as a sustainable ring-fenced business entity with flexibility and within regulated parameters

45 Branch Strategic Management Strategic objective 1.9 Development and implementation of a security risk management system Objective statement Development and implementation of a security risk management system to secure and protect GPW assets and resources Baseline Justification Links Security risk management plan developed but not approved To ensure the vision of being the State s mandated security printer; a security risk management system must be implemented. Compliance with Minimum Information Security Standards (MISS); Minimum Physical Security Standards (MPSS) and other legislation

46 Branch Strategic Management Strategic objective 1.10 Objective statement Baseline Justification Links To provide independent and objective assurance and consulting services To assist management to improve organisational operations by providing assurance and consulting services on the adequacy and effectiveness of internal controls, governance and risk management processes Approved and implemented internal audit plan Assist management to achieve their strategic objectives by evaluating the adequacy and effectiveness of internal controls and making practical recommendation for improvement Institute of Internal Auditors standards PFMA Treasury Regulations

47 Branch Financial Services Strategic objective 1.11 Objective statement Provide effective and efficient financial and supply chain management to stakeholders Provide quality financial and supply chain management services in compliance with legislation and stakeholders needs to contribute towards financial sustainability. Baseline Justification Links Unqualified audit opinion Necessary to ensure financial resources are managed in accordance with legislation and sound financial management practices to contribute towards financial sustainability PFMA and Treasury Regulations requirements

48 Branch Financial Services Strategic objective 1.12 Functional and secure facilities Objective statement Baseline Justification Facilitate the upgrade and occupation of secure facilities Assessment of facility and design and lay-out completed Measure success towards establishing a secure and functional facilities Links Linked to national security of the State and limiting identity and economic fraud, contributing to ensure secure documents and immigration issues

49 Branch Human Resources Strategic objective 1.13 Objective statement Baseline Justification Human Resource Staffing Plan Complete and implement a human resource staffing plan that will provide adequately trained employees to support the organisation towards growth and sustainability Approved organisational structure and human resource policies. To indicate the staffing needs of the organisation and recruit and retain critical and other staff in line with various business requirements/models Links Public Service Act and other applicable legislation

50 Strategic objective 1.14 Branch Human Resources Learning and Development Plan Objective statement Implement a Learning and Development Plan to support the talent development of GPW employees through professional development, career development, and improved performance management Baseline Human Resource Development Plan updated and approved Justification Contribute towards the third strategic outcome orientated goal to have an efficient, effective and welltrained/developed workforce responding to the identified training needs, monitoring the average number of days per employee spent on training and development, and supporting personal development plans Links Public Service Act and other applicable legislation

51 Branch Human Resources Strategic objective 1.15 Labour Relations Management Objective statement Baseline Promote sound labour relations between the employer and employee Employee relations management policies, processes and guidelines implemented Justification To ensure sound labour relations. Links Different legislation

52 WE THANK YOU KINDLY! 17