aidc development centre soc ltd annual … 2015-16 app...aidc development centre soc ltd annual...

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AIDC Development Centre SOC Ltd

Annual Performance Plan

2015 to 2018

March 2015

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OFFICIAL SIGN OFF

It is hereby certified that this Annual Performance Plan (APP) of the Automotive Industry

Development Centre SOC Ltd, for 2015/2016 fiscal year with the three-year Medium Term

Expenditure Framework (MTEF) forecast:

Was developed by the management of the AIDC under the guidance of its Shareholder GGDA,

its Board, as well as the AIDC Board;

Takes into account all the relevant policies, legislation and other mandates for which the Gauteng

Growth and Development Agency is responsible and to which the AIDC as an Subsidiary is

subordinate to, and

Accurately reflects the strategic goals and objectives which are aligned to those of the Gauteng

Growth and Development Agency and which the AIDC will endeavour to achieve over the period

2014/15 to 2017/18.

Approved by the Board on 10 March 2015 with the removal of the three of the operational KPIs

under Annexure A.

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TABLE OF CONTENTS

PART A: STRATEGIC OVERVIEW 5

1. MANDATE 5

2. VISION 5

3. MISSION 5

4. VALUES 5

5. STRATEGIC OUTCOME ORIENTED GOALS 6

6. SOUTH AFRICA’S 2015 SITUATIONAL ANALYSIS IN BRIEF 9

6.1 South Africa in General 9

6.2 Gauteng in general 10

6.3 The Automotive Sector 11

6.4 The Gauteng Automotive Learning Centre in context 13

6.5 Township development as an additional focus Area 17

7. PERFORMANCE DELIVERY ENVIRONMENT 18

8. The AIDC’s “Big Idea” projects to be pursued over the next 5-10 years: 23

8.1 Township vehicle disassembly plants/shops (Township Project); 23

8.2 Second hand tyre re-use accreditation centres (Township project); 23

8.3 SADC automotive component export initiative; 24

8.4 Expansion of the ASP to complete phases 3 to 5 24

8.5 A 2nd

Incubator at Ford, as well as engaging other OEMs with similar concepts; 24

8.6 Electric vehicle value chain 25

9. ORGANISATIONAL ENVIRONMENT 25

10. Monitoring System 28

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11. Risk Management Process and Challenges 28

12. The detailed budget as contained under Appendix C. 29

13. Annual and Quarterly Operational/functional Targets for 2015/16 and Outer Financial years 29

PART B: PROGRAMME AND SUB-PROGRAMME PLANS 30

14. AIDC Programme Strategic Objective Annual Targets for 2015/18 and alignment 30

PART C: LINKS TO OTHER PLANS 41

15. Links to the long-term infrastructure and other capital plans and external projects. There are

basically two major infrastructure projects in the scope of the AIDC. These are: 41

16. External projects of the AIDC for 2015/16 are as follows – key deliverables are set out under in the

ensuing tables for each, namely: 41

Appendix A – AIDC Corporate Scorecard KPI Matrix - APP 72

Appendix B: AIDC Organisational Organograms (Company / personnel confidential).

Appendix C: AIDC Budget for 2015 and outer years (Company and commercial confidential).

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PART A: STRATEGIC OVERVIEW

1. MANDATE

The AIDC is the dedicated developmental agency of the Gauteng Growth and Development

Agency (GGDA) in relation to the specific industrial, infrastructure and training needs required by

the automotive and allied sector - in particular those based in the Gauteng province. The AIDC is

thus tasked by GGDA with special developmental type projects aimed at enhancing and possibly

expanding the automotive and allied-related sector with a focus on enterprise development; also in

the support of government‟s aims at BBBEE SMME development and the radical transformation of

various townships. The AIDC otherwise explores other developmental projects, external to the

objectives of the GGDA in support of the AIDC‟s own business development processes. These

include projects related to the transport and energy sectors, as well the development of the

Tshwane Auto City.

2. VISION

The Vision of the AIDC is:

To be the leading implementation agency delivering creative, efficient, best practice and value

based solutions in support of government’s programmes related to the automotive and allied

sectors.

3. MISSION

The Mission of the AIDC, in pursuit of its Vision, is to provide innovative customised solutions:

To develop the automotive manufacturing sector to globally competitive standards of excellence

through a world-class value proposition which enables effective and sustainable socio-economic

growth.

4. VALUES

The AIDC‟s staff aligns their behaviour to the shared values as listed below, these values support,

and is informed by the organisations Vision and Mission:

Respect for others;

Teamwork;

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Open and honest two-way communication

Encouraging a learning culture;

On-time, on-brief, on-budget;

Client-centred;

Integrity and Ethics above all.

5. STRATEGIC OUTCOME ORIENTED GOALS

The AIDC‟s APP is aligned with both National developmental objectives and the Strategic Outcome

Oriented Goals of the GGDA derived from those of the DED, which are informed by the national

and provincial political and socio-economic imperatives for the 5th term of government by the ruling

party.

In relation to the new „Blue Economy‟ philosophy, the AIDC‟s business and projects to a large

extent underwrite the aims and objective of the latter, as follows:

• Clustered activities: Incubation Centres (ICs) at Ford and Nissan, the Winterveld Enterprise

Hub (WEH), the Gauteng Automotive Learning Centre (GALC), the Automotive Supplier Park

(ASP) as related to the concepts of fast delivery (Just-in-time(JIT)), solar use prospects;

• Recycling: new township concepts as related to tyres and vehicles (with numerous

derivative recycling prospects);

• Innovative: ICs, WEH, GALC, Efficiency Improvement – as related to innovative

interventions in the auto sector and townships;

• Create local production: 80%+ BEE spent, ICs, ASP – as related to increasing local

production;

• Circulate cash in local communities: WEH and body shop mentoring (to follow: tyre,

vehicle and several other auto-related concepts);

• Multiple income streams: MTEF, Jobs Fund, CoT, Siemens, Transnet, DTI (TBC - access

to FDI, development aid funding and skills funds);

• Business plans: AIDC, ASP, ICF, WEH, GALC = sustainable, off-takes, economically

viable, lesser dependence on MTEF.

The following table provides an in context summary of the aforementioned statement of alignment:

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5.1 Strategic outcome related goals that predicate cross alignment of the AIDC’s mandate and related activities in relation to only those most relevant National and Provincial objectives (to note – this table is not a cross-matrix alignment of each of the stated policy objectives – under par 4.2 an alignment explanation is provided in relation to each policy section): National Development Plan

(NPD) August 2012 2014-2019 MTSF Industrial Policy Action Plan (IPAP - 2014/15-2016/17) and the

Gauteng Industrial Policy Framework (GIPF) G2055 and Gauteng City

Region Alignment with Gauteng

Provincial Pillars

GGDA’s alignment with the DED 2014-2019

Strategic Plan

Increasing exports Outcome 4: Decent employment through inclusive economic growth

Sector strategies Decent employment through inclusive economic growth

Pillar 1: Radical economic transformation

Gauteng‟s economy radically transformed

Pillar 2: Decisive spatial transformation

Investing in Infrastructure to facilitate economic activity that is conducive to growth and job creation

Outcome 5: A skilled and capable workforce to support an inclusive growth path

Strategic infrastructure investment;

Skilled and capable workforce to support an inclusive growth path

Pillar 3: Accelerated social transformation

Gauteng‟s economy re-industrialised

Lowering the cost of doing business,

Outcome 6: An efficient, competitive and responsive economic infrastructure network

Special economic zones An efficient, competent and responsive economic infrastructure network

Pillar 4: Transformation of the state and governance

Establish and maintain strategic economic infrastructure

Matching unemployed people to jobs

Outcome 7: Vibrant, equitable and sustainable rural communities

SMME support Vibrant, equitable, sustainable rural community

Pillar 5: Modernisation of the Public Service

GGDA capacitated to deliver and implement efficiently and effectively on programmes such as: The move towards a greener future – green economy; knowledge based economy and creative industries; Building on the GCR through effective intergovernmental cooperation; Overseeing the Gauteng catalytic infrastructure investment programme Entrenching Gauteng‟s gateway to Africa by strengthening its competitive and comparative advantages; Building of a developmental state through a professional, skilled, ethical and accountable public service.

Providing a tax subsidy to businesses to reduce the cost of hiring people

Outcome 10: Environmental assessment and natural resources that are well protected and continually enhanced

Trade and investment facilitation Protects that enhance our environmental assets and natural resources

Pillar 6: Modernisation of the economy

Rewarding the setting up of new businesses including partnering with companies

Outcome 11: Create a better South Africa and contribute to a better and safer Africa and the World, and

Reducing the cost of doing business in Gauteng 2009 (implementation framework);

Modernisation of the public service - An efficient, effective and development oriented public service.

Pillar 7: Modernisation of Human Settlements and urban development

Reducing the cost of regulatory compliance – especially for small and medium sized firms

Outcome 12: An efficient, effective and development oriented public service

Gauteng BBBEEE strategy Pillar 8: Modernisation of the Public Transport Infrastructure

Supporting small business through better coordination of relevant agencies, development finance institutions, and public and private incubators

Gauteng Green Economy Strategy

Pillar 9: Re-industrialisation of Gauteng province

Building an expanded skills base through better education and vocational training

Gauteng Tooling Initiative

Pillar 10: Taking the lead in Africa's new industrial revolution Stronger articulation between macro and micro-economic policies

Industrial financing channeled to real economic sectors

Leveraging public and private procurement to raise domestic production and employment in a range of sectors, including alignment of BBBEE an industrial policy objectives and influence of private procurement

Developmental trade policies which deploy trade measures in a selected and strategic manner, including tariffs; enforcement and standards, quality assurance; and metrology measures

Competition and regulation policies that lower costs for productive investments and for poor and working class households

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5.1 Strategic outcome related goals that predicate cross alignment of the AIDC’s mandate and related activities in relation to only those most relevant National and Provincial objectives (to note – this table is not a cross-matrix alignment of each of the stated policy objectives – under par 4.2 an alignment explanation is provided in relation to each policy section): National Development Plan

(NPD) August 2012 2014-2019 MTSF Industrial Policy Action Plan (IPAP - 2014/15-2016/17) and the

Gauteng Industrial Policy Framework (GIPF) G2055 and Gauteng City

Region Alignment with Gauteng

Provincial Pillars

GGDA’s alignment with the DED 2014-2019

Strategic Plan

Skills and innovation policies that are aligned to the sector priorities

5.2 A brief synopsis of the most relevant aspects as related to the AIDC’s mandate, projects and operational activities in context with the above: The AIDC has a dedicated Enterprise Development Department, Skills Development and Training, Special Programmes, Operations and Government Incentives Support Department. All these through various project and other interventions contributes to the above objectives, or otherwise support and/or participate in them.

The AIDC directly contribute to job creation, skills development, as well as deploying various efficiency improvement projects across the auto sector manufacturers. The AIDC maintains very high standards of corporate governance standards with clean unqualified audits.

The AIDC‟s mandate focuses in particular on developmental support for the automotive and allied sector, with skills development and efficiency improvement projects. The ASP as an auto manufacturing hubs serves the surrounding OEMs thus contributing to a reduction in cost and improved competitiveness.

The AIDC directly contribute to job creation, skills development, SMME and BBBE development and improving townships – for 2015/16 the AIDC will implement an additional 4. The AIDC has a dedicated SHEQMAN process in place that operates across all its various sites. The AIDC has developed and is maintaining and operating the ASP, Rosslyn, the IC at Ford, the Learning Centre at Rosslyn and the Winterveld Enterprise Hub. The AIDC will during 2016/17 complete another auto incubation centre at Nissan with up to 8 SMMEE/BEE. The AIDC will also be engaged in the establishment and development of various township hubs. The AIDC maintains very high standards of corporate governance with clean unqualified audits.

The AIDC‟s mandate stretches across Pillars 1; 2; 4; 5; 6; 9 and 10 with various projects implemented and managed. The AIDC otherwise responds to market failures in instances where existing processes fail to achieve the desired results.

The AIDC is a Schedule 3C PFMA State Owned Company (SOC) that resorts under the Gauteng Growth and Development Agency SOC Ltd (GGDA) that falls under the Department of Economic Development (DED) of the Gauteng Province (GP). The AIDC is a developmental agency that focuses primarily on the automotive and allied sectors. At a secondary level, the transport and energy sectors are also assisted with supplier development and skills development and training. Both these sectors play a critical role in the output of the auto and allied sector.

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6. SOUTH AFRICA’S 2015 SITUATIONAL ANALYSIS IN BRIEF

6.1 South Africa in General

In December 2014, the International Monetary Fund (IMF), which expects the South

African economy to grow by only 2.1% in 2015, warns that even this “lacklustre”

outlook carries considerable downside risks, with the country‟s high current account

deficit “reflecting persistent competitiveness problems, soft terms of trade, supply

bottlenecks and subdued external demand”. The IMF said that, although weak trading-

partners‟ growth contributed to the slowing of the economy in recent years, “binding

structural constraints”, such as protracted strikes and electricity shortages, have been

increasingly important factors. Slowly easing infrastructure constraints and stronger

external demand are expected to raise growth to 2.75% in 2016–19 but not enough to

lower unemployment significantly,” the IMF warned.

It also noted that, despite 26% real effective exchange rate depreciation since 2010,

the current account deficit remained high, at 5.8% of GDP in 2013. In light of the risks

facing the outlook and the reduced policy space available to government, the IMF

directors called for decisive structural reforms to unblock supply-side constraints, lift

growth, and rebalance the economy towards exports and investments.

The on-going infrastructure projects were welcomed along with moves to encourage

greater private sector participation and promote small business.

But the IMF also recommended that high priority be given to enhancing productivity

and competitiveness by accelerating product and labour market reforms, reducing skills

mismatches, and normalising industrial relations.1

Due to a considerable lower economic growth anticipated for 2015, there is a general

assumption that the passenger vehicle market will experience a contraction as well.

Locally produced vehicles are expected to increase in price by 4% versus the imported

ones with an 8% increase.2

1http://www.engineeringnews.co.za/article/imf-highlights-sas-persistent-competitiveness-problems-as-growth-outlook-is-

cut-2014-12-11/rep_id:3182 2http://www.engineeringnews.co.za/article/domestic-vehicle-sales-to-remain-weak-in-2015-2015-01-08/rep_id:3182

http://www.engineeringnews.co.za/topic/electricity-shortages

http://www.engineeringnews.co.za/topic/infrastructure

http://www.engineeringnews.co.za/topic/infrastructure

http://www.engineeringnews.co.za/topic/projects

http://www.engineeringnews.co.za/topic/product

http://www.engineeringnews.co.za/topic/industrial

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Eskom‟s potential load shedding and power outages also do not bodes well for

manufacturing output and it is anticipated by SEIFSA that South Africa could be

shedding some 23% in production in the metals and engineering sectors, which will

inevitably impact on the auto sector as well.3

6.2 Gauteng in general

Gauteng continues to be regarded as the financial and economic hub of South Africa,

contributing 34% of South Africa‟s total GDP. In terms of the continent, Gauteng

continues to be a leading economic contributor to the Southern African region and is

recognised as a key gateway for doing business with the rest of Africa.

Despite this, the Gauteng economy is also characterised by deep structural problems.

These include high levels of marginalisation and exclusion from the mainstream

economy, high unemployment rates, low skills levels, high poverty levels and high

levels of inequality. The global recession has highlighted the vulnerability of Gauteng‟s

economy to external changes and shocks and the need to strengthen its resilience and

sustainability.

The GPG is mindful of the contradictions and challenges faced by the Gauteng

economy. Therefore, its approach to radically transforming and re-industrialising its

economy includes addressing the economy‟s structural imbalances and inequality

such as:

The visible gap between rich and poor in the province and high levels of income

inequality,

High incidence of youth unemployment,

The low Minimum Living Level (MLL) of approximately half the province‟s

population,

The low and insufficient skills base to meet the demands of a growing economy,

Providing energy security for business and household use,

Removing obstacles to doing business in Gauteng, with a special focus on

obstacles to the existence, growth and sustainability of the SMME and Co-

operative sectors,

Ensuring the economic profile reflects the demographic profile of the Province,

3

SEIFSA warning. http://www.engineeringnews.co.za/article/electricity-disruptions-threaten-manufacturing-output-seifsa-2015-01-13/rep_id:3182

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Spatial distortions and legacies of apartheid in respect of economic opportunities

and activities, and

Strategic infrastructure investment to boost and sustain high levels of economic

activity.

Premier David Makhura in his State of the Province Address on 23 February 2015,

stressed the importance of a collaborative effort to transform, modernise and re-

industrialise Gauteng into a seamless integrated City Region, as a leading economy in

Africa. The Premier, however, acknowledged the various challenges posed by the

many structural economy and socio-economic problems, which requires a radical

transformation process. One of the mega interventions that will be supported included

the Northern development corridor around CoT as the Nation‟s Capital City and

automotive hub. The auto sector had been offered continued support, through the

AIDC‟s interventions, which include SMME development, and the establishment of a

freight and logistics hub, as well as township hubs (such as the Winterveld Enterprise

Hub).

6.3 The Automotive Sector

The automotive industry remains a major contributor to the GDP - close to 7%. It is

one of the most important manufacturing sectors in the Gauteng economy and a

primary exporter of manufactured goods – around 10%. It is also a major contributor to

jobs, skills and socio-economic development. In terms of national industrial

development goals and objectives, the dti wants to grow the automotive sector over

the next 10 to 20 years to double its output, although recent economic projections

indicate that such aspirations may be over optimistic. The AIDC will nevertheless

continue with its collective efficiency improvement programme that addresses these

needs across some 100 companies over the next 5 years. A concerted effort will have

to be made to keep on improving the component manufacturing base‟s international

competitiveness. South Africa not only faces Brazil, India and China as the biggest

international threats in the auto sector, but several African countries that are aspiring

to establish automotive manufacturing capabilities (one example is Nigeria).

A Provincial strategy for the development of the automotive sector remains a key

requirement to guide and inform investment opportunities and further development-

related decisions for this sector. The AIDC‟s focus, therefore, remains on the

automotive and allied sector with a particular bias to provide facilitation and assistance

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to the various OEMs and the Tier 1, 2 and 3 suppliers. The AIDC‟s focus will be

expanded over the next five years to include allied auto sector activities with regard to

the further growth anticipated in the local production of, for example, busses, heavy

and medium commercial vehicles, utility vehicles for local government use, as well as

construction and mining machinery and equipment.

Another key focus area is the Automotive Supplier Park in Rosslyn (ASP). For

example, due to a lack of funding support to further develop the ASP, it cannot be

optimally developed to cater for future demand as a result of growth in the automotive

sector. The ASP remains largely reactive to requests for space or expansion by the

industry. A value proposition initiative was launched in 2013 and a pipeline of potential

investors was developed. A total investment of around R1, 5bn to R2bn is needed for

the ASP‟s further development in order to create a commercially viable entity that

could be fully privatised in the next 5-10 years. The objective is to attract at least one

more OEM to Gauteng (the Automotive Supplier park (ASP) specifically) over the next

two years, this is critically dependant of provision of bulk infrastructure in phases 3 to

5.

Gauteng is competing with the coastal region provinces for the automotive industry. As

there is no seaport, Gauteng remains at a disadvantage with regards to production

costs that could be achieved due to the rising cost of logistics. On a positive side, the

location of Gauteng presents opportunities for accessing the African market, the

general level of infrastructure and support services within Gauteng province is also an

advantage. These opportunities, however, have not been properly captured as value

propositions yet.

The AIDC will furthermore implement various interventions that are directly supporting

the Government‟s „integrated approach to SMME and co-operative development‟

programme, especially creating new (start-up) Black entrants into the auto

manufacturing sector. These are for example the existing Incubator centre at Ford,

with an additional one at Nissan in the making. These kinds of interventions also

include certain Township areas where specific automotive-related activities can be

successfully established to revitalise the township economies.

Jobs placement, albeit one of the AIDC‟s objectives remains a challenge, market

forces and the low economic growth forecasts will undermine employment

opportunities in this highly mechanised sector. Global sourcing practices and the

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relatively low levels of local content further exacerbate the challenge. The automotive

and allied sector is also prone to industrial action. The Department of Trade and

Industry, in August 2014, indicated that new vehicle sales declined by 1.4% year-on-

year to 55 722 vehicles in August. This brings the decline in new vehicle sales in the

year to date to 4.3% year-on-year, although NAAMSA is predicting a positive growth in

sales.

Further investments into the automotive industry are directly promoted by the dti at

national level, through the new Automotive Production Development Programme

(APDP) that succeeded the Motor Industry Development Programme (MIDP) in

January 2012. It uses an Automotive Investment Scheme (AIS) rebate system to

attract further investments resulting in the phasing out of the Productive Asset

Allowance (PAA) claims which will cease on 31 March 2015.

Some key automotive data specific to the Gauteng Province:

Home to 5 vehicle assemblers all in the Tshwane region (BMW, Nissan, Ford, Tata

(M&HCV) and IVECO (M&HCV), while Mazda will commence with separate

operations from Ford within the next 12 months;;

180 component suppliers of the 350 national = 51%;

9,8m vehicles in the country = 40% in GP;

Gauteng accounts for 36% of national vehicle sales;

Investment by industry over the past 3 years: R 7.0bn;

Investment planned over the next 24 months : R3.5bn;

All OEM‟s have head-offices in Gauteng;

Africa exports – 70% from Gauteng based automotive companies;

Number of vehicles produced in Tshwane: 160 000 units (Rosslyn) + 85 000 units

(Silverton) = 245 000 units.

6.4 The Gauteng Automotive Learning Centre in context

The automotive industry currently does not have a specialised Skills Development and

Training institution that caters for and addresses their skills gaps as identified in the

annual Sector Skills Plan (SSP) developed by the merSETA. The Learning Centre has

been established with the sole purpose of servicing and addressing the skills shortage

in the Automotive Industry, while offering a Total Quality Management Programme

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(TQM) which will address the needs of the full value chain involved with the production

& distribution of the vehicle. The vision for this programme is to provide holistic training

programmes that will that address the skills needs of all industry stakeholders. The

Learning Centre‟s operating model is based on the following: First it was

establishment with the Jobs Fund grant against DED match funding, in

collaboration with Nissan that made a building available for this purposes.

Secondly the Learning Centre will be partly funded from Opex and training

budget allocations whilst all its courses will be offered against payment and the

renting out of training facilities – both classrooms (theoretical) and practical

technical (i.e. the multi-functional simulator facility). Income so earned will be

used for paying professional teachers and maintaining the facility. The business

model aims to get the Learning Centre self-sustainable in three years. Nissan

will in the first couple of years be a primary customer.

The Learning Centre will work in collaboration with all relevant training institutions to

address the skills shortage in the country to benefit the following industry segments,

namely:

Original Equipment Manufacturers (OEM‟s) i.e. vehicle assemblers

Automotive Components Manufacturing (Tier 1 – 3)

Dealer networks and after-market services

Informal body and mechanical repairs sector

One of the core pillars of the Learning centre business plan is building strategic

relationships. This means that the Learning Centre will engage with both private and

public Skills Development and Training services providers and build a support network.

The Learning Centre is an accredited merSeta institution for technical skill

development and training, focusing on the needs of the auto sector in particular. The

development of a country is premised, amongst others on its ability to create a

sustainable intellectual knowledge base that can assimilate information, acquire skills

and utilises technology in order to build and enhance the industrial, economic and

socio-economic base of a country.

The AIDC will furthermore keep on expanding the skills pool of trained young people

who will become more employable. The Automotive sector requires purpose designed

training and skills development programmes that are offered to young people through

a skills pipeline approach. The AIDC‟s Gauteng Automotive Learning Centre will focus

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on this requirement in addition to looking at all training streams required by industry,

science, technology, engineering, maths („STEM‟ skills) will be a key priority. In

addition to STEM skills, the scarce and critical skill gaps in the auto sector will be

addressed through various training interventions.

Key AIDC objective

number: Activity Output Outcome Impact

4.Scarce and critical

skill development

Establish an

accredited Gauteng

Automotive Learning

Centre in Rosslyn.

Develop a curricula

that addresses the

scarce and critical skill

of the auto and allied

sector

All training and skill

development and

mentorship

programmes form part

of the accredited

curricula of the

Learning Centre

To train, up-skill and

mentor some 1595

students, trainees and

mentees per annum

An increased pool of

skilled and trained

people that can be

absorb by the

anticipated expansion of

the autos sector‟s

manufacturing output as

a consequence of the

various other

programmes deployed in

parallel.

The AIDC had been

involved in critical skills

development since the

mid-2000s and this is a

continuous rolling

programme. A dedicated

Gauteng Automotive

Learning Centre had

been established in

2014 and will be fully

operational as from 1

April 2015.

A readily available

skilled worked force

that can attend to

the manufacturing

and production

needs and

demands of and

expanded auto

sector. The readily

availability of a

skilled work force

dramatically

improve on

manufacturers‟

start-up and output

as there is a much

shorter on-the-job

learning curve

involved.

The Learning Centre‟s curriculum consists of the following dedicated training and skills

development interventions/programmes. Some of the training programmes are multi-year

while others are presented as short courses. There is also a focus on skills development for

township citizens in basic literacy and numeracy. Especially considering the township

revitalisation drive that would require substantive local ownership business operating

models.

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The skills development and training programmes of the AIDC‟s learning Centre is thus in

direct support of Pillars 1, 2, 6 and 9. For example:

Pillar 1: Radical economic transformation SMME development, Technical Skills Enhancement, Township

Automotive Hubs

Pillar 2: Decisive spatial transformation Township Automotive Hubs, Gauteng Automotive Learning Centre

Pillar 6: Modernisation of the economy World class, state-of-the-art equipment at the Learning Centre and

Township Hubs (e.g. Winterveld)

Pillar 9: Re-industrialisation of Gauteng province Fully equipped Learning Centre to feed skilled workforce into the

automotive industry

The curriculum, at the moment covers the following (quantitative data under par 19.3

of the business plan):

a) Training into Township Transformation and Re- industrialisation, consisting of:

Concept for Townships Public Private Partnership with big business. Townships

Manufacturing Management Development Training; Townships competitiveness &

green economy workshops and training; Townships readiness assessment for

manufacturing and auto related services, glass fit, tyres repair, exhaust repair etc.

Township interventions on competitiveness and environmental projects including

auto products recycling like tyres, oil, scrap etc.

b) Training into SME Programmes, consisting of the following: Total Productive

Maintenance; Rapid Process Improvement; Lean Manufacturing; Cleaner Production;

Quality Management Systems and Continuous Improvement.

c) Supervisor training (in auto production/manufacturing):

d) Mentorship training that entails the following: Remove, replace and align body

panels; Understand the body construction safety features of a vehicle; Knowledge of

body repair; Perform basic welding. Joining; Identify the various types of paints,

primers, material and their uses; Maintain spray painting equipment; Perform basic

spray painting; Perform masking and de-masking on a vehicle;

Perform surface preparation on a body panel; Business Management Qualification

(UNISA).

e) Accredited technical training (including artisans) that includes the following:

Understanding Basic programmable logic controllers (PLC's); Install and program

basic programmable logic controllers (PLC's); Fault find and repair programmable

Logic controllers (PLC's); Install and programme advanced industrial programmable

logic controllers (PLC's); Workplace Safety; Basic Hand and skills usage of tools;

Electrical Artisans, Automotive Component Manufacturing and assembly. Technical

training skills programme that consist of: Electrical Artisans, Pneumatics, Hydraulics,

Robotics, Autotronics, Mechatronics, PLC, CNC and welding.

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f) Non-technical training to support industrial development value chain (Soft skills

and ABET training) consisting of: Time Management; Self-Management; Supervisor

Development programme; Policy and Procedure course Refresher Course, Basic

Budgeting, HIV AIDS testing and counselling, Basic Computer Skills, Communication

and Literacy skills.

g) Simulator training (both Ford and Nissan) consisting of: Induction of the Simulator ;

Health and Safety; Basic Hand and tooling skills programme ; Vehicle Welding ;

Vehicle Spray Painting; Vehicle Trim Assembly

6.5 Township development as an additional focus Area

In his State of the Province Address (SOPA) on 27 June 2014 and on 23 February

2015, Gauteng Premier, Mr David Makhura stressed the need to revitalize the

township economy by supporting the development of township enterprises,

cooperatives and Small, Medium and Micro Enterprises (SMMEs). He asserted that

township entrepreneurs are capable of producing goods and services to satisfy the

demand of the populations in the townships and sell excess to other provinces as well

as cross-border markets, provided they are supported across the value chain of

enterprise development. The proposed target set for the next five years is in the region

of 65 township hubs; this is however subject to further revision.

It is against this background that the Gauteng Provincial government has called for

paradigm shift in how to grow the economy and focus public spending to decent job

opportunities through enterprise support across the public sector goods and services

value chain. The key theme for the next five years is „transformation, modernisation

and re-industrialisation (TMR).‟

The Gauteng Township Economy Revitalisation falls within the provincial pillars of

Radical Economic Transformation, Decisive Spatial Transformation Modernisation of

the Economy and Re-industrialisation. Whilst the government has done a lot to ensure

that townships become liveable and vibrant economic centres to its residents, little was

done to re-invigorate the entrepreneurial spirit of township economies. Low levels of

entrepreneurial activities hold innovation back and the poor rate of survival of small

medium and micro enterprises is due to a combination of factors, including lack of

access to commercial finance, high interest rates, poor value proposition and under-

developed skills. The highly concentrated market structure dominated by established

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businesses tends to be associated with lower output, employment and higher prices in

the affected sector.

For the township economy to thrive, there will be a need for the government and its

agencies to consolidate the support as envisaged in many policies and strategies,

review those that have become obsolete in supporting entrepreneurship and regulate

with the view to make sure that township enterprises are more competitive, are able to

enter new markets (not choked by the monopoly barriers to entry) and ease the cost of

doing business through streamlined administrative burden.

Although the AIDC‟s Winterveld Auto Hub is cited as one model for duplication across

various other townships, there are numerous automotive related innovative and

entrepreneurial types of projects that stand an equally good chance of being set-up as

township enterprise models, with various configurations of business and ownership

models possible.

However, it is fully recognised that the systems of entrepreneur identification should be

improved so that the resources of the state are used to support the genuine

entrepreneurs as opposed to opportunistic ones. The culture of entrepreneurship must

be nurtured and encouraged from an early age, and a call is being made to ensure that

entrepreneurship is embedded in school curriculums. Furthermore, the SMME support

organisations should partner with SETAs and institutions of higher learning to design

programmes that capacitate and support SMMEs from infancy. Pioneer business

people and business associations should be brought on-board to assist with the

mentoring and coaching of emerging entrepreneurs, to impart their lifetime

experiences – this requires a network of public and private support structures in

collaboration with township communities in order to make it a viable concept.

7. PERFORMANCE DELIVERY ENVIRONMENT

7.1 This APP has been aligned, as much as is practically possible, with the DED‟s

Strategic Objectives to which the GGDA is aligned, as well as the AIDC insofar as

these aspects are relevant to its mandate. The AIDC‟s three to five year Key

Objectives are as set out hereunder.

7.2 According to the performance monitoring process prescribed by National Treasury,

performance information needs to be structured in such a manner that clearly shows

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how the AIDC uses available resources to deliver on its mandate. In this respect

National treasury prescribes a process where the following terms are used:

Inputs: all the resources that contribute to the production and delivery of outputs.

Inputs are "what we use to do the work". They include finances, personnel,

equipment and buildings.

Activities: the processes or actions that use a range of inputs to produce the

desired outputs and ultimately outcomes. In essence, activities describe "what we

do".

Outputs: the final products, or goods and services produced for delivery. Outputs

may be defined as "what we produce or deliver".

Outcomes: the medium-term results for specific beneficiaries that are the

consequence of achieving specific outputs. Outcomes should relate clearly to an

institution's strategic goals and objectives set out in its plans. Outcomes are "what

we wish to achieve", and

Impacts: the results of achieving specific outcomes, such as reducing poverty and

creating jobs.

7.3 The AIDC applies the “SMART” principle for selecting performance targets, i.e.:

Specific: the nature and the required level of performance can be clearly

identified

Measurable: the required performance can be measured

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Achievable: the target is realistic given existing capacity

Relevant: the required performance is linked to the achievement of a goal

Time-bound: the time period or deadline for delivery is specified.

7.4 The following table therefore captures the key objectives of the AIDC in relation to the

above from inception through to anticipated impacts. Specific performance indicators

are detailed and elaborated on in Parts B and C, as well as in the Corporate Scorecard

under Appendix A.

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7.4.1 The impact of the key objectives being pursued by the AIDC in the interests of further developing the automotive and allied sector – with a primary focus on Gauteng:

Key objective number: Activity Output Outcome Impact

1. Providing support to key stakeholders in industrial strategy development.

Support strategy development; Support policy development; National and Provincial alignment; Growth nodes identified; Secure government and provincial buy-in.

Provide support towards a provincial industrial development policy with clearly defined aims, goals and objectives related to the expansion of the auto sector in GP primarily and nationally at a secondary level – this objective is linked to objective number 8.

A redefined government incentive scheme that would attract additional OEMs with a resultant expansion of T1-5 activities. Target date: 2016

Gauteng becomes the preferred automotive hub in South Africa with resultant increase in FDI/DDI, increased manufacturing, higher levels of local content, exports and jobs.

2. Infrastructure development for expansion/growth.

Developing of attractive value propositions to attract FDI/DDI; Key focus is expanding the ASP, Rosslyn to its fullest potential; Development the 5th world auto city north of Pta – Tshwane Auto City (TAC).

Identified potential investors that can be influenced through a well-structured and argued value propositions with supporting economic impact assessments.

At least R1, 5 billion in investment secured for the ASP‟s further development. A pipeline of investors/developers identified and contracted for the development of the TAC. This initiative commenced in 2012 and spans a 50 year development horizon.

Increased levels of manufacturing, supported with a well skilled pool of workers. Increased levels of job (thousands). Increased levels of socio-economic upliftment thus reducing poverty and redistribution of wealth.

3. Supplier Competiveness Improvement.

The rolling out of various improvement projects in the Tier 1,2, and 3 supply chain that include: Total productive maintenance (TPM); Rapid Improvement Processes (RIP); Lean Manufacturing (LM); Continuous Improvement Programmes (CIP); Cleaner Production (CP).

22 automotive companies assisted on an annual basis.

The respective interventions achieve a collective of 10% efficiency in production. This programme commenced in 2009 and is a based on a continuous interventions programme, benchmarked against international best practices (e.g. UNIDO).

This process enables Tier 1, 2 and 3 suppliers to be more competitive and thus be able to attract more business and thus expanding production that leads to increased levels of job creation.

4. Scarce and critical skill development.

Establish an accredited Gauteng Automotive Learning Centre in Rosslyn; Develop a curricula that addresses the scarce and critical skill of the auto and allied sector; All training and skill development and mentorship programmes form part of the accredited curricula of the Learning Centre.

To train, up-skill and mentor some 1595 students, trainees and mentees per annum.

An increased pool of skilled and trained people that can be absorb by the anticipated expansion of the autos sector‟s manufacturing output as a consequence of the various other programmes deployed in parallel. The AIDC had been involved in critical skills development since the mid-2000s and this is a continuous rolling programme. A dedicated Gauteng Automotive Learning Centre had been established in 2014 and will be fully operational as from 1 April 2015.

A readily available skilled worked force that can attend to the manufacturing and production needs and demands of and expanded auto sector. The readily availability of a skilled work force dramatically improve on manufacturers‟ start-up and output as there is a much shorter on-the-job learning curve involved.

5. Township development. To identify automotive related activities suitable for deployment and Operationalisation in Townships.

The Winterveld Enterprise Hub for body shop repairers is already operational. Ten more township hubs will be developed over the next three years.

Ten township hubs operationalised and over time brought to an enterprise self-sustainability level managed and operated by the respective Township communities. By 2018 the AIDC will be operating and managing eleven township hubs.

Radical transformation of the Townships, creating industrial and productive activities that would create jobs and improve socio-economic conditions.

6. Incubation Programmes.

Create, establish, operate and maintain automotive incubation centres in collaboration with respective OEMs; Negotiating multi-party off-take agreements;

One automotive incubation centre established and operated at Ford Silverton with 6 BEE SMME owners with a work force of around 200 with 4 off-take agreements. A second incubation centre at Nissan

Trained business entrepreneurs that learned about production processes and the manufacturing of automotive parts, as well as how to runs such a business from a business owner perspective, including HR and payroll as well as OHS leave the incubation programme

New Black owned business entrepreneurs enter the traditionally white (and often foreign) owned and operated automotive manufacturing sector at component and retail levels.

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7.4.1 The impact of the key objectives being pursued by the AIDC in the interests of further developing the automotive and allied sector – with a primary focus on Gauteng:

Key objective number: Activity Output Outcome Impact

Identifying, selecting and contracting BBBEE SMMME entrepreneurs; Train and mentor these entrepreneurs to become self-sustainable business operators providing manufactured goods to the Tier 1 and OEMs; Employ operators and shop floor stewards.

Rosslyn with up to 8 BEE SMME owners with an anticipated work force of 200-300 (off-take agreements will only be signed towards 2016/17).

after 4-5years and start running their own businesses. The IC at Ford commenced operations in 2012 with the first 2 incubatees ready for graduation by Dec.‟15, with 2 replacement incubatees appointed. The Incubation Centre at Nissan will only be operational by 2017/18.

7. Implementation of SHEQMAN in response to green development.

Establish a formal SHEQMAN process for all the AIDC sites; Establish and contract security services at the AIDC Sites.

A SHEQMAN plan for ASP, ICF, GALC. ICN, WEH and all four new township hubs4. Establish and manage security services contracts for all AIDC sites

Full compliance to OHS and SHE legislation Proper security at all sites. Full implementation as from 1 April 2015 – thereafter continuously maintained and upgraded.

Improve health and safety standards and as a result a reduction of IOD incidents, waste management contributing to less pollution and proper security services reduces the prospects of loss of government own assets due to theft and or vandalism.

8. Automotive export development support.

Develop an extensive an export promotion support strategy in collaboration with NAAMSA, NAACAM, the Automotive Export Council and the DTI sector desks. Establish bilateral trade agreements with identified selective African States in collaboration with the DTI and Foreign Relations – targeting Nigeria in particular.

An approved export promotion plan that details the roles and responsibilities of all parties as well as addressing expectations.

Commence increased export activities into SADC and later expanding in into wider Africa. Implementation planning and strategy will commence in 2015. The feasibility of this planned objective will be tested against the needs and expectations of the auto sector.

Increased manufacturing output as a result, earning of forex, increased local content production, increased job and socio-economic conditions. GP becomes the automotive export hub into Africa.

9. Facilitate job creation.

Pro-actively search job placement opportunities, especially for the students, trainees and mentees from the Learning Centre.

Effect job placements of around 240 per annum.

More people absorbed in the productive sector with permanent jobs. Job creation initiatives already commenced years ago and will continue as on-going/rolling objectives.

General improvement of socio –economic conditions, poverty reduction, improvement of quality of life.

10. Management a modern world class standard developmental government agency.

Maintains a value system accepted by all staff; Management commitment to excellence; Maintains a M&E and ERM system; Maintains a performance management system; Training and development of AIDC staff; Diversity training and change management action pursued pro-actively.

Business plan targets are cascaded right through the whole company. Ensuring KPI targets are met through diligent M&E, ERM and management review processes. Regular reporting to the EXEC and Manco of the AIDC, the Shareholder (GGDA) the ARC and the Board. Dedicated purposely designed training and skill development interventions.

Through this process the AIDC receives recognition for its management excellence. It participates in the BCTWF survey and receives a consistent above average score. Staff being put in a position to achieve above average performance score in order to be recognised through the performance bonus scheme for their individual contribution. The AIDC had over the years been awarded many accolades of excellence and will continue striving towards such recognitions.

The AIDC receives regular accolades from external entities recognising its performance of excellence. It regularly receives clean and unqualified audits. It regularly receives BCTW awards/recognitions.

4 ASP – Automotive Supplier park, Rosslyn; ICF – Incubation Centre at Ford; GALC – Gauteng Automotive Learning Centre; ICN – Incubation Centre at Nissan; WEH – Winterveld

Enterprise Hub

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8. The AIDC’s “Big Idea” projects to be pursued over the next 5-10 years:

In responding to the call for radical economic transformation, the following so-called „big idea‟

projects will be pursued for possible implementation by the AIDC, over the next five to ten

years, provided adequate funding, effective partnerships and political support at the highest

levels can be sourced. These were accepted by the GGDA Board planning session on 2

September 2014. All projects will undergo a detailed feasibility and sustainability assessment

before being considered for implementation. These are:

Progressively unpacking the Tshwane Automotive City (TAC) concept (done in collaboration

with the CoT), extracting certain elements in it in order of priority to start creating the critical

mass for the rest; this also includes the concept of transforming the Wonderboom Airport into

a freight hub for Gauteng. Incorporating the following:

Special Economic Zone Status;

Special package of incentives;

Recycling plant;

Wonderboom Airport conversion to freight hub;

Consolidation and Distribution Centre;

- Vehicles and containers.

SIP25 – integrating the east/west and north/south corridors;

Rail infrastructure upgrade;

Tshwane North – Economic “Zone of Choice”.

8.1 Township vehicle disassembly plants/shops (Township Project);

Vehicle disassembly is becoming increasingly popular world-wide:

New vehicles disassembled and exported based on various taxation benefits;

Used vehicles „delicately‟ disassembled to recycle/reuse components ;

Recycling of used motor oil, lubricants, filters, brake pads, shocks, etc.;

Extraction process of precious metals from used catalytic converters (e.g. platinum,

rhodium, etc.);

10-15 are proposed for roll-out in townships over the next 5 years.

8.2 Second hand tyre re-use accreditation centres (Township project);

Townships are inundated with „Used Tyres For Sale‟ entrepreneurs;

5 Strategic Infrastructure Projects

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The greatest impedance to the growth of these SMME‟s is the safety risk associated with

buying used tyres;

Mobile tyre safety verification units could be deployed across Gauteng to officially certify

these tyres via specific diagnostic equipment;

Tyres can be verified as street legal, in which case provides the consumer with quality

assurance, whilst non-compliant tyres can be scrapped, ensuring public safety and

improved marketability;

Possibility for 50 centres to be rolled out over the next 5 years.

8.3 SADC automotive component export initiative;

AIDC and TIRE joint project;

There are in excess of 350 component manufacturers in SA with almost 200 of them

residing in Gauteng;

There are also signs of budding automotive assemblers within the SADC region;

To this end, as a way to intercept the supply into their value chain, a component export

support programme should be facilitated with incentives and politically supported trade

agreements.

8.4 Expansion of the ASP to complete phases 3 to 5

The ASP has been approached by various investors expressing an interest to invest in

the Park.

Due to funding constraints, investment opportunities were lost

Large investments are immanent, which requires funding availability to complete the

balance of the ASP Phases 3 to 5.

8.5 A 2nd Incubator at Ford, as well as engaging other OEMs with similar concepts;

Due to the impact of the current incubator at Ford, replication of this model at an additional

site in Ford is being seen as a favourable solution.

Ford would like to outsource additional commodities to an incubator.

Discussions are already underway to explore these opportunities.

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8.6 Electric vehicle value chain

With the failed Joule EV commercialisation/investment in SA, one should not lose the IP

which was developed in the process.

Remnants of the Joule are currently dormant and could be reviewed for possible direction

as to the role SA could play in the global EV component supply value chain.

Specialist facilitation and R&D work needs to continue in order to position SA as a global

supplier.

9. ORGANISATIONAL ENVIRONMENT

The GGDA is a holding company that is registered as a Schedule 3C public entity. GGDA‟s

sole shareholder is the Gauteng Department of Economic Development. The GGDA

comprises four subsidiary agencies that it wholly owns, namely:

Automotive Industry Development Centre (AIDC),

Technology Innovation Hub (TIH),

Industrial Development Zone (IDZ),

ConHill and

Newtown Precinct.

These agencies, by virtue of its ownership by GGDA, are by default Schedule 3C public

entities. In terms of its governance arrangements, the GGDA is accountable to both the DED

and an independent board that has been established in terms of the Companies Act.

Similarly, boards have also been established for each of the subsidiaries to whom the latter

are likewise accountable.

Each of the GGDA agencies reports independently to their respective Boards.

9.1 The current structure of the AIDC is reflected in the following functional organogram (the

detailed organograms of the AIDC are under Annexure B6):

6 Due to the personal information contained in the organograms these are not for public consumption.

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CEO

B. Manilal

Executive Manager:

Operations

Vacant x1

Senior Manager: M&E,

Risks

J. van Dyk

Executive: Industry

Development

D. Moodley

Senior Manager:

Business Development

Vacant x1

(Acting Z. Jansen)

Senior Manager: Human

Resources

Vacant x1

(Acting M. Mhlungu)

-Projects Fin. Man.*

-SCM – Proc. Man.*

-Operations Fin. Man.*

-Opex & budget

-Ct/Dt

-Systems (ERP/BI)

-Payroll Man.*

-Supplier & Enterprise Dev.

Man.*

-Inc. Progr. Man.*

-SDT Man.*

-Spec. Prog. Man.*

-Incentives Schemes Man. *

-Automotive Hubs Man.*

-Learning Centre Man.*

-Facilities Man.*

-ICT Man.*

-SHEQMAN

-Tenant Relations

-Office Support

-Conf. Venue

-OPS Meeting

-BCM

-Strategic Planning

-Business Plan Co-

ordination

-ERM & RR

-Reporting

-Projects

-DBSA M&E

-Co. Performance

-Audit evidence

-Programmes Man. *

-Facilities and Infrastructure

Man. *

-Marketing and Events. *

-Stakeholder and

Relationships Management

-New business sourcing

-Concept development

-Alternative Funding

-Tenants Relations

-Corporate Identity

-Business Intelligence

-Delegations & Trade

Missions

-Training/Dev & Perf Man.*

-ER/EW Man.*

-HR Resourcing & Admin

Man. *

REPORTING ORGANOGRAM

CEO DIVISION

As at 01 April 2015

Executive Assistant to

CEO

S. Ascenso

Executive Liaison

Officer

L. Delport

Legal Manager

Vacant x1

Strategic Relations and

Communications

Manager

Vacant x

Corporate

Governance & Legal

Compliance Officer

Vacant x1

CFO

S. van der Merwe

9.2 In terms of this overall framework, each of the parties in the governance framework has certain

responsibilities. These are broadly captured in the table below:

Party Responsibility

GDED

Set the strategy that the GGDA and subsidiaries must align to

Provide budget and investment for execution of the strategy

Ensure sound governance and performance of the GGDA

GGDA Board

Perform the governance functions of a board

Quality assure strategy, management and governance of the GGDA

Support the GGDA to achieve its mandate

Subsidiary Boards

Perform the governance functions of a board

Quality assure strategy, management and governance of the subsidiary

Manage the accountability and performance of the subsidiary

Support the Subsidiary to achieve its mandate

GGDA holding Company

Manage the GGDA

Develop and implement group wide strategic management

Implement key initiatives in line with the GGDA strategy in respect of trade and investment, project management and business intelligence

Support the growth, development and success of the Subsidiaries

Subsidiaries

Manage the subsidiary

Develop and implement strategic management for the subsidiary

Implement the subsidiary strategy and manage performance

Support the growth, development and success of the Subsidiary

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9.3 The AIDC falls under GGDA‟s Programme 2:

9.3.1 The Table Below depicts the purpose of Programme 2, its sub-programmes and their

functions.

BUDGET PROGRAMME:2

PURPOSE SUB-

PROGRAMMES FUNCTIONS

Automotive Industry Development Centre (AIDC)

To develop the automotive manufacturing sector to globally competitive standards of excellence through a world-class value proposition which enables effective and sustainable socio-economic growth

Industry Development

Supplier and Enterprise Development Township Enterprise development Incubator Programmes SD&T (Skills, Development and Training – also ESDA) Learning Centre (with two simulator facilities) Special Programmes (including TAC) Industrial policy development support to key stakeholders Automotive export support into SADC/Africa

Operations

Facilities maintenance and improvement execution Facilities improvement planning ICT Management (also responsible for BCM – Business Continuity Management) SHEQMAN (Safety, Health, Environmental Quality Management System – all AIDC sites) Soft Services – AIDC office support Conference Venue at ASP

M&E and Risk

Strategic and operational planning coordination Business Plan Coordination Enterprise Risk Management & Risk Registers Operations risk management– across all projects and all sites Reporting – performance tracking Projects monitoring Jobs Fund reporting (e-portal) Oversee M&E of operational and performance effectiveness Performance audit evidence collection

Business Development

New Business Sourcing – business intelligence Alternative Funding Enterprise Business Analysis – including township concept development Marketing and events Tenants leases, relationships, and tenant pipeline Corporate Identity (CI)

Finance Operations Projects Procurement Payroll

Human Resources Recruitment and administration Employee wellness and relations Skills, development and training

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10. Monitoring System

The AIDC has a dedicated division responsible for the AIDC‟s business planning process that

culminates in the drafting of annual business and performance plans. The latter is done in

collaboration with all other AIDC departments and the Shareholder, as well as ensuring

alignment with the shareholder‟s agreement. Continuous monitoring and evaluation actions

are being undertaken to ensure excellent levels of compliance and performance reporting in

adherence to prescribed levels of corporate governance. Enterprise risk management forms

and integral part of this division‟s responsibilities and covers the identification and monitoring

of risks from the lower operational levels up to strategic level. Risk mitigation plans are

purposefully designed to mitigate risks to acceptable levels. Reporting occurs at various

intervals and levels – internally to the ARC and Board, the Shareholder or otherwise to the

Legislature and external stakeholders. Performance evidence is maintained throughout to

facilitate the AIDC‟s target for unqualified and clean audits.

11. Risk Management Process and Challenges

Guided by the group-wide Risk Management Policy, the AIDC‟s Monitoring, Evaluation and

Risk department, together with the management team (ManCo) under the chairmanship of the

CEO, is ultimately responsible to the Board‟s Audit and Risk Committee (ARC) for ensuring full

compliance with the GGDA Group risk management policy and the PFMA. The latter meets

monthly, or even more frequently as the need arises, to assess and review AIDC‟s risks and to

ensure that adequate risk mitigation actions are in place and/or that preventative or corrective

actions have been taken. This process is subject to continuous monitoring and evaluation. The

AIDC‟s strategic risk register is reviewed and approved by the Board on an annual basis

through a special Board risk workshop. The AIDC also regularly engages with the GGDA to

ensure alignment and oversight by the shareholder. Risks are managed from the lowest to the

highest level right through the company and reviewed monthly at organisational, departmental

and project levels.

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12. The detailed budget as contained under Appendix C.

The details of the AIDC‟s funding requirements in respect of opex, project and capex needs

are contained in this Appendix C. The bulk of the budget will be spent in the Northern Corridor

development of the Province7.

13. Annual and Quarterly Operational/functional Targets for 2015/16 and Outer Financial

years

Programme Performance Indicator Audited/Actual Performance Estimated

Performance Medium-Term Targets and Estimated

Budget

Per Strategic Objective 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

1 FINANCIAL ACCOUNTABILITY AND COMPLIANCE TO ALL PRESCRIBED FINANCIAL REGULATIONS AND GUIDELINES

1.1 Percentage of resolved AG audit findings

90% 98% 90% 100% 100% 100% 100%

1.2 Variance between budget & actual expenditure

3% 0,02% <5% <5% <5% <5% <5%

1.3 Percentage of invoices paid within 30 days

- - 96% 95% 95% 95% 95%

2 EMPLOYMENT EQUITY TARGETS IN RESPECT OF WOMEN AND PERSONS WITH DISABIITIES ACHIEVED OR SURPASSED

2.1 Percentage women in Senior Management Positions within GGDA

26% 37% 50% 50% 50% 50% 50%

2.2 Percentage people with Disabilities in GGDA employment

3% 2.50% 2.50% 3% 3.50% 4% 4.50%

2.3 Vacancy rate - 26% 18% 12% 8% 5% 2%

3 EFFECTIVE IMPLEMENTATION OF THE GPG BB BEE STRATEGY

3.1

% Compliance to BBBEE Preferential Procurement targets per annum

43% 69% 70% HDI: 80% HDI: 80% HDI: 80% HDI: 80%

17% 22% 25% Women: 30% Women:

30% Women:

30% Women:

30%

6% 10% 12% Youth: 10% Youth: 10% Youth: 10% Youth: 10%

0.12% 0.10% 0.11% PWD: 5% PWD: 5% PWD: 5% PWD: 5%

3.2 Percentage spend on local procurement8

- - - Local

Contracting: 75%

Local Contracting:

75%

Local Contracting:

75%

Local Contracting:

75%

7 Due to the company commercial information contained in Appendix C it is not open for public consumption

8 DTI has various levels of local content prescribed for various sectors. Local content is not the same as local contracting. South

Africa is far from being at 75% local content of all products and equipment.

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PART B: PROGRAMME AND SUB-PROGRAMME PLANS

14. AIDC Programme Strategic Objective Annual Targets for 2015/18 and alignment

14.1 Automotive Industry Development Centre (AIDC) contributes directly to the Strategic Goals –

these categories have been grouped per project under Appendix A.

14.2 The table under this paragraph explain the alignment in more detail.

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AIDC’s business plan alignment

DED Strategic Goals GGDA Strategic Goals

AIDC Strategic Objectives as detailed under par 7.4.1

AIDC related projects

Goal 1: Gauteng’s economy radically transformed.

DED Pillar 1 – Radical economic transformation; Pillar 6 = Modernisation of the economy; Pillar 9 – Re-industrialisation of GP.

Goal 1: Gauteng‟s economy radically transformed.

1. Develop support strategies for implementation of a dedicated Gauteng automotive industrial strategy and subsequent policy. 3. Supplier Competitiveness Improvement. 4. Develop scarce and critical skills and facilitate job placements. 5. Facilitate enterprise cluster development – radical transformation of Townships. 6. Establish and manage Black Economic Empowerment (BEE) incubator programmes.

Project AIDC 05 – AIDC Automotive Incubation Centre at Ford, Silverton. Project AIDC 43 - Winterveld Enterprise Hub. Project AIDC22/1 – Gauteng Automotive Learning Centre - a total of 1595 students (Across all projects–, Rosslyn, with the Ford (AIDC03) and Nissan Simulators (AIDC22/2) – Job placements. Project AIDC 22/3 – AIDC Automotive Incubation Centre at Nissan, Rosslyn. Project AIDC 36 - Efficiency Improvement programme with 22 companies and a 10% efficiency improvement target. Project AIDC 44/1 - Four new Township Hubs. The following are not on KPI - Appendix A: Siemens - Support critical infrastructure training for Eskom – via Siemens to train artisans and engineers for the various power stations under development.

Goal 2: Gauteng’s economy re-industrialised and modernised. DED Pillar 2 – Decisive spatial transformation; Pillar 6 = Modernisation of the economy; Pillar 9 – Re-industrialisation of GP; Pillar 10 – Taking the lead in Africa‟s new industrial revolution.

Goal 2: Gauteng‟s economy re-industrialised and modernised.

2. Infrastructure development for expansion/growth – ASP value propositions, EIAs and the TAC. 3. Supplier Competitiveness Improvement. 4. Develop scarce and critical skills and facilitate job placements. 7. Implementation of SHEQMAN in response to green development. 8. Automotive export development support.

Project AIDC 22/3 and 22/4 – Establish the AIDC Automotive Incubation Centre at Nissan, Rosslyn. The following are not on KPI - Appendix A: ASP, Rosslyn retains 95% occupancy. TAC – to develop the Tshwane Auto City in collaboration with CoT. Transnet - Support supplier development in transport sector. New initiative aimed at developing an industrial manufacturing strategy for GP, as well as developing an export promotion initiative to support the local automotive industry in GP to expand its export footprint into SADC (IGR).

Goal 3: GGDA capacitated to deliver and implement efficiently and effectively. DED Pillar 4 – Transformation of state and governance; Pillar 5 – Modernisation of the public service.

Goal 3: GGDA capacitated to deliver and implement efficiently and effectively.

7. Implementation of SHEQMAN in response to green development 10. Management of a modern world class standard developmental government agency, with lower levels of state funding dependencies.

Governance – checklists and audits; Quarterly reporting to ARC and Board; Monthly project review meetings and SHEQ reviews; Monthly Tender Committee meetings; Quarterly staff performance reviews, as well as staff performance contracts and PDPs aligned to mandate and deliverables of the AIDC; BEE spent. The following are not on KPI - Appendix A: BCTWF – annually. SHEQ reports – monthly. ERM – annual risk workshops, monthly reviews and reporting. Monthly reporting to shareholder (PoA, jobs, GEYODI). Monthly M&E Forum meetings. Monthly Project Review Meetings.

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14.3 The following tables reflect on the key strategic targets 2011-2018 – the APP for 2015/15 will primarily focus on those targets and

deliverables as listed in the tables below and the Performance Indicator Matrix under par 15:

Annual Targets

Audited/Actual Performance Estimated Performance

2014/15

Medium-Term Targets

2011/12 2012/13 2013/14 2015/16 2016/17 2017/18

1. Revitalised and modernised township economies reflecting radical transformation and reindustrialisation of Gauteng‟s economy

0 0 0 1 4 8 10

2 Facilitation of SMMEs, township enterprises and cooperatives participating in mainstream economic activities as part of radically transformed and reindustrialised Gauteng economy9*

6 6 6 6 6 6 14

3. Appropriately skilled human resource and business capacity that meet the needs of a radically transformed and re-industrialised Gauteng economy.

2629 2060 1495

1448 1595 1595 1595

3.1 Mentorship Programme

Total trained:

Staff members from 60 mentees received training as follows:

Business

Panel beating

Introduction to MS Word and MS excel.

UNISA training

UNISA: Basic admin and Business Plan;

UNISA: Entrepreneur Skills and Basic Finance; and

UNISA: Marketing and Business Skills

n/a. n/a.

119

62

26

19

12

60

60

60

60

3.2 Youth Reskilling

Total Apprentices in training:

Total trained per trade as follows:

Fitters

Boiler Makers

Welders

Diesel Mechanics

n/a. n/a.

56

14

11

10

14

45

12

11

9

13

3.3 BBBEE IC

Total Trained (non-accredited):

Total trained on each module:

Internal SHEQ Audit

Waste Management

Safety Training

HIV and AIDS

n/a. n/a.

150

24

16

20

46

115

115

9 *includes financial and non-financial support to SMMEs and Cooperatives as well as all Incubation and Training projects, as well as the breaking of monopolies – developing SMMEs as new

entrants into Auto sector – e.g. FMCSA and NSA

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Annual Targets


2014/15

Medium-Term Targets

2011/12 2012/13 2013/14 2015/16 2016/17 2017/18

Financial Management

ISO/TS Core Tools

44

115

3.4 Winterveld Auto-hub


Total trained of each module:

Basic Spray Painter

Panel Beating

Financial Management

Basic Panel Beating

Body Spray Painting

n/a. n/a.

120

120

120

120

63

63

63

3.5 Supplier Efficiency / Total Productive Maintenance

Total Trained on Total Productive Maintenance(non-accredited):

n/a. n/a. 178 from 18 companies

146

from 3 companies

3.6 IS014001

Total Trained on Quality Assurance (non-accredited): n/a. n/a. 16

3.7 T6 Simulator


Modules:

Assemble Mechanical Components;

Fit and remove doors and panels to a body shell;

Select and Use Vehicle Equipment

Total from Ford

Total from FET‟s

n/a. n/a.

313

313

313

313

108

205

172

172

172

172

35

137

3.8 Gauteng Automotive Learning Centre

Total Trained:

Modules:

Basic Skills;

LSS Assigned worker;

Vital A&B,

Spray Painting;

Annual Objective Plan;

Presentation Skills;

First Aid Training

Workplace Transport Safety & Forklift

Fire Fighting

Effective Communication Skills

n/a. n/a.

543

543

543

543

536

536

536

536

536

536

536

536

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Annual Targets


2014/15

Medium-Term Targets

2011/12 2012/13 2013/14 2015/16 2016/17 2017/18

As from 1 April 2015 all technical and project related training activities are consolidated under the Learning Centre, as follows:

4.1

Training into Township Transformation and Re- industrialisation, consisting of:

Concept for Townships Public Private Partnership with big business

Townships Manufacturing Management Development Training

Townships competitiveness & green economy workshops and training

Townships readiness assessment for manufacturing and auto related services, glass fit, tyres repair, exhaust repair etc.

Township interventions on competitiveness and environmental projects including auto products recycling like tyres, oil, scrap etc.

30 30 30

4.2

Training into SME Programmes, consisting of the following:

Total Productive Maintenance

Rapid Process Improvement

Lean Manufacturing

Cleaner Production

Quality Management Systems

Continuous Improvement Programmes/processes (CIP)

160 160 160

4.3

Supervisor training (in auto production/manufacturing) 5 5 5

4.4

Mentorship training that entails the following:

Remove, replace and align body panels

Understand the body construction safety features of a vehicle

Knowledge of body repair

Perform basic welding. Joining

Identify the various types of paints, primers, material and their uses

Maintain spray painting equipment

Perform basic spray painting

Perform masking and de-masking on a vehicle Perform surface preparation on a body panel Business Management Qualification (UNISA)

140 140 140

4.5

Accredited technical training (including artisans) that includes the following:

Understanding Basic programmable logic controllers (PLC's),

Install and program basic programmable logic controllers (PLC's)

Fault find and repair programmable Logic controllers (PLC's)

Install and programme advanced industrial programmable logic controllers (PLC's)

Workplace Safety

Basic Hand and skills usage of tools

Electrical Artisans

Automotive Component Manufacturing and assembly

100 100 100

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Annual Targets


2014/15

Medium-Term Targets

2011/12 2012/13 2013/14 2015/16 2016/17 2017/18

4.6

Technical training skills programme that consist of:

Pneumatics,

Hydraulics,

Robotics,

Autotronics

Mechatronics

PLC

CNC

Welding

190 190 190

4.7

Non-technical training to support industrial Development value chain (Soft skills and ABET training10) consisting of:

Time Management

Self-Management

Supervisor Development programme

Policy and Procedure course Refresher Course, Basic Budgeting,

HIV AIDS testing and counselling

Basic Computer Skills

Communication and Literacy skills

510 510 510

4.8

Simulator training (both Ford and Nissan) consisting of:

Induction of the Simulator

Health and Safety

Basic Hand and tooling skills programme

Vehicle Welding

Vehicle Spray Painting

Vehicle Trim Assembly

460 460 460

10

Note: This training programme falls in the category of “low tech training increasing value chain”

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14.4 AIDC Annual Performance Plan (APP) Programme Performance Indicators and Annual Targets for 2015 to 2018 – for detail please refer to

Appendix A (Scorecard PI Matrix):

Programme Performance Indicator (Per Strategic Objective)

Audited/Actual Performance Estimated Performance 2014/15

Medium-Term Targets

2011/12 2012/13 2013/14 2015/16 2016/17 2017/18

1 Winterveld Enterprise Hub (WEH) sustained and managed

0 0

WEH Established WEH operational

WEH operational

10% Self-sustainability

WEH Operational

30% self-sustaining

WEH Operational

60% Self-sustaining

2

Number of Township Hubs/Sites identified and developed (exclusively automotive related)

0 0

Two concepts (desk top studies)

to be finished end 14/15 – end date

March 2015

4

subject to adequate funding being made

available

8 10

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3 Number of existing SMME‟s supported Note: Specific types of manufacturing companies where interventions are rolled out will be determined at project development stage in accordance with priority sub-sectors of GPG DED

4

Number of auto industry companies provided with on-site efficiency enhancement techniques to improve their productivity, quality and competitiveness, improvement average across all interventions is 10% efficiency improvements (from the established baseline)

28 20 31 20

Base line

22 SMME /SME companies in the auto sector signed up under the efficiency programmes as follows TPM = 5 RIP = 10 LM = 2 CP/CIP = 5 Improvement average across all interventions is 10% efficiency improvements (from the established baseline)

22 SMME/SME companies in the auto sector signed up under the efficiency programmes as follows TPM = 5 RIP = 10 LM = 2 CP/CIP = 5 Improvement average across all interventions is 10% efficiency improvements (from the established baseline)

22 SMME/SME companies in the auto sector signed up under the efficiency programmes as follows TPM = 5 RIP = 10 LM = 2 CP/CIP = 5 Improvement average across all interventions is 10% efficiency improvements (from the established baseline)

5

Number of BEE SMMEs incubated at the Incubation Centre at Nissan (including uptake agreements)

- - - -

The identification and shortlisting of candidates to incubate Up to 8 candidates. Draft legal incubation agreements.

Commence technical production training with up to 8 chosen candidates Skills development outcome based

Up to 8 Incubatees Commence production

6

Number of BEE SMMEs incubated at the Incubation Centre at Ford (including uptake agreements)

6 6

6

6 operating 2 graduating And 2 new BEE Incubatees recruited as replacements

6 operating 2 graduating And 2 new BEE Incubatees recruited as replacements

6 operating 1 graduating And 1 new BEE Incubatee recruited as replacements

7

Number of people trained at the Gauteng Automotive Learning Centre, Rosslyn (Details are as per the schedule under par 10.3)

0

0

543 900 in training – with 300

merSeta applications prepared

1595

With 15% job placement in various vocational

categories, linked to the curricula

1595

With 20% job placement in various vocational


1595

.With 25% job placement in various vocational


8 Learning Centre students placed in jobs N/A. N/A. N/A. N/A. 239 319 399

9 Maintain 95% occupancy at ASP 95% 95% 95% 95% 95% 95% 95%

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14.5 AIDC Programme Quarterly Targets for 2015/16

Programme Performance Indicator Reporting Responsibility

Reporting Period Annual Target Quarterly Target for 2015/16

1st 2nd 3rd 4th

1 2

Winterveld Enterprise Hub (WEH) sustained and managed

AIDC Quarterly

Operationalization 10% self-sustained at year end

WEH fully operational.

5 SMME operating

through the Hub


5 SMME operating

through the Hub

Develop plan to secure additional

Gov. owned vehicles.


5 SMME operating

through the Hub

Meeting Gov. entities to secure

off-take agr.

WEH fully operational

5 SMME operating through the Hub

External income

realised to achieve 10% self-

sustainability.

Number of sites identified and developed Identification Business model Infrastructure development commencement

AIDC Quarterly 4 Hubs Launched – subject to adequate funding being made available

4 Hubs sites identified and

concepts developed – identify „operators‟

Testing sustainability-

business model and plan and commence with infrastructure

refurbish-ment

Infrastructure refurbishment

continues 4 Hubs Launched

3

Number of auto industry companies provided with on-site efficiency enhancement techniques to improve their productivity, quality and competitiveness, improvement average across all interventions is 10% efficiency improvements (from the established baseline)

AIDC Quarterly

22 companies signed up under the efficiency programme and engaged with assistance through various types of efficiency improvement projects. Interventions completed and signed off. TPM = 5 RIP = 10 LM = 2 CP/CIP = 5 Improvement average across all interventions is 10% efficiency improvements (from the established baseline)

6 companies signed

up under the efficiency

programme and engaged with

assistance through various types of

efficiency improvement

projects

8 companies signed up under the efficiency




projects

8 companies signed

up under the efficiency




projects

Closing out efficiency

improvement projects for 15/16 with interventions

completed and signed off by 22

companies.

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4 Shortlisting of candidates to incubate at the Automotive Incubation Centre at Nissan.

- -

Up to 8 candidates identified and shortlisted for incubation.

Draft legal agreements for incubation compiled.

Commence discussions with

NSA with regards to possible products for

outsourcing.

Commence discussion with Tier

1 entities with regards to off-take

and incubation.

Develop criteria for incubatee selection

and place advertisements.

Interviews and selection process.

5 Number of BEE SMMEs incubated at the Incubation Centre at Ford

AIDC Quarterly

6 operating from the IC

- 4 production

-1 logistics

-1 canteen

With 2 graduated.

And 2 new BEE Incubatees recruited as replacements.

Production call-off dictated by Ford.

6

BEE SMME‟s operating from the

IC.

Production call-off dictated by Ford

6


IC.


6


IC.


6 operating from the IC;

Production call-off dictated by Ford.

With 2 graduated.

And 2 new BEE Incubatees recruited

as replacements

6

Number of people trained at or through the Gauteng Automotive Learning Centre in Rosslyn – consolidated curricula – all projects

AIDC Quarterly

1595 students, trainees and mentees will be at various stages of completing training, skills development, and mentoring in the following categories: 30 people - Training into Township Transformation and Re- industrialisation; 160 people - Training into SME Programmes; 100 people - Accredited technical training (including artisans); 5 people – Supervisor training; 140 people – Mentorship training; 190 people - Technical training skills programme; 510 people - Non-technical training to support industrial Development value chain (Soft skills and ABET training); 460 people - Simulator training (both Ford and Nissan).

190 students signed up and commence training, up-skilling

and mentoring

( A number of 25 students will be rolling over from

2014/15)

A further 510 students signed up

and commence training, up-skilling

and mentoring



and mentoring



and mentoring.

A total of 1595 at various stages of

either having completed or are busy completing

training, skills development, and

mentoring

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7 Job placement of 15% – Learning Centre students/trainees

239 students or trainees placed in jobs Prepare CVs.

Prepare for interviews.

Place adverts, lobbying with various auto sector entities

Prepare CVs.



Prepare CVs.



239 students or trainees placed in jobs

8 Maintain 95% occupancy at ASP

AIDC Year end 95% 95% 95% 95% 95%

9 Jobs Fund project: Nissan Incubation Centre

AIDC Monthly 50% Completion Foundations Steel frame structure Roofing completed Brickworks

completed

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PART C: LINKS TO OTHER PLANS

15. Links to the long-term infrastructure and other capital plans and external projects.

There are basically two major infrastructure projects in the scope of the AIDC. These

are:

15.1 Finding/sourcing between R1,5bn to R2bn to further develop the Automotive Supplier

Park in Rosslyn over the next 5 years;

15.2 Finding/sourcing around R50bn to fully develop the Tshwane Auto City over the next

50 years.

16. External projects of the AIDC for 2015/16 are as follows – key deliverables are set out

under in the ensuing tables for each, namely:

16.1 Enterprise Development Department;

16.2 Skills Development and Training – Gauteng Automotive Learning Centre

16.3 ESDA - Siemens Project;

16.4 ASP Maintenance and Improvement Plan;

16.5 SHEQMAN plan;

16.6 ASP Tenant Pipeline plan;

16.7 ICT plan;

16.8 Business development and marketing plan.

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16.1 Enterprise Development Department:

No Activity Comment Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar

1

Transnet Supplier Development Programme, Value R1.9 mil over 22 months

Contract signed in January and started February 2014 for 22 months

Continue and finalise workshop 2


Continue to train 3 Transnet Master trainers

Continue to train 3 Transnet Master trainers


Continue to train additional 3 Transnet Master trainers



Programme wrap up and closure

Programme wrap up and closure

Programme sign off with Transnet

2 CoT Sector Supply Chain Mapping

Targets to be confirmed, final stages of finalising contract

TBC

3

HIDA Automotive Management Training in Japan, SA Auto companies subsidised 60% of costs to attend Management training in Japan

First pilot held in 2014/15 facilitated by the AIDC for the Industry and 20 participants attended and the 2015/16 programme will be a follow up and has been given a go ahead by HIDA.

Identify and select companies



Finalise administration with HIDA and participating companies



Industry training in Japan

Industry training in Japan

Programme review and feedback to Industry

Programme review and feedback to Industry

Close Programme

Initiate next programme for 2016/17

4 Nissan Thanks Programme

2014/15 programmes used as a pilot until Apr/May 2015

Planning and recruitment for next round of THaNKs




Mentoring and coaching of engineers on Focused Improvement of






Mentoring and coaching of engineers on Focused Improvement of suppliers and reviews

5

SEDA MSP (Manufacturing Support Programme)

Targets to be confirmed, final stages of finalising contract

TBC

6

TASA/GTI (Supplier development of tool manufacturing companies)

Targets to be confirmed and new contract to be signed for 2015/16. Discussions have already started

Contracting Identify and select companies


Gap Assessment of companies


Supplier development support & implementation






Close Programme

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7

NCPC / NBI (Green Economy - Cleaner production programme)

Targets to be confirmed and new contract to be signed. Discussions have already started.

Contracting Identify and select companies










Close Programme

8

SGRIF (South Gauteng Region Innovation Forum)

SGFR co funded RPIW (Rapid Process Improvement Workshops) in 2013 and 2014. 2015/16 targets and contribution still need to be confirmed

9

NFTN (National Foundry Technology Network)

NFTN co funded RPIW (Rapid Process Improvement Workshop) for foundries in 2013 and 2014. 2015/16 targets and contribution still need to be confirmed

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16.2 Skills Development and Training - Gauteng Automotive Learning Centre - 15/16 Business plan training targets (all projects excluding AIDC internal training))

No. Programme Sub Programme Outcomes Number of people trained

Cumulative targets for 2015/16 which are linked to the specific training programme and/or intervention

April May June July Aug Sept Oct Nov Dec Jan Feb Mar

1

Training to Township Transformation and Re- industrialisation

1.1. Concept for Townships Public Private Partnership with big business

Develop concept document N/A Research Research Review Appr. Manco

Implement

1.2. Townships Manufacturing Management Development Training

Train and build manufacturing capacity for 50 existing and potential business people (black industrialists) on manufacturing business principles

20 0 0 0 0 10 10 10 20 20 20 20 20

1.3. Townships competitiveness & green economy workshops and training

Train build capacity for 20 existing and potential business people (black industrialists) on competitiveness & green economy principles

N/A

1.4. Townships readiness assessment for manufacturing and auto related services, glass fit, tyres repair, exhaust repair etc.

Assess 20 individuals/businesses to gauge manufacturing capability and automotive services related opportunities

N/A

1.5. Township interventions on competitiveness and environmental projects including auto products recycling like tyres, oil, scrap etc.

Conduct interventions based on gap assessments above for 5 individuals/businesses

10 0 0 0 0 0 0 10 10 10 10 10 10

Total: Training into Township Transformation and Re- industrialisation 30 0 0 0 0 10 10 20 30 30 30 30 30

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2 Training of SME Programmes

2.1. Total Productive Maintenance

To enable companies to reduce operating costs within the province, become world class manufacturers and globally competitive as per Quality, Cost and Delivery measures at a specific area within the company and improve OEE (Overall Equipment Effectiveness) on average to above 60% at the selected areas per company.

80 0 0 10 10 30 30 50 50 50 70 80 80

2.2. Rapid Process Improvement

To enable companies to reduce operating costs within the province, become world class manufacturers and globally competitive as per Quality, Cost and Delivery measures at a specific area within the company

40 0 5 5 10 10 10 20 30 30 40 40 40

2.3. Lean Manufacturing

To enable companies to reduce operating costs within the province, become world class manufacturers and globally competitive as per Quality, Cost and Delivery measures at a specific area within the company

20 0 0 0 0 0 10 10 10 10 20 20 20

2.4. Cleaner Production

To enable companies to implement energy, water and waste saving methodologies, which is sustainable

15 0 5 5 5 5 10 10 15 15 15 15 15

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2.5. Quality Management Systems

To enable automotive component suppliers to continue supplying to OEM's. This is a requirement for companies to be able to supply to OEM's.

5 0 0 0 0 0 0 0 0 0 5 5 5

Total: Training of SME Programmes

160 0 10 20 25 45 60 90 105 105 150 160 160

3 Total: Supervisor Training

5 0 0 0 0 0 0 5 5 5 5 5 5

4 Mentorship

4.1 Remove, replace and align body panels 4.2 Understand the body construction safety features of a vehicle 4.3 Knowledge of body repair 4.4 Perform basic welding. Joining 4.5 Identify the various types of paints, primers, material and their uses 4.6 Maintain spray painting equipment 4.7 Perform basic spray painting 4.8 Perform masking and de-masking on a vehicle 4.9 Perform surface preparation on a body panel 4.10 Business Management Qualification (UNISA)

Train entrepreneurs on any 1 (or more) of the following training programmes (4.1-4.10) and enhance their knowledge and skills in the automotive sector thus formalising their businesses:

140 0 0 0 20 40 60 80 100 100 100 140 140

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5 Accredited Technical Training

5.1 Understanding Basic programmable logic controllers (PLC's), 5.2 Install and program basic programmable logic controllers (PLC's) 5.3 Fault find and repair programmable Logic controllers (PLC's) 5.4 Install and programme advanced industrial programmable logic controllers (PLC's) 5.5 Workplace Safety 5.6 Basic Hand and skills usage of tools 5.7 Electrical Artisans 5.8 Automotive Component Manufacturing and 5.9 Assembly

Train and build capacity on any 1 (or more) of the following training programmes (5.1 - 5.9) for the Automotive sector on merSETA accredited skills programmes and qualifications as follows:

100

Planning and curriculum alignment

Finalise curriculum alignment

Manco approves curriculum alignment

30 30 30 60 60 60 100 100 100

7 Technical Training Skills Programmes

7.1Pneumatics, 7.2Hydraulics, 7.3Robotics, 7.4Autotronics, 7.5Mechatronics, 7.6 PLC, 7.7CNC 7.8 and Welding

Offer automotive related skills programme on any 1 (or more) of the following (7.1 - 7.9) as per scarce and critical skills list.

190 0 0 0 40 50 60 80 100 120 140 160 190

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8

Non-technical training to support industrial Development value chain (Soft skills and ABET training)

8.1 Time Management, 8.2 Self-Management, 8.3 Supervisor Development programme 8.4 Policy and Procedure course Refresher Course, 8.5 Basic Budgeting, 8.6 HIV AIDS testing and counselling 8.7 Basic Computer Skills 8.8 Communication and Literacy skills

Application of organizational specific training on any 1 (or more) of the following training programmes (8.1 - 8.9) to enhance the effectiveness and efficiency of personal development and support township revitalisation through ABET training programme in lieu of enhancing Industrial development.

510 0 20 50 100 150 200 250 300 350 350 450 510

9 Simulator Training

9.1 Induction of the Simulator 9.2 Health and Safety 9.3 Basic Hand and tooling skills programme 9.4 Vehicle Welding 9.5 Vehicle Spray Painting 9.6 Vehicle Trim Assembly

Expose School Learners, FET students and Industry Operators on any 1 (or more) of the following training programmes (9.1 - 9.6) to the Automotive Simulator environment to enhance their tertiary qualifications (FET), increase employability prospects as well as increase productivity.

460 50 100 120 160 240 280 320 380 400 420 440 460

Training targets 1595 50 130 190 375 565 700 905 1080 1170 1295 1485 1595

190 700 1170 1595

Job placement target of 15% - year-end target only as placements are dependent on successful completion of training - jobs placement highly dependent on need and demand that are influenced by commercial local and international market conditions

239

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Process clarification notes as related to the business plan statement that: "The Learning Centre will have a merSeta accredited curricula:

a. How - By complying with the SETA Quality Management Systems required for a learning centre within the automotive sector. Development of policies governing all operations of the learning centre(i.e. Assessment policy, moderation

policy, , and ensuring compliance to all training sites i.e.: (Ford, WEH ) accredited ad host employers and the learning centre accredited as the main training site

b. When - Accreditation as per APP is 2014/15 Financial year (meaning approval by merSETA) to operate as an accredited centre

c. For what - Accreditation is based on the operations compliance to the QMS which has been submitted to merSETA, however curriculum will only be made available to us after the submission results by the accreditation committee, and we

have selected Automotive Sales qualification as our main accreditation qualification, and the rest of the Qualifications as per the attached curriculum list will be work in progress. The material obtained from the SETA will still need to be

aligned and content will still need to be developed by the then Standard generation body

d. How is the curricula designed and agreed to by auto sector - The Quality Council for Trades and Occupation (QCTO) process requires industry participation in conjunction with Qualification Development Practitioner to assess the

current qualification outcome and design he curriculum to be in line with industry requirements. Meaning, if a person is trained as a Welder the fundamentals and core modules will be a compulsory, Electives modules will be based on

industry specific requirements.

e. The accreditation confirmation allows us to have access to current qualifications form merSETA, however we still need to assess the relevance of the curriculum and involve experts and industry to update the curriculum, or establish an

accredited Gauteng Automotive Learning Centre in Rosslyn, or all training and skill development and mentorship programmes form part of the accredited curricula of the Learning Centre, or accredited technical training (including

artisans) that should include the following: CNC, PLC, Mechatronics, Autotronics, Spray painting and panel beating, including EDD material which is now in the process of being aligned to SETA/QCTO standards. Some of the programme

we will outsource where equipment is not available and required by industry.

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16.3 ESDA external project: SIEMENS Training Targets and Activities for 2015/16

No. Category Activity Comments Geographic Locations Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

1 Engineers Theoretical and practical training

Students remain at institutions/ universities of technology until completion. Training progress monitored through site visits to various campuses and continuous assessment of students examination performance against qualification. Student‟s graduation ceremony.

KwaZulu Natal and Gauteng

8 8 8 8 8 8 8 8 8 6 6 6

2 B-Techs

Workplace experience for previously qualified B-Tech students Students prepare and submit Reports to the Engineering Council of South Africa (ECSA).

Students remain at Host companies until completion. Students adhere to prescribed training programme developed by Project Managers and Host Company Mentors which is aligned to ECSA requirements for professional registration. Training progress monitored through monthly visits by Project Managers and assessments of reports approved by mentors. Students submit reports approved by mentors, AIDC ESDA, SIEMENS and ESKOM to ECSA. Students must be registered as professional technologists with ECSA.

Gauteng 5 5 5 5 4 3 3 3 3 3 3 3

3 Project Managers Workplace experience

Students remain at host companies until completion of training plan Students follow a training programme developed by Project Managers and host Mentors aligned to the Project Management Institute (PMI) requirements. Training progress monitored through monthly visits by Project Managers and assessments of reports approved by Mentors. Students to register with a professional body for PMs. The students would have completed an examination which is internationally accredited by PMI within the current financial year.

Gauteng 2 2 2 1 1 1 1 1 0 0 0 0

4 Technicians Theoretical and practical training. Practical training one (P1) Practical training two (P2)

Students remain at institutions/ Universities of Technology and/or Host companies for practical one (P1) and/or Practical two (P2). At host companies, students follow a training plan aligned to their university logbooks. Training progress monitored through monthly visits by Project Managers and assessments of reports approved by Mentors. Students submit final reports approved by mentor to the Universities of Technology

KwaZulu Natal and Gauteng 14 14 14 14 6 6 6 6 6 6 6 6

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16.3 ESDA external project: SIEMENS Training Targets and Activities for 2015/16

No. Category Activity Comments Geographic Locations Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

for P1 and/or P2 Students graduate after approval of reports.

5 Post graduate Technicians

Work Experience

Students are placed at host companies. Students follow a training plan developed by the mentors and Project Managers. Training progress monitored through monthly visits by Project Managers.

Gauteng 12 12 12 12 12 12 12 12 12 12 12 12

6 Apprentices

Phase 1 & 3 (Theoretical and workshop training) Phase 2 & 4 (on-job training) Phase 5 (Trade test preparation and testing)

Apprentices remain at the training centres for phase 1 & 3, and then placed at host companies for phase 2 & 4 for on-job training, prepare for trade test and phase 5 - trade test at training centres. All Apprentices follow a training plan aligned to SETA logbooks. Training progress monitored through monthly visits by Project Managers at training centres and companies and assessments of logbooks and progress reports approved by Mentors. Apprentices qualify as Artisan after Trade Test.

Gauteng 25 25 24 24 24 18 18 18 18 18 18 18

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16.4 Automotive Supplier Park - maintenance and improvement plan

No.

Planned Activity Total budget provision

Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16

Progress Progress Progress Progress Progress Progress Progress Progress Progress Progress Progress

1

ASP bus stops - for factory workers shuttle busses

500 000 Specification Procurement Appointment Construction commence 20%

Construction 50%

Construction 100%

2 ASP enhancement (stretched tent canopy) – canteen area and main hub roof top

1 000 000 Specification Procurement Appointment Construction commence 20%

Construction 50%

Construction 100%

3

LED security lights along the fence


Construction 50%

Construction 100%

4

Sports field - change rooms ablution

1 000 000 Specification Procurement Appointment Construction commence 20%

Construction 40%

Construction 60%

5

Lear's building - subdivision 2 300 000 Specification Procurement Appointment Construction commence 10%

Construction 20%

Construction 30%

Construction 40%

Construction 60%

Construction 75%

Construction 90%

Construction 100%

6

Building A6 - subdivision 1 100 000 Specification Procurement Appointment Construction commence 20%

Construction 40%

Construction 60%

Construction 100%

7

Mothersons factory - Parking 1 400 000 Appointment Construction commence 20%

Construction 40%

Construction 60%

Construction 80%

Construction 100%

8

Building roof maintenance 1 500 000 Specification Procurement Appointment Construction commence 20%

Construction 40%

Construction 100%

9

Roads - maintenance and repair and markings


Construction 40%

Construction 100%

10

Factory floor repairs 1 100 000 Specification Procurement Appointment Construction 10%

Construction 30%

Construction 40%

Construction 60%

Construction 75%

Construction 90%

11 Painting External (Central Hub, Main Entrance, Retail centre)

250 000 Specification Procurement Appointment Construction 10%

Construction 30%

Construction 40%

Construction 60%

Construction 75%

Construction 90%

Construction 100%

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16.5 AIDC’s SHEQMAN plan

No Activity Comment Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

1 Automotive Supplier Park, Rosslyn

1.1

Fire protection & evacuation Check fire equipment and escape routes 1 1 1 1

1.2

Health survey Canteen health inspection 1 1 1 1 1

1.3

Food Safety inspection

Canteen

1.4

Security Risk review Review of site security threats 1 1

1.5

Prepare new tender New security provider to start in Nov 2016

1

1.6

Speed monitoring Monthly vehicle speed monitoring reported quarterly

1 1 1 1

1.7

SHE compliance Audit to monitor all sites compliance to the OHSACT and Regulations

1 1 1 1

1.8

Vehicle searches To conduct car searches to minimise theft and illegal goods.

1 1 1 1

1.9

SHE Committee Meetings To provide action plan and minutes. 1 1 1 1

1.10

Perimeter safety and security protection

Provide report of the functionality of electric fence.

1 1 1 1 1 1 1 1 1 1 1 1

1.11

CCTV Installation Replace current CCTV system and extent reach

1 1

1.12

New Shuttle Busses Procure 3 additional busses to increase capacity

1 1

2 Gauteng Automotive Learning Centre, Rosslyn

2.1

Fire protection & evacuation inspection

Check fire equipment and escape routes quarterly

1 1 1 1

2.2

Health survey Canteen health inspection 1 1 1 1 1

2.3

Food Safety inspection

Canteen

2.4

Security Risk review Review of site security threats 1 1

2.5

SHE compliance Audit to monitor all sites compliance to the OHSACT and Regulations

1 1 1 1

2.6

Vehicle searches To conduct car searches to minimise theft and illegal goods.

1 1 1 1

2.7

SHE Committee Meetings To provide action plan and minutes. 1 1 1 1

2.8

Perimeter safety and security protection


1 1 1 1 1 1 1 1 1 1 1 1

3 Winterveld Enterprise Hub

3.1 Fire protection & evacuation inspection


1 1 1 1

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16.5 AIDC’s SHEQMAN plan


3.2 Security Risk review Review of site security threats 1 1

3.3 SHE compliance Audit to monitor all sites compliance to

the OHSACT and Regulations 1 1 1 1

3.4 Vehicle searches To conduct car searches to minimise

theft and illegal goods. 1 1 1 1

3.5 SHE Committee Meetings To provide action plan and minutes. 1 1 1 1

3.6 Perimeter safety and security protection


1 1 1 1 1 1 1 1 1 1 1 1

4 AIDC Automotive Incubation Centre, Ford Silverton

4.1 Fire protection & evacuation inspection


1 1 1 1

4.2 Health survey Canteen health inspection 1 1 1 1 1

4.3 Food Safety inspection

Canteen

4.4 SHE compliance Audit to monitor all sites compliance to

the OHSACT and Regulations 1 1 1 1

4.5 SHE Committee Meetings To provide action plan and minutes. 1 1 1 1

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16.6 ASP tenant occupancy and pipeline plan

Building Reference

Available Area in sqm

Leased Area in sqm

Vacant Space in sqm

Leased Area under notice

Notice Effective Date

Contract name Contract start date

Contract close date

Comments

Current Status Comments

Future Status

Building F1 (Central Office Hub)

348 348 0 0

MERSETA 01 April 2011 31 March 2016 Contract in place


214 214 0 0

Microworks 01 November 2014 31 October 2016 Contract in place


60 60 0 0

Schnellecke SA 01 December 2013 30 November 2016 Contract in place


28 28 0 0

JFS Technology 01 February 2014 31 January 2017 Contract in place


40 40 0 0

Shared Services Investment (Pty) Ltd

01 February 2014 31 January 2015 Contract in place Lease renewal signed by tenant


48 48 0 0

Techtion cc 01 March 2013 28 February 2015 Contract in place Tenant negotiating possibility of leasing factory premises


2 096 2 096 0 0

AIDC - owner occupied

Building F3 (Retail Centre)

112 112 0 0

GSRC Occusheq 01 February 2013 31 January 2015 Contract in place Lease renewal signed by tenant


220 0 220 0

Vacant (Ex-Express Personnel)

01 October 2012 31 October 2014 Lease term expired Space being marketed


139 139 0 0 1.Workmed Health & Safety Management System

01 May 2014 30 April 2015 Contract in place

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Building Reference


Leased Area in sqm

Vacant Space in sqm




Contract close date

Comments


Future Status


8 8 0 0 2.ABSA Bank 01 April 2013 31 March 2018 Contract in place


8 8 0 0 3.Standard Bank 01 October 2014 30 September 2017 Contract in place


1 100 1 100 0 0 4.Canteen & Coffee Shop


163 163 0 0 5.AIDC

Factory A5 3 327 3 266 61 3 266 31 March 2015 6.Bidvest Panalpina Logistics 01 April 2010 31 March 2015 Contract in place

Tenant submitted early termination notice for November '14. Tenant will however remain liable for rental until lease term expires. Already marketing space to logistic providers and other tenants.

Factory A6 1 711 1 711 0 0 7.Dynamic Tooling & Technical Sales cc

01 October 2012 30 September 2020 Contract in place

Factory A6 1 711 500 1 211 0 8.Quantum Automotive 18-Dec-14 28 February 2014 Contract in place Negotiating with potential tenant (Techtion) to take over from April 2015

Factory A7 3 117 3 117 0 3 117 28 February 2015

9.Schenker 01 September 2012 30 September 2015 Contract in place

Ramsay agreed to lease the premises from April 2014. Schenker to vacate at end of February 2015. Early termination subject to new lease being signed.

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Building Reference


Leased Area in sqm

Vacant Space in sqm




Contract close date

Comments


Future Status

Factory A8 3 088 3 088 0 0 10.Ramsay Engineering (Pty) Ltd

01 October 2010 30 September 2018 Contract in place

Factory A9 3 710 3 710 0 0 11.Autoneum Feltex 15 July 2005 14 July 2015 Contract in place Lease renewal negotiations initiated

Factory A10 3 000 0 3 000

Vacant - Under construction N/A N/A New factory under construction

Space being marketed.

Factory B1 20 306 19 346 960 2 500 Under negotiation

12.Lear Corporation 01 February 2003 31 December 2014

Renewal continuing, tenant wants reduced space and shorter lease term.

Space being marketed. The space might be used internally depending on final subdivision.

Factory C1a 2 705 2 705 0 0 13.D&B Interiors 01 May 2004 30 April 2019 Contract in place

Factory C1b 1 587 1 587 0 0 14.Park Industries SA (Pty) Ltd

01 September 2012 31 August 2017 Contract in place

Factory C1c 1 165 1 165 0 0 15.Tappo Industries 01 October 2014 30 September 2016 Lease contract pending Tenant requested variation of deposit clause in the new lease before signing

Factory C2 3 502 3 502 0 0 16.Quantum Automotive 01 September 2014 31 August 2016 Contract in place

Factory C3a 15 319 15 319 0 0 17.UTI 01 February 2004 31 January 2019 Contract in place

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Building Reference


Leased Area in sqm

Vacant Space in sqm




Contract close date

Comments


Future Status

Factory C3b 8 600 8 600 0 0 18.UTI Ext 1 01 April 2007 31 March 2017 Contract in place

Factory C3c 10 216 10 216 0 0 UTI Ext 2 01 December 2007 31 October 2017 Contract in place

Factory D1 (Land lease)

27 600 27 600 0 0 19.MSSL Global RSA module Engineering Limited

01 June 2010 31 May 2030 Contract in place

Factory E4 12 230 12 230 0 0 20.Faurecia Interior Systems 01 January 2011 31 December 2024 Contract in place

Factory F4 6 224 6 224 0 6 224 28 February 2015

21.Automotive Leather Company

01 June 2006 31 August 2017 Contract in place Tenant requesting early release from lease obligations

Factory F5 6 184 6 184 0 6 184 28 February 2015

Automotive Leather Company 01 December 2005 31 August 2017 Contract in place Tenant requesting early release from lease obligations

Totals 139 886 134 434 5 452 21 291

Percentages 100% 96% 4% 15%

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16.7 AIDC’s ICT planning


16.7.1 ASP

1. UPS11 Consolidation

Have a single UPS for

datacentre and 3 switching rooms

Tender prep

BSC12 Approval, Closed Tender advert

Completion of

evaluation and issue

of Purchase

Order (PO)

Delivery and

assembly of UPS

equipment

commissioning

On-going mainte-nance

2. Wireless Access Points

Deployment for Central

Hub

Replacing existing access

points

Tender Prep

BSC Approval, Closed Tender advert/ issuing

Completion of

evaluation and issue

of PO

Delivery and

assembly of UPS

equipment

Installation and

configure-tion

Testing and

commis-sioning


3. Environmental monitoring

devices

Current product reached end of

life, needs replacement

BSC approval

Evaluation completion and issue

of PO

Commis-sioning

4. Cisco call manager hardware upgrade

Current cisco hardware has

reached end of support, needs replacement

BSC approval


of PO

Commis-sioning

5. Alfresco Deployment

e-Document management

system

Commissioning of HR

and ICT application

Pilot for M&E

Commissioning for

M&E

Pilot for EDD

Commissioning for

EDD

Pilot Finance

Pilot Finance

Commissioning Fin

Pilot SD&T Pilot SD&T Pilot SD&T Commissioning SD&T

6. Re-cabling of switch

cabinets

Cabling in switch room needs to be

refreshed and tidy-up

BSC Approval

Complete evaluation and issue

PO

Installation Installation Installation Installation

7. Audio Visual upgrade for conference

centre

Upgrade of all conference

venues at ASP

Receipt and setup

of equipment

Installation and

commissioning

On-going operations

and maintenanc

e

11

Uninterrupted Power Supply 12

Bid Specification Committee

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8. CCTV replacement

Total replacement of the CCTV

system at ASP

BSC Approval

Issue of tender

Complete evaluate and issue

PO

Delivery of equipment

Installation and

configure-tion

Commis-sion the system

9. Energy Management

System

Green energy and building management

system

BSC approval and issue request for information

(RFI)

RFI evaluation

Conduct site visits

Finalise bid spec

Bid Spec evaluation

Tender issue

Evaluate tender

submis-sions

Finalise evaluation and issue

PO

Installation

10. Mimecast Implemen-

tation

Implement mail cloud system

failover for DR purposes

BSC Approval of

closed tender

Evaluate and issue

PO

Commis-sioning of the system

11. Analytics on Bandwidth

consumption

Require in-depth reporting on bandwidth utilization

Issue RFQ Commis-sioning of the system

12. Increase to Mbps

production line

Current production line for Maconomy, VPN and VIP needs to

be increased

BSC Approval, Closed tender

Award and issue PO

Commis-sioning

13. Implementation of radius

server

ADS integrated authentication for Wireless Access

points

BSC spec Approval

Issue tender

Completed evaluation and issue

PO

Equipment delivery

Configu-ration and

testing

Commis-sioning

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14. Business Continuity

Management (BCM)

Disaster Recovery

Plan (DRP)

Offsite backups

Business recovery Plan

(BRP)

Quarterly applications

restore simulation

Monthly offsite data storage tapes to TIH

Annual company-wide BRP simulation

Monthly BCM meetings in

conjunction with M&E Forum

Maconomy, VIP, & Accpac

Tape collection

Tape collection

Lotus Notes

Tape collection

Tape collection

Jarrison & file server

Tape collection

Tape collection

Voyager

Tape collection

Tape collection

Evacuation drill and full

Disaster recovery

simulation

Tape collection

Tape collection

Tape collection

Tape collection

15. Protection of Personal

Information (POPI)

Implementation

Implementation of ICT control

measures to satisfy the

provisions of the POPI Act.

Implementing ICT systems security

measures

Awareness campaign, submission

of draft POPI policy

Conduct POPI gap

analysis on ICT

systems

Make recommen

dations with

regards to actions to ICT Forum

Awareness campaign

Endpoint Encryption

(Phase approach,

per departm.)

MS Security Patches schedule

Awareness campaign

Anti-Virus Audit on

endpoints

Awareness campaign

16. Implementation of

CGICTPF13

Enterprise Architecture

(EA)

This is an audit

requirement

Implementation of the DPSA

Governance framework

Submission of

Implemen-tation road

map

Q1 ICT Enterprise Architec-

ture forum – this

should be a technical

forum as it will be dealing with ICT technical structure

Q2 EA forum

Q3 EA forum

Q4 EA forum

13 Corporate Governance of ICT policy Framework

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17. Replacement plan for ICT workstations

Replace of old laptops and

desktops

Submission of

Replacement plan for approval

Buy new equipment (25 units

per quarter)


per quarter)


per quarter)


per quarter)

18. Wireless Access Points

Deployment for LAPA

Project run by Interns to suggest Wireless solution

for LAPA

BSC approval, issue a RFQ

Issue PO and receive equipment

Configuration and testing

Commis-sioning

19. ICT shared services Bench

marking

ICT Cost benefit Analysis

Request for Information

Evaluation of

information and

submission thereof

20. Maconomy Upgrade

Upgrade to Maconomy 2.1

Install Maconomy

2.1 on a test server

Create test data for

migration to

Maconomy server

Transaction testing of Maconomy

2.1

Workflow testing on Maconomy

2.1

Preparation for

Maconomy migration

21. FSI Helpdesk upgrade

FSI Concept Evolution ICT

helpdesk system

Finalise ICT

helpdesk processes

Update of ICT

helpdesk processes

on FSI

User acceptance

Go live On-going support

and hand holding

22. SEKCHECK deployment-see detailed explanation

on the adjacent column

This is an audit

requirement

Audit software for system

administrator‟s activities across

all AIDC ICT systems, mainly Active Directory activities-reports

will be pulled on a monthly basis.

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23. Learner Management

System (LMS)

LMS -ICT‟s role will be

governance process

alignment, system

integration, system operation,

backup and recovery of the

system, Business Continuity, POPI

compliance

Completion of

Evaluation process , awarding

PO

Installation and

configure

Test and commis-sioning

Implementation and on-going support

24. Performance Management

System (PMS)

PMS - ICT‟s role will be

governance process

alignment, system



system, Business Continuity, POPI

compliance

BSC approval

Issue of tender

Complete evaluation and award

Setup and configure-

tion

Testing and

commis-sioning

On-going operation

and support

25. Client Relationship Management

system (CRM)

CRM - ICT‟s role will be

governance process

alignment, system



system, Business continuity, POPI

compliance

Completion of BSC

BSC approval

Issue tender

Complete evaluation and award

Install and configure-

tion

26. Audit tracker Attention to the audit tracker and

formulation of action plan from

audit tracker

Submission of audit tracker

Close all outstanding

audit issues

New ICT Audit

review

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27. Service Level Agreement

(SLA) Management

Monthly SLA meetings with tenants review

and update.

Meetings are scheduled and co-ordinated by

BDD.

16.7.2 FORD INCUBATION CENTER


devices

Implement new monitoring

system

BSC approval


of PO

Commis-sioning

2. Backup Microwave

link

Deploy a redundant wide area solution

BSC approval

Issue tender and

award


Install and commis-

sion

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3. BCM

ICT Continuity

(DRP)

Facilities availability

HR Continuity

BRP simulation

Replication and usage eternal HDDs for data backup. In this

regard, AIDC is a failover site for

FORD

AIDC will be a designated site

for hosting FORD IC staff in case

their premises are inaccessible due to disaster (e.g. fire, flood, etc.)

HR Continuity plan will outline

all key personnel and skills as well as their backups; this will be drafted

in collaboration with HR.

The simulation will take place on an annual basis,

preferably towards the end

of the year.

RFQ for procure-ment of

data storage capacity

Commis-sioning of storage devices

On-going mainte-

nance and support

16.7.3 WINTERVELD ENTERPRISE HUB

1. Environmen-tal monitoring

devices


system

BSC approval


of PO

Commis-sioning

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2. BCM

ICT Continuity

(DRP)


HR Continuity

BRP simulation

AIDC is an automatic ICT failover site for

WEH.

AIDC will be a designated site for hosting WEH staff in case their

premises are inaccessible due to disaster (e.g. fire, flood, etc.)






of the year.

3. TMS software

deployment

Part quoting system for WEH

Installation Testing and

configure-tion

Commis-sioning

16.7.4 GAUTENG AUTOMOTIVE LEARNING CENTER (GALC)


devices


system

BSC approval


of PO

Commis-sioning

of 78



2. BCM

ICT Continuity

(DRP)


HR Continuity

BRP simulation

AIDC is an automatic ICT failover site for

GALC as data is being replicated

on both sites

AIDC will be a designated site

for hosting GALC staff in case their

premises are inaccessible due to disaster (e.g. fire, flood, etc.)






of the year.

Quarterly simulation of systems

16.7.5 NISSAN INCUBATION CENTRE

1. ICT Connectivity

Full data connectivity for a

new site

BSC approval

Issue tender


of PO


Commis-sioning


21.7.6 UPCOMING TOWNSHIP HUBS

1. Township Hub 1

Deployment of ICT infrastructure

BSC approval

Issue tender


of PO


Commis-sioning

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2. Township Hub 2


BSC approval

Issue tender


of PO


Commis-sioning

3. Township Hub 3


BSC approval

Issue tender


of PO


Commis-sioning

4. Township Hub 4


BSC approval

Issue tender


of PO


Commis-sioning

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16.8 BDD and marketing plan

No Activity Target Comment Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar

1 Define BDD Support to TAC Developed and Executed

enjoyment Plan Defined Support

As per TAC Engagement

Plan


Plan


Plan


Plan


Plan


Plan


Plan


Plan


Plan


Plan


Plan

2 Occupancy level of ASP Maintain 95% occupancy levels in the ASP

90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Internal Stakeholder Workshop

Develop High Level Retention Strategy

Develop High Level Retention Strategy

Develop a Tenant Satisfaction Survey

Develop a Tenant Satisfaction Survey

Execute Tenant Satisfaction Survey

Submit Satisfaction Survey report to Exco

Monthly Tenant Review Meeting




Monthly Tenant Review Meeting.








1 x Tenant Convention

Tenant Meetings:

3 Attract new tenants into the ASP

- Identify 1 x OEM as potential tenant within the park

Market Research

Market Research

Market Research

Market Research

Identification of OEMS



Initiate Discussions





- Identify 4 x Manufacturers/ other and develop proposals by using the VP

Develop a marketing & communications plan

Develop a marketing & communications plan

Company Identified

Proposal Developed and VP CSF Feedback Received

Execution against the Plan n

Company Identified


Execution against the Plan n

Company Identified


Company Identified


Property brokers - ASP Open Day



4 Develop expansion plan for phases 3-5 ASP

Internal Stakeholder Workshop

0th Draft Expansion Plan Road Map

1st Draft Expansion Plan Road Map

Stakeholder Engagement

Updated Expansion Plan

Submission of Expansion plan to CEO

Review and Approval

5 Key Account Management 3.1 Formulate the KAM Framework / Process

Framework Developed

Framework Reviewed

6 External Tendering - 4.1 Formulate tendering framework (external tenders)

Establish and AIDC tender committee for external projects

Framework Developed

Framework Reviewed

7 Map Automotive Industry Value Chain (Import replacements / localisation)

Develop Concept Proposal

- Position the project with 1 x Gauteng based Municipalities for funding support




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8 Incubation Support - Identify 2 x 2 opportunities for entrepreneurs at Ford IC

Identify 1 x 2 opportunities for entrepreneurs at Ford IC

Review Incubator Business Plan

- Identify 2 x 2 opportunities for entrepreneurs at Ford IC

review Incubator Business Plan

9 Tooling Incubation Concept

- Develop the concept for Tooling Incubation

- Position the Tooling Incubation Concept for funding








Securing Funding

10 Township development plans

2 x Concept Development Concept Development

Concept Development

Concept Development

Concept Development

2 x Developed Operating Models



Commence Dual Diligence

Commence Dual Diligence

Hand Over Project to KFA

11 BDD New Concept Development

8 x Concepts Developed

2 x new concepts

4 x new concepts

6 x new concepts

8 x concepts

12 KFA Investment Support 2 x Proposals/Tenders Submitted per KFA

Defined Support per KFA

2 X Proposals Submitted




13 Marketing plan

13.1 Develop Marketing and Communications Plan

Interaction with Each KFA Department

ASP / SD&T EDD / IPD SPD / GIS Final Plan

13.2 ASP / AIDC / ASP Conference Adverts

2 x ASP/AIDC Advert published p/quarter




13.3 Marketing Events Hosted/attended

2 x Stakeholder Events Hosted / attended

1 x Stakeholder Event Hosted/ attended

13.4 Conference Events attended12

- TITTICC -Automechanika South Africa

- JIMS

13.5 AIDC Brochures/ Newsletters produced

2 x publications produced p/quarter




13.6 Website Development

1x Website Developed: GALC

1 x Website developed: WEH

13.7 Website Updates 2 x website update: AIDC/ASP

2 x website update: AIDC/ASP



of 78



p/quarter p/quarter p/quarter p/quarter

13.8 Media publicity / monitoring: AIDC/ASP/WEH/IC/GALC

1 x publicity every 2nd quarter

1 x publicity every 2nd quarter

13.9 International Marketing Events

1 x Event

of 78

Appendix A – AIDC Corporate Scorecard KPI Matrix - APP

AIDC Strategic Objectives - annual targets for 2014/15 up until 2018/19 (MTEF)

Strategic Goal 1 - Gauteng’s economy radically transformed.

Strategic Objective

5 Year Target result statement

Perform-ance

Indicator

Base-line MTEF Targets Annual Target

2015/16

Quarterly Targets PI

NO Estimate 2013/14

Year 1 2014/15

Year 2 2015/16

Year 3 2016/17

Year 4

2017-18

Year 5

2018-19

Q1 Q2 Q3 Q4

Revitalised and modernised

township economies reflecting radical

transformation and re-

industrialisation of Gauteng‟s

economy.

[Pillar 1: Radical

economic transformation;

Pillar 6: Modernisation

of the Economy;

Pillar 9: Re-industrialisation

of GP]

Establish, maintain and operate at

least 15 automotive-related

township hubs

Establish, maintain and

operate various

automotive-related

township hubs


(Project: AIDC43)


WEH fully operational 20% self-sustaining

10% self-sustained

WEH fully operational 30% self-sustaining

30% self-sustained

WEH 60% commercialised

(self-sustain-able)

60% self-sustained

WEH 80% commercialised

(self-sustainable)

80% self-sustained


10% self-sustained


5 SMME operating

through the Hub


5 SMME operating

through the Hub

Develop plan to secure

additional Gov. owned

vehicles.


5 SMME operating

through the Hub

Meeting Gov. entities to

secure off-take agr.


5 SMME operating

through the Hub

External income

realised to achieve 10%

self-sustainability.

AID

C 1

New indicator

(Project: AIDC44 /1)

2

(concepts – desk top studies only)

4 Hubs launched - ready to

commence with planned operations, subject to adequate

funding be made

available.

8 Hubs Launched

10 Hubs launched

15 Hubs launched

4 Hubs Launched

4 Hubs sites identified and

concepts developed –

identify „operators‟

Signing of legal

agreements.

Testing sustainability,

business model and plan and

commence with

infrastructure refurbishment.

Operators under training.

Infrastructure refurbishment

continues.

Procurement of equipment and tools required.

Operators under training.

4 Hubs Launched, ready to

commence with planned operations

AID

C 2

Maintain and operate at least two Automotive

Incubation Centres

Number of BEE SMME‟s incubated at

the AIDC Automotive incubation

centre (ICF), Ford Silverton

(Project: AIDC05)

6 6 BEE SMMEs

maintained operations at the IC,


2 graduation

And 2 new BEE

Incubatees recruited as

replacements.

Production call-off

dictated by Ford


2 graduation

And 2 new BEE

Incubatees recruited as

replacements.

Production call-off

dictated by Ford


1 graduation

And 1 new BEE Incubatee

recruited as replacements.

Production call-off dictated by

Ford

6 BEE SMMEs operating from

the IC


4 products

1 logistics

1 canteen

2 graduations.

2 new BEE Incubatees recruited as

replacements

Maintain 6

BEE SMME‟s operating from

the IC.

Production call-off

dictated by Ford

Maintain 6


the IC.

Production call-off dictated

by Ford

Maintain 6


the IC.

Production call-off dictated by

Ford

Maintain 6 operating from

the IC;

Production call-off dictated

by Ford

2 graduations.

2 new BEE Incubatees recruited as

replacements

AID

C 3

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Strategic Objective


Perform-ance

Indicator


2015/16


NO Estimate 2013/14

Year 1 2014/15

Year 2 2015/16

Year 3 2016/17

Year 4

2017-18

Year 5

2018-19

Q1 Q2 Q3 Q4

No of BEE SMME‟s

incubated at the

Automotive incubation

centre (ICN), at Nissan Rosslyn

(Project: AIDC22/3 and 22/4)

One part of the NISP

with DBSA)

0 Establish the

Incubation Centre with

up to 8 candidates identified

and shortlisted

for incubation1

Establish the Incubation

Centre with up to 8

candidates legally

contracted to commence technical

production training

Up to 8 Incubatees commence production

Up to 8 Incubatees commence production

Up to 8 candidates

identified and shortlisted for

incubation

The IC is around 50%

complete with up to 8

candidates identified and shortlisted for

incubation.

Draft legal agreements

for incubation compiled.

Establishment of IC

progressed to 30%.

Commence discussions with NSA wrt

possible products for outsourcing.

Establishment of the IC

progressed to 35%.

Commence discussion with Tier 1

entities with regards to off-

take and incubation.


progressed to 40%.

Develop criteria for incubatee selection and

place advertisements.


progressed to 50%.

Interviews and selection

process completed.

AID

C 4

Develop scarce and critical skills:

Science, technology,

engineering and mathematics

(“STEM” skills) in accordance with

long term requirements

emanating from the automotive

sector‟s needs. To train, mentor and up-skill around 7,000 students, mentees and

trainees

No of people trained at the

Learning Centre

(Project:

AIDC22/1)

(One part of the NISP with DBSA)

Learning Centre

operational with 729 trained

900 in training – with 300 merSeta applica-

tions prepared.

(A number of 150

students rolled over

from 2013/14)

1595 students,

trainees and mentees

( A number of 25 students will be rolling

over from 2014/15)

See details in the table

under par.20.2

1595 students,

trainees and mentees

1595 students, trainees and

mentees

1595 students, trainees and

mentees

1595 students,

trainees and mentees will

be

at various stages of

completing training, skills development, and mentoring

in the following

categories

190 students signed up and

commence training, up-skilling and

mentoring at the Learning Centre and across the

various training sites

(A number of 25 students will be rolling

over from 2014/15)

A further 510 students

signed up and commence training, up-skilling and

mentoring at the Learning Centre and across the


A further 660 students signed

up and commence training, up-skilling and

mentoring at the Learning Centre and across the various training

sites

A further 235 students

signed up and commence training, up-skilling and mentoring.

A total of 1595

at various stages of either

having completed or

are busy completing

training, skills development, and mentoring at the Learning

Centre and across the


AID

C 5

Placement of around 1,300

students / trainees in jobs

New indicator

(Project:

AIDC22/2)

- - 239 319 399 400 239 students or trainees

placed in jobs

Prepare CVs. Prepare for interviews.

Place adverts, lobbying with various auto





239 students or trainees

placed in jobs

AID

C 6

1 The original target was 10 Incubatees, but had to be reduced to 8 as a result of Nissan having approved a smaller building design to fit the available factory space. Different to the IC at Ford this one is

integrated into the production line buildings.

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Strategic Objective


Perform-ance

Indicator


2015/16


NO Estimate 2013/14

Year 1 2014/15

Year 2 2015/16

Year 3 2016/17

Year 4

2017-18

Year 5

2018-19

Q1 Q2 Q3 Q4

sector entities sector entities sector entities

To improve auto sector companies‟

efficiencies

Around 100 of auto industry

companies provided with

on-site efficiency

enhancement techniques to improve their productivity, quality and competitive-

ness

(Project:

AIDC36)

13 20 companies signed up under the efficiency

programme and

engaged with


efficiency improve-

ment projects. Interven-

tions completed and signed

off.

22 SMME /SME

companies in the auto

sector signed up under the

efficiency programmes as follows2

TPM = 5

RIP = 10

LM = 2

CP/CIP = 5

Improvement average

across all interventions

is 10% efficiency

improvement (from the

established baseline)

22 SMME/SME companies in

the auto sector signed up under the

efficiency programmes

as follows

TPM = 5

RIP = 10

LM = 2

CP/CIP = 5

Improvement average


is 10% efficiency




the auto sector signed up under

the efficiency programmes as

follows

TPM = 5

RIP = 10

LM = 2

CP/CIP = 5

Improvement average across all interventions

is 10% efficiency




the auto sector signed up under

the efficiency programmes as

follows

TPM = 5

RIP = 10

LM = 2

CP/CIP = 5

Improvement average across all interventions

is 10% efficiency




programme and engaged

with assistance

through various types of efficiency improvement

projects.

Interventions completed and signed

off.

TPM = 5

RIP = 10

LM = 2

CP/CIP = 5

Improvement average


is 10% efficiency

improvements (from the

esta-blished baseline)



with assistance


projects

8

companies signed up under the efficiency


with assistance


projects

8

companies signed up under

the efficiency programme and

engaged with assistance

through various types of


projects

Closing out efficiency

improvement projects for 15/16 with

interventions completed and signed off by 22 companies

that were signed up.

AID

C 7

2 TPM= Total Production Maintenance; RIP = Rapid Improvement Process; LM= Lean Manufacturing; CIP = Continuous Improvement Programme and/or CP = Cleaner Production

of 78

Goal 2: Gauteng’s economy re-industrialised and modernised.

Base-line MTEF Targets Quarterly Targets

Strategic Objective

5 Year Target result

statement

Performance Indicator

Estimate 2013/14

Year 1 2014/15

Year 2 2015/16

Year 3 2016/17

Year 4

2017-18

Year 5

2018-19

Annual Target

2015/16

Q1 Q2 Q3 Q4 PI

NO

DED Pillar 2 – Decisive spatial transformation;

Pillar 6 = Modernisation of the economy; Pillar 9 – Re-industrialisation of GP ;

Pillar 10 – Taking the lead in Africa‟s new industrial revolution

All infrastructure projects have been completed and maintain an occupancy of at least 95% per annum.

All strategic infrastructure construction will be done by DED.

Construction

Completion of phase 1 of mini factory (11) at

the ASP completed

(Project:

AIDC13)

Phase 1 modular

construction completed

Mini factory phase 1

100% completed

Hand over to DED 1 April 2015.

Establishing of the IC at

Nissan SA – as part of Jobs

Fund Agreement with DBSA

NSA announced a 30 month

delay in new

product launch

30% Construction completed

Part of Jobs Fund Agreement with DBSA as related to the Nissan Investment Support Programme

Construction

Completion of Four Township

Hubs

(Project: AIDC44/2)

New indicator

DED responsibility, as and when required.

Maintain occupancy in

ASP and Incubation

centres

95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%

AID

C8

of 78

Goal 3: GGDA capacitated to deliver and implement efficiently and effectively.

Strategic Objective

5 Year Target result

statement

Performance Indicator


2015/16

Quarterly Targets PI NO

Estimate 2013/14

Year 1 2014/15

Year 2 2015/16

Year 3 2016/17

Year 4

2017-18

Year 5

2018-19

Q1 Q2 Q3 Q4

DED Pillar 4 – Transformation of state and governance;

Pillar 5 – Modernisation of the public service and guidelines.

Sound Corporate Governance and Internal Control

Level of attainment of a

Clean audit

Clean audit Clean audit for previous

FY

Clean audit for previous

FY


FY


FY


FY

Clean audit for previous FY

On-going management towards clean

audit

Clean audit Clean audit Clean audit On-going management towards clean

audit.

Clean audit for previous FY

AID

C 9

Total number of Financial Support packages provided to SMEs, Cooperatives and Informal Businesses.

To increase BBBEE spend

through internal budget % of

budgetispend (year to date) 3

+ 75% 80% budget spend – average over the

year

80% budget spend – average over the

year

80% budget spend – average over the

year

80% budget spend –

average over the year





80% budget spend

80% budget spend

80% budget spend

80% budget spend

AID

C 1

o

3 Excluding non-discretionary spend

of 78

AIDC training targets per quarter for 2015/16 – with forecasts up till 2018/19

AIDC GEYODI training targets for 2015/16 FY

Male Youth under 35 Female Youth under 35 Male over 35 Female over 35 Military Veteran PwD Total Learner

ship

A I C W A I C W A I C W A I C W A I C W A I C W

703 3 5 85 236 0 4 60 300 2 10 137 28 0 2 20 0 0 0 0 0 0 0 0 1595

DIVISION/ SUB

TYPE OF TRAINING

/MENTORSHIP/ LEARNERSHIP

PERFORMANCE INDICATORS

15/16 ANNUAL TARGET

QUARTER 1 TARGET

QUARTER 2 TARGET

QUARTER 3 TARGET

QUARTER 4 TARGET

Women over 35yrs

TARGET

female Youth (under 35yrs)

TARGET

Male over 35

yrs TARGET

Male Youth (under 35yrs)

TARGET

People with

Disabilities (please specify gender

and age) TARGET

Military Veterans (please

specify if pwd)

2016/17 ANNUAL TARGET



AIDC – KPI 5

Training, Skills

development and Mentoring.

No of people trained at or through the

Gauteng Automotive

Learning Centre in Rosslyn – consolidated curricula – all

projects (NISP)

1595 190 in training

700 in training

1170 in training

1595 at various

stages of completing

training, skills

development and

mentoring

50

(3%)

300

(18%)

450

(28%)

795

(51%) 0 0

1595

With 20% job

placement in (which) vocational categories

1595

With 25% job

placement in (which) vocational categories

1595 at various stages of

completing training, skills development,

and mentoring

of 78

AIDC job targets per quarter for 2015/16 – with forecasts up till 2018/19

DIVISION/SUB TYPE OF JOBS

Perm/Temp PERFORMANCE

INDICATORS

15/16 ANNUAL TARGET

QUARTER 1 TARGET

QUARTER 2 TARGET

QUARTER 3 TARGET

QUARTER 4 TARGET

Women over 35yrs

TARGET

female Youth (under 35yrs)

TARGET

Male over 35

yrs. TARGET

Male Youth (under 35yrs)

TARGET

People with

Disabilities (please specify gender

and age) TARGET

Military Veterans (please

specify if pwd)




AIDC – KPI 6 Permanent Jobs

Job placement of 15% – Learning Centre students/trainees. Placement steps

taken will include: a. Assist with compiling

CVs b. Interview preparation c. Advert placements

d. Placement communications with

ASP, NAAMSA, NAACAM, RMI and

auto and allied sector entities

e. Capturing of names on AIDC Contact

Centre worker's d/b.

239 students

or trainees placed in

jobs

0 0 0

239 students

or trainees placed in

jobs

3% of 239 = 8

18% of 239 = 43

28% of 239 = 66

51% of 239 = 122

0 0 319 399 400

AIDC job targets (GEYODI) for 2015/16 FY

Male Youth under 35 Female Youth under 35 Male over 35 Female over 35 Military Veteran PwD Total

Permanent Jobs

A I C W A I C W A I C W A I C W A I C W A I C W

96 4 16 6 32 1 8 2 46 2 10 8 6 0 2 0 0 0 0 0 0 0 0 0 239

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