presentation to the portfolio committee on trade & industry

SOUTH AFRICAN BUREAU OF STANDARDS

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PRESENTATION TO THE PRESENTATION TO THE PORTFOLIO COMMITTEE ON PORTFOLIO COMMITTEE ON

TRADE & INDUSTRYTRADE & INDUSTRY

2004-10-292004-10-29


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Is the leading standardization body in the Sub-Sahara region.

We provide world class standardization, conformity assessment & surveillance

services to improve South Africa’s competitiveness .


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10 YEARS OF PROGRESS


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SABS has a 60-year heritage – it is the leadingleading Standardization Body in the Sub-Sahara Region

Progress was made in reviewing African Fish Inspection Procedures & in ensuring greater involvement by African countries in International International StandardsStandards setting

Various organizational reviews indicated the need for a clear separation of the commercial operations – SABS has established a growinggrowing Commercial Division

Standards South Africa (StanSA) is renaming SABS standards to South African National South African National Standards (SANS)Standards (SANS)


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SABS was involved in & supported the process for regulation of plastic bags, and great progress has been made in curbing illegal importscurbing illegal imports of various products into the country

All SABS laboratories are accredited by SANASaccredited by SANAS & some are also accredited by RvA

In 1996 the first black designerfirst black designer received an award in the main award scheme of the Design Institute

The SABS has transformed its Human Resource transformed its Human Resource PoliciesPolicies & is committed to Employment Equity & Redress – The Group Profile is constituted now by 56%56% of Previously Disadvantaged Individuals, 42%42% Female & 4%4% Differently Abled


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2004 HIGHLIGHTS


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The SABS Group has made significant progress In Organizational Renewal & in embracing the concept of Sustainable Development…..

The successful & popular youth designThe successful & popular youth design leadership programme of the Design Institute this year produced its first young black woman as winner

A Standard on methodsA Standard on methods for measuring garments, SANS 1088, was written to help SMMEs in the clothing sector when tendering for State & other contracts from big buyers

Coal & Mineral Technologies (CMT)Coal & Mineral Technologies (CMT) designed a holistic range of consulting services in the area of Mining Technology to respond effectively to the needs of BEE Mining Services


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The implementation of the new compulsory standard The implementation of the new compulsory standard for plastic bagsfor plastic bags (VC 8087) resulted in a remarkable decrease in environmental pollution

The Pretoria-based operationsThe Pretoria-based operations of Eurotype were successfully accredited by SANAS to ISO 17025

Job CreationJob Creation was stimulated by assisting 50 graduates in agriculture from areas surrounding Nelspruit in Mpumalanga to start their own fruit drying project with a view to marketing their products on local & international markets

An EE ForumAn EE Forum has been established to guide the implementation of an integrated & comprehensive Transformation Plan


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SABS helped to produce a book for HIV-sufferersSABS helped to produce a book for HIV-sufferers, titled “Being Positive” – The manuscript was co-authored by Charles Camm, an employee of CMT Copies of the book were donated to community-based

organizations, in an effort to extend HIV/Aids awareness

SABS has embarked upon an enterprise-wide SABS has embarked upon an enterprise-wide initiativeinitiative focused on revitalizing the organization & the way it conducts it activities – under the working title “SABS Footprint-Your Choice”, this initiative is centred on 3 aspects of organizational effectiveness: Service Excellence Programme Leadership Programme Ethics Programme


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Publish standards that enhance market access

842842 Standards published on topical issues such as Health, Safety & the Environment

Grow the ratio of External Earnings to Total Income

Improvement of 2,8%2,8% on the previous year

Continuing commitment to Service Quality

CMT was awarded the coveted Business Excellence AwardBusiness Excellence Award in the Services category for the KZN Region

Building Human Capital by ongoing investment in developing our people

R3,5mR3,5m invested in staff development, an increase of 45% on previous year

Transformation – Staff profile to be 50% from PDI’s

Target exceeded. 56%56% of staff complement are PDI’s & female staff compromises 42%

PERFORMANCE AGAINST OBJECTIVES


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Financial Highlights 2004 2003 2002(R 000's) (R 000's) (R 000's)

Revenue Commercial 312,862 267,084 220,837 Core Funding 90,410 89,250 81,369 Operating profit - adjusted for AC116 26,885 24,570 581 Total assets employed 342,429 282,710 230,593 Cashflow from operating activities 55,685 67,343 16,801 Capital expenditure 17,173 30,962 25,661

Key Performance Indicators 2004 2003 2002

Return on net assets employed (%) 14.4% 14.7% -0.5%Operating Margin (%) 6.6% 6.8% -0.2%Revenue per Employee (R) 373,055 340,989 292,835


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Revenue

0

50

100

150

200

250

300

350

98 99 00 01 02 03 04

Commercial revenue Parliamentary grant


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Cash generated from operations and Operating profit

-6.7 -8.6

-33.4-39.8

0.6

24.6 26.924.9 27.7

-22.5

16.8

63.456.1

-36.0

-60

-40

-20

0

20

40

60

80

98 99 00 01 02 03 04

Mill

ion

s

Operating Profit Cash generated from operations


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0

50

100

150

200

250

300

350

400

98 99 00 01 02 03 04

R '000 %

0.00%

20.00%

40.00%

60.00%

80.00%

Revenue per employee

Remuneration % of total expenditure


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Number of Standards published

0

100

200

300

400

500

600

700

800

900

98 99 00 01 02 03 04

No

. of S

tan

da

rds

-60%

-40%

-20%

0%

20%

40%

60%

% c

ha

ng

e

No. of Standards published % change


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611577

503580

811

656

565528

641

501

0

100

200

300

400

500

600

700

800

900

00 01 02 03 04

No

. o

f em

plo

yees

Black White


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CHALLENGES MOVING FORWARD Human Development Re-establishing the SABS Brand Integrated delivery environment that is customer-

focused Corporate Governance Responding to changing business environment

Competitive Regulatory Financial

Organizational Culture Appropriate responses to shareholder mandate


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Identify the problem Involve all stakeholders

THE TRANSFORMATION DILEMMA


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Prepare a climate Prepare a climate for negotiationsfor negotiations

Some common groundSome common groundat last….at last….



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Celebrate consensus But the outcome may be unpredictable



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SIYABONGASIYABONGA

Q’s?Q’s?


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presentation to the portfolio committee on trade & industry

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