1. GOVERNMENT PRINTING WORKS
Building a New Government Printing Works
GOVERNMENT PRINTING WORKS
PRESENTATION TO PORTFOLIO COMMITTEE
STRATEGIC PLAN 2011/12 – 2013/14
15 March 2011

2. AGENDA Background Mandate and Overview Strategic Outlook
Key Strategic Objectives
Strategic Implementation Plan
Progress with Key Projects
Funding Requirements
Summary and Closing Remarks 2

3. The objective of our presentation is as follows...
Provide the Portfolio Committee with a high level Mandate and Overview of the GPW and also give the Committee an insight into the progress and developments at GPW for the 2011/12 financial year and beyond.
Provide insight into the key priorities going forward.
Provide an update on the major successes achieved.
Challenges with regards to transformation and modernization 3

4. Overview and Mandate of the Government Printing Works (GPW)
This strategic plan focuses on specific processes:
Where the organisation wants to be in the medium – long term
Critical assessments of its current status
Set measurable targets
Operating Model
The GPW has been converted into a Government Component (GC)
Implement sound financial management (profitable and viable) while cultivating a commercial oriented culture.
Focus on its core business – security printing 4

5. STRATEGIC OUTLOOK OF THE GPW
Vision
To be be State’s Mandate Security Printer
Mission
To provide cost effective, reliable and timeous services to all spheres of Government in security printing
To provide the public with equitable information
To disseminate Government information through technology, innovation and service excellence
Values
Reliability
Integrity
Accuracy
Stakeholder satisfaction
These belief systems motivate our people to provide excellent service to all our stakeholders. 5

6. KEY STRATEGIC OBJECTIVES (1/3)
Production Process Optimisation
Allocated Visagie Street premises
Develop appropriate facilities for efficient and cost competitive production
Best Practice for high security printing environment
Site survey and needs analysis
Asset Replacement Programme
Replacement of outdated technology and machinery
Average life 30 years – majority in poor condition and not economically viable to maintain
Technological advances in the printing industry
Lack of capacity to produce high security printed matter
Security printing in line with International standards
Spending R316m over MTEF period. 6

7. KEY STRATEGIC OBJECTIVES (2/3)
Technological Migration
ICT Governance
ICT Legal compliance (MISS, ECT ACT , Relationship between PPI, PAIA and RICA inclusive of NCA and CPA,
King III Companies ACT Cobit, ITIL and International Standards such as ISO 27001/2)
Acquire Hardware and Software to accommodate new IT systems and Services
Business Continuity solution that supports redundancy and functionality with recovery.
Acquire and implement new hardware and Software
Optimum activities to ensure systems and infrastructure operate at prescribe service levels.
Business recovery with failover and minimise downtime at remote location
Automate Official Gazette Content distribution
Electronic Gazette on the Web
Resource Management
Proper IT Sourcing Strategy and related vendor management processes.
People Management:
Attract and train and technical people to have depth in their respective areas and breadth across other areas in IT.
Link individual and team objectives to a shared GPW IT vision & strategy and reward according to performance
Effective IT asset management 7

8. KEY STRATEGIC OBJECTIVES (3/3)
GPW Establishment
Fully implement new GPW structure
Migrate staff to new approved structure
GPW aligned policies
Talent management and Leadership development
Special dispensations
Performance management
Marketing
Consolidation of business opportunities and customer focus
Develop GPW Brand
Local Customer Retention
Local Business Development
Develop an aggressive regional marketing strategy on face value documents
These objectives are the bedrock of a sustainable GPW which will ensure organic growth and financially vibrant organisation. 8

9. Strategic Implementation Plan (1/5)
Operations Management
Replacement of outdated technology and machinery
Optimisation of production capacity and efficiencies – cost competitive
High quality security products
Achieve product/service excellence
Financial Management
Accurate planning and forecasting
Maintain optimal cash flows and working capital
Manage financial risks
Implementation of new ERP System
Reduce AG findings and qualifications
Cost Management
Change/review the cost/product pricing system/strategy
Reduction in wastage and spoilage 9

10. Strategic Implementation Plan (2/5)
ICT Management
Governance
Enablement of high level information security and control.
Minimise harm to GPW business from potential vulnerabilities and threats
Strategy Formulation and Planning
Common framework for inclusive, business aligned operational and tactical decision-making.
IT that is security minded, performance based and aligned to GPW Business.
Architecture Management
Integrated and environment with scalable and optimised processes.
ERP and IT Technical Delivery
Properly coordinated portfolio of IT projects.
Efficient and ERP running on secured infrastructure on a self defending network.
Centralised and efficient help desk and service management processes.
Resource Management
Proper IT Sourcing Strategy and related vendor management processes.
Attraction, development and retention of good IT skills.
Effective IT asset management. 10

11. Strategic Implementation Plan (3/5)
ICT Management (Cont.)
Service Delivery
Effective IT services delivery and support.
Well coordinated user training and support.
Centralised and efficient help desk and service management processes
Supply Chain Management
Reduce Stock Levels
Phase out slow moving items and redundant stocks
Strategic supplier management
Update and develop electronic suppliers database and order information
Contract and SLA management 11

12. Strategic Implementation Plan (4/5)
HR, Strategy and Transformation
Fully implement new GPW structure
Finalise outstanding job descriptions
Continue with job evaluation process
Migrate staff to Government Component
Migration plan
Consultations with labour
Communication strategy
GPW aligned policies
Revise, develop and customize policies in place.
Talent management and Leadership development
Training partnerships
Time spend on training
Special dispensations
Determine critical jobs
Determine which category of jobs dispensation is in line with broader public service jobs.
Negotiate with DPSA for special dispensation.
Performance management
Job descriptions
Alignment of work plans 12

13. Strategic Implementation Plan (5/5)
Security
Security risk assessment
New and updated physical, personnel, production and documentation security systems in place
Introduce vetting system for key personnel
Internal Audit
Development of internal audit and risk management plans
Monitor compliance with PFMA and related regulations
Marketing
Expand the range and value of products
Scope for the sophistication of printing services - Upgrading of the social security forms
Governments within the SADC do not have access to the modern printing facilities
The conversion of GPW into a GC will allow the transformation process and turnaround of GPW in the MTEF period 13

14. KEY PROJECTS
Installation and commissioning of new security printing division
Implementation of the ABC costing methodology
Creating capacity to print passport visa pages inhouse
Implementation of new ERP system
Development of new facility 14

15. Finally, the transformation and modernisation will require additional capital injection by the State to ensure conversion and success of GPW
DETAILS
2011/12
R 000’s
2012/13
2013/14
Asset Replacement - Machinery
73 086
81 056
New IT System
52 000
10 000
Facilities
48 000
Not Determined yet*
* The GPW has budgeted R500m over the MTEF period
Pavilion 2 was handed over in October DPW has started to draw the master-plan for the total facility before more development is done. 15

16. The critical equipment that needs to be procured as part of the asset replacement program, includes the following:
DETAILS
2011/12
R 000’s
2012/13
2013/14
Web offset printing presses
18 225
20 250
Web-fed kraft press
20 280
Sheet based laser imaging system
11 000
2 x four-unit web-fed printing presses
6 000
Numbering units for the Concepta press
10 000
Multi-unit sheet fed printing press
46 000
Four-unit sheet fed printing press
Complete digital printing system
60 000
Sewing machine
12 000
Polycarbonate material manufacturing line
51 776 16

17. In order to ensure growth and a financially viable organisation, GPW has embarked on the implementation of a new ERP system:
ERP software solutions
Hiflex – Production System
Microsoft Dynamics AX – Financial
Microsoft Sharepoint
Intranet & Internet
Phase 1 - Analyis
Completed and all documentation signed of.
Legal requirements done
Phase 2 - Implementation
Proposals and plans completed
Intranet go-live April 2011
Production solution, business solution including VIP, public web and e-gazette
Go-live 2 April 2012 17

18. Income estimates are summarised as follows
Statement of Financial Performance
(R million)
Audited Outcome 2007/08
Audited Outcome 2008/09
Audited Outcome 2009/10
Medium-Term Estimate 2010/11
Medium-Term Estimate 2011/12
Medium-Term Estimate 2012/13
Medium-Term Estimate 2013/14
Revenue
416.8
487.0
639.0
652.7
695.4
765.1
799.6
Transfers Received
110.2
160.9
334.5
97.4
129.0
135.6
143.1 18

19. Expenditure estimates are summarised as follows
Statement of Financial Performance
(R million)
Audited Outcome 2007/08
Audited Outcome 2008/09
Audited Outcome 2009/10
Medium-Term Estimate 2010/11
Medium-Term Estimate 2011/12
Medium-Term Estimate 2012/13
Medium-Term Estimate 2013/14
Employee Benefits
80.2
86.8
94.0
98.2
178.9
227.7
243.0
Administrative Expenditure
24.9
25.0
19.7
21.9
56.6
63.8
65.5
Production and Stores
383.8
500.7
497.0
505.7
393.6
411.1
393.1
Equipment
1.1
1.4
1.3
1.6
2.0
2.1
2.3
Professional Services
24.4
26.8
24.0
30.2
36.7
38.5
40.4
Depreciations and Provisions
37.7
57.1
66.7
71.1
81.4
107.0
140.0
Sundry Expenditure
0.2
4.2
2.2 19

20. There are challenges ahead but hope that this presentation highlights the support/resources required from Government at this critical juncture
We urge you to please provide us with the necessary advise and support during the transformation process
Support us by ensuring that the requisite funds are forthcoming, as this is always key to any turnaround initiative
WE THANK YOU KINDLY! 20