050405ppecbstrategy1

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					                          portfolio committee
                          on agriculture and
                              land affairs:

                                     5 april 2005

                          strategy and budget
                                 2005/6

creating confidence in southern african fresh produce   PPE CB
                   agenda
     “ppecb in transformation”


introduction
2005/6 strategy
objectives/outcomes
strategic directions and business plan
alignment with DOA programmes
black economic empowerment
budget
questions
ppecb 2005-2006
“transforming for sustainability”

              creating confidence,

  closing the gap with stakeholder expectations,

      implementing risk based assessment,

                    through an

 integrated food safety and quality management
                     system,

            whilst transferring skills.
sa perishable products export industry
transforming means …
      organisation renewal and people diversity
      legislative renewal
      systemic risk assessment
      systems and process redesign

sustainability means …
      growth in international market access
      creating employment, equity and wealth
      international competitiveness
      long-term profitability

confidence means …
      sustained access to difficult markets by guaranteeing
         people competency
         process efficiency and
         product safety and quality
         capacity to deliver on requirements
ppecb’s role - legislative mandate
  act 9 of 1983 – ppecb act (outdated)
     provides for control and management of south
     african perishable products export processes
  act 119 of 1990 – designated assignee i.t.o. agricultural
  products standards act
     ensures export food safety and quality standards of
     agricultural products are complied with.
  act 1 of 1999 – pfma act
     regulates financial management and good
     governance in government and public entities
ppecb strategy : 2004-2006 (present board)
    …ppecb transforming, repositioning as sa
             food safety agency…
          “building with confidence”


          purpose statement
     ppecb instills confidence in food
        by impartially performing
     food safety & quality assurance
                  services
ppecb outcomes:2004-2006
  confidence in impartial services
  minimised risk in supply chain
  custodian of industry information
  customised services on demand
  differentiated pricing of services
  integrated sa food safety policy and legislation (“new
  food control authority”)
  sa food safety agency (“transformed ppecb”)
  international expansion (africa/trading countries)
contextual environmental issues
                                     environment condition                    industry drivers
legislation



                        increasing international legislation
                                                                       reduced costs
                        harmonisation/integration of standards
                        call for integrated legislation in sa          revision of legislation
                        high cost of compliance to various standards
                        overproduction                                 product quality
economic




                        global competitiveness
                                                                       increased demand for information
                        higher consumer demands
                        exchange rate pressure
                                                                       integration of systems
                        fragmented national food policy
environment political




                        transformation                                 food safety
                        integration & delivery
                                                                       efficiencies
                        agricultural “best practices” challenges
                                                                       skills demand

                        national drought conditions                    response times
operating model and value streams
   stakeholder              value stream
   requirement               deliverable
                    inspection/audit services
      statutory     supply (cold) chain services
     standards      product category “partnerships”


      industry      financial services
                    information/logistics services
     standards      communication services


    customised      specialised services (solutions)
                    training/development services
     standards      certification services
value streams - programmes

value streams                        programmes
•product quality inspection & food   inspections
 safety audit services               audits
                                     cold chain logistics
                                     product categories
                                     specialised solutions
•customised services                 analytical
                                     development
                                     sa pip
                                     food safety
                                     certification
                                     conferencing
                                     finance & management accounting
•finance & information               information services
                                     secretariat
•support services                    human resources
our strategic direction & positioning
create confidence and ensure sustainability in the south
african fresh produce markets by:

  reducing risks in the supply chain

   developing an internationally recognised integrated food
  safety and quality management system according to
  stakeholder requirements

  implementing it through a risk analysis methodology

  representative staff compliment of qualified technologists

  improving speed and service delivery, reducing costs
ppecb strategic programmes

black economic empowerment

risk management system

food safety

stakeholder management

industry information

ISO 17020
 alignment with DoA
 programme no 7: regulatory services
compliance with legislation: ppecb/aps/pfma acts/ eu1148
food safety strategy: assignee for ofs/ development ifsqms
communication and national coordination: national forums
harmonising legislation, codes and guidelines: oecd/ un-ece
progressive service standards that enhance credibility:
iso17020/ export protocols
resources for maximum effectiveness: restructured operations
technology to accelerate information flow: standardisation of
codes/ edi/ electronic export certification
standard-setting: specialised industry programmes
partnerships with industry: sa-pip/ sa agri academy/ sa fip/ fsa
training and skills development: experiential training
programme/ career pathway/ bursary programme
broad based black economic empowerment
  dimensions:              strategies:
                           analysis of potential
                           redesign organisation to create
  management               opportunities
                           programme managers
                           succession planning
                           leadership development
                           people development forum
  employment equity        employment equity stats
                           organisation renewal
                           recruitment focus
                           legislative compliance
  skills development       internal training
                           experiential learning programme
                           bursary programme
  enterprise development   developing portfolio
                           programmes: pip
                           all programmes to reflect bee as priority
  procurement              procurement manager
                           filtering suppliers
                           reporting at executive level
                           develop suppliers
  capacity building        skills development
 broad based black economic empowerment
dimensions:              status:
                         •50 employees assessed (R100 000)
management               •tender process for training
                         •2004-2005
                         african -1%
                         asian +1%
                         coloured +3%
                         white    -48%

                         YTD                        YTD
employment equity        african +4%                95% black
                         asian     0%               technologist
                         coloured +4%               appointed
                         white    -7%

                         internal bursary 10: R52 000
skills development       external bursary 2004: 20: R480 000
                                           2005: 15: R432 000
                         SDA-2004: 85% grants received

                         SA PIP programme
enterprise development   programme managers: developing sector
                         portfolio

procurement              preferential procurement policy
                         HDI 42,11%

capacity building        MOU: SAAA & SAMTRA
  ppecb company profile
                                           Company Profile


                                      152 154




                                                                                             2004
                                                                                             2005
                                                                                        54
                                 41                                                45
        36                  31
   24                                                                         21
             12 13                                                       14
                                                 4 10           1


   African   Asian      Coloured      White     African      Asian      Coloured   White

                     male                                           female

95% of new recruits to operational positions comply with employment equity plan
                     ppecb budget 2005-06




creating confidence in southern african fresh produce   PPE CB
objectives

development of a risk
management system


 building and retaining skills &
capacity


 building relationships with
stakeholders
budget overview
•net result                                    break-even

•total expenditure                                R104m

•% increase in expenditure                         11,9%

•% increase in expenses excl. employment and       -2,9%
programme expenditure

•% annual adjustment to total payroll                 6%

•programme expenditure                             R8,2m

•average increase in levies for 6 months             11%
activity overview
employees                    353

operational                  245

offices                        42

pallets                2,2 million

service points             1 452

accounts                   3 273

hours                    418 966

kilometres             3,9 million

relief duty      21 000 man days
  budget 2006
            ’06     ’05                      R 120,000
                            ∆%
            bud     est
                                             R 100,000

                                              R 80,000
income      R104m   R93m    12%




                                     R'000
                                              R 60,000

                                              R 40,000

expense     R104m   R92m    13%               R 20,000

                                                   R0
                                                         est '05    bud '06
shortfall      R0   R0,9m        -

                                                    income    expense
income variance
                           R’000

volume increase              R3 016

levy increase                R4 120

food safety                  R1 440

other statutory services     R1 150

SA PIP                         R246

customised services          R1 708

sundry income                  R290

income ∆                    R11 970
budget structure

                                                                   R’000                                ∆%
                                             ppecb
                                                                                 bud           LY

                                                                   expense     104 041     93 006      12%




        statutory
                                                                                         PIP


R’000      bud      LY      ∆%
                                           customised
                                                                     R’000         bud         LY      ∆%
expense   86 814   82 735   5%
program   8 220    2 557                                             expense       1 241       1 033   20%

                                 R’000       bud     LY      ∆%

                                 expense     7 766   6 681   16%
  expenditure
human capital   training   other
                                                    budget     % of    ∆%
                                                     R’000     total   LY

                                   human capital     R74 596   72%     14%
           71%
                                   activity           R9 590    9%     11%
                                   operational        R5 331    5%     14%
                                   technology         R4 874    5%     13%
                                   administrative     R5 820    6%     -4%
                                   outsourced          R693     1%     -54%
                     2%            training           R1 845    2%      8%

           27%                     depreciation       R1 292    1%     27%
                                   total expenses   R104 041    100    12%
strategic programmes
                                F2006            F2005
                                budget          estimate
                                 R’000           R’000

risk management system              R1 084                 R0

official food safety                R1 432             R587

programme management &
                                    R4 140            R1 970
stakeholder relations

information & statistics                 R875              R0

business processes: iso 17020            R689          R689

total investment                    R8 220            R2 557
benchmark: hourly rate
 R 2,000
 R 1,800
 R 1,600
 R 1,400
 R 1,200
 R 1,000
   R 800
   R 600
   R 400
   R 200
      R0
                                                                              kualitaits
                                                                 uk (techno
              ppecb      sa (sgs)      uk (fsl)     aus (aqis)                 controle
                                                                   fresh)
                                                                                burea
rand/hour     R 290       R 313        R 1,210        R 595       R 1,746     R 1,145
subsidy                                               R 397
pre-tariff                                                                     R 268

                               note: excl travel & incidentals
          1 pound = R12,0106         1 euro = R8,12374           1 $ aus = R4,79836
 customised services
                                        R’000            budget    LY       ∆%

R 3,500
                                        certifications    R3 204   R2 381   35%
R 3,000
                                        analytical
                                                          R2 758   R2 770        -
R 2,500                                 services
                                        specialised
R 2,000                                 services
                                                          R1 261   R1 086   16%

R 1,500                                 overberg
                                        conference         R543     R444    22%
R 1,000                                 centre
                                        total
 R 500                                                    R7 766   R6 681   16%
                                        expenditure

    R0                                  total income      R8 655   R6 936   25%
                                 o cc
                           c
                 lab
           t
          cer




                          spe




                                        contribution       R888     R256

                income expense
agency: SA PIP
                         budget
                          R’000



       expense             R1 241



       ppecb admin fee     R1 362



       variance             R121
budget achievements
              build to support global confidence
              in SA produce
              focus
              systematically manage risk
              build capacity
              build relations
              improve efficiencies
              BEE: procurement & employment
ppecb 2005-2006
“transforming for sustainability”

              creating confidence,

  closing the gap with stakeholder expectations,

      implementing risk based assessment,
                   through an

 integrated food safety and quality management
                     system,

            whilst transferring skills
CERTIFIED TO ISO 9001

				
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