AGRÉMENT SOUTH AFRICA

AGRÉMENT SOUTH AFRICA

PRESENTATION TO THE PORTFOLIO COMMITTEE FOR THE DEPARTMENT OF PUBLIC WORKS

0N 20 MAY 2008, CAPE TOWN

STRATEGIC PLAN AND BUDGETS FOR 2008/10-12CEO: Mr. JOE ODHIAMBO

Wednesday, April 19, 2023

2

Presentation Outline

• Business Plan

• New Initiatives

• Requirements for new initiatives

• Current Budget 2008/2009

• Proposed Ideal budget for 2009/2010-12

• Value added by new initiatives


3

Mandate

• Agrément South Africa operates under the delegation of authority from the Minister of Public Works to:

• Provide assurance by carrying out testing, evaluation, confirmation and certification of fitness for purpose of non-standard construction products and systems through• Quality products and services• Improve speed of service delivery


4

Vision & Mission

• Vision

To improve its standing as a world-class Technical Assessment Agency and to contribute to creating a better life for all in South Africa

• Mission

Promote the government’s objectives of economic development, and raising living standards and prosperity for all the people of South Africa by encouraging and facilitating the use of innovative and non-standard construction products and systems through its certification scheme


5

Governance

A NEW BOARD WAS ESTABLISHED• The Board was inducted by the Minister of Public Works

early in the year and the following was articulated:– To raise standards in the construction industry

– Develop new objectives for quality and quantity of outputs

– Make a difference in the lives of South Africans by enhancing service delivery through testing and approving improved construction products and systems.


6

Strengths

• Strong support from the Government • Strong and well-functioning technical committee• Good internal controls and reliable financial management• Well-qualified senior staff• Excellent and highly skilled professionals available in the

CSIR for the roads infrastructure area• Strong international links• Participatory management• Enthusiastic and competent Board• Excellent technical assessment criteria • Well-developed and tried and tested technical

assessment methodology


7

Compliance issues

• Compliance to King 2 guidelines in terms of the Board workings and structure

• Subject to an enabling legislation being promulgated

• The board is contemplating establishing the following committees:

• Remuneration Committee (REMCO)• Audit Committee• Risk Management ( RM) Committee• Research and Development (R&D) Committee• Occupational Health and Safety ( OSH) Committee

• The latter to be more operational compliance

Compliance Issues


8

Progressive Initiatives1

• Enhance skills development through internships, learnerships and an external bursary programme focusing on the built environment professions

• Promote growth and development of innovative construction products assessment

• Reduce the vacancy rate in the staff complement of the Agency

• Advance Broad Based Black Economic Empowerment procurement objectives.


9

Progressive Initiatives2

• Participating in several Imbizos around the country• Providing information at cidb’s construction contact

centres• Providing background information on innovative

construction technologies at the Department of Public Works’ provincial strategic planning workshops

• Participating in national shows throughout the country• Participating in science shows, for example Science

Fest• Conducting visits to selected universities and high

schools


10

Test Equipment for New Labs1

The closure of several labs nationally have left the agency with no choice but to procure their own equipment

Agrément relied on external laboratories which are not serving the agency adequately due to slow response inability to do certain tests

Need for the following equipment• Heat Flow Meter Instrument (ASTM C 518, ISO 8301).

The heat flow meter will enable the Agency to perform technical assessments in line with the requirements of SANS204, which is currently being drafted.

• Hydraulic Wall Test Rig System• MKF 720 Material Test Chamber Series Environmental

Simulation Chambers for complex temperature profiles


11


Other equipment • Instron 5 kN universal material tester

(tensile/compression tester)• Q-Sun Xenon arc tester plus accessories

(accelerated weathering tester)• Q-Fog cyclic corrosion chamber plus accessories

(corrosion/salt spray chamber)• High-precision industrial balance • Toggle specimen cutting press• High-performance stereo microscope with camera• Xrite sphere spectrometer.


12


Benefit of new equipment will be • Quick turn around time in carrying out the tests• Improved efficiency in the operations of the agency• The agency will gain competence in executing a new

range of different tests such as thermal assessment testing which is aimed at national energy saving

• The agency staff members will enhance their skill by gaining competence in testing and thereby improving the national technical skill base.


13


The cost required for the new equipment in the first year will be and additional amount of R 5.72 million to the amount approved in MTEF budget

The Agency will progressively add required equipment annually for the next few years until fully competent

• The selection of the equipment will be in line with the latest and most efficient recommended by the World Federation of Technical Assessments Organisation

• The PFMA requirements will be strictly followed in the procurement process

• All equipment will include delivery, commissioning and maintenance contracts to ensure they continue to add value to the Agency


14

Organizational Structure

Board

Technical Committee

Technical Agency CSIR

Technical Experts


15

Current Human Resources

Percentage of staff either black or female: 73%

Comprehensive structured mentorship programme

Black Female

Black Male

White Male

1 CEO1 Group Assistant3 Technical Assessment Group Leaders2 Senior Technical Assessors 3 Technical Assessors1 Draughtsperson


16

Current OrganogramPortfolio Committee Oversight function

Quality Assurance, Water penetration & Laboratories: Technical Assessor Group

Engineering: Technical Assessor Group Leader

Architectural: Technical Assessor Group Leader

Senior Technical Assessor

Technical Assessor


Technical Assessor


Technical Assessor

Draughtsperson

BOARD

CEOGroup Assistant


17

Shortcomings of Current Structure

• Non visibility and awareness due to no Stakeholder Relationship Manager

• Testing of new products take too long at times up to six months as the agency has to rely on external technical experts due to staffing constraints

• Current staff members are grossly overloaded with each assessor undertaking up to six projects concurrently


18

Recruitments for Desired Structure

• Board secretary• Chief operations officer• R&D technical assessor group leader• Laboratories technical assessor group leader• Communications/media/publications and stakeholder

relationship manager• Quality manager• Three senior technical assessors • Three interns• Increased staff complement to 23 from 11 and

additional financial outlay of R 6.784m for the 2009/10 financial year.


19

Proposed Solutions to Organogram

• Recruitment process to begin during 2008/2009• New staff members to report beginning of 2009/2010• Cost of new staff remuneration included in proposed

ideal budget • Staff members to address critical shortcomings within

the Agency and make it more visible as well as produce tangible products to improve construction ands service delivery in South Africa


20

Desired OrganogramMinister of DPW

Exec Board Secretary

R + D Group Leader

Architectural Group Leader

Quality Management

Group Leader

EngineeringManagement

Group Leader

Senior Lab Technical Assessor

Senior Engineering

Technical Assessor

Senior R + DTechnical Assessor

Architectural Technical Assessor

BOARD

Group Assistant

R + DTechnical Assessor

Lab Technical Assessor

EngineeringTechnical Assessor

Lab Group LeaderStake holderRelationship

Manager

Junior Architectural

Technical Assessor

CommsPractitioner

Senior Architectural

Technical Assessor

Senior Quality Management

Technical Assessor

CEO

COO


21

Key Success Factors1

• Adequate manning of the Agency with professionals. • On-going in-house training and skills development• Bursary schemes and exposure of the industry • Widening the pool of expertise utilised by the Agency• Development of an in-house testing capability• Increasing the efficiency and effectiveness of

evaluations• Widening the scope of products and systems being

certificated.• Increasing the need for certification by approval

authorities making certification a requirement for non-standard products.


22

Key Success Factors2

• Increasing visibility and awareness by stakeholder relationship manager

• Well planned and aggressive awareness and visibility campaigns.

• Building relationships with other national agencies • Identifying innovative and non-standard products

from overseas for use in South Africa which are labour intensive and suited to SMME’s


23

Barriers to being the Best1

• Inability to attract and retain suitably qualified staff • Shortage of skilled personnel within the Agency .• Certification is not required by law • Lack of enforcement and the challenge of monitoring

capacity • The limited funding structure critically hampers the

impact of the organisation


24

Budget 2008/2009-1012

Description 2008/2009 2009/2010 2010/2011 2011/2012Manpower or Human capital costs 3 980 000 4 296 000 4 605 000 4 927 000Technical assessments, operational, Quality monitoring, Marketing, Equipment & Research into technical criteria 2 980 000 3 220 000 3 450 000 3 692 000CSIR infrastructure costs including Rental, Depreciation and Management services 1 960 000 2 114 000 2 265 000 2 423 000TOTAL 8 920 000 9 630 000 10 320 000 11 042 000


25

Additional Finances 2008/2009-2010

Description 2008/2009 2009/2010 2010/2011 2011/2012Manpower or Human capital costs 0 6 784 000 7 583 000 8 480 000Technical assessments, operational, Quality monitoring, Marketing, Equipment & Research into technical criteria 0 5 720 000 6 384 000 7 125 000CSIR infrastructure costs including Rental, Depreciation and Management services 0 3 766 000 4 203 000 4 692 000TOTAL 0 16 270 000 18 170 000 20 297 000


26

Ideal Budget 2008/2009-1012

Description 2008/2009 2009/2010 2010/2011 2011/2012Manpower or Human capital costs 3 980 000 11 080 000 12 188 000 13 407 000Technical assessments, operational, Quality monitoring, Marketing, Equipment & Research into technical criteria 2 980 000 8 940 000 9 834 000 10 817 000CSIR infrastructure costs including Rental, Depreciation and Management services 1 960 000 5 880 000 6 468 000 7 115 000TOTAL 8 920 000 25 900 000 28 490 000 31 339 000


27

Compliance with PFMA and Treasury Regulations

• Quarterly reports• Member of the BE Management Team • Annual Strategic planning session• Shareholders compact • Strict adherence to financial management• Financial statements subjects to independent

external audit as well as an autonomous internal audit


28

Core Deliverables in Vision 2015

• Backward integration – research and development – best and most advanced construction

technologies from overseas and introduce them in the South African market.

• Forward integration – promotion of the Agency as a brand. – awareness and visibility campaigns within the

country. – promotion of innovative construction as an

improved method of construction.


29

Vision 2015

• Innovative, modern and better construction technologies will be widely used in South Africa

• Agrément will be highly visible and relevant to the construction industry in South Africa

• Substandard innovative construction products will be prevented from getting to the market

• The risk involved in the use of untested innovative products will be ameliorated

• The agency will be highly transformed and will represent the demographic profile of the country

• The housing provision challenge will be mostly addressed using innovative construction systems


30

Vision 2015

The new RSA house that will be • Affordable• Easy to construct• Energy Efficient• Encompasses Sustainable construction principles• Quick to construct• Low maintenance

A house that is suitable to the needs of the majority of the people of South Africa


31

Thank you…

SUPPORT

EFFORT

GOAL

AGRÉMENT SOUTH AFRICA

Documents

Transcript of AGRÉMENT SOUTH AFRICA