1. SOUTH AFRICAN BUREAU OF STANDARDS
2014/15 Q4 Report to the Parliamentary Portfolio Committee on Trade & Industry
18th August 2015
QUESTION:
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

2. CONTENTS INTRODUCTION OPERATIONAL HIGHLIGHTS 2014/15
Q4 REPORT 2014/15
INTRODUCTION
OPERATIONAL HIGHLIGHTS 2014/15
PERFORMANCE VS PREDETERMINED OBJECTIVES
FINANCIAL PERFORMANCE
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

3. RENEWAL AFTER 65 YEARS OF REGULATORY
The SABS was established in terms of the Standards Act, 1945 (Act No. 24 of 1945)
In 2008, the regulatory function of the SABS was removed - Standards Act No. 8 of 2008 and NRCS Act of 2008
SABS CONFIDENTIAL

4. SOLID FOUNDATION : 70 YEARS
Sub headline
~1100 Employees
~ 100 Contract Employees
~130 Standards Development
~400 Laboratories
~350 Certification
~50 Training & Design Institute
~150 Corporate Services

6. Roles – International Platforms
Sub headline
SABS has customers in many countries and has key stakeholders that span the region, continent and the world.

7. 25% - Gov. Grant 75% - Services income FULL VALUE CHAIN OF SERVICES
Testing
Government
Services
Certification
Standards
Development
Training
Design Institute
25% - Gov. Grant
75% - Services income

8. Roles – International Platforms
Sub headline
ISO Council
IEC Council
SADCSTAN Secretariat
ISO TMB
New CASCO Chair
ARSO Council

9. OPERATIONAL INDICATORS
Q4 REPORT 2014/15
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

10. AUDITOR GENERAL’S REPORT
Q4 REPORT 2014/15
THE SABS HAS ACHIEVED A CLEAN AUDIT FOR THE 2014/15 PERFORMANCE YEAR FOR THE THIRD CONSECUTIVE YEAR
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

11. OPERATIONAL INDICATORS
Q4 REPORT 2014/15
Annual growth in revenue increased by 8% compared to only 6% in the previous year
Expenditure increased by 5% as compared to the increase of 10% in the previous year
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

12. OPERATIONAL INDICATORS
Q4 REPORT 2014/15
Published home- grown standards
Number of SMME beneficiaries of the Design Institute programme
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

13. PERFORMANCE VS PREDETERMINED OBJECTIVES
Q4 REPORT 2014/15
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

14. OPERATIONAL INDICATORS
Q4 REPORT 2014/15
An overall achievement of 81% (13 out of 16) of performance indicators in the business plan
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

15. STRATEGIC OBJECTIVE: GROWTH
Q4 REPORT 2014/15
OUTPUT
INDICATOR (S)
2014/15
Target
Actual
Comment on variance
Revenue
Sales revenue (million)
Operating profit
580.2
3.7%
569.1
2.4%
Lower volumes
(except Certification)
Revenue shortfall exerted dampening effect
New Certification scheme
2 New schemes by year end
Two
Target met
New Training courses
3 New courses by year end
Three
Home Grown Standards
Number published
225
232
Target exceeded
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

16. STRATEGIC OBJECTIVE: PRODUCTIVITY
Q4 REPORT 2014/15
Output
Indicator (s)
2014/15
Target
Actual
Comment on variance
Increase in compulsory specifications that can be tested at SABS
Percentage that can be tested fully
80%
Target met
Implementation of Laboratory Information Management System (LIMS)
Percentage of laboratories (36) on LIMS
100%
86%
Technical problems, particularly in remote laboratories
Reduced time for publication of standards
Number of days required
< 400
398
Target exceeded
Modernisation of laboratory facilities
Number of laboratories that are fully functional in the new building 9
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

17. STRATEGIC OBJECTIVE: CUSTOMER/ STAKEHOLDER
Q4 REPORT 2014/15
Output
Indicator (s)
2014/15
Target
Actual
Comment on variance
An improvement in customer and stakeholder relations
Implementation of the actions in the customer & brand surveys
Number of laboratories on the new CRM platform
80% 10
90% 15
Target exceeded
Development of SMMEs
Number of SMMEs for whom projects were developed and implemented 25 58
E-Committees that fully use the installed modules of the e-committee portal
Number of committees
83%
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

18. STRATEGIC OBJECTIVES: COMPETENT & EMPOWERED EMPLOYEES
Output
Indicator (s)
2014/15
Target
Actual
Comment on variance
Graduate & student internship programmes
Number of graduates/ students on the internship programme intake 10 11
Target exceeded
Leadership development programmes
Number of managers who successfully complete a leadership development programme 50 59
Workforce capacity
Vacancy rate of identified critical positions (out of total employee complement)
< 7%
< 3.4%
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

19. FINANCIAL PERFORMANCE
Q4 REPORT 2014/15
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

20. FINANCIAL OVERVIEW Revenue growth 8% for the full year
Q4 REPORT 2014/15
Revenue growth 8% for the full year
Total Expenses increased by 5% for the year
Employee benefits increased by 12% for the year as result of the three year NEHAWU agreement
Net profit of R32.2 million, 48% higher than prior year
Total assets increased by R44 million
Property, Plant and Equipment increased by R15 million
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

21. INCOME STATEMENT Q4 REPORT 2014/15
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

22. STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015
Q4 REPORT 2014/15
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

23. CHALLENGES Baseline cut Q4 REPORT 2014/15
25%
23%
21%
24%
Revenue growth has been slow. With increases in expenses (especially employee benefits), the revenue gap widens
Risk of Treasury MTEF reduction in future
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

24. Are we optimally used in the economy?
Role of the National Standards Bodies
Q4 REPORT 2014/15
Are we optimally used in the economy?
CELEBRATING 70 YEARS OF QUALITY ASSURANCE

25. THANK YOU
QUESTION:
70 YEARS – GIVING YOU THE QUALITY EDGE