3. Cost competitiveness
Access to
increased
scale of
production
Access to
product &
process
technology
Competitive
operating
efficiencies
Competitive
skills
Enabling infrastructure
Growth in MVA
Competitively priced input materials
5. Background
• Access to increased scale of production and appropriate
product and process technology have been identified as key
competitiveness enablers
• This programme therefore aims to facilitate increased scale
of production and investments in new production technology
Outcomes
• Improved access to sector and firm-level growth
opportunities
• Enable global technology affiliations and local innovation
TSC Chair
• Alex Holmes (Commercial Director, Behr)
6. Highlights
• Automotive Production and Development Programme
(APDP)
• Industry support programmes
• Enabling localisation opportunities and business linkages
7. Background
• A lack of adherence to best practices was identified as
undermining the ability to attain competitive operating
efficiencies
• This programme aims to reduce waste as percentage of
MVA amongst participating group(s) by 5% over a 12 month
period
Outcomes
• Improved knowledge of manufacturing best practices
• Enable effective adoption of manufacturing best practices
TSC Chair
• Bruce Muggeridge (Feltex Fehrer)
9. Background
• Employee costs are higher than leading cost countries
and as such the productivity of employees is recognised
as being a key enabler of competiveness
Outcomes
• Effective skills development interventions
• Application of skills in the workplace
TSC Chair
• Toni Acton (Behr)
10. Highlights
• HR excellence
• Management Development Programme (MDP)
• Graduate Development Program (GDP) for Engineers
• Wellness programme
• Career days
11. Background
• Material, logistics and energy costs are recognised as being
inhibitors of competitiveness. This programme therefore
seeks to improve competitiveness of industry relevant
material and infrastructure
Outcomes
• Improved cost competitiveness in relation to major material
inputs
• Improved cost competitiveness in relation to energy, utility
and related infrastructure usage
• Competitive logistical access to domestic and export
markets
TSC Chair
• Andrew Velleman (General Manager, Toyota Tsusho Africa)
12. Highlights
• Logistics
• Critical updates from energy stakeholders
• Energy assessments & access to Eskom support programmes
• Resource projects and carbon footprint
13. • 38 member firms
• R2.8 m of expenditure in 2012
• Approximately 50% of funding leveraged from the private sector
and sources other than the eThekwini Municipality
• 11 years of solid delivery of services
• 11 successive years of unqualified financial audits
• 89.4% average assessment ratings for workshop related
activities
• Recognised as an exemplar of clustering by various national
and international government, non-government and industry
bodies
18. • The annual audit was undertaken by PKF (Durban). The
AFS affirm good management, controls, and
governance.
• Relationships with a number of ‘indirect funding partners’
have been established and leveraged to the benefit of
member firms and the local economy.
• Municipal grant and membership fee income were
consistent with budget commitments. A further R700k
project-related income was also secured.
• Expenditure was managed in accordance with total
available income resulting in a nominal net shortfall of
R10k.
19. Actual
2012 YE
R
MOU
Budget
2012 YE
R
Total income
eThekwini Municipality 1 339 000 1 339 000
Member fees 673 453 635 400
Project & sundry income 758 427 0
Interest 5 145 26 780
2 776 025 2 001 180
Operating expenditure 2 734 627 1 982 580
Other expenditure 56 663 18 600
Total comprehensive income (loss) (10 120) 0
Retained income from 2011 YE (80 223)
