TASA Gauteng AGM 2010

1. TASA Gauteng AGM 2010 • Welcoming by Chairman Bevan Davis • Notice for Convening meeting / Constitute Meeting Henk Snyman  • Apologies Henk Snyman • Chairman’s Annual Report Bevan Davis • Resignations of current Executive /Acknowledgement Bevan Davis • Proposed election of Chairman Bob Williamson • Election of Chairman Bob Williamson • Nomination and elections of new Executive New Chair • Nomination of TASA Executive to WCTI board New Chair • General All • Closing • Cocktails

2. Annual General MeetingTASA - Gauteng Chairman’s Report Bevan Davis

3. TASA Gauteng: Chairman’s Report2009/2010 • Contents • History and Perspectives – Toolmaking in SA • TASA Gauteng Region 2010 Activities • Public Private Partnership • Creating Capacity – Office • Communication with Stakeholders • Projects • Outcomes • Way Forward • Summary

4. History and Perspectives • Symptoms of Distress in TDM Industry (2002) • Skills Erosion & Job losses • Critical shortage of Designers, Artisans, Engineers and Project Managers in sector. • Radical changes in Skills Value Chain. • Technology Stagnation • Lack of recapitalization. • Lack of focused R&D. • Loss of Capacity • Industry demand growing, SMME quantity declining • Loss of Competitiveness ( China, India, EU) • Absence of BBBEE transformation in TDM industry • Increasing imports – decreasing exports

5. Global Environmental ScanningHistory and Perspectives • Competitor Actions: • East • High Volume, Low Cost, Questionable Quality • Strategic Drivers • Low input costs: Labour, Materials, Equipment and Technology – Government Interventions and Incentives • West • Specialisation, Quality up, Life Cycle Cost down • Strategic Drivers • Near to the Customer: Integrated into production, On site, Technology, Specialisation - Assists Customer cost down action through Technology and Response Time

6. Analysis of SituationHistory and Perspectives • Reality Checks done • Industry Size = R6 000 mil, 80% Imported • SMME’s > 90% of industry • Eastern model NO GO – Lack of resources • Key Success Drivers Identified • Funding: Public Private Partnership Imperative • Industry Driven (Cluster Approach) • Formal Governance Structures • Separation of Governance and Execution • Multi Stakeholder Engagement • Program Roadmaps and Methodology

7. TASA’s Response - PlanHistory and Perspectives • Program Roadmap and Methodology • PPP Governance Structures (Done) • Mobilisation of Stakeholders • Cooperative Development, Alignment, Capacity Building. • Skills Development (TDMPower) • Competitiveness Improvement • Clustering (critical mass) • SMME Capacity Expansion, BBBEE Structuring • Technology Recapitalisation • Summary • Address 6 M’s of manufacturing: motivation, men, machines, method, market, money

8. TASA Gauteng’s Response-DoingResponse 1 = PPP • TASA Gauteng PPP • Gauteng Tooling Initiative (Section 21 Company) • Fully operational (Office + Two full time employees) • Functional office, Web Site, Blog, Database • Effective communication channel with members • Governance Structures GTI Board of Directors • TASA Executive as nominated Directors • +Government: GDED Director - Leonard Makgamathe • +Training Institutions: FET Colleges – Dr Johan Kleinhans

9. TASA Gauteng’s Response-Doing2 Mobilisation of Stakeholders • TASA membership drive re-activated • Afrimold participation by members – funded by GTI • Own Publication – Centre portion of “ADVANCED MATERIAL TODAY” • 17 Members (paid up) • Cooperative Development • Industry and FET’s cooperate in On the Job Training of Apprentices – (Skills Development) • Gauteng City Regional Academy – Negotiation started to obtain Bursaries for 2011 (PPP with GDED) • Gauteng Economic Propeller – Considering assistance to uplift industry capability (Benchmarking and Interventions) • Alignment (Merseta actions + TDM Powered Program + dti Support + Treasury Aligned) – see next slide • Capacity Building (Skills facilitation etc) • CUSTOMERS places orders only on toolmakers belonging to TASA

10. TASA Gauteng’s Response-DoingSkills Development • Skills Development • TDM Power program in Gauteng • 2010 • 41 Pre-Apprentice complete course successfully • 2 FET’s involved • 2011 • 250 1st year apprentices • 5 FET’s / Training Institutions involved • No Training cost to participants • Aligned with Merseta actions (see slide) • See Video at end of report.

11. TASA Gauteng’s Response-DoingCompetitiveness Improvement • SA Customers want to Buy South African • Prevented from doing so because of • Timing, Cost, Quality, Capacity – (need 20 tools at once) • Action • Competitiveness Improvement (with GEP financial support in 2011) • How? • Benchmarking (How good is the company?) • GAP Analysis • Action Plans • To improve companies performance • To cluster technologies / companies to create capacity / critical mass • Investment as is considered appropriate.

12. TASA Gauteng’s Response-DoingSMME Capacity Expansion, BBBEE Structuring • Help Desk at TASA Offices is Operational • All functions that a Toolmaking Entity requires i.e. • Business, Marketing, Financial, Project plans (Neil Sapsford) • BEE Scorecard, HR etc. • Funding Sourcing Assistance • Preparing applications and navigating applications to success • Market Access Expansion • Web Page + Search Facility for Members to advertise on National TASA Website • Discounts – Starting with CAD Software • Referrals' for TDM work to Members from customers contacting TASA Offices.

13. TASA Gauteng’s Response-DoingTechnology Recapitalisation • Technology Recapitalization • TASA actions in Planning Phase • Aachen benchmarking exercise concluded SA equipment technology relatively OK, management methodology not OK • Technology required: • Making unique one of products with a lean production line methods and different attitude • Management “Technology” • Marketing, Business Management, Customer Integration, Supplier Management, Quality Systems, Lean manufacturing

14. Unexpected Requests • Department of Manpower Actions • TASA members asking advice • Levelling playing field on remuneration • Competitiveness • SA Losing Export work in straight competition with Europe • Cost of raw material comparison

15. Summary 2010 2011 PPP in Place Office is Working Apprentice program successful Afrimold (mobilised members) Publication (Advanced Materials Today) Customers contacting TASA on finding Quality Toolmakers Help Desk started Unlocking Synergies with GCRA and GEP (Funds) Alignment with stakeholders significantly streamlined (dti, Merseta, etc) Discounts for TASA members Clustering starting to work • Apprentice program expands to 250 • Bigger Afrimold in 2011 • More TASA members • TASA run Conference • Expanding Publication • Branding TASA Members as Tool Making Elite • Unlocking • Funding (Banks etc), Grants, Discounts • Cluster expansion after • Benchmarking - followed by • Gap Analysis • Management Interventions • Recapitalisation • Capacity Marketing • Building • TASA BRAND • Business volume for each member

16. Conclusion TASA and its members will initiate and support programs that are based on and enhances proven competencies to deliver quality product on schedule at a fair price to our customers. As participant in the successful PPP, TASA Gauteng will use all the industry support mechanisms in a synergistic manner to drive economic growth for a better life for all in Gauteng. Where strategy, policy, bureaucracy and executable plans are not in alignment, this will be highlighted and addressed.