DST PARLIAMENTARY PORTFOLIO COMMITTEE BRIEFING

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DST PARLIAMENTARY PORTFOLIO COMMITTEE BRIEFING

• PRESENTED BY
• ZEN FOURIE
• 2005-08-23

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SABS IN CONTEXT

• SABS is classified as a Science Council
• It reports to the dti where it receives its
  policy direction
• The Standards Act mandates
• SABS as the National Standards Development
  Organization
• SABS as a regulator responsible for the
  administration of technical regulations arising
  mainly from the dti
• The SABS has a defined Commercial interest

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ALIGNMENT TO dti GOALS

• SABS CONTRIBUTES TO THE FOLLOWING dti GOALS
• Promoting Macro economic goals and objectives by
• Publish standards that enhance market access
  opportunities
• Alignment of standards with international
  standards achieving relevance recognition
• Globalization ensures SABS representation and
  influence in relevant national international
  forums
• Supports SADC trade protocol through
  harmonization of regional standards and technical
  regulations.

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ALIGNMENT TO dti GOALS

• SABS CONTRIBUTES TO THE FOLLOWING dti GOALS
• Reduce economic inequalities, by
• Supporting national regional imperatives, BEE
  promotion preferential procurement
• Social investment such as rural development, SMMe
  support development

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KEY PRIORITIES

• Sustainable Growth of SABS
• Efficient, Transparent fair Regulatory Services
• Improvement in market access exports, as
  facilitators emissaries of trade
• Support National Regional Imperatives
• BEE
• SME
• SADC
• NEPAD
• Improvement in Service Delivery

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THE DTI
COUNCIL
SABS CEO
CORPORATE
COMMERCIAL
NON-COMMERCIAL
STANDARDS
DESIGN INSTITUTE
TESTING
CERTIFICATION
REGULATORY AFFAIRS CONSUMER PROTECTION
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WHAT BUSINESS ARE WE IN?
Our aim is to provide Standards, Regulatory
Conformity Assessment Services that improve the
competitiveness of South Africa and provide
appropriate consumer protection.
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SABS Value chain
Protection of health, safety environment,
and consumers, when market fails.
Technical Regula-tion
Published technical information
Promotion of technical collaboration and
international harmonization
Promotion of technical innovation
Standards information sales
Product testing against standards
Testing Services
Standards Develop-ment
RD
Product certifica-tion
Assurance of product conformity
Assurance of organiz-ational com- petence
System certifica-tion
COMMERCIAL
REGULATORY
STANSA
SABS provides the above outputs to the market at
each stage of its internal value chain, thus
contributing to competitiveness and market
access, while protecting health, safety,
environment and consumers.
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CORE ACTIVITIES

• Standards
• Regulatory
• Design Institute

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STANDARDS DEVELOPMENT INCLUDINGRESEARCH
DEVELOPMENT
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SABS Value chain
Protection of health, safety environment,
and consumers, when market fails.
Technical Regula-tion
Published technical information
Promotion of technical collaboration and
international harmonization
Promotion of technical innovation
Standards information sales
Product testing against standards
Testing Services
Standards Develop-ment
RD
Product certifica-tion
Assurance of product conformity
Assurance of organiz-ational com- petence
System certifica-tion
SABS provides the above outputs to the market at
each stage of its internal value chain, thus
contributing to competitiveness and market
access, while protecting health, safety,
environment and consumers.
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FOCUS

• Development of new standards for product quality
  and safety
• Update /amend existing standards as technology
  and economic environment changes
• Standardization of test methodologies in order
  to test against these standards

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PROJECTS

• National HIV/AIDS Management Standard NOSA, MRC
  
• (R 750 000)
• The effect of EMF radiation from cell phones on
  human and animal tissues and other systems UP,
  DST, NRF, TUT
• (R350 000 R500 000)
• Corrosion of types of wire fence under different
  climatic conditions ARC, IZASA (R250 000)
• The effectiveness of wheel valances on limiting
  water spray by heavy freight vehicles DOT - (R
  70 000)
• Production and characterisation of Biodiesel from
  commercial crops DME, DST, CSIR (R550 000)
• Effect of ink type on recyclability of Plastic
  bags - TUT, CSIR, DEAT (R300 000)

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PROJECTS

• Corporate Social responsibility in South Africa
  AICC, ISO, SIDA (R350 000)
• Animal drawn cart DOT, Design Institute, NWP
  (R2 million)
• Empirical Study on the Economic benefits of
  Standardisation - UWC, BSI, DIN ( R498 000)
• Energy and Demand efficiency for commercial
  buildings DME, DANIDA (R610 000)
• Electrical installations Need for surge
  protection WITS, Telkom, Eskom, CBI (R165 000)
• Cleaning efficiencies of detergents CSIR, SABS
  test house (R 100 000)
• Thermal Insulation TIASA, (R80 000)

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STANDARDS DEVELOPMENT
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SABS Value chain
Protection of health, safety environment,
and consumers, when market fails.
Technical Regula-tion
Published technical information
Promotion of technical collaboration and
international harmonization
Promotion of technical innovation
Standards information sales
Product testing against standards
Testing Services
Standards Develop-ment
RD
Product certifica-tion
Assurance of product conformity
Assurance of organiz-ational com- petence
System certifica-tion
SABS provides the above outputs to the market at
each stage of its internal value chain, thus
contributing to competitiveness and market
access, while protecting health, safety,
environment and consumers.
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STANDARDS

• Promote the interests of industry the consumer
  through the provision of standards
• Harmonizing national standards with international
  standards (ISO IEC)
• Leadership in SADCSTAN to further the
  harmonization of standards technical
  regulations within SADC
• Provide assistance training to SADC/Africa
  standards bodies in support of NEPAD

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Standards South Africa

• Produced 885 standards during 2004/5
• Maintains more than 5000 standards
• Facilitates work of 450 technical committees
• Provides information on, and sells, standards
• Employs ca. 150 people
• World Trade Organization contact point

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Just for clarity

• SANS is a designation system for South African
  National Standards
• There is no organisation called SANS
• There is no SANS mark

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How are standards developed?

• Request to department
• Developed by Representative Technical Committees
• Project-based approach
• Market relevance/ aligned with Government
  Priorities
• Consensus-based
• Progressive drafts (consensus building)
• Public enquiry

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REGULATORY AFFAIRS AND CONSUMER PROTECTION
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SABS Value chain
Protection of health, safety environment,
and consumers, when market fails.
Technical Regula-tion
Published technical information
Promotion of technical collaboration and
international harmonization
Promotion of technical innovation
Standards information sales
Product testing against standards
Testing Services
Standards Develop-ment
RD
Product certifica-tion
Assurance of product conformity
Assurance of organiz-ational com- petence
System certifica-tion
SABS provides the above outputs to the market at
each stage of its internal value chain, thus
contributing to competitiveness and market
access, while protecting health, safety,
environment and consumers.
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Compulsory specifications

• Standards Act allows Minister (dti) to declare a
  standard (or part) compulsory
• In such cases, SABS Regulatory becomes the
  Regulator
• Financed by levies
• More than 70 compulsory specifications

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CONSUMER PROTECTION

• In the SABS consumer protection covers
• Health and safety
• Accurate measurement
• Short measure
• Environment
• Quality

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REGULATORY AFFAIRS
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UNDERPINNING FRAMEWORK
IMPACT ASSESSMENT
TECHNICAL REGULATION
POLICY
LEGISLATION
Administrative Procedures
Product/Processes Characteristic
Technical Requirements (Standard)
Conformity Assessment (Testing Certification)
Regulator
Sanctions
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MANDATE

• Standards Act
• National Road Traffic Act
• Trade Metrology Act
• National Gambling Act
• Health Act
• Foodstuffs, Disinfectants Cosmetics Act
• Occupational Health Safety Act
• Mines Health Safety Act

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MECHANISMS USED TO ENSURE CONSUMER PROTECTION (1)

• Homologation and type approval
• Consignment inspections
• Market surveillance/Inspections
• Verification
• Calibration of verification Standards
• Confidential forensic investigations
• Customs and excise activities

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MECHANISMS USED TO ENSURE CONSUMER PROTECTION (2)

• Approval of accredited laboratories to verify
  measuring instruments
• Education and Training
• Issuance of compliance certificates
• Implement Sanctions
• Embargoes
• Restriction of Sale
• Destroying of non-compliance goods
• Litigation

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ELECTROTECHNICAL GAMING

• Scope ? Consumer Protection w.r.t
• Household appliances
• Audio-visual equipment
• IT business systems
• Power tools
• Luminaires
• Gaming machines, equipment, also monitoring
  control systems

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LEGAL METROLOGY

• Scope ? protection of the consumer w.r.t weights
  measures e.g.
• Standard loaf gt 700g
• 1kilo IS 1 kilo
• Tot
• Inspection of pre-packed goods
• Type approvals of measuring instruments used in
  trade
• Verification re-verification of instruments
• New and in-use

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FOOD ASS.INDUSTRIES

• Scope ? consumer protection w.r.t.
• Canned fish, crustaceans, marine molluscs
• Frozen fish, shrimps, rock lobster, crabs,
  langoustines
• Canned meat
• Smoked Snoek

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AUTOMOTIVE

• Scope ? consumer protection w.r.t vehicles
  automotive components
• Trailers
• Cars, buses, taxis, trucks
• Lights, brakes, windscreens
• Tyres
• Assessment of vehicle test stations
• Registration of MIBS Natis

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CONSUMER HEALTH SAFETY

• Scope ? Consumer Protection w.r.t.
• Plastic bags
• Breathing equipment
• Baby car seats
• Disinfectants
• Motorcycle helmets
• Flotation aids
• Brake clutch fluid
• Cabinets where testing of blood take place
• Cigarette lighters

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DESIGN INSTITUTE
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DESIGN INSTITUTE

• Promotion of SA Design
• Division is currently involved in major
  strategies regarding a National Design Policy
• Will guide design promotion alignment with the
  National System of Innovation the objectives of
  NEPAD

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SABS Value chain
Protection of health, safety environment,
and consumers, when market fails.
Technical Regula-tion
Published technical information
Promotion of technical collaboration and
international harmonization
Promotion of technical innovation
Standards information sales
Product testing against standards
Testing Services
Standards Develop-ment
RD
Product certifica-tion
Assurance of product conformity
Assurance of organiz-ational com- petence
System certifica-tion
SABS provides the above outputs to the market at
each stage of its internal value chain, thus
contributing to competitiveness and market
access, while protecting health, safety,
environment and consumers.
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SABS COMMERCIAL
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COMMERCIAL ACTIVITIES

• Testing
• Certification
• Training

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TESTING

• Testing, calibration, inspection, monitoring
  assessment services
• nationally internationally
• Accreditation in accordance with
• ISO/IEC 17025
• OECD GLP (Good Laboratory Practice)
• ISO 9000
• SANAS RvA

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• Testing Conformity Services (Pty) Ltd
• Wide range of tests
• From microbiology to extra high voltage
• 70 Labs in Pretoria Olifantsfontein
• 7 Labs in Cape Town East London
• Eurotype Test Centre (Pty) Ltd
• Wide range of automotive tests Pretoria
• CoP Testing East London

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CERTIFICATION

• Provides consignment inspection, product system
  certification services nationally globally
• Accreditation in accordance to
• SANAS
• RvA
• UKAS
• SABS Certification Services (Pty) Ltd
• System Certification
• ISO / Eurepgap / HACCP / OHSAS
• Coal Mineral Technologies (Pty) Ltd
• Quality solutions to the fuel, mineral related
  industries

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TRAINING

• Provides training in
• Quality Management ISO 9000 series
• Environmental Management ISO 14000 series
• OHSAS 18000 series
• HACCP SANS 1330 series
• Information Security ISO 17799 series
• SAATCA
• SETA

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FINANCIAL AND HUMAN RESOURCE HIGHLIGHTS
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FINANCIAL HIGHLIGHTS
2005 R000s 2004 R000s Change
Revenue - Commercial 330,227 312,865 6
Core Funding 97,075 90,410 7
Profit from operations 18,873 24,127 -22
Total assets employed 368,997 342,429 8
Cashflow from operating activities 48,172 55,685 -13
Capital expenditure 12,741 17,173 -26
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KEY PERFORMANCE INDICATORS
2005 2004
Return on net assets employed () 9.5 13.0
Operating margin () 6.9 8.6
Revenue per employee (Rands) 277,735 273,962
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BUDGET 2004/2005
R000s
Government Funding
Science Vote 98 099
DTI - Trade Metrology 9 000
107 099

Standards 49 548
Regulatory include Trade Metrology 34 163
Design Institute 7 208
Corporate 12 580
SAQI 2 000
NETFA / NLVA 1 600
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EMPLOYEES
2005 2004 Change
Black 695 641 8
White 494 501 -1
Total 1,189 1,142 4
Females 503 481 5
Black of Total 58 56
Female of Total 42 42
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info_at_sabs.co.za
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CHALLENGES FACING SABS

• Globalization organizations such as BSI, SGS
  setting up businesses in the country
• Sustainability of the economy
• Unemployment
• The effect of HIV/AIDS on the workforce
• The increasing importance of Corporate Social
  Responsibility

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• Rapid advances in information communication
  technology
• Regionalization, in particular the initiatives
  flowing from NEPAD SADC
• The growing debate on the supply of conformity
  assessment services by organizations linked to
  government vs those in the private sector