prasa enterprise pmo business integration projects status – november 2009

PRASA ENTERPRISE PMO

BUSINESS INTEGRATION PROJECTS STATUS –

NOVEMBER 2009

2

PORTFOLIO PROJECT TITLE ORGANISATION FINANCE RISKS ISSUES OVERALL STATUS* MANDATORY Compliant Statutory Financial Reporting Finance* MANDATORY Develop Management Accounts and Costing Model Finance

MANDATORYPRASA Group Tax Compliance and Balance Sheet Restructuring Finance

* MANDATORY Bank Accounts for Shosholoza Meyl and Autopax Finance* MANDATORY Legal & Compliance Policies & Procedures Legal & Risk

MANDATORY Enterprise Risk Management Framework Legal & Risk* MANDATORY Implementation of IMS/ISO 9001 Accreditation Operational Safety

MANDATORY S Meyl Train & Support Staff S MeylMANDATORY S Meyl Locomotives S MeylMANDATORY S Meyl Interface Agreement S Meyl

INFRASTRUCTURE National Signalling(Stage1) SAM: INFRAINFRASTRUCTURE Train Simulator Project [Ulwazi] Metrorail

3

PORTFOLIO PROJECT TITLE ORGANISATION FINANCE RISKS ISSUES OVERALL STATUSSUPPORT SERVICES PRASA Merger - Integration EPMOSUPPORT SERVICES Enterprise Programme Management [Project Prioritisation & Project management Systems]EPMOSUPPORT SERVICES Merger Corporate Security Corporate SecuritySUPPORT SERVICES Gauteng North / South Integration MetrorailSUPPORT SERVICES Total Station Management MetrorailSUPPORT SERVICES PRASA Strategic Plan SNPSUPPORT SERVICES Change Management HRSUPPORT SERVICES Values & Culture HRSUPPORT SERVICES Human Capital Management HR

* SUPPORT SERVICES New Group SCM Policy Roll-out & Implementation SCM* SUPPORT SERVICES Materials Management SCM

SUPPORT SERVICES Group Marketing & Communication Strategies Corp- Affairs & Marketing

4

PORTFOLIO PROJECT TITLE ORGANISATION FINANCE RISKS ISSUES OVERALL STATUSBUSINESS OPPORTUNITY Alternative Sources of Finance Finance

* BUSINESS OPPORTUNITY Strategic Sourcing SCM* BUSINESS OPPORTUNITY BCM Implementation Operational Safety

PROPERTY Total Facilities Management Intersite

* INFORMATION & TELECOMMS Integrated Ticketing System ICT* INFORMATION & TELECOMMS ERP Implementation Phase 1 ICT* INFORMATION & TELECOMMS Development of IT Governance Structure ICT

* SUSTAIN Preventative Maintenance [Metrorail / Shosholoza Meyl] Metrorail

* Denotes no Project Status

5

MANDATORY

6

Complaint Statutory Financial Reporting

•No Project Status submitted.

•No Updated project plan submitted.

7

Develop Management Accounts and Costing Model



8

FUNCTIONAL AREA PRASA Approved

budget (Rm) Rm

Current Forecast (Rm)

Rm

Committed Value

(Rm) Rm

Expenditure (Rm) Rm Planned progress % Actual progress % Overall status

Focus Area (if applicable): PRASA Tax and

Balance Sheet

restructuring

R0.0 Yet to be determined

R1.0 R0.0 Tba Tba

Relevant Deliverables: Key Milestones % Progress - Last Month

% Prog- Curr Month Comments

Procure service provider

100% 100% Done

Project No. Project Title Strategic Pillar Impact Area Final report 60% 60% Project ongoingPRASA Group Tax Compliance and Balance Sheet restructuring

Legislative compliance

High PRASA Appoint service

provider

0% 0%

Strengthened balance sheet

Tax guideline for PRASA and BU's

Interdependencies FinancialRisk (Escalated) Baseline Yet to be detreminedRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope R0.0m No

.+/- Budget Omissions

R0.0m

Current Approved R0.0m

.+/-Forecast svgs (overruns)

R0.0m

Latest Estimate R1.0mCommitted R1.0mUncommitted R0.0mTOTAL EXPENDITURE

R1.0m

Issues Person Responsible

Due Date Milestones Baseline Month Previous Month F/Cast date

Balance sheet project to be funded

GCFO 31-Mar-10

www.prasa.com

PRASA Group Tax compliance and Balance Sheet restructuring

Key Accomplishments This Period 4 week look ahead: Upcoming tasks

Action Plan

Funding to be provided for balance sheet project

This Month F/Cast date

Service provider to be appointed

Advisors were invited for the briefing session Advisors to submit their proposals

9

Bank Accounts For S Meyl & Autopax



10

Legal, Compliance Policies & Procedures



11

FUNCTIONAL AREA Legal and Risk Approved

budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): Compliance with PRASA Obj 5: Governance n/a n/a R0.0 R0.0 75% 95%Relevant Deliverables: Key Milestones % Progress - Last

Month% Prog- Curr Month Comments

Approve Policy 100% 100% In progressRisk Owners appointed 100% 50% In process

Risk Committees functioning

50% None In process

ARM Workshop 50% 50% Planned for 11 Aug 09,

Cancelled. Await new

date.Divisional risk review 50% None In process

Audit 0% None Scheduled for Nov 09. Prelim meeting held with Audit 19/10.

Interdependencies FinancialRisk (Escalated) Exco approval of the

Enterprise Risk Policy Framework

Baseline R 5,000,000.00

Risk Description Probability Impact Mitigation Escalation req. CEO appointment of new Risk Committee and Risk Owners Budget

.+/-Change of scope R 0.00


R 0.00

Current Approved R 0.00


-R 700,000.00

Latest Estimate -R 700,000.00Committed R 0.00Uncommitted R 0.00TOTAL EXPENDITURE

-R 509,000.00

Issues Action Plan Person Responsible


Appointment of Risk Comm.

Members

Hold Risk

workshop with

BOC / ARM

Committee

Group Exec

Legal and

Risk

11/08/2009 (Await new

date)Appointment of Risk

Commeettees Divisions and

Subsidiaries

Facilitate

workshop with

new risk

committee

members on the

approved

Enterprise Risk

Management

Policy

Framework

Snr Manager

Risk

On/Before end Aug 09

(Await new dates)

Update Policy draft to

Exco

.April 09 Complete

Review Risk

Management

Strategy and

progress of

implementation

at all levels,

report to PRASA

Risk Committee

Snr Manager

Risk

Before end Aug 09 Incorporate EXCO input .May 09 Nov-09

Policy approval (ARM/BOC)

.May 09 Nov-09

Risk Review Divisions and Subsidiaries

.June 09 Jan-10

ARM / BOC Workshop .June 09 1-Jan-10Praasa Risk Review .July 09 Feb-10

www.prasa.com


Completed annual risk review Obtain Autopax Board resolutions

Identified and evaluated the new strategic risks of Pasa with the inclusion of

Shosholoza and AutopaxReviewed and updated Enterprise Risk Policy Framework and submit for approval

Enterprise Risk Framework approved by ARM Comm

Development of PRASA Risk Management Policy and Strategy


Enterprise Risk Man Policy Framework

Project No. Project Title Strategic Pillar

Implement approved framework

Impact Area

PRASA, Divisions and Subsidiaries

Strategic - High

No

Risk Management

Risk 01: Strategic 5C Legislative Compliance

Non-compliance with Treasury Regulation 27.2 if Framework is not approved and implemented

HIGH Serious

Await date for the planned ARM Committee workshop

12

Integrated Management System (IMS)



13

Approved budget (Rm) Current Forecast (Rm)

Rm

Committed Value

(Rm) Rm

Expenditure (Rm) Rm Planned

progress %

Actual

progress %

Overall status

Rm

Key Milestones % Progress - Last Month

% Prog- Curr Month

Comments

Project No. Project Title Strategic Pillar Impact Area

P1.1High Shosholoza Meyl

NationalFinalisation of a Working Roster for Train Drivers, Train Driver Assistants and support staff

44% 48%Still require preparation document reflecting shifts and depot strengths


NationalDevelop a Training Schedule for Train Drivers to enable multiple route coverage

10% 10% To be addressed in 2010


NationalIdentification and transfer of Train Drivers, Train Driver Assistants and support staff 92% 92%

In the process of verifying competencies, certification and validity of training programme

P1.4

High Shosholoza Meyl National

Establishment of Accommodation and Transportation needs for Train Drivers and Train Driver Assistants

80% 80%

Progress to appoint staff and procure resources (Kombi’s) - progress slow due to financial constrains

Interdependencies FinancialHuman Resources

Risk Description

Probability Impact Mitigation Escalation req. Operations

Trade UnionsTransnet Freight Rail

Issues Action Plan Person Responsible Due Date

HR engagement Matti Geldenhuys 31/03/2010

Finalisation of a Working Roster for Train Drivers, Train Driver Assistants and support staff

October 2009 31/10/2009 31/01/2010

Develop a Training Schedule for Train Drivers to enable multiple route coverage

October 2009 31/10/2009 30/09/2010

Identification and transfer of Train Drivers, Train Driver Assistants and support staff

October 2009 31/10/2009 31/01/2010

Establishment of Accommodation and Transportation needs for Train Drivers and Train Driver Assistants

October 2009 31/03/2010 31/03/2010

Risk (Escalated)

Previous

Month F/Cast

date


Shortage of staff in this Department

Milestones Baseline

Month

Consultation with Labour partnersDevelopment of a training programme for implementation

Follow-up discrepancies with Transnet and rectify the final list of train crew

Prepare document reflecting shifts and depot strengths

Determine areas needed for training of train crew for multiple route

FUNCTIONAL AREA: INTEGRATION

Focus Area (if applicable): INTEGRATION OF SHOSHOLOZA MEYL

Relevant Deliverables: TRAIN CREW AND SUPPORT STAFF


Train Crew and Support Staff Service Excellence

Baseline Rm +/- Change of scope Rm +/- Budget Omissions Rm ------------------------- Currently Approved +/- Forecast svgs (overruns) ……………………. Latest Estimate Rm Committed Rm Uncommitted difference between commited and uncommited TOTAL EXPENDITURE Rm

14

Approved budget (Rm) Current Forecast (Rm) Rm

Committed Value (Rm) Rm

Expenditure (Rm) Rm Planned progress %

Actual progress %

Overall status

Rm


% Prog- Curr Month

Comments


P2.1 High Shosholoza Meyl NationalDevelop a Stand Alone train schedule for Shosholoza Meyl locomotives 100% 100% Completed

P2.2 High Shosholoza Meyl NationalIdentification and finalisation of locomotives to be transferred to Shosholoza Meyl 100% 100% Completed

P2.3 High Shosholoza Meyl NationalFinalisation of additional required locomotive capacity

100% 100% Completed

Interdependencies Financial

Risk Descriptio

n

Probability Impact Mitigation Escalation req.

OperationsTransnet Freight Rail

Issues Action Plan Person

Responsible

Due Date

HR engagement Matti Geldenhuys 31/03/2010

Develop a Stand Alone train schedule for Shosholoza Meyl locomotives

October 2009 30/09/2009 30/09/2009

Identification and finalisation of locomotives to be transferred to Shosholoza Meyl

October 2009 15/09/2009 15/09/2009

Finalisation of additional required locomotive capacity October 2009 30/09/2009 30/09/2009



Relevant Deliverables: LOCOMOTIVES


Locomotives Service Excellence

Follow-up discrepancies with Transnet and rectify the final list of locomotives

Obtain additional required locomotive capacity

Milestones Baseline Month

Risk (Escalated)

Previous Month

F/Cast date


Shortage of staff in this Department

Baseline Rm +/- Change of scope Rm +/- Budget Omissions Rm ------------------------- Currently Approved +/- Forecast svgs (overruns) ……………………. Latest Estimate Rm Committed Rm Uncommitted difference between commited and uncommited TOTAL EXPENDITURE Rm

15

Approved budget (Rm) Current Forecast (Rm) Rm

Committed Value

(Rm) Rm

Expenditure (Rm) Rm Planned

progress %

Actual

progress %

Overall status

Rm 0 Rm 0 Rm 0 Rm 0


% Prog- Curr Month

Comments


HighShosholoza Meyl National

Identify services that will still be provided by Transnet Freight Rail

100% 100% Completed


Finalise Haulage and Access Agreement with penalty regime 75% 80% Awaiting feedback from TFR lawyers


Finalise Safety and Operational Agreements 100% 100% Completed


Risk Description

Probability Impact Mitigation Escalation req.

Transnet Freight RailRailway Safety RegulatorNCC Operations


Due Date

HR engagement Matti Geldenhuys

31/03/2010


October 2009 30/09/2009 30/09/2009

Finalise Haulage and Access Agreement with penalty regimeOctober 2009 15/09/2009 30/11/2009

Finalise Safety and Operational Agreements October 2009 30/09/2009 30/09/2009



Relevant Deliverables: INTERFACE AGREEMENT


Service ExcellenceInterface AgreementP7


Finalise Haulage and Access Agreement with penalty regime

Milestones Baseline

Month

Previous

Month F/Cast

date


Shortage of Locomotives, reliability and maintenance

Risk (Escalated) Baseline Rm +/- Change of scope Rm +/- Budget Omissions Rm ------------------------- Currently Approved +/- Forecast svgs (overruns) ……………………. Latest Estimate Rm Committed Rm Uncommitted difference between commited and uncommited TOTAL EXPENDITURE Rm

16

INFRASTRUCTURE

17

FUNCTIONAL AREA PRASA (SAM) Approved budget

(Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): 2010 FIFA WC and Commuter Service

R771.440m R1,324m R0.334m R0.334m 10% 10%



Closing of the Tender 100% Project No. Project Title Strategic Pillar Impact Area Adjudication of Tender 25% 25% Evaluation of Technical

Advisor was held back for some time. Tenders was only opened on Monday 19October. Tech. Advisor is required for the evaluation of main tenders. Recommendation report submitted to SCM.

WT1802, WT1147, WT1149 National Signaling

(Stage 1)

Technology

upgrade, Service

Excellence,

Modernisation

100% Tender approval 0% 0%

Appoint contractors 0% 0%Construction 0% 0%

Key Accomplishments This

Period

4 week look

ahead: Upcoming

tasks

Interdependencies FinancialRisk (Escalated) Other signaling

projects.Baseline Rm 771,440

Risk Description Probability Impact Mitigation Escalation req. Rail-bound telecommunication links

.+/-Change of scope Rm 0

Engineering resources to finalise

adjudication process

Medium High Transaction

Advisors to be

appointed

YES

Exceeding budget High Medium Strict control Yes .+/- Budget Omissions

Rm

Currently Approved Rm 771.440


Rm 552.560

Latest Estimate Rm 1,324.000Committed Rm 0.334Uncommitted Rm 1323.666TOTAL EXPENDITURE

Rm 0.334



Fee proposals -

evaluation done

SCM 5-Nov-09

Recommendation

report submitted

to SCM

9-Nov-09 Close of Tender Jun-09 Jun-09 Jun-09

Technical Advisor to be appointed.

18-Nov-09 Adjudication of Tender Sep-09 Mar-10 Mar-10

Tender approval Nov-09 Apr-10 Apr-10 Appoint Contractors Dec-09 May-10 May-10

Construction Jan 2010-Aug 2013 Jun 2010-Mar 2014 Jun 2010-Mar 2014

www.prasa.com

Tender adjudication

Johan Edwards, Heinrich Mostert, Luyanda Gantsho, Tonie Vermeulen,


Appointment of Technical Advisors

National Signaling

Appointment of Technical AdvisorTender evaluation and recommendation for appointment of Technical Advisor

18

FUNCTIONAL AREA Train

Operations

Approved budget (Rm) R84m

Current Forecast (Rm) R99m

Committed Value

(Rm) R99m

Expenditure (Rm) Rm Planned progress

55%

Actual progress 50% Overall status

Focus Area (if applicable): Training 55% 50%



Project Kick off and contract signed 80% 100% done!Project No. Project Title Strategic Pillar Impact Area Project charter finalised and signed 80% 100% done!

Ulwazi Simulator

Service Excellence

High Regions Simulator Accomodation in all three regions i.e Gauteng, Durban and Cape Town.

15% 0% Intersite changed and rescheduled the

Data Collection and submission of all requested equipments 80% 90% Order placed for Preliminary Designed document approval for 5M2A 10% 100% done!Draft Design document review for 5M2A 10% 100% done!Preliminary Designed document approval for 10M5 10% 100% done!Draft Design document review for 10M5 15% 100% done!


Period

4 week look ahead: Upcoming tasks


Risk (Escalated)Risk Description Probability Impact Mitigation Escalation req.

Simulator Accomodation

rescheduled

The entire project will be delayed

COO to meet with Intersite CEO

30th Sept 2009


Due Date

Ngolovan CC raised a concern of not being in a financial state with regard to forward cover

Application forwarded to Finance

CFO 31st July 2009. On going feedback required.

Appointment of National Steering committee May-09 Sep-09 Sep-09

Appointment of National Steering committee Jun-09 Sep-09 Sep-09Data Collection and submission of all requested equipments Jul-09 Oct-09 Oct-09

Project Charter finalised and signed Jul-09 Oct-09 Oct-09Preliminary Designed document approval for 5M2A Sep-09 Dec-09 Dec-09Draft Design document review for 5M2A Sep-09 Dec-09 Dec-09Preliminary Designed document approval for 10M5 Sep-09 Dec-09 Dec-09Draft Design document review for 10M5 Sep-09 Dec-09 Dec-09

Provide a Train Operations training System

Draft Design document review for 10M5

Preliminary Designed document approval for

10M5

This Month F/Cast

date

Reporting & scoring detailed Design document

Train Model detailed Design document

Milestones Baseline Month Previous Month F/Cast

date

Baseline R84m Accomodation R15m +/- Budget Omissions Rm ------------------------- Currently Approved R99m +/- Forecast svgs (overruns) ……………………. Latest Estimate R99m Committed Uncommitted TOTAL EXPENDITURE R99m

19

SUPPORT SERVICES

20


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): PRASA MERGER

INTEGRATION

n/a n/a R0.0 R0.0 41% 37%



Steercom setup 100% 100% CompleteProject No. Project Title Strategic Pillar Impact Area IPMO set up 100% 100% Complete PRASA Merger

IntegrationPRASA Exco EPMO

High Prasa Wide Develop draft master plan

100% 100% Complete

Sign off charters 40% 90% Waiting Exco member sponsors

Sign off structures 25% 40% Dependent of sign off

Sign off implementation plans

0% 30%

Interdependencies FinancialRisk (Escalated) None Baseline RmRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope RmSign off and communication of

structures

High High Communicate with the Executive

GCEO

Attendance of meetings Medium Medium Communicate

with Sponsors

Exco members .+/- Budget

Omissions

Rm

Current Approved Rm


Rm

Latest Estimate RmCommitted RmUncommitted RmTOTAL EXPENDITURE

Rm



Delay on sign-off of project

charters from work streams

Exco member sponsors to sign off

Exco

members

.09 July

Structures sign off Obtain Exco sign off

HR .31 July Sign off charters June .1 June .15 July

Finalise critical path July .25 June .09 JuneMeet all sponsors individually

July July July

Obtain signed off structures

July June End July

www.prasa.com

Draft critical path Obtain signed off structures

MERGER - INTEGRATION


completed Set up of Steercom Sign off chartersDraft charters and work plans Finalise critical pathMaster plan Engage all sponsors

This Month F/Cast

date

21


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): PRASA PROGRAMME MANAGEMENT

n/a n/a R0.0 R0.0 35% 40%



Establish PMO 55% 67% CompleteProject No. Project Title Strategic Pillar Impact Area PM framework 50% 55% Complete ENTERPRISE

PROGRAMME

MANAGEMENT

EMPO High Prasa Wide Business

Units, Divisions and

Subsidiaries

Prg Gov Framework 25% Complete

P Priority Framework 25% 40% Waiting Exco member sponsors

CPM & reporting 15% 30% Dependent of sign off

GCP & reporting 0% 28%

Establish officeDevelop positioning document

Re-alighed available resources

Interdependencies FinancialRisk (Escalated) None Baseline RmRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope Rm

Availability of Project Managers

High High Engage Executive

N/A

Budget approval and funding

High Agree scope and Deliverables

N/A .+/- Budget

Omissions

Rm

EPMO scope agreement High N/ACurrent Approved Rm


Rm

Latest Estimate RmCommitted RmUncommitted RmTOTAL EXPENDITURE

Rm



None Positioning document June .1 July Tbd

Stategy document July .1 August .15 AugustPM Gov Framework July July JulyPRG Gov Framework August August Mid AugustGCP July July

Prioritisation model August AugustEPMO baseline report September

www.prasa.com

Workshop PM pk (divisions and subsidiaries)

Develop PM pack for PRASA Finalise divisional PMO links and support

This Month F/Cast

date

Complete Strategy documentResource EPMO

PRASA PMO; BENEFITS REALISATION, GCP


Develop Group Capital Program

22


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): Security 0 0 0 0% 0%



Project No. Project Title Strategic Pillar Impact AreaMilestones

% Progress - Last Month


Corporate Security Merger/integration

Security policy Strategic

security

guidance

National

Security Policy approved

100% 100% Approved

Corporate Security Structure

National

Structure approved

100% 100% Approved

Security theat, risk and vulnerability assessment

NationalConduct Security audit and appraisal on S/Meyl, Autopax and Intersite

50% 75% On track

Integrated Security Masterplan

National Development of integrated strategic security business plan

100% 100% Complete

Development of functional structures- Divisions and subsidiaries

National


75% 95% On track

Security Emmergency Prepadness Guidelines

National

Provide strategic guidelines for operational plans

90% 95% Draft Completed

Security operational procedures

National

Security Procedures (SOSP) for Business Units

95% 95% Compiled awaiting approval

Training and development

NationalEstablish Training and Development Strategy and roll out

95% 97% On track

Security contract consolidation

National

Consolidation and standardization of Contracts

85% 95% Obtained accreditation for own

AcademyStrategic interface

National Strategic stakeholder engagement and interface

85% 95% On track. MOU with SARP to be approved

Corporate ICT Security

ICT Security Policy

NationalDraft policy completed

95% 100% Completed

SLA with IT National On track 65% 80% On trackNational Call centre with IT

NationalProcess in planning phase

60% 75% On track

Interdependencies FinancialRisk (Escalated) BaselineRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope RmSecurity risks Inadequate competent security capacity .+/- Budget Omissions Rm

Lack of LogisticsLack of Security equipment Current ApprovedAbsence of Electronic Security Technology


Rm

Latest Estimate RmCommitted Rm

Uncommitted RmTOTAL EXPENDITURE Rm



Budget Engaging

Finance

HO, Divisions

and

Subsidiaries

Commenced

November 2009 Security policy Mar-09 May-09 Completed Security theat, risk and

vulnerability assessment Jun-09 Sep-09 Dec-09

Integrated Strategic Business planJun-09 Oct-09 Completed


Jun-09 Sep-09 Completed

Security Emmergency Prepadness Guidelines

Aug-09 Sep-09 Completed

Security operational procedures Jul-09 Sep-09 Nov-09Training and development Jul-09 Sep-09 Nov-09Security contract consolidation May-09 Sep-09 Nov-09ICT Security Policy Apr-09 Sep-09 Nov-09SLA with IT Apr-09 Sep-09 Nov-09National Call centre with IT Jul-09 Oct-09 Nov-09Strategic stakeholder engagement and interface

Mar-09 Sep-09 Nov-09

Corporate Security Merger/integration



Integrated Security master Plan ICT Security PolicyTRA on S/Meyl, Autopax and IntersiteRoll out of capacity to divisions and subsidiaries

Registration of own academyContract Consolidation

23

FUNCTIONAL AREA Metrorail Approved

budget (Rm) Rm

Current Forecast (Rm) Rm Committed Value

(Rm) Rm


Focus Area (if applicable): Gauteng Metrorail



Approval Of New Structure

100% 8%Complete

Project No. Project Title Strategic Pillar Impact Area Communication 100% - Ongoing & Up to dateGauteng Region Merger

Operations High Level Structure Implementation

96% 0% In progress

New Posts Evaluation 48% 0% In process

Systems Integration 65% 0% In progress

Interdependencies FinancialRisk (Escalated) None Baseline R2.5mRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope RmLabour's rejection of the new

region's structure

Low Low Readiness of REXCO to discuss the requests for changes as shall be proposed by the Labour

Unions

Not Yet

.+/- Budget Omissions Rm



R2.5m

Latest Estimate R2.5mCommitted Rm

UncommittedTOTAL EXPENDITURE R350 000.00

Issues Action Plan Person Responsible Due Date Milestones Baseline Month Previous Month F/Cast date


Labour's buy-in of the regions'

structure

Regional Manager Oct-09 Approval of New

Structure

From July 2009

Appointment of critical grades

still lagging behind

HOD,Regional Manager & CEO From 1 November

2009

Communiation Plan From May 2009

Process of evaluation of new

positions taking too long,with HO

HR being the main drivers

Regional Manager 31-Aug-09 High Level Structure

Implementation

From May 2009

New Posts Evaluation Aug-09

Systems Integration Nov-09

www.prasa.com

Equipment evaluations & performance

Key Accomplishments This Period 4 week look ahead: Upcoming tasksAcceptance of the structure by the Labour Unions and sign-off

Continue to put pressure on HO HR for the finalisation of the

evaluation process

Fast-track the recruitment of critical grades(Departmental Heads appointments was the

cause for delays in some of the positions)

Communication of the merger project plan with both Regions' Labour UnionsOpen discussions on the status of the merger with labour during roadshows

Continue to engage with Labour

24

FUNCTIONAL AREA Prasa Approved budget (Rm) Rm Current Forecast (Rm)

Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): MetrorailRelevant Deliverables: Key Milestones % Progress - Last


Project No. Project Title Strategic Pillar Impact Area TSM Blueprint 85% 90% In ProgressTotal Station Management

Operations Review and sign off of NGS Document

60% 70% Engagements have started

Develop maintenance model and the structure

70% 95% Due Deligence and Business Model Reports have been finalised

Station Grading 85% 90% In ProgressIntegration of S/ Meyl/ Autopax

50% 50% In Progress

SNP Specification sign off

70% 75% Training in progress

1st Phase

Implematation

70% 78% Plans have been finalised-to be aligned with Infrastructure and TFM

Interdependencies FinancialRisk (Escalated) Funding and 1st Phase

Implementation

Baseline R0

Risk Description Probability Impact Mitigation Escalation req. .+/ -Change of scope R0

.+/ - Budget Omissions R0

Current Approved R0

.+/ -Forecast svgs (overruns)

R0

Latest Estimate R0Committed R0

Uncommitted R0TOTAL EXPENDITURE R0

Action Plan Person Responsible

Due Date Milestones Baseline Month Previous Month F/ Cast date

Engage ProcurementAllan Gangiah 30-Aug-09

Team that identified the functions to design structures for different

types of stations

Thandeka Xhakaza and Norma Zulu 30-Sep-09

TSM Blueprint From Feb 2009 30-Sep-09 30-Jan-10

Training started although

deadline was not met

Allan Gangiah and Johannes Mamabolo

15-Aug-09 Review and sign off of

NGS Document

From June 2009 Feb-09 28-Feb-10

Develop maintenance model and the structure

From July 2009 30-Sep-09 30-Oct-09

Station Grading(1st Phase)

From Feb 2009 28-Sep-09 30-Dec-09

Integration of S/ Meyl/ Autopax

From May 2009 30-Oct 30-Jan-09

1st Phase implementation

Oct-09 1-Oct-09 1-Dec-09

www.prasa.com

This Month F/ Cast date

Job grading and evaluation of high level positions

Appointment of Corridor Managers

Implementation of first phase

Improved Customer Experience

Appointment of Project Manager

Key Accomplishments This Period 4 week look ahead: Upcoming tasksTFM to be presented to Prasa EXCO for approval

Finalisation of Station Grading Model-1st Phase

Change Management Process

Issues

Finalisation of the station level structure and

appointments of top level structure

Skills assessment/ audits

25

FUNCTIONAL AREA PRASA STRATEGIC INTEGRATION PLAN

APPROVED BUDGET (RM)

CURRENT FORECAST (RM)

COMMITTED VALUE (RM)

EXPENDITURE (RM) PLANNED PROGRESS %

ACTUAL PROGRESS % OVERALL STATUS

FOCUS AREA (IF APPLICABLE) DEMAND AND SERVICE

INTEGRATION PLAN

R0 R8m R0m (Can spend R1m

09/10)

80% 5%

RELEVANT DELIVERABLES KEY MILESTONES % PROGRESS - LAST MONTH

% PROGRESS - CURRENT MONTH

COMMENTS

∙Demand assessment for commuter, intercity and new rail technology opportunities

0% 5% on-going

∙Capacity assessment of current system 0% 0% on-going

PRASA Strategic Plan Service Qulity & Passenger Growth

PRASA Business National ∙Technology application on rail opportunities 0% 0% on-going

∙Integration Plan for PRASA business 0% 0% on-going

- Tender briefing and tender closing 22 Oct 09 - Executive briefing - Project confirmed

∙Business Unit Business PlansRISK DESCRIPTION PROBABILITY IMPACT MITIGATION ESCALATION REQ ∙PRASA Integration ProcessSufficient budget High PRASA strategy and

fundingFunding of project

GCEO ∙Updating of CAPEX requirements

Lack entity involvement High Integration awareness

ACTION PLAN PERSON DUE DATESteer Com DvdWalt November 2009

∙Obtain approval of Project Charter 12.03.09 30.09.09 10-Jan∙Obtain approval and support from Business Units 12.03.09 12.10.09 10-Jan∙Evaluate tenders 09.04.09 25.10.09 10-Jan∙Set up Steering Committee 30.09.09 30.10.09 10-Jan∙Confirm the budget availability 12.10.09 12.10.09 10-Jan

PRASA service/corridor/route plan for future integrated mobility

Tender evaluation

PROJECT NO. PROJECT TITLE STRATEGIC PILLAR IMPACT AREA

4 Week Look Ahead; Upcoming TasksKEY ACCOMPLISHMENTS: THIS PERIOD

INTERDEPENDENCIES FINANCIAL

MILESTONES BASELINE MONTH PREVIOUS MONTH FORECAST DATE

THIS MONTH FORECAST DATE

Appointment of successful bidder

ISSUES

RISK (ESCALATED)

Formalise project

Baseline R6m +/- Change of scope R3m +/- Budget Omissions Rm ------------------------- Currently Approved R1m +/- Forecast svgs (overruns) ……………………. Latest Estimate R9m Committed - Uncommitted - TOTAL EXPENDITURE -

BUDGET NOT CONFIRMED

26


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): PRASA Change Management Office

n/a n/a R0.0 R0.0 5% 5%



Develop change framework

25%35%

Project No. Project Title Strategic Pillar Impact Area Set up CMO 15% 80% Change

ManagementPRASA Integration

Change training and support

5% 10%

Interdependencies FinancialRisk (Escalated) All Integration

projectsrequiring change management

Baseline Rm 6.895

Risk Description Probability Impact Mitigation Escalation req. Integration project office

.+/-Change of scope Rm 0

Different approaches to change

due to large number of

consultants

HIGH HIGH Liaise with eternal consultants and train on model

None


Rm

Current Approved Rm 6.895


Rm 0

Latest Estimate Rm 0Committed RmUncommitted Rm 6.895TOTAL EXPENDITURE

Rm 6.895



Sign off values June .1 July Tbd Launch values July .1 August .1 August Change agent training July July July Quick wins

implementationAugust August Mid August

www.prasa.com


Developed principles for CMO Train change agents

Change Management

Key Accomplishments This Period 4 week look ahead: Upcoming tasksAgreed draft CMO Structure Identify projects requiring changeDeveloped change mdel Finalise change agent trainingConducted culture training Finalise change management tools

27

MilestonesBaseline Month

Prev Month F/Cast date


Launch values November September 27 November

Analytical review November November Nov/Dec

Risks (Escalated)

Risk description Probability Impact Mitigation Escalation req.

• Launch date not finalized High High Communicated upwards

Done

Key Accomplishments this period4 week look ahead: Upcoming

tasks

• Refined HR launch requirements document

• Finalised policy review• Identified key initiatives through the

analytical review• Conducted first round of HR interviews

• Conduct 1st round of validation workshops (HR)

• Conduct GM validation workshop• Launch values

Interdependencies – Marketing & Communications Dept

Relevant Deliverables – VAUES & CULTURE


Values and Culture HR

Issues Action plan Person Resp Due Date

None

Division:

Key Milestones

% Prog Last

Month

% Prog Curr

Month

Comments

Prepare for launch

20% 35% Launch planned developed, needs sign-off

Engage with Change agents

5% 10%Will be done upon confirmation of launch fate

Launch values

0% 0% As per launch plan

Develop phase 4 methodology

75% 100% Complete

Policy review 0% 100%Phase 4 report

0 75%Needs to be finalised once HR interviews are complete

Planned progress

50%

Actual progress

45%

Overall status

Focus Area (if applicable):

PRASA

PRASA Values

FUNCTIONAL AREA Approved budget (Rm)

Rm8.274


Rm8.274

Committed Value (Rm)Rm3.932

Expenditure(R)

Rm3.932

Financial

Baseline Rm7.092

+/- Change of Scope Rm1.182

+/- Budget Omissions

Currently approved Rm8.274

+/- forecast svgs/(overruns)

0

Latest Estimate Rm8.274

Committed Rm3.932

Uncommitted Rm4.342

TOTAL EXPENDITURE Rm8.274

28


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): Human Capital Management

n/a n/a R0.0 R0.0 70% 40%



Structures (Macros) 50%80%

Legal, Procurement and finance (need to revist their structures)

Project No. Project Title Strategic Pillar Impact Area Policies 80% 90% Consultation s and approvals Human

Capital Management

PRASA

Integration

Stabilization People Management Remuneration Policy

and Philosophy

0% 80% Consultation with Unions

Talent Management 30% 90% Has been presented to HRC & being amended.

Harmonization 40% 70% Has been presented to Exco & jected on the basis of the costs involved.

Interdependencies FinancialRisk (Escalated) GCEO Approval of

structuresBaseline Rm 0

Risk Description Probability Impact Mitigation Escalation req. .+/-Change of scope Rm 0

No role clarity, especially

between Corporate, Divisions and

Subsidiaries

HIGH HIGH Corporate Structures need to be finalized

None


Rm

Current Approved Rm 0


Rm 0

Latest Estimate Rm 0.000Committed RmUncommitted Rm 0TOTAL EXPENDITURE

Rm 0%



Process on finalization of

structures

Exco to take

decision (Some

of the Dept to

finalise their

structures)

Executives

and GCEO

End Nov 2009

Cost of harmonization

unaffordable

Explore affordable alternatives to harmonize benefits.

GEHR End July 2010 Harmonizatin of benefits July Oct Nov

Policies July Oct Nov

Structures July Oct Nov

Talent Management July Oct Nov

www.prasa.com

Training and Development - reviewed alignment and finalized policyShared Services Model developed, draft.

Benefits harmonization - costing and alternatives

Talent Management

Remuneration Philosophy


Structurres, Policies and Remuneration and Benefits

Key Accomplishments This Period 4 week look ahead: Upcoming tasksSubsidiaries have finalizeed structures awaiting approvalMetrorail Structure approved and populated

IT and Metrorail Structures approved

Policies submitted for approval and inputs

29

New Group SCM Policy Roll-out & Implementation


•Updated project plan submitted.

30

Materials Management



31

FUNCTIONAL AREA Corporate

Affairs

Approved budget (Rm) Rm

Current Forecast (Rm) Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): R15m R10m R5m



Project charter and plan 0 50 presentstion 23/10/09Project No. Project Title Strategic Pillar Impact Area Launch of values 0 80 on-going

Marketing

Strategy

increase

revenue, and

patronage and

market share

high group launch of staff newsletter 50 50 on-going

Communicati

ons Strategy

Positive and

brand building

messages to

stakeholders

high group Branding & opening of Umjantshi house 50 70 on-going

Processes for engagement with Business Units 50 100 completeMarketing & Communication Workshop- Corporate & BU's 0 100 complete

FIFA Draw Display/ activities/ media campaign 0 60 on-goingFestive Season Media campaign 0 50 on-goingLaunch of Cape Town station/ Branding and wayfinding signage

50 60 on-going


Period

4 week look ahead: Upcoming tasks

First Phase Brand implementation introduction of

PRASA World

Cup media

campaignAppointment of a Marketing and

Commucation Services Provider

launch and branding of Cape Town station


Risk (Escalated) FIFA Risk Description Probability Impact Mitigation Escalation req. DOTBrand management high appoint

service provider

business units Business Units

Image & Reputation management high appoint service provider

business units Commuters


Due Date

Project charter and plan Oct-09 none 2-DecLaunch of values nov 27-Novlaunch of staff newsletter nov 27-NovBranding & opening of Umjantshi house oct DecemberProcesses for engagement with Business Units nov NovemberMarketing & Communication Workshop- Corporate & BU's nov 12-Nov

FIFA Draw Display/ activities/ media campaign oct Nov- DecFestive Season Media campaign nov Nov - DecLaunch of Cape Town station/ Branding and wayfinding signage oct 2-Dec

Group Marketing & Communcations Strategies

Milestones Baseline Month Previous Month F/Cast

date

This Month F/Cast

date

Baseline R15m +/- Change of scope Rm +/- Budget Omissions Rm ------------------------- Currently Approved +/- Forecast svgs (overruns) ……………………. Latest Estimate Rm Committed Uncommitted TOTAL EXPENDITURE Rm

32

BUSINESS OPPORTUNITY

33


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): PRASA Funding Requirements

R0.0m R0.0 R0.0 R.0m 0% 0%



Table treasury policy 0% 0% Date yet to be determined

Project No. Project Title Strategic Pillar Impact Area Obtain BOC approval 0% 0% Awaiting ARM submission.

Alternative sources of finance

Funding High PRASA Implement policy 0% 0% Awaiting BOC approval.

Securitisation Submit alternative funding options to DOT/Treasury

0% 0% Awaiting Board/DOT approval.

Property Unit Trusts and Property Loan stocks

BOT/PPP Development Finance Institutions

Interdependencies FinancialRisk (Escalated) None Baseline R0.0mRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope R0.0mTreasury policy not approved High High All BU's

consult corporate finance for treasury issues

Audit committee


R0.0m



R0.0m

Latest Estimate R0.0mCommitted R0.0mUncommitted R0.0mTOTAL EXPENDITURE

R0.0m

Issues Person Responsible


No policy, no borrowing plan GCFO/ S Mathobela

11/31/2009

Table treasury policy Jun-09 Oct-09 Nov-09Obtain BOC approval Jun-09 Oct-09 Nov-09Implement policy Jun-09 Oct-09 Nov-09Submit alternative funding options to DOT/Treasury

Jun-09 Oct-09 Nov-09

www.prasa.com

Treasury policy and funding

Key Accomplishments This Period 4 week look ahead: Upcoming tasksDraft policy presented to Exco (Subject to the

approval of a Borrowing Plan)

N/A


Set-up a date for ARM meeting to present the treasury policy

Action Plan

34

Strategic Sourcing



35

BCM Implementation



36

PROPERTY

37


budget (Rm) Rm


Rm

Committed Value

(Rm) Rm


Focus Area (if applicable): Intersite FM Unknown R 45 Nil R 0.70 0% 0%Relevant Deliverables: Key Milestones % Progress - Last


Project No. Project Title Strategic Pillar Impact Area1 Due Diligence Property and

Asset Development

Medium FM Due diligence report 100% 100% Complete and reviewed by

CEO's2 Business Model FM Business model report 100% 100% Complete and reviewed by

CEO's3 Implementation

Plan

FM Implementation plan 95% 100% Reviewed by CEOs and recommended division of work done by National Working Team, to be submitted to next Steercom.

Interdependencies FinancialRisk (Escalated) Baseline RmRisk Description Probability Impact Mitigation Escalation req. .+/-Change of scope RmChanges in Exco or Management low high Team

consensus

no PRASA/Intersite/Metror

ail/Shosholoza

Meyl/Autopax/TSM–

executive, management

and operational levels

Management of expectation gap high high defined responsibility +

ring fenced project

deliverables

no Intersite/ICT

Dissatisfaction with Intersite

Service Delivery

high high detailed

planning

no Intersite/Corporate Security (who will retain responsibility)

.+/- Budget Omissions Rm

Reputational

high high early identification

pro active interventions

no Intersite/RSR

Lack of uniformity of SLAs and SLSs

high high Detailed

documentation

no Intersite/PRASA/Public

sector stakeholders

Current Approved Rm

Reduction in asset life Eroding asset value

high high backlog

maintenance

yes for budget Intersite/PRASA/Private

sector stakeholders

ICT/Technology

high high Incorporation

into ICT strategy

yes Intersite SHEQ/operators/contractors/suppliers

.+/-Forecast svgs

(overruns)

Rm

Poor management decisions based on lack of information

med med improved

strategy

no Intersite Advertising/TSM/PRASA/agencies

Lack of qualified FM resources

med high refined recruitment +

training

no unless for budget Intersite/commuters/oth

er users

Latest Estimate Rm

Deterioration of station/intermodal environment

high high improved planned

maintenance

no unless for budget Committed Rm

Increase in arrear rental collections

low in formal sector. High in informal and residential

low Residential

strategy and

lease review

yes for strategy

Staff dissatisfaction/union involvement

high high change

management

and

communication

yes to add credibility Uncommitted Rm

Lack of financial resources to implement FM Model

high high resourcing

strategy

No - outside the scope of this project.

New proposal if required

TOTAL EXPENDITURE R.70m



Obtaining agreement from Exco/Steercom to FM Model to covert planning into defined deliverables based on implementation plan in time to meet due date

Presentation

18th September

Turner &

Townsend

14th Sept 2009

Intersite to consider division of

work to enable Implementation

Plan

Presentation

22nd Oct

Presentation = T&T.

Appointment of resources =

Intersite

22nd Oct 2009

www.prasa.com

Key Accomplishments This Period 4 week look ahead: Upcoming tasksImplementation Plan Presentattion Due 22nd Oct


Ninteen subprogrammes

identified and priritized for roll

out purposes, endorsement for

final implementation to be

presented to next PRASA Exco

by CEOs Steercom.

Implementation plan deliveredRing fenced future projects. Provide proposals with defined deliverables- keys to success. Possible assistance from external service providers

38

INFORMATION & TELECOMMUNICATIONS

39

INTEGRATED TICKETING SYSYTEM

No Project Status:

Awaiting Motivation for initiating the Integrated Ticketing System project. At this stage there is no project plan and dashboard.

40

ERP Project



41

Development of IT Governance Structure



42

SUSTAIN

43

PREVENTATIVE MAINTENANCE



Thank you

prasa enterprise pmo business integration projects status – november 2009

Documents

logisticspolicy alignment

performance managementsarah