Section 2 - Chief Executive Report

Chief Executive’s Review

In 2007–08 the Mint continued its journey towards Excellence as a sustainable world class Mint.

Our ability to identify and address the key issues we face in achieving our vision has been enhanced by expanding the Senior Management Committee. This has freed Senior Managers to focus on the strategic issues that support our vision and drive the numerous projects we are undertaking.

In addition to the major refurbishment and modernisation of the Mint’s premises, we have identified the need to improve our IT systems. The proposed new system will support the Materials Handling and Warehousing System (MHWS) and Enterprise Resource Planning (ERP) to achieve increased automation, integration and reliability of information and improved reporting for decision making.

Staff in all areas of the Mint, in addition to their normal duties, have been engaged in a wide range of projects. These activities are working together to achieve a more modern, efficient, innovative, quality aware and sustainable Mint.

The internally focused projects have been added to and supported by a number of other projects we are undertaking with a range of external agents, in particular the Treasury, Department of Finance and Deregulation (Finance), the RBA and other members of the Australian Payments Clearing Association (APCA). A number of these projects are interrelated and will progress closely in parallel. The aim is to achieve a closer relationship between coin demand, forecasts and actual orders. This includes establishing a buffer stock of coins to assist with business continuity planning and smoothing of the production process through the year.

The Mint’s outcomes and outputs were clarified in the 2008–09 Commonwealth Budget. This clarification frees the Mint to confidently pursue contracts with foreign governments, overseas dealers and suppliers and better reflects past and present activities.

The 25th biannual Mint Directors Conference (MDC) was held in South Korea in May 2008. With the support of the Government, the Mint was chosen to host the next MDC in Canberra during September 2010. This will provide us with a valuable opportunity to showcase our modern facilities and quality products to the rest of the world’s minting fraternity.

The Mint has implemented a wide ranging and holistic approach to training its staff as a way to counter the tight labour market in Canberra, new work requirements flowing from modernisation processes and the ageing of the Mint’s workforce. We expect to meet the current and expected demands of the organisation, while also responding to individual skill development needs identified through the new Performance Development System (PDS).

This training has already yielded dividends for the Mint and its employees who have been successful in competing for new or upgraded positions identified in the 2006 Organisational and Workplace review.

We have put in place a whole of Mint communication and change management strategy to assist with the management and integration of our projects. This strategy aims to keep all staff informed of the progress and implications of change for their work practices. Focus groups are providing a forum for staff to raise improvement ideas or concerns as they arise. Feedback from these groups shows that although staff are suffering the difficulties of working around the refurbishment, and additional projects and training, their morale is being maintained. We are focusing on the benefits to working conditions and careers, and not the small set backs and irritations that arise in reaching those ends.

Outlook for 2008–09

Training for the future will focus in particular on preparing employees to work within the more automated environment they are helping to develop in the Mint. Specific training in response to an Improvement Notice issued by Comcare will emphasise hazard awareness and the preparation of and adherence to safe working methods.

The revised Agency Agreement that is expected to take effect from August 2008 will continue to provide a framework within which a cooperative approach to production is encouraged. We will continue to seek to improve the Mint’s ability to make products that the market wants in a timely, efficient and profitable manner at the same time as providing employees with job security, improved career opportunities, training, working conditions and competitive remuneration. The agreement will also continue to reinforce the commitment given by all parties to the Mint Values and Code of Conduct. The improved methods of measurement and accountability being implemented with the new ERP system will give the Mint better measures of productivity improvements for future Agency Agreements.

Management Framework

As a prescribed agency the Mint continues to operates under a Charter endorsed by the Secretary of the Treasury, Dr Ken Henry AC, and the CEO. The Charter was updated during the year to better reflect the relationship between the Treasury and the Mint. It sets out the scope of the roles and accountabilities of the principal stakeholders in producing circulating coins and like products for Australia.

The Mint Advisory Board provides strategic advice and reviews Mint performance against key indicators and strategies in the Mint’s Strategic and Business Plans. At 30 June 2008 the Advisory Board comprised:

Management of the Mint rests with the Senior Management Committee which at 30 June 2008 comprised: Ms Janine Murphy, Chief Executive Officer (CEO); Mr Graham Smith, Deputy CEO; Ms Marlene McClelland, Chief Finance Officer (CFO); Ms Felicity Mullens, Strategy and Business Development Manager; Dr Prabir De, Chief Operating Officer; Ms Winnie Turco, Human Resources Manager; Mr John Denyer, Production Manager; Mr Dominique Appay, Production Services Manager; Mr Stephen Delaney, Chief Information Officer; Mr Sam Murthi, Acting Planning and Quality Manager; Mr Bruce Webber, Communications Manager; and Mr Michael Ellery, Facilities Manager.

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