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Gateway To Defence Solutions. Annual Report /11 - PDF

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Pat and the Kolab agency came to me after their original announcement and imagery and wanted a different take on the livery original shown. Nice one, thanks Pat, great working with you! Charles Ng is another long term client. Focus is now with drifting and as a top instructor with Mercedes AMG travelling around the world! ForCharles wanted something vibrant, loud along with significant exposure from Maxxis Tires, his new sponsor.

We took the Maxxis look and personalised it for Charles, tweaking the design here and there. Dean has campaigned a Viper for a number of years and wanted an all new look this year. Feedback from previous liveries and more recent proposals were the logos and branding were hard to read, so they wanted a design with maximum contrast and clarity.

I also created a suit design for Dean using this coloration and similar flashes of colour. One of the most popular guides in only bettered by Le Mans! You can download the guide at Spotter Guides. Good luck to all my clients past and present in FD this year. With this mammoth acquisition work behind it, Armscor focused on the support, maintenance and repair of these systems.

In the period ahead, the Landward Systems will be the major focus for Armscor with a view to equipping the South African Army with land - based equipment. It is pleasing to note that other programmes such as the development of the short-range air-to-air missiles are progressing exceptionally well, as is the case with the A-Darter missile, which is a jointly funded programme with the Brazilian Air Force.

Human capital remains a key strategic asset for Armscor due to the skill intensive nature of its work. During my tenure as Chairman, the Board encouraged the organisation to transform itself in accordance with the employment equity requirements, so as to reflect the demographics of the country.

These efforts are gradually paying off as part of the process of the revitalisation of the organisation. While significant progress has been made on this front, the organization is yet to meet the challenges of gender balance, retention of skills and talent in order to remain at the cutting edge of technology. It is imperative for the organization to design and pursue strategies that enable it to meet the afore said challenges.

The Board and the new CEO must pay particular attention to these matters. Stakeholder engagement was vital for Armscor s sustainability in the year under review. It formed a critical element in the organisation s dialogue and communication with key stakeholders. The past financial year, afforded Armscor an opportunity to forge close and cordial working relationships with our principals and key stakeholders in the Department of Defence.

This relationship paved the way for Armscor to establish and maintain positive relationships with other key stakeholders. The process of appointing the Chief Executive Officer was initiated. As the term of office of the Board was about to end, the actual appointment process was left to the incoming Board to finalise.

The process is receiving due attention from the Ministry of Defence and Military Veterans. It is expected that the appointment will be effected as a matter of urgency. Minister of Defence and Military Veterans, Dr. Lindiwe Sisulu, for her unstinting support and well considered counsel during my tenure as Chairman.

It has been a privilege to serve her and the people of South Africa. I am indebted to the Parliamentary Portfolio Committee on Defence and Military Veterans for its abiding guidance and contribution to the building of a resilient, efficient and effective defence capability in South Africa. Its robust oversight role expressed in a meticulous attention to detail is truly appreciated.

The professionalism that the Board displayed in the discharge of its responsibilities continues to make Armscor a centre of technical excellence for defence acquisition and support services. I also wish to extend a special word of thanks to my former colleague on the Board, Mr Roelf Meyer, whose two terms of service at Armscor were characterised by distinctive leadership. Sipho Mkwanazi for his commitment and diligence in leading this organisation that many aspire to work for. Also thanks to the staff complement for their level of professionalism, intellect as well as passion for innovation and a quest for excellence.

Lastly, I wish to thank the aerospace, maritime and defence industry under the able leadership of the AMD for having been a valuable partner over the years. A bright future continues to beckon and Armscor is ready to embrace it. In order to maintain its position as a truly South African organisation that is valued locally and globally, as well as to be the centre of technical excellence for defence acquisition and support services, Armscor had to keep evolving, while at the same time embracing and appreciating the constraints stemming from the defence environmental dynamics in the country, which impacted on Armscor s operations.

This year s report will focus on the following areas: Funding and growth The period under review, required a concerted effort to ensure that the Armscor Group focused its available resources on rendering an efficient and effective service to its main client. To this extent, cost containment initiatives resulted in a positive net result being achieved.

However, the Group remains under considerable financial pressure to obtain sufficient sustainable funding to address equipment renewal, rejuvenation and transformation matters. Progress was made with the development of the Armscor cost model, which will serve as a predictor of the future capacity and financial resources required to execute the mandated tasks.

The organisation strives to attract and retain competent and high-performing employees who live by the organisation s values and ensures that the mandate of the organisation is fulfilled. The results of the cultural audit were used in formulating strategic programmes that will enhance people capabilities in the organisation. Broad-based black economic empowerment BBBEE Broad-based black economic empowerment is one of the strategic measures adopted by Armscor.

This is to ensure that the implementation of the national transformation objectives is achieved and that the local defence industry is transformed. Stakeholder relationships The year under review afforded Armscor an opportunity to forge close and cordial working relationships with our principals and colleagues in the Department of Defence. This relationship paved the way for Armscor to establish and maintain positive relationships with other key stakeholders, such as the Parliamentary Portfolio Committee on Defence and Military Veterans, other Government departments, the defence industry and the public in general.

To this end, Armscor has implemented a BBBEE strategy and monitoring system, with the aim of improving management information on the transformation status of the industry and Armscor s spending on those suppliers that are doing business with it. This intervention yielded positive results in the transformation of Armscor and the defence industry. However, despite these successes, Armscor recognises that the defence industry is still characterised by gender inequalities. In the future, efforts will be put in place to ensure the active participation of black female-owned enterprises in Armscor programmes.

Local industry support The local defence industry is vital to the execution of Armscor s mandate. The sustainability of capabilities in the defence industry is critical for Armscor to be able to deliver the required services and equipment to the SANDF. Armscor has therefore developed strategies and policies to enhance and strengthen support for the local industry.

Armscor Armscor will continue to ensure that it improves relationships with key stakeholders in order to enhance the organisation s image and reputation. It will also continue to build goodwill and enhance it with its stakeholders through its Corporate Social Investment Programmes. As a truly South African organisation, Armscor continued to build goodwill with its stakeholders through its corporate social investment programmes.

This is because Armscor believes in nation building and in improving the quality of lives of our people a duty and responsibility it embraced fully.

To this end, Armscor has adopted Phelindaba Secondary School in Atteridgeville and offers learner enhancement programmes with the aim of assisting learners from this disadvantaged community to improve the school s results in Mathematics, Science and English.

As a result, it had put important steps in place towards continuous improvement processes and systems in order to ensure that it fully meets the requirements of the Department of Defence DODthus strengthening its commitment to a customer-focused culture.

This was as a result of Armscor s commitment to best management practices, good governance and continuous improvements. Except for the advanced light fighter aircraft Gripenall the product systems acquired under the SDP programmes have been delivered to the SANDF and have been taken into operational use. At the end of the reporting period, all nine dual-seat Gripen aircraft and the first six single-seat aircraft had been delivered to the SAAF.

Progress on other cardinal acquisition programmes In the period under review, the first locally implemented upgrade of the Pilatus Astra trainer aircraft was handed over to the SAAF. The technical challenges that delayed the first phase of the ground-based air defence system for a number of years were resolved. Indications are that the system will be ready for delivery to the South African Army Air Defence Formation early in the next financial year.

The development of the upgrade of the Rooivalk combat support helicopter to the deployment baseline was finalised during the past year. The first five aircraft was upgraded to final status for delivery to the SAAF. This upgrade concludes the development of the Rooivalk helicopter. The development of the short-range air-to-air missile, which is a jointly funded programme with the Brazilian Air Force, has continued to show good progress.

This project has served to further strengthen ties with the Brazilian Air Force and has paved the way for possible future jointly funded programmes. The new short-range missile was successfully launched from a South African Gripen aircraft and a number of successful flight tests were concluded, which served to keep the programme on track.

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Initiatives are underway to better position ADI as strategic facilities which will serve the defence and national interests. The development of skills and capabilities within these facilities remains a high priority, while the successes achieved on the projects of ADI are highly regarded by the client base. The year under review commenced with the successful completion of maintenance work on various South African Navy vessels in time for the Soccer World Cup.

Gateway To Defence Solutions. Annual Report 2010/11

The East Dockyard centenary celebrations on 3 Novemberwhich commemorated 33 souls of all nationalities and race who perished during the construction was another highlight. Whilst the Dockyard had registered many successes in its core functions, it however experienced challenges resulting from insufficient capacity and capability to execute its mandate.

The challenge of insufficient funding of the Dockyard not only precludes the critical renewal and expansion of ageing infrastructure, 14 16 but has also resulted in the loss of critical skills and knowledge in critical areas. I thank the Unions who continued to engage with Management in a constructive manner. Lindiwe Sisulu, and her deputy, Mr Thabang Makwetla, for their valuable support and guidance to Armscor. The leadership support has made the overall performance of Armscor and the effective fulfilment of its mandate possible.

I also thank the officials of the Department of Defence and Military Veterans who were available and willing at all times to assist in operational matters. The Committee s guidance and robust oversight role are appreciated. A special thank you goes to the members of the Board of Directors for their leadership.

They executed their responsibilities with diligence and loyalty and have contributed immensely in bringing this organisation to the level it is today. I wish to extend a special recognition to the outgoing Board Chairman, Dr. They both served two terms, with significant accomplishments in creating new ways of thinking and excellent leadership.

I thank them immensely for their service to the country by serving on the Armscor Board of Directors. The Armscor Management Board and all employees have been indispensable human capital. I wish to express my appreciation to the management and staff it is through their efforts that Armscor continues to stand firm as an organisation of exceptional calibre.

Their dedication has ensured that Armscor remained at the cutting edge of service delivery and efficiency and that it remained a reservoir of scientific and engineering excellence. I thank them immensely, for without their contributions the successes recorded during the year under review would not have been realised. Armscor s acquisition involvement, traditionally starts with the receipt of approved user requirement from its client. From there, a formalised process of risk reduction is followed, which eventually leads to the contracting of suitable suppliers to develop and manufacture the fully specified products or product systems.

A formalised source - selection process, entailing the development and application of value systems, is followed to identify preferred suppliers that would provide the best value for money solutions for specific user requirements.

In cases where no existing products can meet the specific user requirements, selected suppliers are contracted to develop the required product systems and deliver successive development models.

These development models range from experimental development models, advanced development models and engineering development models to pre-production models.

After successful evaluation and qualification of the designs and related production processes, contracts are established and managed for the required number of products and product systems.

The proper management of acquisition projects demands the management of many diverse technical, financial and other disciplines, such as systems and logistics engineering, resource management, contracting, quality assurance and design assurance. At the core of all acquisition projects are integrated project teams that consist of members of Armscor and the Department of Defence with the responsibility of properly and adequately meeting all the project management requirements of acquisition projects.

Such integrated project teams are led by Armscor project managers and, depending on the extent and complexity of the project, various domain specialists are allocated to the teams to perform specific roles. In order to properly execute their professional project management responsibility as required by the Armscor Act, it is essential that the proficiency level of Armscor s project managers be maintained and continually updated in all the required domains.

To achieve this, specific in-house training courses and modules have been developed, which are focused specifically on the competencies required by personnel in the various sub-disciplines within the acquisition environment.

During the past year, two-week long formal inhouse courses on acquisition and project management were presented to project managers. These mandatory courses served as refresher courses for experienced personnel as well as introductory courses for new personnel. Armscor s Acquisition Department is functionally structured with technical divisions focusing on specific technical disciplines.

The technical divisions thus provide a home base for project managers specialising in the specific technical domains. In order to improve liaison and interaction with Armscor s main client, divisions in the Acquisition Department have been grouped together to mirror the acquisition and procurement structures within the Department of Defence.

These groupings, as far as possible, provide single points of entry to the respective acquisition and procurement directorates, and serve to provide significant improvement in communication with the Department of Defence. The utilization of new technology in the design and development of equipment is important in optimising the cost-efficiency and effectiveness of new equipment. In order to ensure that the development of new equipment and capabilities for the SANDF is based on the utilization of suitable, modern and mature technology, Armscor and the Department of Defence identify and manage a number of technology development projects in local industry aimed at supporting identified future system development projects.

Armscor project managers, making use of their specialist knowledge in the various technological domains, have been successful in identifying the technological building blocks needed for the eventual implementation of planned development projects.

The research into and development of identified critical technologies that are subsequently used in the development of new products systems have, in the past, contributed greatly towards providing the SANDF with competitive advantages pertaining to the performance of its weapon systems.

In order to effectively execute this responsibility, it is imperative that the project managers remain technologically up to date in their specific areas of expertise. It is essential, therefore, that the project managers gain as much exposure as possible to new developments in the international arena. Although most of the product systems acquired under the Strategic Defence Package SDP projects have been delivered and are in operational use by both the South African Air Force and South African Navy, the activities required towards establishing the Operating Baseline for these systems still form a significant part of the acquisition portfolio of Armscor.

The experience gained during these deployments has indicated that the platforms, especially the Gripen and Hawk aircraft of the SAAF, have displayed reliability and availability figures that far exceed expectations. The first of the locally implemented upgrade of the Pilatus Astra trainer aircraft was handed over to the South African Air Force in the year under review. The embodiment of the upgrade of further aircraft is progressing exceptionally well.

After many setbacks spanning a number of years, the challenges that plagued the development of phase 1 of the Ground Based Air Defence System were resolved. The system will be ready for delivery to the South African Army Air Defence Formation early in the next financial year. The development of the upgrade of the Rooivalk Combat Support Helicopter to the deployment baseline which is the final functionality status required by the South African Air Force, was finalised.

In the same period, the achievement of the Type Certification and embodiment of the final upgrade of the first five 5 aircraft was concluded. This upgrade concludes the development of the Rooivalk helicopter which spanned a period of close to 20 years. A number of successful flight tests have been concluded with the Short Range Air-to-Air missile, including successful launches from the Gripen aircraft.

For the first time, the SLA will contain a Business Plan that details the cost of every activity executed in the organization. This was a complex task entailing allocation of every person and financial resource in the organisation to the provision of specific services to specific clients.

The information had to be closely aligned to the organisational budget to ensure accurate costing of the services to clients. A tool which records the Budget and Workload allocation of the entire organisation was developed, successfully implemented and tested. The exercise was a steep learning curve for organisational management who had to analyse their business and make the relevant allocations of personnel and costs, but has resulted in a clearer organisational understanding of functional responsibilities and business breakdown throughout the organisation.

A draft version of the updated Business Plan was completed and incorporated into the draft Service Level Agreement which is ready for distribution to the Department of Defence for comments before finalization. The Acquisition Department Business and Capability Register which contains detailed and up - to - date information on every project being executed, as well as the resources utilized for each project and the capabilities of those resources, has become a useful and valuable management tool.

Information from the Business Register has been integrated with the internal cost model. The cost model was completed to such an extent that the detailed cost of every acquisition activity has now become visible. This predictor will be used for planning purposes and to provide visibility with respect to the resources and funding required to execute the total scope of acquisition activities on an annual basis. During the review period, effort was expended to implement a system for identification, registration and management of Intellectual Property on behalf of the Department of Defence.

A practice has been developed to regulate and guide the registration and management of intellectual property IP. The Acquisition Business Register is being updated to capture all the relevant information as determined by the new IP Policy of the Department of Defence. The updating of the Acquisition Policy and associated Practices is prioritised within the Acquisition Department.

The Acquisition Policy was completely rewritten and reviewed. This is ready for submission to the Board of Directors for approval. This policy is fully aligned to the national legislation and the Department of Defence policy and serves as a basis for the final development of internal practices for the Acquisition Business. In continuation of this effort, a detailed mapping of both the Capital Acquisition and Contract Management processes was completed.

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This mapping has established the basis for the relevant practices that are to be developed. A Contract Management Practice is at an advanced stage to the point where key sections are ready for review. This practice which can be seen as the single most critical practice in the acquisition environment, is complex having more than four hundred individual activities during the contract life cycle.

It addresses the highest risk area of endeavour in the organization and will be subjected to review across the organization. With respect to Acquisition Capability Management, the established tools and systems have advanced and effort has been made to establish a career and personal growth model to be used as the basis for the development of resources within the department. This model addresses all aspects of personal competency, educational requirements, training and development and personnel mentoring as well as on the job training.

The model is also aligned with the Policy and Practice, to ensure that the Acquisition Department have the right resources for the core business into the future. All four Valour Class Meko A Frigates were handed over to the South African Navy and are being actively deployed in local and international waters. Since Marchproject activities have to a large extent focused on the completion of the system integration and performance acceptance of the gun system consisting of the 76mm Main Gun Weapon and the 35mm Dual-Purpose Gun.

Progress in this respect was hampered by difficulties experienced with the coordinating of all the variables that needed to come together simultaneously, such as vessel availability, good weather conditions, specialized target availability, sub-contractor availability, etc. These helicopters are currently operated by 22 Squadron from Air Force Base Ysterplaat in support of the four frigates of the South African Navy, thus enhancing the capabilities of the frigates.

At the end of the reporting period, there were only four functional items to be completed and accepted prior to project being finally concluded and handed over to the South African Air Force. During this period, the Maritime Patrol Helicopters were granted limited partial release to enable them to participate in numerous deployments such as Operation Kgwele in support of the FIFA Soccer World Cup event.

The technical integration of both the Super Lynx and Oryx helicopters with the Frigates is virtually complete. The fulfillment of these engineering changes will take the project into The most significant of these engineering changes relate to the acquisition of submarine specific shore facilities located in Simon s Town, including amongst others: The establishment of a combat suite engineering test facility, required for diagnostic maintenance and training purposes.

This is scheduled for completion by FebruaryThe development of a periscope simulator. The simulator has been completed and integrated into the Engineering Test Bed; A submarine escape training facility which is nearly completed.

All thirty helicopters ordered were delivered and updated to the final production standard. Good progress was made in concluding the outstanding additional requirements which included a cabin-mounted gun capability and an increase in the all up weight of the helicopter Airbus AM Strategic Heavy-Lift Transport Aircraft The programme entailed the acquisition of eight Airbus AM Strategic Heavy Lift aircraft from Airbus Military S.

AMSL as part of a nine nation co-operative project. All nine dual seat aircraft and the first six single seat aircraft were delivered to the South African Air Force.