Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
The Australian Government requires agencies to measure their intended and actual performance in terms of outcomes. Government outcomes are the results, impacts or consequences of actions by the government on the Australian community.
The Mint's outcome is described below by output groups, specifying the performance indicators and targets used to assess and monitor the performance of the Mint in achieving government outcomes.
2.1.1 Outcome 1: Manufacture and sale of circulating coins, to meet the coinage needs of the Australian economy, and collector coins and other minted products for Australia and foreign countries
Outcome 1 strategy
To achieve this outcome the Mint will continue to:
- produce cost efficient circulating coins for Australia and establish and maintain a circulating coin buffer stock;
- provide advice to the Treasury and government on coin related issues;
- develop corporate quality products;
- develop profitable numismatic products which meet customer expectations;
- develop an education program to be undertaken through the visitors centre;
- promote public understanding of the cultural and historical significance of coins; and
- maintain the National Coin Collection.
The Mint has a number of major inter‑related projects (expected to be delivered in 2009) designed to improve the efficiency and effectiveness with which the Mint can achieve its outcomes in 2008‑09 and future years.
The foundation project is refurbishment of the Mint's premises. The refurbishment will provide the Mint with a building‑code and occupational health and safety compliant building that more efficiently meets the Mint's functional requirements, and makes more efficient use of all available space. It will ensure the continued economic viability of the Mint's landmark building, by enabling state‑of‑the‑art automated production processes to be installed and providing a contemporary education and visitor gallery in line with other national institutions.
The upgrade of the Mint's information management system will improve the integration of the Mint's business operations (production, marketing, and corporate) and enhance information management processes and reporting. The new IT system will also facilitate improved responsiveness from management to any operational issues.
The Materials Handling and Warehousing System project will increase physical security over coinage blanks and coins; reduce or eliminate manual handling; minimise time wasted on transporting materials and work in progress within the Mint; and provide automated real‑time accounting and auditing of blanks and coins as they progress through the receipt, production, storage and delivery processes.
In addition, the Mint is replacing some of its outdated manufacturing equipment. New equipment is being progressively installed during 2008‑09.
Table 2.1: Total resources for outcome 1
Contributions to outcome 1
Output group 1.1 — Royal Australian Mint | |
|---|---|
Output group 1.1 is the Mint's sole output group and thus the sole contributor to outcome 1. Crucial to provision of outcome 1 is the requirement for the Mint to operate efficiently, as it is primarily a self-funded business operation, receiving government funding predominately for capital projects only. In addition, the Mint is required to provide a return on investment to the Australian Government through remittance of seigniorage (that is, the difference between the face value of circulating coin and the cost of production) to the Official Public Account. Components of output group 1.1 are: Output 1.1.1 — Manufacture and sale of circulating coins for Australia and provision of associated policy and technical advice This output contributes to outcome 1 by meeting the Australian economy's demand for circulating coin. Efficient production of circulating coin and maintenance of the agreed buffer stock ceiling are crucial for the Mint's on-going sustainability and ability to continue to provide a return on investment to the Australian Government. Output 1.1.2 — Manufacture and sale of circulating coins for foreign countries This output contributes to outcome 1 by producing and selling circulating coin for foreign countries. The Mint will actively market its circulating coin production capabilities to other jurisdictions and enter into contracts for production of foreign coins where it supports the Mint's business goals. Output 1.1.3 — Production and sale of collector coins and other minted and like products for Australian and other clients This output contributes towards outcome 1 by producing and selling collector and commemorative coins, defence force and corporate medals and tokens (that is, numismatic products). Efficient production and sale of high quality numismatic products contributes to the Mint's sustainability. Output 1.1.4 — Provide gallery and visitors services Provision of gallery and visitor services contributes to outcome 1 by providing a mechanism for marketing the Mint's products and promoting public understanding of the cultural and historical significance of coins. | |
Output 1.1.1 — Manufacture and sale of circulating coins for Australia and provision of associated policy and technical advice | |
| Key performance indicators | 2008‑09 target |
Produce Australian circulating coins to meet public demand. |
100 per cent of orders for circulating coin met within contracted lead-time between order and delivery. |
Maintain circulating coin within agreed buffer stock parameters. |
Circulating coin stocks maintained within buffer stock ceiling as agreed with the Department of the Treasury. |
Seigniorage meets budget target. |
Controllable costs associated with producing circulating coin do not exceed 45 per cent of the face value of circulating coin. |
Output 1.1.2 — Manufacture and sale of circulating coins for foreign countries | |
| Key performance indicators | 2008‑09 target |
Produce circulating coins to meet foreign countries demand. |
100 per cent of successful tenders for foreign coin production are produced and delivered in accordance with contract terms. |
Foreign coin production and sales are economical. |
100 per cent of foreign coin sales meet or exceed cost of production. |
Output 1.1.3 — Production and sale of collector coins and other minted and like products for Australian and other clients | |
| Key performance indicators | 2008‑09 target |
Produce numismatic products to meet Australian and overseas demand. |
100 per cent of numismatic orders produced and delivered within contracted delivery time. |
Numismatic production and sales are profitable. |
Minimum profit margin to be achieved on numismatic sales. |
Output 1.1.4 — Provide gallery and visitors services | |
| Key performance indicators | 2008‑09 target |
Maintain and document the National Coin Collection. |
100 per cent of the items that make up the National Coin Collection are recorded on the Mint's collection management system. |
Collection items displayed on rotation for public viewing. |
Display items rotated on completion of gallery refurbishment. |
Maintain the Royal Australian Mint's Visitor Gallery including building and grounds. |
Refurbishment of gallery and visitor centre completed on time, to agreed standard and within budget. |
Provide educational program to school students who visit the Mint. |
Development of school student specific visitor program. |
Promote public understanding about the cultural and historical significance of coins. |
2 per cent increase in visitor numbers to the gallery and visitor centre compared to prior year's actual visitor numbers. |
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