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�� !"#$QUALITY COMES FIRST: A corner of the Shum Wan Laundry managed by Correctional Services Indus-tries (CSI). The laundry services provided by CSI obtained an ISO 9001:2000 quality management sys-tem cer tification in 2001.

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Correctional ServicesIndustries

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Prisoners and inmates, except the physically unfit, are requiredto perform work six days a week to keep them meaningfullyoccupied. This arrangement enhances stability and improvesthe operational efficiency inside our institutions throughworkplace discipline. Engaging in useful work also enablesprisoners to develop good work habits and a sense ofresponsibility and learn the spirit of teamwork while carryingout their assigned jobs. It also helps them understand qualityconcepts and, if possible, acquire some basic skills in specifictrades. This together with education and other programmes ofthe Department will improve prisoners' prospects of reintegrationinto society upon release. Towards this end, CorrectionalServices Industries (CSI) is tasked with the provision of effectiveindustrial employment for prisoners and inmates.

In the year 2001, a daily average of 7 041 prisonersand inmates were engaged in various types of industrialwork in 13 trades. The others took part in various types ofdomestic duties as well as minor construction work projects.CSI managers are responsible for all marketing and sales,planning, procurement, machinery and facilities, productdevelopment, manufacturing, deliveries and other logistics.A breakdown of employment of prisoners and inmates invarious trades is in Appendix 17.

Employment of prisoners and inmates brings anincidental benefit of saving public money. Workshops ininstitutions provide a wide range of products and servicesto government departments, subvented organisations,financially autonomous public bodies and non-profit makingand charitable organisations. The total value of productsand services provided by CSI in 2001 in commercial termswas $478.2 million. A breakdown of the total value indifferent businesses is at Appendix 18.

Employment of Inmate LabourThe penal population remained stable and the supply

of work for prisoners and inmates was sufficient in the year.The major businesses of CSI include laundry services,furniture making, uniform manufacturing, hospital linenproduction and sign making.

The laundries employed about 1 550 prisoners andinmates in all institutions. They achieved an annual outputof over $206 million, the highest among all existing

61

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businesses. The facilities of commercial laundries wereupgraded to maintain their capability in providing qualityservices to hospitals and clinics under the Hospital Authorityand Department of Health. In 2001, 25 690 tonnes ofhospital uniform and linen items were processed.

Making of uniform items including knitwear and leatheraccoutrements provided about 2 770 work posts forprisoners and inmates, the highest among all trades. Therelatively stable workforce had helped meet deliveryschedules of various clients.

2000 2001

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Percentage Share of Prisoners/Inmates Engaged inCorrectional Services Industries by Major Trade

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The business of furniture making, sign making, printing,bookbinding, envelope making, precast concrete productsand metalwork was also healthy with stable employmentthroughout the year.

The Stanley Prison Category A Complex, a purpose-built facility to accommodate prisoners of very long

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sentences, was put into operation in October. It has eightworkshops providing more work varieties including graphicproduction, garment cutting, sewing and bookbinding.

Reconstruction of one of the fiberglass workshops atMa Po Ping Prison was completed in December, providinga better working environment for prisoners.

Products and Market DevelopmentTo meet the changing needs of our customers and

obtain more work opportunities for prisoners and inmates,continuous efforts are made to develop newproducts and explore new markets.

With a view to maintaining a more stablemarket share, CSI upgraded the shoe makingplant to make better products and was certifiedas a manufacturer of shoes bearing the Gore-Tex mark. Under an agreement, CSI has the rightto use Gore-Tex materials, equipment andtechnology to develop and manufacture shoesthat are waterproof and vapour permeable. Thefirst order is to supply the new style waterproofpatrol shoes for the Hong Kong Police Force.

At the Transport Department's request, CSIdeveloped traffic signs with mounting channelsat the back. This feature aims to improve the

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s e r v i c e a b i l i t y a n dappearance of the reflectivesigns. Samples have beeninstalled in Wan Chai Districtfor trial purpose.

The office furniture seriesof CSI is now widely usedw i t h i n g o v e r n m e n tdepartments. It is expectedthat all the old style officefurniture will be replaced withCSI products by 2004. Apartfrom adding new items to ourfurni ture ser ies to meetcustomer demand, we havesought improvements to thedesign and constructionmethods to keep pace withmarket development.

The Hong Kong Police Force has also adopted ournewly designed metal barriers for more effective crowdcontrol on the streets. Concerning our market share ofprecast concrete items, our product range was expandedto cope with the trend of demand in public works projects.

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65

Staff DevelopmentTraining opportunities to gain professional knowledge

and skills continued to be provided for staff in 2001. Courseson management, technical know-how, software applicationsand safety knowledge were conducted with assistance fromlocal tertiary institutes, the Vocational Training Council, theCivil Service Training and Development Institute and theOccupational Safety and Health Council.

To enable staff to get more exposure to the outsidebusiness and industrial environment, visits to facilities in theMainland and overseas were arranged. A series of visits tofurniture, footwear and envelope manufacturing plants inthe Mainland were found to be very fruitful as staff werekept abreast of the latest developments in relevanttechnologies.

In February, a Principal Industrial Officer and anIndustrial Officer received training in the operation andmaintenance of tunnel washers in the United States. Theyvisited laundry plants and studied their management practices.

In July and August, two seminars on fibreglass materialapplication were conducted by outside experts. TheVocational Training Council also organised a tailor-madesix-day management course on printing work for ourindustrial officers and provided training in computer artworkpreparation for instructing staff.

In September, two Industrial Officers participated in afive-day training course on the application of reflectivesheeting in sign making in Japan. They also visited a factoryto learn different sign manufacturing processes.

Information TechnologyThe Manufacturing Management and Control System

(MMCS) has been effective in enhancing efficiency inproduction planning and inventory control. Workshops canreadily access data and share information through the systemnetwork. To enhance system performance, its server hasbeen upgraded to achieve higher efficiency.

The Job Costing System ( JCS) keeps records of thestock of industrial materials and performs costing of products.It has also been upgraded with expanded information

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coverage and control on stock purchases and transactionsfor jobs. Improvement on cost recovery efficiency wasachieved by automating the processes of demand note andtransfer voucher preparation.

Plans are in hand to extend the access to the CSDIntranet to Industrial Officer level in all institutions.Communication will be further enhanced and exchangeof information will be more efficient. Specifications forboth materials and products and other standardisedinformation on the Intranet are updated regularly to serveas a data bank for reference by all industrial staff andHeads of Institutions.

Supply of MaterialsIn 2001, CSI had a purchase limit of $129 million

and an indebtedness limit of $61 million for the supply ofmaterials to our manufacturing workshops. These limitswere adequate in meeting the operational requirements.

Review of the procurement processes was conductedon a regular basis to enhance the ef ficiency of thesupplies section to meet the rapidly changing businessenvironment. The same team was able to meet theincreased work in procurement of machinery, equipment,materials and services to cope with changes in businessesand the delegated workload from the GovernmentSupplies Department.

Occupational Safety and HealthEnhancing the safety and well being of staff

and prisoners is of paramount importance. CSI takesan active role in co-ordinating all the occupationalsafety and health activities in the Department. TheSteering Committee of the Department meets half-yearly to monitor progress of the initiatives in theAnnual Plan. In support of the Committee, CSIdelivered the following programmes to promoteoccupational safety and health at workplace:

a. Invi t ing Occupational Hygienis ts andOccupational Safety Officers of the LabourDepartment to assess potential risk hazardsat workplace;

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b. Implementing safe and environmental-friendly workpractices;

c. Participating in the Quiz Competition organised bythe Occupational Safety and Health Council andthe Labour Department in August;

d. Monitoring and supporting the operations of theInstitutional Safety Committees and arrangingseminars and training courses for staff at institutions;

e. Conducting risk assessment exercises to eliminatepotential hazards; and

f . Upgrading the fire preventing and fighting facilitiesinside prisons.

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68

Quality ManagementCSI always seeks to improve product and service

quality, which helps build our competitive advantage. TheQuality Control Committee meetings at institutions regularlyupkeep quality awareness and enhance staff commitmentto continuous improvement. Quality assurance systems forincoming materials, work-in-progress and finished productsare frequently reviewed at these meetings. In addition tothe in-process quality checking by CSI staff, independent

surveyors were hired toconduct inspections againstthe quality requirements ofour finished products andincoming materials.

Apar t from the signmaking workshops whichhave been certified to ISO9002 s tandards , t h reecommercial laundries of theDepar tment, namely theShum Wan Laundry, the TuenMun Hospital Laundry andthe Pik Uk Laundry, wereawarded the ISO 9001:2000 Certification by theH o n g K o n g Q u a l i t yA s s u r a n c e A g e n c y i nD e c e m b e r . T h i s h a sd e m o n s t r a t e d t h eeffectiveness of our quality

management system, which is capable of meeting customersatisfaction through continuous improvement.

With the implementation of better systems, we areable to deliver better quality services to our customers. InMarch 2001, the CSI Sign Making Business Team in StanleyPrison won a Merit Award in the Quality ServiceEnhancement Award Contest organised under the CivilService Customer Service Award Scheme.

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