the "skinny" on profit opportunities in the short run market

The "Skinny" on Profit Opportunities in the Short Run Market

Dr. Mark BohanVice President, Technology and Research

© Printing Industries of America | www.printing.org 2

SessionOverview

▶ Market overview▶What is happening today

▶ Production of short run▶ Job submission▶Marketing automation▶Production workflow▶Engine types

▶ PIA cost calculator▶ Summary


2013 Economic FootprintCommercial and Publishing

Shipments ($ Millions)Printing and Related Support Activities $84,613Print Related Media $71,346Total Industry Shipments $155,959

EstablishmentsPrinting and Related Support Activities 27,526Print Related Media 18,054Total Industry Establishments 45,580

EmploymentPrinting and Related Support Activities 471,611Print Related Media 442,980Total Industry Employment 914,591


Print marketsSegments

Inform & Communicate

Magazines & Periodicals

Newspaper Printing

Book Printing

Financial & Legal Printing

Business Forms Printing

Greeting Card Printing

Product Logistics

Converters, Label, & Wrapper Printing

Package Printing

Market & Promote

General Commercial Printing

Quick Printer

Direct Mail Printer

Signs & Signage


Financial Expectations For Year-End 2014


Profiling PrintersBy size


Living in a multichannel worldCommunication


It matters!Integrating print & mobile

Customer data

Engaging, customized print

Mobile web

Response/analytics/tracking


Some numbersComments on what is happening

▶ Increase in web to print

▶ Digital color pages expected to double in next 5 years

▶ Run lengths are reducing

▶ Number of jobs is increasing

▶ Growth in production inkjet


Productivity matters


Print Offerings

Equipment

Workflow

Display graphicsOut-of-home-advertisingComplex substrates

PeriodicalsBooksPackaging

Corporate printMarketing materials

Value added servicesDocument management

Customer Engagement

Print MIS

The Printer’s Universe

Chuck Gehman [email protected] Director, Product Marketing, EFI


WorkflowGetting it done

▶ Workflow is paramount▶ All processes

▶ Speed to production▶ Automation steps▶ Touch less workflow

▶ Tracking costs▶ Accuracy ▶ Speed of billing


Evaluating workflowValue Stream Mapping or is it Hieroglyphics?


Touches, Touches, Touches Orders for example

How many touches do you have to process an order through your shop?Let’s take it back to the basics: Estimating

▶ A sales person gets a request for a quote = first touch▶ They fill out an estimate form = second touch▶ The estimator does the estimate = third touch▶ The estimator gives it back to the CSR or sales person = fourth touch▶ The sales person o.k.’s the estimate and gives it to the CSR = fifth touch▶ The CSR completes the quote and sends it to the client = sixth touch▶ How many estimates do you do a day? Multiply that number times 6!▶ What percentage of estimates do you win?

The above touches are all non-value add services


EverywhereTouches, Touches, Touches

▶ Perform this procedure for every process in your shop

▶ Estimating▶ CSR▶ Prepress▶ Proofing▶ Planning▶ Production – each stop is a

touch – press, cutter, folder, shrink wrap, shipping

▶ Invoicing▶ Accounting


Ai Workflow

Shipping

Plating / Proofing / Heidelberg Press’

Creo Spire Xerox iGens

Finishing

Finishing

Ai ConnectStorefront

Ai Process Manager

Ai ConnectWorkflow

Shipping

MIS

Pipeline in/out of MISActual Flow of Production

Ai Connect Storefront Workflow


Use caseAi Connect Storefront

▶ Average 60-70 orders per day

▶ Average 2.9 line items per order

▶ Average turn is 24-36 hours

▶ No Human touch until after it prints on the digital press, Proofer or Plate Setter

▶ 4 touches to print and ship a tri-fold job


Job submission


Job submissionHow do you do it?

▶ Many different service levels▶ Include design

services▶FTP▶Email▶Dropbox▶Web portals

▶ Tools to help


Job submissionHow do we get the jobs in?

▶ One of the ways to remove costs and improve efficiency

▶ Customer carry out jobs▶ Education

▶ Web to print solutions

▶ Web portals

▶ Document management

▶ Brand management


CatPrintDiscussion of the their solution


Business modelsW2P

▶ W2P sites can target either B-to-B or B-to-C clients, sometimes both…

▶ Different levels of expertise required depending on customer targeted and type of interface


Services What can be part of a W2P offering?

▶ Job ticketing/order entry▶ Quoting/ billing▶ Template or catalog-based

page construction▶ VDP project management▶ Database linking▶ Digital asset management▶ Soft proofing▶ Preflight▶ Online Design

▶ Online payment▶ File conversion/PDF

creation▶ Job delivery (to print shop)▶ Job tracking & approval▶ Direct mail/list management▶ 1:1 Marketing▶ Preflight▶ PURLs/Data Analysis▶ Customer Relationship

Management


Power of automationLogic based decisions

▶ Process the files once they are submitted

▶ Integrates with third party applications

▶ Pre flight, color management, imposition

▶ Provides touch free workflow

▶ Hot folders, emails ….


What can be done?Automation

▶ Not touching the files▶ Rules based automation▶ How can be applied to the workflow

▶ Types include▶ Job ticket templates▶ Hot folders▶ Archiving eliminated▶ Page placement▶ Revision notification▶ Discard▶ Color conversions


Job production


ProductionManaged production floor

▶ Visibility of jobs and job status

▶ Proactively managing change

▶ Dynamic planning and flexibility

▶ Automating workflows▶ Managing exceptions

as needed


Efficient, Automated, Flexible Workflow

▶ Automate production steps while increasing visibility and control


Workflow structureHP SmartStream Production Center

Production Optimization

Highly flexible and user configurable

Customized production processes and parameters

Production Monitoring

Track jobs Jobs’ warnings Ongoing device performance

Job Flow Control

E2E Job control A queue for every step Barcode tracking

Integration

Qualified integrations with leading W2P systems

Open architecture based on industry standards

Automation

Centralizes jobs from multiple sources

Step by step production plan Automatically advances jobs

Batching jobs Expedites urgent jobs Load balancing across

identical devices

Customization


Typical applicationSee job progress

▶ Get a detailed view of every job on the production floor▶ Know at what step each job is▶ Get immediate indication for late jobs or jobs in error▶ See a detailed job status, and see where assistance is

needed


DMECase study


Workflow automationEngageIT Automation

EngageIT Automation has a very robust “documented” API which allows for integration with existing StoreFronts, MIS solutions, etc. If a client has an existing storefront they can by-pass the EngageIT Automation storefront and integrate directly with the production manager.


Case studyPrinter

▶ 61 year old family run and operated business.▶ Focus on letterhead, business cards, envelopes, and other

corporate identity/marketing and sales materials.▶Customers include accounting firms, media firms, health industry, entertainment and manufacturing companies.

▶ Printer was looking for opportunities to:▶ Streamline the processes on redundant print jobs▶ Improve the flow of jobs through the shop▶ Increase the profitability on their most common jobs▶ Provide new services to their existing customer base as well as

prospects▶ Expand their business into new markets


InitialStatePrinter – Business Cards, 2 x 3.5, 4/4, – Digital Print

ESTIMATING ORDER ENTRY

PRE-PRESS

CUTTING DELIVERYPRESS

• Receive email

• Develop estimate

• Respond to customer

• Customer response/credit card authorization

• Print payment

• Run deposit

• Receive email

• Read and review email

• Write up job ticket (order)

• Print out ticket

• Place job ticket in the art department

• Read ticket

• Retrieve file

• Check file

• RIP file

• Stamp (time/press)

• Move ticket to press

• Read ticket• Locate file• Preview file• Impose file• Retrieve stock• Load stock• Set stock on press• Run proof• Proof to CSR

for approval • CSR review

file in email• Approves proof• Print job• Moves job

to bindery

• Read ticket

• Locate job

• Set up cutter

• Cut job

• Box it

• Put it on finished job rack

• Take ticket to CSR

• Read ticket

• Prepare shipping ticket

• Ticket in finished job rack

• Deliver job

• Deliver ticket to accounting

• Email invoice

P/T = 17 minutes

Touches = 6

P/T = 10 minutes

Touches = 5

P/T = 15 minutes

Touches = 6

P/T = 26 minutes

Touches = 13

P/T = 20 minutes

Touches = 7

P/T = 14 minutes

Touches = 6


• Receive email

• Develop estimate

• Respond to customer

• Customer response/credit card authorization

• Print payment

• Run deposit

• Receive email

• Read and review email

• Write up job ticket (order)

• Print out ticket

• Place job ticket in the art department

• Read ticket

• Retrieve file

• Check file

• RIP file

• Stamp (time/press)

• Move ticket to press

• Read pick list ticket

• Locate file• Preview file• Impose file• Retrieve stock• Load stock• Set stock

on press• Run proof• Proof to CSR

for approval • CSR review file

in email• Approves proof• Print job• Moves job

to bindery

• Read ticket

• Locate job

• Set up cutter

• Cut job

• Box it

• Put it on finished job rack

• Take ticket to CSR

• Read ticket

• Prepare shippingticket

• Ticket in finished job rack

• Deliver job

• Deliver ticket to accounting

• Email invoice

P/T = 0 minutes

Touches = 0

P/T = 0 minutes

Touches = 0

P/T = 0 minutes

Touches = 0

P/T = 13 minutes

Touches = 7

P/T = 15 minutes

Touches = 5

P/T = 14 minutes

Touches = 6

New stateUTILIZING EngageIT AUTOMATION/PageDNA

ORDER ENTRY

PRE-PRESS

CUTTING DELIVERYPRESSESTIMATING


PRODUCTION MINUTES BEFORE

PRODUCTION MINUTES AFTER

Printer #1 102 42

Printer #2 142 58

Printer #3 180 52

Production minutes Before and after automation


TOUCHES BEFORE TOUCHES AFTER

Printer #1 43 18Printer #2 55 25Printer #3 80 34

TouchesBefore and after automation


Optimization of the asset baseHow to effectively manage

▶ Workflow engines connecting new and existing equipment

▶ Allows data transfer▶ JDF and non JDF equipment▶ Justify capital expenditure

▶ Ability to investigate production data with great accuracy and detail

▶ Additional vendors▶ Soft Solutions, Octopus …


Production workflowDifferent solutions available

▶ Increased focus from the vendors

▶ Focus on moving jobs

▶ Proprietary and open systems

▶ Integrate into management systems▶Not trying to be an MIS


Marketing automation


Why?Marketing automation

▶ New revenue opportunities ▶ Transformation from Print Service Provider (PSP)

to Marketing Service Provider (MSP)▶ Ability to offer your customers multichannel

media options – emails, PURLS and Social Media and more

▶ Provide customers the ability to track results of their marketing initiatives, real time


Marketing automationNew solutions abound

▶ Marketing Communication Platform enablingone-to-one marketing offering print to e-delivery


Messaging Through multiple channels


Marketing applicationsComments

▶ They are here to stay

▶ Fully integrate customer data, print and electronic media

▶ Solutions being provided to allow this to happen without coding from scratch


Print production


Print productionWhat do I use?

▶ Variable content

▶ Print quality

▶ Production time

▶ Special effects

▶ Post processing


Print productionWhat do I use?

▶ Print process▶Offset▶Electrophotographic▶ Inkjet

▶ Many developments in all areas▶Cost▶Throughput▶Make-ready


ESPShort run offset

▶ Full blow RBA workflow

▶ Driven by post press▶ Optimize the process

▶ Standardized procedures

▶ Pricing changed weekly

▶ Post press

▶ $380k per employee


Production dataWhat can be done


AnicolorOverview

▶ Inking using a anilox roll▶ No ink keys▶ Much shorter roller train

▶ First received an InterTech Award in 2007

▶ Size format 52 (20”)▶ More than 1000 units▶ Speedmaster SX 52 Anicolor

▶ Released new size format▶ Size format 75 (29”)▶ Speedmaster XL 75 Anicolor


AnicolorTechnical overview

▶ Make-ready time: 4 to 8 minutes

▶ Make-ready waste: 10 to 30 sheets

▶ Consistent ink supply

▶ Max speed 15,000 imp per hr.

▶ Process and spot color

▶ Offset


Digital EPShort run

▶ Many solutions available▶ Increased quality▶ Increased productivity

▶ Integrated finishing

▶ Traditional thought for short run


▶ This format provided great interest

▶ Many new digital offerings▶ Utilize offset finishing

▶ Taking market share from offset

▶ Very short to medium run

▶ Inkjet solutions will also impact EP toner based production

The half size formatAn explosion of offerings


InterTech AwardsHP Indigo 10000 Digital Press

▶ 29-inch format▶ Up to 7 colors▶ Duplex mechanism ▶ Broad media range

▶ Prints 3,450 29-inch sheets per hour

▶ 4,600 sheets per hour in Enhanced Productivity Mode (EPM)

▶ Easily integrates into existing offset


InkjetHigher speed production

▶ Inkjet solutions are growing in popularity▶Single pass▶Cost effective▶High volume

▶ Quality differential▶ Improving


Cost calculator


▶ Many blanket statements about cost

▶ Dependent on the person talking

▶ “Nothing under 5,000 is always cheaper digital”

▶ Bias on their experience

▶ Difficult to analyze independently

▶ Need your own configurations

RationaleFor the development of a cost calculator


▶ Delivery date/time▶ Print quality▶ Design content

▶ Solids▶ Tints▶ Crossovers

▶ Color match▶ Spot▶ Multiple components▶ Pre-printed

Is cost the only factor?Other factors include


▶ Substrate▶ Type▶ Weight/thickness▶ Surface / finish

▶ Inline/Offline Coating▶ Aqueous (for protection)▶ UV or UV special affect

▶ Finishing▶ Inline/offline foiling▶ Inline/offline embossing▶ Mailing



▶ Utilization ▶ What is press availability

▶ Are the real costs known?



▶ All costs split into three areas

1. Fixed jobs for a job▶ Impact diminishes as run length increases

2. Fixed costs for the facility▶ Pro rated by either impressions or jobs

3. Variable jobs for the job▶ As produce product these cost will increase

Cost modelOverview for both all processes


▶ Use your own data▶Press configuration▶Machine and material

costs▶Staff costs▶Times for activities▶Total impressions /

jobs▶Waste▶Financing

Model Input data


Typical resultsRepresentative data – Sheetfed, digital and ganging


SummaryClosure

▶ Short run printing

▶ Job submission

▶Marketing automation

▶Production workflow

▶Engine types


Thanks for listening!

Dr. Mark Bohan

Vice President, Technology & Research

412 259 1782

[email protected]

www.printing.orgwww.printing.org/freewww.printing.org/markbohanwww.linkedin.com/in/markbohan