The "Skinny" on Profit Opportunities in the Short Run Market
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Transcript of 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
© Printing Industries of America | www.printing.org 3
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
© Printing Industries of America | www.printing.org 4
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
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Financial Expectations For Year-End 2014
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Profiling PrintersBy size
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Living in a multichannel worldCommunication
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It matters!Integrating print & mobile
Customer data
Engaging, customized print
Mobile web
Response/analytics/tracking
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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
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Productivity matters
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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
© Printing Industries of America | www.printing.org 12
WorkflowGetting it done
▶ Workflow is paramount▶ All processes
▶ Speed to production▶ Automation steps▶ Touch less workflow
▶ Tracking costs▶ Accuracy ▶ Speed of billing
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Evaluating workflowValue Stream Mapping or is it Hieroglyphics?
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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
© Printing Industries of America | www.printing.org 15
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
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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
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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
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Job submission
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Job submissionHow do you do it?
▶ Many different service levels▶ Include design
services▶FTP▶Email▶Dropbox▶Web portals
▶ Tools to help
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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
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CatPrintDiscussion of the their solution
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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
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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
© Printing Industries of America | www.printing.org 24
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 ….
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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
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Job production
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ProductionManaged production floor
▶ Visibility of jobs and job status
▶ Proactively managing change
▶ Dynamic planning and flexibility
▶ Automating workflows▶ Managing exceptions
as needed
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Efficient, Automated, Flexible Workflow
▶ Automate production steps while increasing visibility and control
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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
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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
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DMECase study
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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.
© Printing Industries of America | www.printing.org 33
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
© Printing Industries of America | www.printing.org 34
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
© Printing Industries of America | www.printing.org 35
• 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
© Printing Industries of America | www.printing.org 36
PRODUCTION MINUTES BEFORE
PRODUCTION MINUTES AFTER
Printer #1 102 42
Printer #2 142 58
Printer #3 180 52
Production minutes Before and after automation
© Printing Industries of America | www.printing.org 37
TOUCHES BEFORE TOUCHES AFTER
Printer #1 43 18Printer #2 55 25Printer #3 80 34
TouchesBefore and after automation
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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 …
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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
© Printing Industries of America | www.printing.org 40
Marketing automation
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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
© Printing Industries of America | www.printing.org 42
Marketing automationNew solutions abound
▶ Marketing Communication Platform enablingone-to-one marketing offering print to e-delivery
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Messaging Through multiple channels
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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
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Print production
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Print productionWhat do I use?
▶ Variable content
▶ Print quality
▶ Production time
▶ Special effects
▶ Post processing
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Print productionWhat do I use?
▶ Print process▶Offset▶Electrophotographic▶ Inkjet
▶ Many developments in all areas▶Cost▶Throughput▶Make-ready
© Printing Industries of America | www.printing.org 48
ESPShort run offset
▶ Full blow RBA workflow
▶ Driven by post press▶ Optimize the process
▶ Standardized procedures
▶ Pricing changed weekly
▶ Post press
▶ $380k per employee
© Printing Industries of America | www.printing.org 49
Production dataWhat can be done
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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
© Printing Industries of America | www.printing.org 51
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
© Printing Industries of America | www.printing.org 52
Digital EPShort run
▶ Many solutions available▶ Increased quality▶ Increased productivity
▶ Integrated finishing
▶ Traditional thought for short run
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▶ 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
© Printing Industries of America | www.printing.org 54
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
© Printing Industries of America | www.printing.org 55
InkjetHigher speed production
▶ Inkjet solutions are growing in popularity▶Single pass▶Cost effective▶High volume
▶ Quality differential▶ Improving
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Cost calculator
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▶ 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
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▶ 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
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▶ 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
Is cost the only factor?Other factors include
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▶ Utilization ▶ What is press availability
▶ Are the real costs known?
Is cost the only factor?Other factors include
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▶ 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
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▶ Use your own data▶Press configuration▶Machine and material
costs▶Staff costs▶Times for activities▶Total impressions /
jobs▶Waste▶Financing
Model Input data
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Typical resultsRepresentative data – Sheetfed, digital and ganging
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SummaryClosure
▶ Short run printing
▶ Job submission
▶Marketing automation
▶Production workflow
▶Engine types
© Printing Industries of America | www.printing.org 65
Thanks for listening!
Dr. Mark Bohan
Vice President, Technology & Research
412 259 1782
www.printing.orgwww.printing.org/freewww.printing.org/markbohanwww.linkedin.com/in/markbohan