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

The "Skinny" on Profit Opportunities
in the Short Run Market
Dr. Mark Bohan
Vice President, Technology and Research

© Printing Industries of America | www.printing.org 2
Session
Overview
▶ Market overview
▶ What is happening today
▶ Production of short run
▶ Job submission
▶ Marketing automation
▶ Production workflow
▶ Engine types
▶ PIA cost calculator
▶ Summary

2013 Economic Footprint
Commercial and Publishing
Shipments ($ Millions)
Printing and Related Support Activities $84,613
Print Related Media $71,346
Total Industry Shipments $155,959
Establishments
Printing and Related Support Activities 27,526
Print Related Media 18,054
Total Industry Establishments 45,580
Employment
Printing and Related Support Activities 471,611
Print Related Media 442,980
Total Industry Employment 914,591

Print markets
Segments
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 Printers
By size

Living in a multichannel world
Communication

It matters!
Integrating print & mobile
Customer data
Engaging,
customized print
Mobile web
Response/analytics/
tracking

Some numbers
Comments 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 graphics
Out-of-home-advertising
Complex substrates
Periodicals
Books
Packaging
Corporate print
Marketing materials
Value added services
Document management
Customer Engagement
Print MIS
The Printer’s Universe
Chuck Gehman chuck.gehman@efi.com
Director, Product Marketing, EFI

Workflow
Getting it done
▶ Workflow is paramount
▶ All processes
▶ Speed to production
▶ Automation steps
▶ Touch less workflow
▶ Tracking costs
▶ Accuracy
▶ Speed of billing

Evaluating workflow
Value 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

Everywhere
Touches, 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 Connect
Storefront
Ai Process Manager
Ai Connect
Workflow
Shipping
MIS
Pipeline in/out of MIS
Actual Flow of Production
Ai Connect Storefront Workflow

Use case
Ai 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 submission
How do you do it?
▶ Many different service
levels
▶ Include design
services
▶ FTP
▶ Email
▶ Dropbox
▶ Web portals
▶ Tools to help

Job submission
How 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

CatPrint
Discussion of the their solution

Business models
W2P
▶ 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 automation
Logic 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

Production
Managed 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 structure
HP 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 application
See 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

DME
Case study

Workflow automation
EngageIT 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 study
Printer
▶ 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

InitialState
Printer – 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
shipping
ticket
• 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 state
UTILIZING 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 18
Printer #2 55 25
Printer #3 80 34
Touches
Before and after automation

Optimization of the asset base
How 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 workflow
Different 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?
▶ 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

New solutions abound
▶ Marketing Communication Platform enabling
one-to-one marketing offering print to e-delivery

Messaging
Through multiple channels

Marketing applications
Comments
▶ 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 production
What do I use?
▶ Variable content
▶ Print quality
▶ Production time
▶ Special effects
▶ Post processing

Print production
What do I use?
▶ Print process
▶ Offset
▶ Electrophotographic
▶ Inkjet
▶ Many developments
in all areas
▶ Cost
▶ Throughput
▶ Make-ready

ESP
Short run offset
▶ Full blow RBA
workflow
▶ Driven by post press
▶ Optimize the process
▶ Standardized
procedures
▶ Pricing changed
weekly
▶ Post press
▶ $380k per employee

Production data
What can be done

Anicolor
Overview
▶ 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

Anicolor
Technical 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 EP
Short 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 format
An explosion of offerings

InterTech Awards
HP 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

Inkjet
Higher 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
Rationale
For 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 model
Overview 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 results
Representative data – Sheetfed, digital and ganging

Summary
Closure
▶ Short run printing
▶ Job submission
▶ Marketing automation
▶ Production workflow
▶ Engine types

Thanks for listening!
Dr. Mark Bohan
Vice President,
Technology & Research
412 259 1782
mbohan@printing.org
www.printing.org
www.printing.org/free
www.printing.org/markbohan
www.linkedin.com/in/markbohan

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

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