Kodak Nigel Street. Road to Success (UWS ROI and Best Practice) UWS Integration Case Studies

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1 Kodak Nigel Street Road to Success (UWS ROI and Best Practice) UWS Integration Case Studies

2 Without them where would we be 2

3 But they wouldn t agree 3

4 Changed the industry for good 4

5 ....or bad if you were these two guys 5

6 And now 6

7 The Internet has been the most fundamental change during my lifetime and for hundreds of years. Someone the other day said, "It's the biggest thing since Gutenberg," and then someone else said "No, it's the biggest thing since the invention of writing." Rupert Murdoch 7

8 The Glue & The Wrap Document Management Print Enterprise Packaging Commercial Publishing 8

9 Pre-press Efficiency Over the Years Hand Planned Imposed Film CTP Early W/ flow Brisque Prinergy + Scripts Prinergy + IPP + RBA Labour Hr Per Plate 9

10 LABOUR HOURS PER PLATE HRS AT WORK WEEKS AT TOT PROD LABOUR # PER WEEK WORK/YR HRS/YEAR NUMBER OF DESKTOP OPERATORS ,818 NUMBER OF PLATE/PROOF OPER - OTHER DIRECT LABOUR - TOTAL ,818 LABOUR HRS PER YEAR SQ M TOTAL PLATES W L NUMBER PER YEAR PER PLATE SQ M PLATE , ,204 PLATE PLATE PLATE PLATE PLATE TOTAL 15,000 48,204 SQ M PER YEAR LABOUR HOURS PER PLATE = TOTAL LABOUR HOURS DIVIDED BY TOT SQ METERS OF PLATES 13,818 LABOUR HOURS DIVIDED BY 48,204 sq meters EQUALS 0.3 LH/sq M 10

11 Printer Cost Structure TOTAL TURNOVER 5,000,000 FACTORY LABOR PREPRESS LABOR 165, % PRESS LABOR 495, % BINDERY/FINISH LABOR 315, % SHIP/WAREHOUSE 135, % 1,110, % MATERIALS PAPER 1,040, % INK/TONER 120, % PREPRESS 125, % OTHER FACTORY 180, % 1,465, % OTHER EQUIPMENT DEPR/LEASE 265, % EQUIPMENT SERVICE 65, % RENT/UTILITIES 275, % MISCELLANEOUS 305, % OUTSIDE SERVICES 245, % TOTAL OTHER 1,155, % TOTAL FACTORY COSTS 3,730, % GROSS PROFIT 1,270, % ADMINISTRATIVE & SELLING ADMINISTRATION 465, % SALES 325, % ESTIM/PLNG/SCHED 210, % TOTAL OFFICE 1,000, % TOTAL COSTS 4,730, % NET PROFIT 270, % 11

12 Unified Workflow Impact INSITE Sales PRINERGY Prepress Labor Customer can upload, annotate and review files online. Sales personal is not used to send files back and forth Automation automates repetitive manual tasks CSR/Estimator Press Labor Customer has online access to workflow and can upload data. No need to call sales Automation reduces errors to press, improved roll up Prepress Paper/Ink Files are being uploaded directly into Prinergy and processed. No need to download from FTP and process Virtual Proofing System reduces need for final hard copy proofs and reduces plate spoilage Prepress Material Outside Service Reduction in proofing material and plate spoilage Increased capacity in prepress and on press to retain overflow 12

13 UWS Impact Cost reduction TOTAL TURNOVER increase turnover by 5,000,000 0% 5,000,000 FACTORY LABOR decrease costs by PREPRESS LABOR 165, % 20% 132,000 PRESS LABOR 495, % 0% 495,000 BINDERY/FINISH LABOR 315, % 0% 315,000 SHIP/WAREHOUSE 135, % 0% 135,000 1,110, % MATERIALS PAPER 1,040, % 1% 1,029,600 INK/TONER 120, % 1% 118,800 PREPRESS 125, % 20% 100,000 OTHER FACTORY 180, % 0% 180,000 OTHER 1,465, % EQUIPMENT DEPR/LEASE 265, % fixed 265,000 EQUIPMENT SERVICE 65, % fixed 65,000 RENT/UTILITIES 275, % fixed 275,000 MISCELLANEOUS 305, % fixed 305,000 OUTSIDE SERVICES 245, % fixed 245,000 TOTAL OTHER 1,155, % TOTAL FACTORY COSTS 3,730, % GROSS PROFIT 1,270, % 1,339,600 27% ADMINISTRATIVE & SELLING ADMINISTRATION 465, % 0% 465,000 SALES 325, % 5% 308,750 ESTIM/PLNG/SCHED 210, % 5% 199,500 TOTAL OFFICE 1,000, % TOTAL COSTS 4,730, % 4,633,650 NET PROFIT 270, % 366,350 7% 13 SAVINGS 96,350

14 ROI Summary Savings (hard savings only conservative approach): 69,600 Prepress labour: 33,000 Prepress material: 25,000 Press material: 11,600 UWS Investment: 150k 3,000 / month (5-year lease) 4,000 / month (UWS Subscription) Net cash flow: 2,900 / month 5,900 / month (savings) 3,000 = 2,900 UWS Subscription: 1,900 / month 14

15 UWS Impact Growth TOTAL TURNOVER increase turnover by 5,000,000 10% 5,500,000 FACTORY LABOR increase costs by PREPRESS LABOR 165, % 0% 165,000 PRESS LABOR 495, % 10% 544,500 BINDERY/FINISH LABOR 315, % 10% 346,500 SHIP/WAREHOUSE 135, % 10% 148,500 1,110, % MATERIALS PAPER 1,040, % 10% 1,144,000 INK/TONER 120, % 10% 132,000 PREPRESS 125, % 10% 137,500 OTHER FACTORY 180, % 10% 198,000 OTHER 1,465, % EQUIPMENT DEPR/LEASE 265, % increase 268,000 EQUIPMENT SERVICE 65, % increase 75,000 RENT/UTILITIES 275, % fixed 275,000 MISCELLANEOUS 305, % fixed 305,000 OUTSIDE SERVICES 245, % 10% 269,500 TOTAL OTHER 1,155, % TOTAL FACTORY COSTS 3,730, % GROSS PROFIT 1,270, % 1,491,500 27% ADMINISTRATIVE & SELLING ADMINISTRATION 465, % 10% 511,500 SALES 325, % 0% 325,000 ESTIM/PLNG/SCHED 210, % 10% 231,000 TOTAL OFFICE 1,000, % TOTAL COSTS 4,730, % 5,076,000 NET PROFIT 270, % 424,000 8% 15 SAVINGS 154,000

16 BPIF Study October Printers in the UK 7 Web Offset 2 Sheetfed/Digital Financial and Production analysis 16

17 BPIF Workflow Report (Nov 2010) Type of work/capacity File Type System Process MIS Automation 17 Imp Imp Integration Score L/M/H L/M/H L/M/H L/M/H L/M/H Commercial & magazines H M M L L 6 Magazines & repeat business H H H M M 10 Wide range commercial web work H M M M L 7 Commercial & digital printing M H M M L 8 Heavy web investment H H H M M 10 Web & cut-sheet print - magazines H H H M M 10 Sheet-fed fold, stitch & trim L H H H H 12 High volume web H H H M M 10 Commercial- web & sheet-fed M H M M M 9 L=1, M=2,H=3 Various print applications in commercial print segment Kodak and non-kodak customers Various degrees of automation

18 BPIF Report Key findings Less staff when MIS implemented RBA implemented Lower costs when Soft Proofing (INSITE) implemented (vs. conventional) MIS/PRINERGY Less paper waste Less plate spoilage Prepress cost to produce a plate from 3 to over 20 # of plates per prepress labour hour Between 1.5 and 5 plates an hour 18

19 KODAK Customer: ESP Colour (UK) Commercial Sheetfed Customer (B1 & B2) 12 M Turnover Staffing: Make-readies / week UWS Configuration PRINERGY Connect INSITE Prepress Portal Tharsten MIS Automated workflow glued with RBA between MIS, Clients (INSITE) and prepress (PRINERGY) 19

20 ESP Performance vs. BPIF Benchmarks BPIF Average Plate Spoilage: 2 to 4.5 % Prepress cost per plate: 3 to 20 Plate output per prepress hour: 1.5 to 5 ESP Colour 0.1 %

21 ESP Colour (UK) Other anecdotal performance metrics Prepress headcount: from 5 to 3 Plate usage: from 1000 to 2250 Plate spoilage: from 5% to 0.1% Hardcopy proofing: 1% Turnover per employee: from 150k to 200k Average order value: 2,150 Press make-ready: 10% reduction Post press make-ready: 30 % reduction 21

22 Characteristics of Best-in-Class PSPs Reduced Labor Reduced Errors Full Integration Enhanced Customer Service Value-Adding Service Offerings 22

23 Increasing Differentiation and Margin Broad range of services & technology, little workflow & integration Broad range of services & technology, extensive workflow & integration Custom Workflow CAPABILITY Basic Workflow Prinergy Workflow Basic RIP Narrow range of services & technology, little workflow & integration Narrow range of services & technology, extensive workflow & integration AUTOMATION & INTEGRATION 23

24 The Glue & The Wrap Document Management Print Enterprise Packaging Commercial Publishing 24

25 The Evolution of Automation 1st generation automation 2nd generation automation (scripting) 3 rd generation intelligent automation toolkits Pre-defined linear processing chains (e.g. hot folders) Pre-defined processing chains with conditions and branches Rules can be applied per job, per customer level, per system 25

26 The Value of Automation Reduce costs Reduce errors Improve turnaround time Lights-out prepress 26

27 Case Study: Small Commercial Printer CUSTOMER Commercial printer with several sheet-fed presses, ~$4M in annual revenue and 31 employees PROJECT IMPLEMENTATION Cost: $21K for implementation and training Automation rules allow: Customers to submit jobs online and view a preflighted, RIPed, trapped file within an hour Automatic selection of output curves for screening Automatic archiving RESULTS Prepress labor down from 6 operators to 2 A higher level of service that enabled a targeted increase in billing Revised costing and operational savings added $230,000 to bottom line in one year 27

28 Case Study: Mid-Size Commercial Printer CUSTOMER Commercial printer with $16M annual revenue, 120 employees PROJECT IMPLEMENTATION Cost: $21K for implementation and training Implemented several rules including: Automated job archiving Automated RIPing and proofing through InSite Software Automated VPS creation Automated imposition of PDF files RESULTS Spoilage reduced on press with potential savings +$50,000/yr 20 hours per week saved through auto archiving, equating to ~$27,500/yr Intangible benefits include reduced cycle time reduced from 3-4 days to several hours and a higher level of service offered to customers 28

29 Case Study: Large Direct Mail Printer CUSTOMER Direct mail printer with multiple sheet-fed and web presses; ~$150M in annual revenue and 700 employees PROJECT IMPLEMENTATION $1M for workflow software, platesetter, implementation and training Over 60 rules include: Automatic job archival Automatic job ticket retrieval Automatic job creation for incoming jobs and population of data Automatic plate output Automatic layout selection RESULTS Turn time reduced from 50 to 20 hours Prepress productivity has gone up 60% Prepress labor has gone down from 36 operators to 26 for an approximate savings of $800,000/yr 29

30 Case Studies in Growth Automation and integration can help form unbreakable connections with your customers or the markets you serve. For example: We built an on-demand coupon system that automatically feeds the print/mail stream for a global transaction statement provider We helped the largest provider of in-hospital newborn portraits bring in digital printing, and fuse it to their workflow and market We built an e-commerce model for a multi-site global commercial printer to drive automation through workflow, out to a digital press 30

31 Potential Applications Digital print automation Customer-facing platform integration Workflow automation and optimization for specific print applications Unification of offset and digital workflows Enablement of high-speed inkjet workflows Integration with MIS and ERP systems 31

32 Questions to Consider Do you have the right staff and expertise to ensure your software and hardware is being used to maximum capacity? Are you able to redeploy staff from other activities to focus on analyzing and updating your processes? Does your technology platform support measurable savings in labor, spoilage and cycle time? 32

33 Potential Pitfalls of DIY Many self-made rules suffer from: A lack of documentation A lack of planning and testing A flow that is not maintainable or extendable 33

34 RBA: A Powerful Contributor to Profitability Can deliver 10-20% increase in productivity with rules like automated preflight and auto-archiving Can reduce prepress costs by 30-60% when used with Prinergy and InSite Software Can add 1-2% to margins with a typical printer spending 3-4% of revenue on prepress labor and materials 34

35 Kodak MarketMover Business Advantage Solutions Consulting services and business solutions Optimizing solutions, business strategies and marketing services Analyzing all aspects of your business Pointing you toward the most effective market directions Helping you plan, execute, and sell these services 35

36 Industry Expertise & Delivery Technology Expertise Worldwide Resources Digital Printing Inkjet Printing Solutions Electrophotographic Printing Solutions Prepress Solutions Business Solutions and Services Unified Workflow Solutions Document Imaging Solutions for Business Managing consultants Project managers Business & solution architects Software developers Technical consultants Centers of excellence Operations Marketing sciences Data management Business and process workflow US&C EAMER APR Kodak MarketMover Business Advantage Solutions 36

37 Next Steps Free, no obligation consultation 30-minute meeting Explore needs and potential return on investment Discuss thoughts and ideas 37

38 The next goldrush.. Both U.S. President Barack Obama and French President Nicolas Sarkozy have used Facebook as a way to organize their supporters. From the protests against the Colombian FARC, a 40-year old terrorist organization, to fighting oppressive, fringe groups in India, people use Facebook as a platform to build connections and organize action. Mark Zuckerberg 38

39 39

40 be careful to avoid fools gold! 40

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