Case Study. In-Plant Operational Excellence In Action. May Pennsylvania Department of General Services Bureau of Publications

Transcription

1 Case Study May 2015 In-Plant Operational Excellence In Action Pennsylvania Department of General Services Bureau of Publications Comments or Questions?

2 Table of Contents Introduction... 3 About the Bureau of Publications... 3 Multiple Tactics Result in Cost Savings and Volume Growth... 3 Replacing Offset Presses With Digital Devices... 4 Workflow Automation Streamlines Operations... 5 Operational Assessment and Increased Customer Awareness Power Strategy... 6 The Future... 6 About the Author... 7 InfoTrends

3 Introduction The Pennsylvania Department of General Services (DGS) Bureau of Publications (Harrisburg, PA) is the largest in-house government printing facility in the state. Efforts to improve operational efficiency and reduce costs are part of the Bureau of Publications ongoing mission. A recent operational improvement initiative resulted in savings of more than $2.3 million, a 45% increase in print volume, the implementation of an automated workflow, and the transition from offset to digital printing. This case study highlights the actions taken by the Bureau of Publications. About the Bureau of Publications The Bureau of Publications provides 63 state agencies, offices, and boards/commissions with services ranging from digital print, variable data printing, envelope inserting, signage, posters, name plates, fulfillment, graphic design, and mailing services. The facility occupies 10,000 sq. ft. and is equipped with high-volume color and monochrome digital printing devices, bindery and inserting equipment, and digital wide format devices. Multiple Tactics Result in Cost Savings and Volume Growth State officials in the Commonwealth of Pennsylvania expect their in-house printing operations to be competitive with the private sector and operate in the most efficient manner to maximize taxpayers dollars. A recent effort by the Bureau of Publications resulted in significant manufacturing cost savings, the elimination of a 70,000 sq. ft. warehouse used for storing printed materials, and a 45% increase in annual print volume (growing from 85 million pages 3 years ago to over 200 million pages today). This year, the in-plant expects annual volume to reach 225 million pages. The Bureau of Publications was able to achieve results by taking the following actions: Consolidation of operations and elimination of redundant processes The transition from offset printing to digital printing to produce more just-in=time printing Implementation of an end-to-end digital workflow starting with online ordering and ending with automated billing Efficiency improvements to reduce the number of required equipment operators, enabling staff to be reassigned to account manager or subject matter expert (SME) roles to better serve customers InfoTrends

4 According to Marcie Carr, Director of the Bureau of Publications, We have a totally different business today because we replaced manual ordering processes and offset presses with a web-to-print/online ordering system that drives on demand production on our digital presses. Work is produced as needed today, and this eliminated the need for warehousing materials. Replacing Offset Presses With Digital Devices 1 Carr says that the in-plant reduced equipment by seven pieces when it replaced its offset equipment with digital devices. Offset operators were retrained and transitioned to operating digital devices or placed in account management positions. By retiring offset presses and replacing them with digital devices, the in-plant was able to achieve over a half-million dollars in savings. Companies with older offset presses generally have lower utilization rates as those machines break down more often and require higher maintenance costs to support. By adding digital printing devices to produce work on demand, the Bureau of Publication was able to reduce maintenance costs and eliminate a 70,000-sq.ft. warehouse. At the same time, print waste was reduced as customers began ordering the exact quantities they needed. Meanwhile, real-time reporting enabled agencies to track the print materials that regional offices were ordering. Combined with the shift from offset to digital printing, streamlining and automating the production workflow reduced the number of production staff needed to operate equipment. This freed staff members to work directly with customers as account managers. Staff members were reassigned to specific agencies to provide one point of contact to accommodate all of their printing needs from direct mail to signage. This also enabled the Bureau of Publications to aggregate print volumes, combine purchase orders, and enhance the overall customer experience. The Bureau of Publications manages all aspects of its customers print requirements, from printing materials in-house to outsourcing offset work to managing the bid process for agencies. Account managers act as SMEs (subject matter experts) and help agencies write print specs. While Carr can t assign a monetary value to the addition of the SMEs, she says that they often circumvent mistakes and identify costs savings by helping an agency better define job specifications. She elaborates, We established account managers because we wanted our customers to make one call for their communication needs. Our account managers are also very good at buying print for the commonwealth. When it comes to the larger offset deliverables, they are able to dedicate the time and expertise required to get the best prices. 1 State policies restrict Carr from revealing the equipment and software products used at the inplant facility. InfoTrends

5 Workflow Automation Streamlines Operations The Bureau of Publications implementation of an online print ordering and management system has eliminated manual processes, automated the print ordering process, and shifted related paperwork to an electronic format. For example, billing happens automatically without the need to manually complete forms. Online print ordering software facilitates commerce, collaboration, and customer service interaction between the Bureau of Publications and its customers. These solutions, often referred to as web-to-print systems, are an integral element of workflow automation. They encompass the entire delivery system, including page design, job file submission, online calculation, job tracking, soft proofing, online payment, online shipping, and inventory management. These systems increase automation, improve operational efficiency, enable better control of brand management, enhance customer retention, and remove costs and time from the print procurement process. According to Carr, We wanted to reduce costs for our customers and enhance the customer experience by making it as easy as possible for them to order, print, ship, and bill. By evaluating existing processes, Carr and her team uncovered outdated equipment and processes, software systems that couldn t communicate with each other, and an older print management system that could no longer be upgraded. She explains, We wanted to eliminate the inefficient processes that were in place and come into the 21 st Century so we could successfully handle commercial printing in an in-plant environment. The print center now receives complicated variable data jobs. Recently, the center was tasked with a print job that was uniquely customized to 800,000 individual recipients that needed to be completed and mailed in 8 days. This job wasn t a typical sheet of paper being inserted into a #10 envelope; the print component was customized to individual recipients and page counts varied depending on the recipients needs. In a typical VDP job, files are generated as print-ready PDFs. Once a VDP job is printed, it is immediately prepared for mailing. Most VDP jobs are printed, inserted, and mailed within a 24-hour period. Files are deleted at the completion of a job because the Bureau of Publications does not house any of its clients databases. Tim Holdcroft, Production Sales Specialist for Xerox, supported the in-plant during its transformation. He notes, The Bureau of Publications increased print volume because it enabled customers to order work, captured new clients, and consolidated print shops. InfoTrends

6 Operational Assessment and Increased Customer Awareness Power Strategy The transformation was a year-long effort that started with an assessment of operations and customer discussions. Carr and her staff also visited successful in-plant operations to uncover best practices and determine the best course of action. The assessment and strategy process took about six months, and then the in-plant started up new equipment and software workflows. The assessment identified major redundancies in resource utilization. It determined that agencies were purchasing print from outside vendors or using their own printing capabilities. Consolidating print buying internally would improve capacity utilization and reduce agencies print costs. The Bureau of Publications communicated the benefits of its services to state agencies. With print on demand and online ordering capabilities, response times were improved and staff had more control over the print ordering process. Ongoing customer discussions were an essential component for aligning strategy with real client requirements. These meetings also served as way for the Bureau of Publications to evangelize the benefits of its new workflow, on-demand production capabilities, and new services. The awareness effort helped elevate the in-plant to a new status. Instead of being the last call made regarding a print job, the in-plant was now the first call made. A number of former production challenges have disappeared because agencies now reach out to staff at the Bureau of Publications as soon as they have a print job and not as an afterthought. According to Carr, We became an educator to our customers and we work very closely with them to understand their requirements for all types of print work. We are now included in the planning stages, and they give us a heads-up on incoming work. The Future As for the future, Carr says the in-plant will continue to make investments to automate processes and maintain up-to-date equipment and software. In addition, the facility will maintain its efforts to educate client agencies on best practices to improve communications and reduce costs. Carr concludes, Better serving our customers is an ongoing process, so we will continue to evaluate our situation and improve things as needed. We will stay current with new technologies and continue to reduce our physical footprint. This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies. We believe that the sources of information on which our material is based are reliable and we have applied our best professional judgment to the data obtained. InfoTrends

7 About the Author Lisa Cross Associate Director Lisa Cross is the Associate Director for InfoTrends Business Development Strategies service. She is responsible for conducting market research, supporting market forecast estimates, managing custom consulting projects, and reporting on industry events. Comments or Questions? InfoTrends