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

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Without them where would we be……………………

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But they wouldn’t agree…………………

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Changed the industry for good

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

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And now

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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

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The Glue & The Wrap

Document Management Print

Enterprise Packaging Commercial Publishing

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Hand Planned

Imposed Film

CTP Early W/flow

Brisque Prinergy + Scripts

Prinergy + IPP + RBA

Pre-press Efficiency Over the Years

Labour Hr Per Plate

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LABOUR HOURS PER PLATE

HRS AT WORK WEEKS AT TOT PROD

LABOUR # PER WEEK WORK/YR HRS/YEAR

NUMBER OF DESKTOP OPERATORS 7.0 42.0 47.0 13,818

NUMBER OF PLATE/PROOF OPER -

OTHER DIRECT LABOUR -

TOTAL 7.0 13,818 LABOUR HRS PER YEAR

SQ M TOTAL

PLATES W L NUMBER PER YEAR PER PLATE SQ M

PLATE 1 2060.0 1560.0 15,000 3.21 48,204

PLATE 2 - -

PLATE 3 - -

PLATE 4 - -

PLATE 5 - -

PLATE 6 - -

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

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Printer Cost Structure TOTAL TURNOVER

€ 5,000,000 FACTORY LABOR PREPRESS LABOR € 165,000 3.3% PRESS LABOR € 495,000 9.9% BINDERY/FINISH LABOR € 315,000 6.3% SHIP/WAREHOUSE € 135,000 2.7%

€ 1,110,000 22.2% MATERIALS PAPER € 1,040,000 20.8% INK/TONER € 120,000 2.4% PREPRESS € 125,000 2.5% OTHER FACTORY € 180,000 3.6%

€ 1,465,000 29.3% OTHER EQUIPMENT DEPR/LEASE € 265,000 5.3% EQUIPMENT SERVICE € 65,000 1.3% RENT/UTILITIES € 275,000 5.5% MISCELLANEOUS € 305,000 6.1% OUTSIDE SERVICES € 245,000 4.9%

TOTAL OTHER € 1,155,000 23.1% TOTAL FACTORY COSTS € 3,730,000 74.6%

GROSS PROFIT € 1,270,000 25.4% ADMINISTRATIVE & SELLING ADMINISTRATION € 465,000 9.3% SALES € 325,000 6.5% ESTIM/PLNG/SCHED € 210,000 4.2%

TOTAL OFFICE € 1,000,000 20.0% TOTAL COSTS € 4,730,000 94.6%

NET PROFIT € 270,000 5.4%

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Unified Workflow Impact

Sales • Customer can upload, annotate and review files online. Sales personal is not used to send files back and forth

CSR/Estimator • Customer has online access to workflow and can upload data. No need to call sales

Prepress • Files are being uploaded directly into Prinergy and processed. No need to download from FTP and process

Prepress Material • Reduction in proofing material and plate spoilage

INSITE Prepress Labor • Automation automates repetitive manual tasks

Press Labor • Automation reduces errors to press, improved roll up

Paper/Ink • Virtual Proofing System reduces need for final hard copy proofs and reduces plate spoilage

Outside Service • Increased capacity in prepress and on press to retain overflow

PRINERGY

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UWS Impact – Cost reduction TOTAL TURNOVER increase turnover by

€ 5,000,000 0% € 5,000,000FACTORY LABOR decrease costs byPREPRESS LABOR € 165,000 3.3% 20% € 132,000PRESS LABOR € 495,000 9.9% 0% € 495,000BINDERY/FINISH LABOR € 315,000 6.3% 0% € 315,000SHIP/WAREHOUSE € 135,000 2.7% 0% € 135,000

€ 1,110,000 22.2%MATERIALSPAPER € 1,040,000 20.8% 1% € 1,029,600INK/TONER € 120,000 2.4% 1% € 118,800PREPRESS € 125,000 2.5% 20% € 100,000OTHER FACTORY € 180,000 3.6% 0% € 180,000

€ 1,465,000 29.3%

OTHEREQUIPMENT DEPR/LEASE € 265,000 5.3% fixed € 265,000EQUIPMENT SERVICE € 65,000 1.3% fixed € 65,000RENT/UTILITIES € 275,000 5.5% fixed € 275,000MISCELLANEOUS € 305,000 6.1% fixed € 305,000OUTSIDE SERVICES € 245,000 4.9% fixed € 245,000

TOTAL OTHER € 1,155,000 23.1%

TOTAL FACTORY COSTS € 3,730,000 74.6%

GROSS PROFIT € 1,270,000 25.4% € 1,339,600 27%

ADMINISTRATIVE & SELLINGADMINISTRATION € 465,000 9.3% 0% € 465,000SALES € 325,000 6.5% 5% € 308,750ESTIM/PLNG/SCHED € 210,000 4.2% 5% € 199,500

TOTAL OFFICE € 1,000,000 20.0%

TOTAL COSTS € 4,730,000 94.6% € 4,633,650

NET PROFIT € 270,000 5.4% € 366,350 7%

SAVINGS € 96,350

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ROI Summary

• Prepress labour: 33,000 € • Prepress material: 25,000 € • Press material: 11,600 €

Savings (hard savings only – conservative approach): 69,600 €

• 3,000 € / month (5-year lease) • 4,000 € / month (UWS Subscription)

UWS Investment: 150k€

• 5,900 € / month (savings) – 3,000 € = 2,900 € • UWS Subscription: 1,900 € / month

Net cash flow: 2,900 € / month

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UWS Impact – Growth TOTAL TURNOVER increase turnover by

€ 5,000,000 10% € 5,500,000FACTORY LABOR increase costs byPREPRESS LABOR € 165,000 3.3% 0% € 165,000PRESS LABOR € 495,000 9.9% 10% € 544,500BINDERY/FINISH LABOR € 315,000 6.3% 10% € 346,500SHIP/WAREHOUSE € 135,000 2.7% 10% € 148,500

€ 1,110,000 22.2%MATERIALSPAPER € 1,040,000 20.8% 10% € 1,144,000INK/TONER € 120,000 2.4% 10% € 132,000PREPRESS € 125,000 2.5% 10% € 137,500OTHER FACTORY € 180,000 3.6% 10% € 198,000

€ 1,465,000 29.3%

OTHEREQUIPMENT DEPR/LEASE € 265,000 5.3% increase € 268,000EQUIPMENT SERVICE € 65,000 1.3% increase € 75,000RENT/UTILITIES € 275,000 5.5% fixed € 275,000MISCELLANEOUS € 305,000 6.1% fixed € 305,000OUTSIDE SERVICES € 245,000 4.9% 10% € 269,500

TOTAL OTHER € 1,155,000 23.1%

TOTAL FACTORY COSTS € 3,730,000 74.6%

GROSS PROFIT € 1,270,000 25.4% € 1,491,500 27%

ADMINISTRATIVE & SELLINGADMINISTRATION € 465,000 9.3% 10% € 511,500SALES € 325,000 6.5% 0% € 325,000ESTIM/PLNG/SCHED € 210,000 4.2% 10% € 231,000

TOTAL OFFICE € 1,000,000 20.0%

TOTAL COSTS € 4,730,000 94.6% € 5,076,000

NET PROFIT € 270,000 5.4% € 424,000 8%

SAVINGS € 154,000

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BPIF Study October 2010

•  9 Printers in the UK •  7 Web Offset •  2 Sheetfed/Digital •  Financial and Production analysis

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BPIF – Workflow Report (Nov 2010)

Type of work/capacity File Type System Process MIS Automation

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

Various print applications in commercial print segment Kodak and non-Kodak customers Various degrees of automation

L=1, M=2,H=3

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BPIF Report – Key findings

Ø  Less staff when •  MIS implemented •  RBA implemented

Ø  Lower costs when •  Soft Proofing (INSITE) implemented (vs. conventional)

Ø  MIS/PRINERGY •  Less paper waste •  Less plate spoilage

Ø  Prepress cost to produce a plate •  from 3£ to over 20£

Ø  # of plates per prepress labour hour •  Between 1.5 and 5 plates an hour

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KODAK Customer: ESP Colour (UK)

Commercial Sheetfed Customer (B1 & B2) •  12 M£ Turnover •  Staffing: 62 •  450 Make-readies / week

UWS Configuration •  PRINERGY Connect •  INSITE Prepress Portal •  Tharsten MIS •  Automated workflow glued with RBA between MIS,

Clients (INSITE) and prepress (PRINERGY)

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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 %

1£

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ESP Colour (UK)

Ø  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

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Characteristics of Best-in-Class PSPs

Reduced Labor Reduced Errors

Full Integration Enhanced Customer Service

Value-Adding Service Offerings

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Increasing Differentiation and Margin C

APA

BIL

ITY

Broad range of services & technology, little workflow & integration

AUTOMATION & INTEGRATION

Narrow range of services & technology, little workflow & integration

Broad range of services & technology, extensive workflow & integration

Narrow range of services & technology, extensive workflow & integration

Prinergy Workflow

Basic Workflow

Basic RIP

Custom Workflow

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The Glue & The Wrap

Document Management Print

Enterprise Packaging Commercial Publishing

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The Evolution of Automation

•  Pre-defined linear processing chains (e.g. hot folders)

1st generation automation

•  Pre-defined processing chains with conditions and branches

2nd generation automation (scripting)

•  Rules can be applied per job, per customer level, per system

3rd generation intelligent

automation toolkits

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The Value of Automation

Reduce costs

Reduce errors

Improve turnaround time

Lights-out prepress

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Case Study: Small Commercial Printer

Commercial printer with several sheet-fed presses, ~$4M in annual revenue and 31 employees

CUSTOMER

Ø  Cost: $21K for implementation and training Ø  Automation rules allow:

Ø  Customers to submit jobs online and view a preflighted, RIPed, trapped file within an hour

Ø  Automatic selection of output curves for screening Ø  Automatic archiving

PROJECT IMPLEMENTATION

Ø  Prepress labor down from 6 operators to 2 Ø  A higher level of service that enabled a targeted increase in billing Ø  Revised costing and operational savings added $230,000 to bottom line in

one year

RESULTS

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Case Study: Mid-Size Commercial Printer

Commercial printer with $16M annual revenue, 120 employees CUSTOMER

Ø  Cost: $21K for implementation and training Ø  Implemented several rules including:

Ø  Automated job archiving Ø  Automated RIPing and proofing through InSite Software Ø  Automated VPS creation Ø  Automated imposition of PDF files

PROJECT IMPLEMENTATION

Ø  Spoilage reduced on press with potential savings +$50,000/yr Ø  20 hours per week saved through auto archiving, equating to ~$27,500/yr Ø  Intangible benefits include reduced cycle time reduced from 3-4 days to

several hours and a higher level of service offered to customers

RESULTS

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Case Study: Large Direct Mail Printer

Direct mail printer with multiple sheet-fed and web presses; ~$150M in annual revenue and 700 employees

CUSTOMER

Ø  $1M for workflow software, platesetter, implementation and training Ø  Over 60 rules include:

Ø  Automatic job archival Ø  Automatic job ticket retrieval Ø  Automatic job creation for incoming jobs and population of data Ø  Automatic plate output Ø  Automatic layout selection

PROJECT IMPLEMENTATION

Ø  Turn time reduced from 50 to 20 hours Ø  Prepress productivity has gone up 60% Ø  Prepress labor has gone down from 36 operators to 26 for an approximate

savings of $800,000/yr

RESULTS

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Automation and integration can help form unbreakable connections with your customers or the markets you serve. For example: Ø  We built an on-demand coupon system that automatically feeds the

print/mail stream for a global transaction statement provider Ø  We helped the largest provider of in-hospital newborn portraits

bring in digital printing, and fuse it to their workflow and market Ø  We built an e-commerce model for a multi-site global commercial

printer to drive automation through workflow, out to a digital press

Case Studies in Growth

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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

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Questions to Consider

Ø  Do you have the right staff and expertise to ensure your software and hardware is being used to maximum capacity?

Ø  Are you able to redeploy staff from other activities to focus on analyzing and updating your processes?

Ø  Does your technology platform support measurable savings in labor, spoilage and cycle time?

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Potential Pitfalls of DIY

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

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RBA: A Powerful Contributor to Profitability

Ø  Can deliver 10-20% increase in productivity with rules like automated preflight and auto-archiving

Ø  Can reduce prepress costs by 30-60% when used with Prinergy and InSite Software

Ø  Can add 1-2% to margins with a typical printer spending 3-4% of revenue on prepress labor and materials

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Kodak MarketMover Business Advantage Solutions

Consulting services and business solutions

Ø  Optimizing solutions, business strategies and marketing services Ø  Analyzing all aspects of your business Ø  Pointing you toward the most effective market directions Ø  Helping you plan, execute, and sell these services

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Industry Expertise & Delivery

Kodak MarketMover Business Advantage Solutions

Technology Expertise

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

Worldwide Resources

US&C

EAMER

APR

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Next Steps

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

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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

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………………………………be careful to avoid fools gold!

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