Managing information in a printing plant

DiMS! organizing printGerard Marneth

Gutenberg’s ambition

Invent a press …

Gutenberg’s ambition

… to produce Bibles

Industrial revolution

Advertisements became important

Quality improved to superior heights

Gravure is leading in quality of print

Quality improved to superior heights

The real lady is not as gorgeous as her print on page 3

What did we miss in the quest for cost reduction?

The Value Stream

Raw FinishedRaw

Materials

Finished

Product

VALUE STREAM

The Value Stream and Waste

Many activities in this value stream add value

Value is anything the customers are willing to pay for

VALUE

VALUE STREAM

VALUE

The Value Stream and Waste

Many activities in this value stream just add waste

Waste is anything that adds costs that your

customers are not willing to pay for

WASTE

VALUE STREAM

WASTE

The Value Stream and Waste

Overproduction, work-in-progress, excess

transportation, extra handling, scrap, rework and

waiting for things are examples of waste

LEAD TIME

COST

The Value Stream and Waste

As you drive out waste and flow your product more

quickly through the value stream, your operation

becomes less costly and more responsive.

LEAD TIME

COST

8 Types of waste

1. Transport(moving products that are not actually required to perform the processing)

2. Inventory(all components, work in process and finished product not being processed)

3. Motion(people or equipment moving more than is required to perform the processing)

4. Waiting4. Waiting(waiting for the next production step)

5. Overproduction(production ahead of demand)

6. Over Processing(resulting from poor tool or production preparation activity)

7. Defects(the effort involved in inspecting for and fixing defects)

8. Waste of unused human talent

Todays unstable economy is creating a burning platform in most companies

In uncertain times, trusted information becomes more valuable than ever

During a recession

Customers place smaller orders and place more frequent orders

Managers look more frequently to optimize performance

Greater demand of Business Intelligence tools

Everyone is getting squeezed:

– customers ask for tighter margins and more price information

– suppliers for better terms – suppliers for better terms

Your business and customers run on shorter information cycles due to a constantly changing business landscape.

All these pressures create greater demand for information resources: more demand for simulation, forecasts, budgets, scheduling and supply chain data

$50,000 order$500 Processing Costs1% of Sale

The increasing problem

$5,000 order$500 Processing Costs10% of Sale

Information management issues are complex

Usually there’s a convoluted history

Data and information are the anthropology and the archaeologyof the company

There is an increased Merger & Acquisition activity

This results in even more kinds of legacy systems

Most times there are different and inconsistent processesMost times there are different and inconsistent processes

In many areas companies use different data structures

Systems frequently contain “black boxes” nobody dares to touch

Most organizations rely on legacy information management systems developed before today’s economic and regulatory reality.

Left undisturbed, most of these black boxes function just fine, but tamper with

the wrong one and it becomes an the wrong one and it becomes an information land mine.

A recession is a horrible thing to waste

Why didn’t you see that coming?

– “We never accounted for that”

Others survive, why?

The difference often lies in the speed with The difference often lies in the speed with which firms can recognize and respond to these events. Survivors have access to the right information and know how to use it.

4 levels of adopting managing enterprise information

Level 4

– Leading companies where information management is built into every facet of the business

Level 3

– These companies would like to be Level 4 organizations, and managing enterprise information is in their culture

Level 2

– Managing enterprise information is not in the culture of these organizations

Level 1

– These companies don’t pay attention to data

Today, businesses must work smarter,

not just harder – and to do it,

they must use information to compete.

Businesses must work smarter

Plant Plant

Supplier

Management

Finance

Supplier

Sales-CRM

Estimating

OrderManagement

Planning

Purchasing

Shipping

Accounting

Customer

Workflow

Plant Plant

Supplier

CarrierProductionInventory Scheduling

Shipping

Information is integral to high performance

Support strategy execution

Improve business processes Improve business processes

Allocate resources more effectively

Achieve alignment

Achieve higher performance

Make information more accessible yields tremendous dividends:

Higher employee productivity,

Greater motivation

– (less frustration with slow or dysfunctional applications),

Better business process alignment

Faster response

The easier it is to access information, the more likely that people will use it. But without effective information management, working with data and information held in enterprise systems is often impractical or impossible.

Unstructured data

Organizations have terabytes of unstructured data assets

Data should not be maintained or analyzed in separate information silos

It must be tied back to business processes

That speeds up operations and decision-making

When dealing with a supplier:When dealing with a supplier:

– have access to a contract specifying the terms

When tracking returned or defective products or deliveries:

– include a photo that illustrates the extent of the defect

When dealing with paper breaks:

– attach a runtime photo of the break

When invoicing:

– include to all additional task that are performed

According to a recent Gartner report

Less than 10% of the executives have access to the information they need

And even when they have access, 56% worried it wasn’t trustworthy enough to make good decisions

Information management as strategic imperative

More accurate decisions

Improved agility

Better intelligence

Enhanced performance managementEnhanced performance management

Better relationship management

Mergers and acquisitions become drastically

more effective against lower cost

ROI for enterprise information management

Waiting for paperWaiting for platesWaiting for inkJob pulled – but machine can’t run the jobJob scheduled for production but not ready to runSearching for WIPMoving WIP aroundEquipment break downPoor communicationWaiting for a decisionJob information incomplete / incorrectJob information incomplete / incorrectJob runs slower due to quality problemsPress and other operation statisticPaper statistic and performanceCustomer statistics and performanceInventory reductionCustomer paper handlingRoll level trackingWIP trackingCycle time improvementLesser time to enter quotes and estimatesBetter job handlingImproved customer tight into the process

ROI for enterprise information management

Improved shipping processBetter, quicker en higher invoicesNo more rekeying of dataReduction of errors and mistake during rekeyingTrim search costOne single truthIncreased productivity due to fewer manual checks for accuracyReduction in the time and effort required to produce reportsEnhanced ability to comply with regulatory requirements Greater and more confident audit readiness.Greater and more confident audit readiness.Enhanced access to highly consistent information,as well as to unstructured data.Enhanced ability to transform data into usable and actionable informationReduced cost and effort required for virtually every IT projectReduced IT costs associated with data maintenance Elimination of custom programming to build data extraction and manipulation.Incremental revenue from the ability to cross-sell and up-sellImproved customer service Lower merger and acquisition costFaster effect in merging an acquiring businesses…

ROI for enterprise information management

Cost

Lead time

WIP

Cash flow

Quality

CapacityWIP

Inventory

Setup time

Waste

Capacity

Utilization

Throughput

Responsiveness

Flexibility

A recent Forrester analysis

Shows example of ROI of 647%

Break even point on IT investment Break even point on IT investment only three months after implementation