MPS lean production
Know your costs!
Control your costs!
How to be effective in this business
“Lean”
“a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.”
Source: www.wikipedia.org
o Matured industry: Flat features Price is the difference No product loyalty
o Knowledgeable customero Price sensitivityo Lack of knowledge of the actual printing
costs: hidden costs
o Customer is eager to outsource his problems
The printing industry
Auto-fulfillment
MPS
Bill per Cartridge
Cost per Page
Existing inneficiencies
Customer• Stock at the customer
• Cartridges get lost
• Duplicated ordering
• Wrong ordering
• Ordering burden
Dealer• Stock at the customer
• Cartridges get lost
• Duplicate delivery
• Wrong delivery
• All manual
Customer
Moving from a transaction model
into a service (MPS) model
ProtectedExposed to Risk
Dealer
Transactional model
Customer
Exposed to RiskProtected
Dealer
Service MPS model
Services
Consumables
Devices AUTO FULFILLMENT
benefits all the players involved
COSTS THE DEALER KNOWS
COSTS DEALER THINKS HE CONTROLS
Toner wasted when cartridge is replaced
Duplicated delivery of supplies
Stock of supplies at the customer
Unneeded technical visits
Unnecessary customer calls
Collecting missing counters
OTHER OVERCOSTS
US $ 90,000
US $ 78,000
US $ 300,000
30% of visits
80% of calls
- 100%
US $ 468,000
*Assumptions: 1500 copiers; cost of a full set of supplies 300$; local stock of supplies at 67% of customers; duplicated deliveries 12% of
shipments; toner wasted when cartridge is replaced 15%.
Manual validation of orders -100%
Billing effort -100%
MPS 360
Assessment
• Dealer
• End Customer
MPS proposal
• Pages volumes
• Printers needs
• Volume of consumables
Cost per page
Automatic fulfillment
Replacements tracking
Pages printed tracking
Management of empties
Purchasing forecast
Warehouse turnover
Profitability tracking
• Per printer
• Per cartridge type
Quality
• Printer reliability
• Cartridge
• Service
19%
17%
9%
6%
13%
9%
8%
8%
11%
What aspects are the most important to manage the printers and copiers of your customers?
Collecting page counters in an automated way
Eliminate the need to stock toner at the customer
Reduce the time required to bill the pages printed
Stop losing cartridges shipped to customers
Know when a customer replaces a supply (toner, drum etc..) too early
Auto-fulfillment of orders from printers and copiers
Reduce the amount of technical visits to my customers
Plan the service visits to my customers
Know in advance what supplies and parts will be needed by my customers
Source: Survey contucted by Nubeprint Jan 2014
Managing printers is not an easy
task…
FULL MPS34%
[CATEGORY NAME][PERCENTAGE]
MEDIUM ISSUE28%
MAJOR ISSUE26%
Not Compliant4%
MPS Compliance (% of models analyzed)
FULL MPS
MINOR ISSUE
MEDIUM ISSUE
MAJOR ISSUE
Not Compliant
Source: Nubeprint MPS Compliance Report Jan 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BrotherCanon
DatacardDell
Epson
Gestetner
HP
IBM
Intermec
Konica Minolta
Kyocera
Lanier
Lexmark
Lomond
Memjet
MuratecNEC
NRGOce
OKIOlivetti
Panasonic
Pantum
Ricoh
Riso
SAGEM
Samsung
Sato
Savin
Sharp
Sindoh
Tally Genicom
TOSHIBA
UTAXXerox
Zebra
Managing printers is not an easy
task…MPS Compliant
index
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BrotherCanon
Datacard
Dell
Epson
Gestetner
HP
IBM
Intermec
Konica Minolta
Kyocera
Lanier
Lexmark
Lomond
Memjet
Muratec
NECNRG
OceOKI
Olivetti
Panasonic
Pantum
Ricoh
Riso
SAGEM
Samsung
Sato
Savin
Sharp
Sindoh
Tally Genicom
TOSHIBA
UTAX
XeroxZebra
Managing printers is not an easy
task…Normalized
MPS index
Auto-Fulfillment is critical
Customers are
device
agnostic.
70% of the costs in an
MPS contract are
consumables
Success in MPS depends exclusively on:
“your capacity to manage your costs”
o Auto fulfillment systems tracks the usage of the cartridge and provides :
a) When to ship to the customerb) When the user should replace the cartridgec) When & what consumable is ready for collection &
remanufacturingd) Future needs: Who, When & How muche) Quality (ISO…) & Performance control
o System is independent to the printer HWo The yield to trigger the alert is predetermined
based on printer needs (days, not remaining level %)
AUTO FULLFILMENT service
To be PROFITABLE in MPS, monitoring is a
MUST, but NEVER ENOUGH…. It requires:
Current
Customer calls:
Needs for Toner or Parts
Errors on shipments
Material costs:
Toner replaced too early
Unnecessary shipping
Stocks
Other costs:
Manual billing process
No profit control at contract
level
Unnecessary Tech. Visits
Environmental policies
Yield Management
Alerts based on remaining printing days of any toner or part
Avoided based on the consumable & parts reliability of alerts.
Track cartridge replacements and measure efficiency
Alerts of consumable & parts are filtered reliability of alerts
Accurate forecast of future needs. Manage local stock at
customer when it is needed.
Reports for billing available 1st day of the month
Automatic profitability per printer, model, contract …
Prevent when parts will be exhausted. Get on-line status of the
printer.
Reliable forecast of empty cartridges (when & where)
Automated control of every smallest detail having an impact on daily operating costs
8% Duplicated supply orders
8% Excess inventory at customer site
10% Toner replaced prematurely: Wasted
30% Unnecessary technical visits
70-80% Unnecessary end user calls
SUCCESS in MPS is measured by your profit…
…not by the volume
You can bill pages but, you can t influence your
PROFIT if you don t know where is your leakage:
o Ability to use most cost effective hw, consumables & parts
o Streamline supplies order fulfillment
o Streamline inventory management
o Customers loyalty: Highly accurate information allows for superior
customer/contract assessment
o Grow his profit, customers base & revenue
o Efficiency: sales representatives, back office and mgmt. access on-
line to key business information.
The Dealer benefits!...
o Supplies: no more calls/emails/web ordering for supplies
o Output devices availability: 100%
o Quality and reliability controlled
o Costs are controlled and optimized
o Tailored assessment based on actual (known) printing needs
o Flex printing environment: any brand of hw, consumable or part
… and the Customer benefits too!
Squeeze every ounce of profit
out of your MPS contracts!