Group Members:Peter BatesJohn MacounShriram VivekKyle Abshoff

Vaughan Press Centre

1 Century PlaceWoodbridge, ON

Proof We Were There…..

Vaughan Press Centre• Production facility built in 1992

• 600,000 sq feet

• 1 of 9 production plants owned by Torstar Corp.

• Total cost to operate is more than all other 8 facilities combined

• 2 main publications1) Toronto Star2) National Post

Organizational Torstar Group

Torstar Group:

• Owns a Number of Media Companies:1) Star Media Group, which consists of:

- The Toronto Star, Canada’s largest daily circulation newspaper;- Digital properties: thestar.ca, Toronto.com, Wheels.ca, Workopolis, Olive Media, and eyeReturn;

2) Metroland Media Group, publisher of a number of community and daily newspapers in Ontario;3) Harlequin Enterprises, publisher of women’s fiction.

• Divisional structure separating Media Companies into their own semi-autonomous profit centers.

Organizational ChartTorstar Corporation

Board Of DirectorsBoard Of Directors

Chief Executive OfficerChief Executive Officer

Chief Financial Officer/

Executive Vice-President

Chief Financial Officer/

Executive Vice-President

Division Head Harlequin Enterprises

Division Head Harlequin Enterprises

President and Head Publisher Toronto Star

Digital Properties

President and Head Publisher Toronto Star

Digital Properties

President Metroland Printing

President Metroland Printing

Executive Vice President and General Manager Torstar Printing Group

Executive Vice President and General Manager Torstar Printing Group

Vaughan Press CenterVaughan Press Center

Printing Facility 1Printing Facility 1

Printing Facility 3Printing Facility 3

Printing Facility 2Printing Facility 2

Printing Facility 4Printing Facility 4 Printing Facility 8Printing Facility 8

Printing Facility 7Printing Facility 7

Printing Facility 6Printing Facility 6

Printing Facility 5Printing Facility 5

Organizational Vaughan Press

CentreVaughan Press Centre:

• Structured into functional departments to achieve organizational goals

• Functional Areas Include:• Finance – administration, finance, operations• Press Room – day-to-day operations of physical production and inventory

management in the “real room”• Mail Room – placing inserts into papers, sorting, packing, skidding and

loading of final product into trucks• Maintenance – maintain equipment and facility

• 50 Management Staff• 420 employees

• 400 full-time equivalents at a 35 hour work week)• 300 full-time, 120 part-time

Executive Vice President and General Manager Torstar Printing Group

Dean Zavarise

Executive Vice President and General Manager Torstar Printing Group

Dean Zavarise

Finance Manager

Barbara Clark

Finance Manager

Barbara Clark

Press Room

Functional Manager

Press Room

Functional Manager

Mail Room

Functional Manager

Mail Room

Functional Manager

Maintenance

Functional Manager

Maintenance

Functional Manager

Superintendent Press Room

Superintendent Press Room

Superintendent Mail Room

Superintendent Mail Room

Superintendent Maintenance

Superintendent Maintenance

Shift Supervisor Press Room

Shift Supervisor Press Room

Shift Supervisor Mail Room

Shift Supervisor Mail Room

Shift Supervisor Maintenance

Shift Supervisor Maintenance

Unionized StaffUnionized Staff Unionized StaffUnionized Staff Unionized StaffUnionized Staff

Business Operations and Administration

Business Operations and Administration

Organizational ChartVaughan Press Centre

Broader Supply Chain

Inbound Supply Chain:

1) Newsprint ordered from Paper Mill2) Newsprint shipped from Paper Mill to Warehouse3) Newsprint is stored at the warehouse until replenishment order is placed by

Vaughan Press Centre4) Once replenishment order is received third party Logistics Company ships

22 x 58” rolls to the Press Centre for production

Broader Supply Chain

Outbound Supply Chain:

3 Distribution Channels

1) Channel A: Home Delivery

2) Channel B: Single Copy

3) Channel C: Single Copy

Internal Supply Chain

Receiving• TAPY• Metal skates/air-bladder/conveyor/LGV’s/real room

Production• Pagination• Printing plates=dots of magenta, cyan, yellow and black

• Burnt on to plates with laser• Overlaid to make total color image

• Offset printing• Inked image is transferred from a plate to a rubber cylinder,

then to the paper• Conveyor to mailing room/inserts placed/packaged/distributed by

third party trucking companies

Internal Supply Chain

Intermediate Storage of Paper

Intermediate Storage of PaperReceiving

Internal Supply ChainPlate Press Offset Printing Press Conveyor System

Conveyor/Insert System Pallet Packing System Distribution

Logistics Functions

• Buyers• Drivers• Quality Control• Inventory Control• Scheduler• Operations• Mail Room• Customer Service

Information Systems Setup

• Designing, Editing, inserting done in Yonge Street.• JPEG or TIFF file sent via high speed Fiberoptic cable .• File broken into kites & burnt on to aluminum plates from the computer. • Special system and software mixes colors and prints on paper• Specific input-output programs in each division. Eg - item delivery code ,

and truck no. with truck driver in one board.• Laser Guided Vehicles imported from USA used for transportation• System to track the of goods and dispatched time very advanced and

critical for KPI’s.• High-Tech scanning devices and TAPY number used and shared in a

common database with supplier.• Advanced time tracking program used to track the time of every

operation executed in the press.• No ERP used

Biggest expenditure is on newsprint, which consists of $45 million dollars annually.

Additional annual costs include: • Ink follows – $5 Million• Aluminum Printing Plates - $1.5 million• Trucking - $4 million to get product into market• Occupancy – $5.5 million• Labour Costs - $30 million

Production Lead Times:• Production of The Star occurs between 11:30 pm and 3:30 am daily• Average production is 450,000 – 600,000 papers daily• Press speed is 55,000 copies an hour through one pass and multiple presses

are used for production

As a note, one dedicated press is always allocated for the printing of the National Post, the Vaughan Press Centre’s largest commercial customer. The facility is responsible for the printing and distribution (through third party) for readers in Ontario.

Quantitative Information About Supply Chain

Everything is measured in minutes….

Pressroom-Target press start time vs. Actual press start time:1) Output good copy time2) Press down time3) Press availability time4) Press Quality level5) Copies per hour6) Number of gross copies7) Amount of waste

Truck/Mailing Room-Target clear time vs. Actual clear time vs. # of trucks on time:

1) All trucks are set to a scheduled dispatch time2) Success is rated by minutes and ability to meet dispatch times

Key Performance Indicators

Some ways the Vaughan Press Centre Forecasts:

Financials/Production Forecasting • ¼ of forecasting is based on the budget

• paper quantities rarely change per year and stay rather consistent• Run numbers based on last years average page count• Work with circulation department to see if there are any anticipated

changes• Forecasts are done over the long-term not short-term. • Manning agreements - flexibiulity to add and remove staff based on run.• Internal communication between departments key

Forecasting

Competitive Advantage

• Unique one pass printing press

• High readership=high advertising revenues

• Numerous printing facilities for different size tasks

Future Trends

• Recessionary cutbacks

• Rise of digital media/decline in readership

• “Going green” energy savings initiatives