how to organize a newspaper project cost saving and cost ... · pdf filecost saving and cost...

member of

Institut für Print- und Medientechnik der TU Chemnitz[Institute for Print and Media Technology at Chemnitz University of Technology]

Director: Prof. Dr. Arved C. Hübler • Reichenhainer Str. 70 • 09126 Chemnitz • Germanyhttp://www.tu-chemnitz.de/pm • [email protected] • Phone: +49-371-531-23610 • Fax: -23619

how to organize a newspaper project cost saving and cost control

byArved Huebler, Institute for Print & Media Technology,Chemnitz University of Technology, Germany

Cost control, Revenue opportunities in productionWAN-IFRA Seminar for newspapers,

in association with TU Chemnitz18-19 January 2010, New Delhi

!

The work during 2008-2009 was financed by IFRAin the frame of theSpecial Report #4.2009published June 2009

It was a co-operative project betweenInstitute for Print & Media Technology at Chemnitz University of Technology, Germany

and

Manipal Institute of Technology (Department for Printing) at Manipal University, India

Empowering the News Publishing Industry

04.2009

New Printing Plants

SPECIAL REPORT

www.ifra.com/specialreports

A must read for:

Managing Director/CEO/ChairmanProduction ManagerTechnical Director

Catchwords:

Business/Management/OrganisationIndustry and Company InformationProduction Management

sources:authors: Ⓒ 12.Jan.2010

Institute for Print & Media Technology of

Background of this presentation

2 pmTUC/IFRA special report 04.2009A. Hübler

the method: - interviews with companies in India & Gemany- interviews with experts- case studies of 10 Indian and 10 German students- enquiry in technical literature



content


1. define the project

2. project management



an old rule:

4

during phases of market growth:invest in production (capacity)

during saturation of market:invest in customer (marketing)

a one-shot decision:invest in the right way !

pmTUC • image: Freie Presse 15.11.2009A. Hübler



»the difference between companies with success and abortive competitors often is the ability to perform structural and process changes quicker«.[1]

5[1] Wildemann: Organisatorisches Lernen "Das Geheimnis des Erfolgs"A. Hübler

the major fields of change:✦ customer✦ costs✦ lead time✦ process✦ quality✦ knowledge✦ learning✦ division of duties

establishing a new plant for newspaper production effects all:

⇨ open for new customers⇨ reducing costs⇨ optimizing lead time⇨ state of the art process⇨ better quality⇨ need of new knowledge⇨ need for learning⇨ think about the organisation

A new plant for newspaper production is a crucial point for all the further success.

depreciation



establishing a new plant …

6

two types of costs must be controlled:

1. the project costs.2. the later running costs of the plant.

running costs of the plant

per year

running costs of the plant

per year

project management

building

equipment

material

energy etc.

service, repair

save invest

total invest budget

increase oftechnical

running costs

?

typically, the budget is delimited:1. find out the financial 2. optimize the investment alternatives by a ranking regaring their influence to reduce running costs

not used rollsdamage in logistics

100%into press

white cover layerprinting waste

2-4%

?%?%

4-9%1-3%

84-93%

postpress waste

to be distributed



e.g. paper lost

7

7% difference:at 150.000 circulation per day16 pages40 g/sq. paper= at minimum savings of50 lakh INR per year

⇒ increasing invest to press for lowering later costs

Do you known,where the paper remains which you havebought.



find the right strategy …

8

new press

used press

high-tech

standard-tech

todays requirements

augmentation for tomorrow

higher quality

standard quality

higher investment

today

higher running

costs later?


… not only the budget must be defined at the beginning, but also all other parameters as quality level, printed volume.



managing the transition

9pmTUC/IFRA special report 04.2009A. Hübler

L

at the end, every development has to lead to higher volumemeans: more high tech becomes necessarybut there are different routes to go.

standard tech



logistics

10

paper stock & transport

standard tech high tech

problems because of- damage of rolls- old remainder rolls- lost rolls

• more space > often small enhancements in the layout of the

• software controlled inventory- barcode- RF-ID

• modern transport vehicles > take care about space for movement

better paper management also increases liquidity

time to deliver problems- transport coordination- storage management (semi-finished products)

• systematic design of plant layout

• warehouse and logistics management software




press criteria

11pmTUC/IFRA special report 04.2009 • image: Freie Presse 15.11.2009A. Hübler

standard tech printing plant High tech printing plant

retrofitting features later,may also become more expensive because the runningproduction is affected



high tech options

12pmTUC • image: Freie Presse 15.11.2009A. Hübler

for your technology decision, take also into account:• service costs• repair costs• possibilities of upgrading add. features

Not only buy a solution, but develop the full system before buying and before implementing it.

for your decision about the appropriate level of automation,take also into account:• level of knowledge of the operators• cleanness of facility• risk of break down• system approach: what all is effected

by the automated solution? (prepress, customer, material supplier, …)



standard tech opportunities

13

For standard technology, take also into account:In western countries some modern printing plants are in de-investment!

You may use the chance to transfer a complete newspaper production facilityfor cheap money to India.




postpress


• need of flexibility for subsequent production.

• possibility to realize investment stepwise.

not only to reserve additional space …

… but also provide infrastructural links⏈ ⍔ ⍅ ⏄ ⌺ ⍝

⏈ ⍔ ⍅ ⏄ ⌺ ⍝



collect all the requirements for the building



Institute for Print & Media Technology of 16

standard tech• total energy consumption

- lightning - air condition - compressed air > leakage air flows

- power outagestotal water consumption IT networkcleanness

costs at the buildingcosts at the building

high techhigh tech

optimized pipe design

optimized building layoutdaylight

backup supply

open wiring system optimized building layout

isolation of buildingsmart metering

smart E-metering, detailed consumption controlauto deactivating

smart metering the industrial trend:

design facilities for totalconsumption monitoring




management «costs»

17

standard tech high tech

• early knowledge of problems

• transparency of work

• quality of the products

automated operating data logging

no closed and hidden rooms

online & open display of work results, e.g. press speed, paper waste, plate imaging, …

the building and the design of a plant is also relevant to the quality of management of the later production.

automated quality control systems • paper, inks, … • customer data • own products

clear structure of the production

pmTUC A. Hübler



complete the decision

18

savings in production

need

ed in

vest

men

t

highlowlow

high

➊➋

➌

➍

➎

at a certain level of quality and quantity,the decision on technical alternatives is to do on

needed investment and later savings in production:

build a ranking of alternatives, until the budget limit it touched.

pmTUC A. Hübler



content


1. define the project

2. project management

sources:authors: Institute for Print & Media Technology of Chemnitz University of Technology Ⓒ 16. Jan. 2010

project structure


avoid back loops,everytime money is lost!

support, communication &

project organisation

sources:authors: Institute for Print & Media Technology of Chemnitz University of Technology Ⓒ 16. Jan. 2010

don‘t save money at project organisation


good projects• have clear responsibilities.• have objectives as time &

resources and milestones with controlling

• have a project team which should cover the whole necessary mix of expert knowledge and methodological skills.

• schedule with three steps:1. the strategic decision for the general framework has to be done. 2. is to propose a catalogue of measures to achieve the objectives.3. The operative planning consists of detailed timelines and milestones each linked to the next step.

Make people of the initial decision process member of the later project team for

continuing responsibility.



1. collect really all issues


1. Centralized or distributed fabrication2. Production capacity (back-up strategy)3. Format flexibility4. System reliability5. Market proximity6. Human resources7. Energy efficiency / green production8. Workflow, layout of the production9. Standardisation10. Legal environment



2. Take care about additional topics


Standardisation

Legal issues



3. task planning


project managementis possible in different detail levels

looking for interdependencies:

from strategic topics to stupid details: Is the door opening wide enough to put the inking unit in.


Institute for Print & Media Technology of 25

pmTUC/IFRA special report 04.2009A. Hübler

project management software is important

main project costs: have skilled user knowing to handle the software and setup a project



4. project controlling


e.g., controlling of atarget-performance planning.typically 10% tolerances are accepted.

milestone targets →

1. analysis What happened? Why did it happen? Where? Who had been involved? When did it happen? Which consequences are expected?

2. corrective actionswithin different scenarios

finance targets ↓



5. risk management is helpful


Classes of risks to take into account:• General project risks (e.g. failures in planning)• Technology risks (e.g. compatibility, feasibility)• Procedure risks (e.g. possible deficits)• Commercial risks (e.g. inflation, deficits in payment)• Personnel risks (e.g. staff availability, temporary

staff)• Environmental risks (e.g. political risks, climate,

catastrophes)• Supplier risks (e.g. deadline shift, quality assurance)• Contract risks (e. g. clear order formulation)



summary

28

as early you invest in professional planningas more money you can save later.

if a decision for a new plant is made, than totally.

pmTUC A. Hübler

member of

Institut für Print- und Medientechnik der TU Chemnitz[Institute for Print and Media Technology at Chemnitz University of Technology]

Director: Prof. Dr. Arved C. Hübler • Reichenhainer Str. 70 • 09126 Chemnitz • Germanyhttp://www.tu-chemnitz.de/pm • [email protected] • Phone: +49-371-531-23610 • Fax: -23619

how to organize a newspaper project cost saving and cost control

byArved Huebler, Institute for Print & Media Technology,Chemnitz University of Technology, Germany

Cost control, Revenue opportunities in productionWAN-IFRA Seminar for newspapers,

in association with TU Chemnitz18-19 January 2010, New Delhi

!

how to organize a newspaper project cost saving and cost ... · pdf filecost saving and cost...

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