2005 Spring

Postpress Integration: CIM-plicity Itself

May 1, 2005

by: Larry Tanowitz

Postpress No Longer an “Also-Ran”

Until relatively recently, the graphic arts industry has compartmentalized its thinking about process management. For years, talk of “seamless” integration stopped at the delivery end of the press, just short of the bindery. That thinking has been replaced by the understanding that printed products are only as good as the processes that tie up their loose ends efficiently. Driving developments beyond automation and toward postpress process integration is the need to get reliable information to the bindery in a useable format. In fact, much bindery equipment already can gather, report and store job-specific data. The key elements of an integrated postpress workflow include the following:

Improved interface between prepress, press, and finishing equipment
Centralized control of bindery components
Automated setup
Storage of previous job parameters
Faster makeready to increase net output per shift
Quick turnaround
Faster job changeover
Ability to monitor operational and materials costs via data collection and analysis
Minimal operator intervention
Process reliability and consistency
Higher efficiency
Productivity gains
Enhanced flexibility
Reduced material costs
Reduced labor
Reduced waste and spoilage
Reduced downtime
Improved load balancing with fewer scheduling conflicts
Streamlined material handling

Printing Begins with Postpress

The logic behind the renewed attention to postpress processes is irresistible: All printed products must be finished. As a critical determinant of the materials and processes selected for production, finishing is a key differentiator of quality after the press. Poor choices made in the product planning stages have the potential to compromise the quality of the bound and finished job, especially if it contains complex cuts or folds, or uses inks or coatings that are difficult to handle.

Despite the need for an unrestricted flow of data between a plant’s business and production functions, many printers still conceive of the bindery as discrete from the rest of the shop. Even in plants where MIS, prepress, and press processes are networked, the bindery too often is perceived as an island unto itself.

While it is true that computer-integrated manufacturing has eliminated many traditional bottlenecks in prepress and press production, the ability to tie postpress functionality into the system as a whole has been elusive. Despite much lip service paid to the need for so-called “end-to-end” integration, however, the discussion – until recently – has largely excluded the bindery. There are a number of reasons for this:

Postpress processes tend to resist computer-enabled efficiency. Finishing often requires manual labor and generates waste.
Finishing must resolve an accumulation of variables including paper weight, bulk, moisture and so on, whose effect on the final product can be hard to predict and often require manual correction.
The time unbound sheets spend in the bindery prior to finishing, and the need for fine handwork on some projects can slow production to a crawl.
Lack of skilled personnel in the bindery sector is acute.

Many companies hire unskilled temporary workers to fill vacancies there. At the same time, there are no real trade school or journeyman programs geared specifically for bindery employees. Integrated solutions must be sophisticated and capable, yet simple and accessible.

The sheer durability of postpress equipment functions as a disincentive to capital investment for many printers, who treat the bindery as an afterthought last in their capital investment plans.

According to NAPL, for example, just 16.2 percent of print businesses surveyed for its most recent “State of the Industry” report said they expected the demand for finishing/bindery services to be the fastest growing, compared with a host of other products and service specialties.

TrendWatch Graphic Arts reported earlier this year that 10 percent of digital printers plan to invest in bindery/finishing equipment, compared with just 3 percent of print and prepress firms overall.

In fact, computer-enabled automation is a prerequisite for an integrated bindery – so much so, that the longevity of heavy-duty bindery equipment may no longer be an asset if it deters a printer from pursuing a much-needed upgrade. The reality is that the older the equipment is, the harder it will be to integrate. If it is automated, older bindery equipment is already CIP 3/4-PPF-compatible, meaning that machines can receive and collect prepress data without also having the ability to transmit setup and production data back upstream. Whether legacy equipment can be modified to accept CIP3/4 presets, however, will depend on the type, age and degree of automation of the equipment in question. Consider the following:

Older machines may be only partly automated, or not at all
Many older machines cannot be retrofitted to take advantage of computerized presets
Older machines take longer to set up, run more slowly, and require more operator adjustment – all drains on time, manpower, and other resources or factors at odds with the shift in emphasis from price to cost and the pressure to provide short runs at high volumes.

Consequently, flexible equipment should be installed now as a hedge against being caught behind the rapidly escalating technological curve. If a postpress upgrade isn’t in the cards, even an old folder can be productive when paired with advanced press equipment. Another solution may be to semi-integrate older equipment with the aid of off-line, computer-aided programs.

All of the Above

Failure to view the components of a print manufacturing workflow as a single, interdependent system that encompasses the bindery reflects the industry’s painfully slow adoption of CIM. According to a recent report by TrendWatch Graphic Arts, between fall 2003 and spring 2004, the percentage of printing firms who are challenged by “implementing the SmartFactory, CIM concept” slipped from 3 percent to 2 percent, even as “understanding the SmartFactory, CIM concept” remained steady at 5 percent. Furthermore, while 32 percent of print businesses acknowledged “reading about/studying CIM,” the same percentage also indicated that “CIM is not relevant to our business.”

Much of the resistance is economic: CIM can involve new equipment, new employees, and a potentially expensive learning curve. Some is psychological: many printers, already slow to evolve, are overwhelmed by the concept, and this has tended to blunt, not whet, their motivation to embrace change. This is especially true of the bindery, which still functions as a loss leader in many shops, yet upon whose shoulders the burden of productivity ultimately rests.

However, for printers who educate themselves about the potential benefits of integration, who are willing and able to make the necessary capital investment, and who are prepared to work closely with suppliers to maximize the return on their investment, connectivity is possible now. The tools needed to construct a postpress workflow that can participate in the growth of productivity plant-wide already are available.

Implementing an Integrated Postpress Workflow

In an ideal world, all bindery equipment would be perfectly matched in terms of speed, flexibility and control with every printing press. Machines designed to handle the output from traditional offset presses would function equally well in digital and direct imaging environments, unaffected by format, substrate or volume limitations. Bindery setup and makeready would accurately mirror the speed of the press and the size of the print run. To say that these efficiencies are not universally available or are not being taken advantage of fully, is not to denigrate the advances that have been made, nor to minimize the importance of investing in postpress technologies that can adapt to changing requirements. Instead, the opposite is true: the newest postpress innovations present more opportunities than ever for print shops to specialize and stand out from the competition.

Smart Packaging: Turned-Edge Loose Leaf Binders

May 1, 2005

by: Joe Anderson

The information packaging solutions available today are more creative and attractive than ever. New trends in packaging and decoration accommodate loose leaf and information materials like never before, yet incorporate the sturdy construction that has been used for centuries to manufacture books that last. Ring binders in particular often can combine colorful decoration and durable materials to create versatile products that meet your specific project demands.

There are many applications for durable turned-edge ring binders, which perhaps explains why they are so widely used for sales kits, conferences, academic materials, and many other products. Ring binders are an easy solution for combining literature with multi-media, or pocket folders, or product samples, or well, you get the idea. Not only are binders versatile, the decorative options are virtually unlimited. Let’s take a look at the construction and usage options.

The Process

For most turned-edge products, glue is applied to the back of the cover material, which is then wrapped to a board, thus giving this process its name. Like most products, a good foundation is essential for building your binder, making the board one of the binder’s most important components.

Board is available in a range of strengths and thicknesses. Commonly used grades include pasted-chip (chipboard), Graphic board (fordiner board-100% news-short fiber), SBS (paperboard), wet-lap board (spec board), Maxite (micro-flute) and foam padded board.

Different uses require different calipers and construction techniques to ensure the best results. The board type is generally determined by the binder contents, intended usage and environment of the end user. Binders destined for a single-use seminar, for example, will require materials far different than instruction manuals for industrial settings.

Cover Material and Decoration

Not all cover materials are created equally. They vary widely in look, feel, durability and production parameters. Selection often hinges on decorative options, final use, turnaround, and of course, cost. Your finisher can often provide guidance for balancing these requirements and suggest products and options that best suit your needs.

One of the big advantages of turned-edge manufacturing is that almost any material can be used for the wrap. Offset-printed and film-laminated paper is a common choice because it allows for vivid, four-color graphics. For total personalization, paper covers can be digitally printed prior to lamination.

In recent years, stock options have expanded beyond traditional papers. Saturated, unsaturated, craft-based and some fiber reinforced papers are commonly available. Companies such as Fibermark and Ecological Fibers provide earth-friendly paper alternatives, which can be crafted to mimic common stocks while adding a unique dimension to your products.

Additional materials include imitation leather, book cloth and many others. Custom decorations such as diecuts, digital or screen printing, foil stamping, embossing or debossing can give binder products a truly unique look. Combining techniques and materials can often produce handsome products of lasting value, so discuss the possibilities and designs with your finisher.

Lining Material and Binder Interiors

Perhaps the most forgettable part of the binder, the binder interior can be a highly functional design element as well. Lining material is glued to the board on the inside of the binder. Typically, the lining is about 1/8″ short of the edge on all four sides, allowing the cover material to be seen around the edges, “framing” the interior lining.

Combining loose-leaf, wire bound or information brochures with multi-media pieces or collections can be frustrating, but liners can be designed to incorporate PVC trays for CDs or DVDs, customized pockets, cavities cut to suit and even boxes to house specialty items. Again, each finisher has different manufacturing techniques and processes to produce customized products, so consult with a design team early in the planning stages to determine what options are appropriate.

Ring Metals

Without ring metals, the binder does not exist. Nickel plated rings are used most often, but stock and custom painted metals are also available to match designs and color schemes. Several ring styles are available, and though each is meant to hold materials inside the binder, each option provides a different look and functionality. Each of the following are available with locking boosters that hold material securely:

Round rings – The most common ring binder metal, round rings can be mounted to the spine or the back cover with rivets, which can be exposed or concealed.

Straight D rings – This style is similar in operation to round ring metals, but the metal piece itself is shaped like a backwards D, opening where the straight back meets the top of the curve. Straight-D rings are mounted to the back cover of the binder and display loose leaf contents evenly along the index edge.

Angle D rings – This style is also mounted to the back cover, but the angled design allows the rings to hold up to 30 percent more loose leaf material than standard round ring metals of the same capacity. This additional capacity makes angle D-ring metals ideal for high-capacity applications. Another advantage: angle-D rings taper top-to-bottom along the index edge, allowing for easier viewing of contents.

Important note: never ship your literature on the ring itself. The stresses in transit can damage the tension bars and destroy ring functionality. Always package your materials inside the binder but off of the ring. This is the best way to ensure your product arrives undamaged.

Regardless of format, information packaging and display materials are designed to attract attention and withstand substantial use. Most finishers can help you design a completely customized turned-edge loose leaf binder that meets both aesthetic and budgetary needs. And remember, effectively planned production leads to high quality products, which is always eye-catching.

Joe Anderson heads the information packaging division of Eckhart & Company, an Indianapolis, Ind.-based bindery specializing in mechanical binding, loose leaf manufacturing, and information packaging. Anderson can be reached at (800) 443-3791 or joeanderson@eckhartandco.com.

Building Profit Through Accounts Receivable Practices

May 1, 2005

by: Andrea Schlack

All too often business people center their growth strategies upon “getting the sale” as opposed to what happens after the job is delivered and money has not been paid for the job. This is through no fault of their own. The goal of this and future articles is to help businesses determine those strategies for credit management that can help minimize bad debt losses.

Credit Applications vs. Credit Agreements

The first and most critical step to better receivable management is to “know your customer”. Name recognition or a prior business experience is not sufficient criteria for granting credit. All businesses fluctuate; what was good yesterday may not be true today. There are lessons to be learned from the numerous well-known companies that have seen their demise over the past several years.

The two variables to be defined in all credit transactions are “Who is this customer?” and “Will I get paid?”. These can be defined by the proper use of an established application and agreement. Those will help facilitate your ability to verify stability, viability, and predict potential risk of new customers.

There is a difference between an application and an agreement, so you need both. According to Webster’s Dictionary an application is “a form used in making a request”. Agreement is defined as “harmony of opinion, action, or character, an arrangement as to a course of action, or a contract duly executed and legally binding, the language or instrument embodying such a contact”.

Simply put, an application is your customer’s request for terms. It provides the grantor relevant, verifiable information by which informed decisions can be made while the agreement defines under what condition credit will be extended. A properly worded agreement protects a lender’s rights and remedies. It is very important that a completed agreement be required from all customers.

One way to verify the information on an application is to consider these points:

Is the application filled out completely?
Did the customer provide you with a physical address as requested?
Is the provided address a commercial property, a “mail-drop” or a home-based business?
Did your customer provide you with ownership information including names and addresses as requested?
Are the phone numbers provided listed to the business that is requesting credit?
Did your customer disclose all their banking information as requested and did they include their account numbers?
Has the customer crossed out or altered any of your terms without your consent or approval?
Are the references verifiable and of value to meet your needs?
Did your customer sign and date the agreement?

Non-paying customer’s cost the company lost revenue, lost time that could have been better spent with productive accounts, and wasted resources.

Be cautious of the customer who rejects or refuses your reasonable request to fill out an application and agreement completely. Credit agreements are an accepted business practice in today’s credit heavy society; he who refuses to provide adequate verifiably information may have something to hide.

The Verification Processes

Extending credit terms simply because an agreement was completed can leave a vendor vulnerable to high risk, slow, or non-paying customers. In order to maintain a low percentage of bad debt, it is recommended that all applications be verified and periodically updated.

There are numerous “fee based” reports that provide easy to read, statistical data necessary when evaluating credit worthiness and are a cost-effective solution to making the “quick decision”. Dun & Bradstreet or Experian reports, for example, use public records and subscriber information as well as company provided details as the basis for their reports. The accuracy of any report will depend greatly upon how often report data is re-verified.

On-line public records are the fastest and easiest way to verify information. The majority of states, counties, and cities provide “real-time” data on the web that offer a wide range of detail such as verification of a corporation’s charter, identify shareholders, confirm current ownership, provide details of pending litigation, judgment awards, UCC searches, and other related business or trade names associated to your customer. Identify the type of business conducted, provide business license information, identify any name changes, and stock ownership transfers. In many cities you can even see driving tickets that have been issued to an individual.

The Internet provides additional resources for instantaneous verification. Those same tools utilized by credit reporting companies are available to the web-savvy businessperson at no or low-cost. However, the information obtained might not be the most current, so you need to be careful.

Search engines such as Lycos or Google provide sources to verify addresses and phone numbers. Outwardly this may seem to have little importance, after all what customer would intentionally provide a “bad address” or a “bad phone number”? How could they get their completed jobs if they did not provide a good address for delivery, and how can the customer confirm or proof the work processes requested if the phone number isn’t right? Remember the steps you take before granting credit to help you identify those customers who would do anything to get “free work”.

Addresses are something you really need to be aware of while verifying information. Over the past 10 years the business of providing “virtual” offices such as mailbox rentals or “common-space” office suites has grown to a multi-billion dollar industry. Mailboxes Etc and UPS have more than 5,000 franchises nationally while HQ Global has nearly a thousand locations in more than three hundred cities. Cellular phone usage is growing at a faster rate than land-based lines. There are thousands of companies that allow businesses to operate in disguise. While these operations may cater to small and/or home-based businesses that potentially could be very profitable and well run organizations, they also provide a safe haven for slow and non-paying customers. Credit grantors need to be wary.

Common web titles you need to be aware of and that may indicate a virtual office are:

Business Services
Conference Centers
Mail Services
Office Suites
Packaging and Shipping
Fax Service
Boxes and Bags
Copying and Duplicating

If during the verification process you suspect an address is a mail drop, call the listed company and simply ask if they rent mailboxes. If the answer is “yes” ask if your customer is renting from them. Also, if the phone number provided by the customer is not listed or appears to be a cell phone ask for the main number to the company and verify it. “No” is always the answer to a question not asked.

Following Practices

Remember the procedures established by your company are a means to protect your bottom line profitability. Your processes for extending credit should not be perceived as an impediment to any ongoing business relationship with customers who are genuinely looking to do business with you on an honest basis.

This article was an excerpt from an upcoming CD-ROM offered in cooperation with Printing Industries In/IN Association and its’ author. Future articles will provide other solutions to the most prevalent problems associated with managing and collecting accounts receivable. Your ideas and suggestions are welcome. For more information, contact Andrea Schlack at andreaschlack@comcast.net.