2017 Feb/Mar

Estimating: Know Your Costs to Determine Your Profits

by Mark Porter, president, Dienamic MIS Software, Inc.

A good product estimate not only determines the selling price to give to the customer, it also should determine the true costs to produce the product. This is very important because if finishers do not know their costs, how will they know their profits? After all, profit is the reason we are in business.

For many finishers, the price they present to their customers is a result of simply adding up numbers they know the market will bear. Unfortunately, they do this without knowing what their costs for these processes will be. What if the customers ask them to reduce their costs? Are finishers then paying out of their own pockets to produce the jobs? There is no way to know, because they did not calculate their own expenses beforehand.

When I talk to finishers about this topic, they usually say the market dictates the price. This is true; however, the market does not dictate their costs. By identifying their costs beforehand, they can identify the true profitability of various types of work and start to learn which work generates the greatest profit. Once finishers identify this, they can start to target their businesses to those specific types of work.

The following article will identify components of true costing that should be accounted for in the estimating before companies make sales decisions as to what markups and returns they want to achieve for this work.

Firstly, determining production standards – through a variety of methods that will be listed later – will aid in the estimating process. The times then can be multiplied by hourly cost rates that accurately reflect the cost of running that machine per hour. These rates are called budgeted hourly rates (BHR), and they encompass financing charges, labor costs, miscellaneous materials and allocation of overheads. Assumptions are made on the number of shifts and productivity levels that will be obtained, and now finishers have an accurate cost per hour to operate each piece of equipment.

Once the hourly rates have been determined and applied to the production standards, finishers have an accurate representation of how much the proposed job will cost to produce. Now, risk can be evaluated, along with the desired return and the markup of the estimate, in order to determine the selling cost.

Of course, the market will not always bear the desired price. When or if that happens, finishers now have all the data required to evaluate at what market price they are unwilling or unable to bid on a particular job. There even may be times when a company will bid on work that is below cost. The difference is, now they know they are below cost.

Once the time standards and BHRs are in place, it is vital that all graphic finishers monitor their production processes to ensure they are staying at the production standards that estimating is using. This is done through the constant monitoring of production factors, such as labor and machine time, and the comparison of actual vs. estimate calculations.

These concepts of cost accounting and management information systems are vital to the job manufacturing industries – such as finishers – no matter how big or small. The results will provide more data for companies to manage their businesses in a more profitable manner.

How to determine budgeted hourly rates

The process of determining BHRs is fairly simple: Identify all costs for each cost center of the plant.

The purpose is to recover all costs incurred in the production, sales and administration of the product. It is important not to include costs that are really not associated with that production process, because that will make a finisher’s hourly rate too high and price them out of the market. In addition, finishers must not miss legitimate costs. Doing so would result in their hourly rate not reflecting all costs. They will be losing money each time they quote that production process.

Determining BHRs begins with the breakdown of processes performed in the plant. Finishers then must collect and determine their own data. Just because ABC Graphic Finisher and DEF Foil Stamper have the same press does not mean they will have the same hourly rate. ABC may have paid cash for its press. Its rent may be cheaper, and it may hire people with lower skill levels to run the machine. This will lead to lower hourly rates for ABC Graphic Finisher.

A sample BHR sheet for a press is included below to demonstrate the type of information that is required for the BHR calculation. Keep in mind, the manufacturing cost per chargeable hour is not the budgeted hourly rate, but it is useful if finishers must charge back house error to the company.

Also remember, BHRs are not prices. They simply reflect all costs incurred to produce the product, as well as the administrative and selling overhead. The calculation of the BHR multiplied by the time estimated should reflect the time cost to produce that product with no profit. There are several BHR software programs available that walk through the process of determining budgeted hourly rates.

Another thing finishers need to consider is adding multiple shifts. For instance, when cost centers reach 40 percent overtime, adding a second shift may be necessary. The advantages of the second shift are the reduction of overtime and the spreading of the fixed costs over a larger time block. This can result in up to 15 percent savings.

Determining accurate production standards

In addition to having accurate BHRs, finishers also must have accurate production standards in order to have a more precise estimate. Production standards are a measurement of the output that will be achieved on a certain machine under a certain set of circumstances.

Having an accurate determination of production standards can be achieved one of the following six ways:
1. Historical
2. Intuition
3. Published Results
4. Competition
5. Manufacturer
6. Time and Motion Studies

It can be cheaper to utilize methods two through four as they use information that now is the finishers own. This makes it less expensive to accumulate but also lowers its value. Method six is highly accurate but also more costly and not continuous in its monitoring basis. Method one is the best combination of cost and accuracy. Method one collects data from the shop floor, either through the use of time sheets or data collection devices. The information goes into the job costing software where it then can be analyzed and sorted by different jobs and cost centers. This not only collects the beginning data, it allows companies to monitor the standards on an ongoing basis.

Having a precise measurement of BHRs and production standards allows finishers to confidently quote on work, all the while knowing they will be covering their costs. It allows for knowing when to walk away from a job as the desired returns at the current market values are unacceptable. Production standards are used by the estimating department to provide the time element of the estimate. This requires that they be constantly monitored to ensure that production is achieving what is being quoted. Equipment ages, new equipment is purchased and operators come and go, which means a review process must be in place to ensure accurate data.

This review process starts with all jobs. An estimate versus actual comparison report should be produced with each job and reviewed by management to highlight any significant differences in what was estimated vs. what actually was achieved. Differences should be investigated and understood so that processes can be more closely monitored or changed.

Every month, a production comparison report should be run to determine how the processes, on average, are comparing to the standards. Employee efficiency reports should be run to ensure all employees are reaching the production standard set. If certain employees are not meeting the standard, then retraining should be considered. If none of the employees are reaching the standard, the standard needs to be investigated and estimating notified. If estimating is using standards not based on actual data, then finishers may be giving money away on each estimate. If estimating is using standards higher than actual results, then finishers risk losing work.

This should be a standard policy in good times or low times. In good times, when there are never enough hours in the day, why would finishers want to work overtime on jobs that dont make their desired return? During low times, it is important that finishers know their exact profit position when people start demanding price cuts.

By employing good production standards and BHRs, finishers have the ability to properly monitor their estimates and production area. Again, software is available to help calculate all of the above, making the job easier and allowing finishers to have a more informed and profitable business.

Mark Porter is president of Dienamic MIS Software, Inc. He can be contacted at 800.461.8114 or [email protected].

Working with Specialty UV Coatings on Press

by Brittany Willes, editor, PostPress

Specialty UV coatings, such as profile (raised) UV, add visual and tactile effects.

A longtime manufacturer of screen and offset printing presses, Sakurai USA is well versed in the challenges operators face when utilizing specialty coating technologies. With the increased growth of specialty coatings, such as profile raised UV and glitter UV coatings, operators are working with a lot more than just simple spot UV coatings. When asked what advice he would give to print finishers and printers looking to incorporate more offline products, General Manager David Rose provided the following insights into the special challenges faced by those attempting to utilize specialized offline UV coatings.

Offline UV coaters with spot UV, raised (profile) UV and glitter UV technology are in great demand. What should buyers consider before purchasing this type of coater? For companies looking to add offline coating to their product capabilities, the use of screen printing provides the most versatile piece of equipment for all their coating needs. The sheet-fed cylinder screen press is a single-color press. By changing the printing plate (the screen), operators are able to produce UV full-flood coats, UV spot coatings, raised profile, glitter, scratch off, glow in the dark, scratch and smell, matte and soft-touch. It is the coatings that produce this result and the screen printing process that produces the deposit and images.

Companies should look to their equipment suppliers to provide the following information:

minimum and maximum sheet size of the equipment
speed of the screen printing process
thickness of material the press will handle
what type of dryer is needed for the ink/coating (UV, water or solvent)
what does it take to make the printing plate (screen)

Given the increase in popularity of specialty UV processes, what type of applications are best served using these specialty processes?

The use of UV clear coats was originally designed to offer a less expensive option to lamination. Some people even called it “liquid lamination” in the early days. UV clear coats offer the look of lamination at a fraction of the cost. Printers could take the clear coat, print it on a pattern or design, and suddenly they had spot coating. With a screen offline coater, more coating can be applied to the sheet than with any other method. Thus, by varying the mesh count of the printing plate, they are able to produce raised, tactile effects. Adding glitter to the clear coat then creates encapsulated glitter that won’t flake off.

There are a myriad of products that benefit from using the finishing screen printing method. Book covers and jackets, cosmetic packaging, presentation folders and – most important – knockout areas for glue flaps are just a few products where the application of specialty processes can help companies stay competitive and profitable in today’s market.

How is encapsulated glitter applied? What are the potential challenges associated with this type of specialty coating?

At some time in our lives, perhaps as a small child, nearly everyone has taken Elmer’s Glue, spread it on a piece of paper and sprinkled glitter over the glue. This basic process still is done today for traditional holiday card applications – nothing says the holidays or celebration like glitter on a package or printed communication. Unfortunately, the basic process is messy and a portion of the glitter always comes off in the envelope or on the recipient’s hands.

Today, using encapsulated glitter through a screen UV process, a very similar glitter look can be achieved without the glitter coming off on hands or other surfaces. To apply encapsulated glitter, UV coaters simply add glitter to the base UV clear coat and print the mixture through a screen. When the UV is cured, it captures the glitter particles and seals the flake in the deposit.

UV glitter (ink/coating) is supplied pre-mixed by a number of companies. Most customers will buy the base UV and add their own glitter mixtures. It is beneficial for customers to add their own due to the variety of print engines on the market.

As far as potential challenges or problems for the customer, it’s important to be aware that adhesion of the UV base to digital inks and offset inks is different for each type of ink used. When using pre-mixed UV glitter, companies should make sure the base UV coating adheres before adding the glitter. As most are aware, one UV clear may work well on one supplied sheet and type of ink but may work differently on another. This has become even more important to check in recent years with the growth of digital printing and the different digital inks on the market today.

There is a little more to running glitter than just dumping glitter particles in the UV base. The challenge is with particle size, shape and color of the glitter. Not surprisingly, with a larger particle comes more twinkle effect, as well as a greater percent of glitter load by weight and greater ability of the UV base to carry and keep the particle suspended in the solution. Most importantly, the mesh opening of the screen must be large enough to allow the particle to pass through.

What are some tips for applying raised UV coatings? Are there any special precautions that need to be taken?

Raised UV coating presents its own unique set of challenges. The key ingredient in running it successfully is in how the screen is made and imaged. It is not only the mesh count that determines the deposit, but also the thickness of the stencil (image) on the screen. Keep in mind, the thickness of the stencil or image on the screen – along with the mesh opening – creates a “well” to pass the coating through. The flooding action of screen printing fills this well with coating; the taller or deeper the well, the more coating that is deposited. Experimenting with different thicknesses of image will allow for greater height in deposits.

The viscosity of the coating can help or hurt the height of the deposit – the thinner the coating, the more spread or runout produced. Companies should ask their coating suppliers to provide a thicker viscosity of material.

Press adjustment also can affect the height and sharpness of the image. Speed of the press has an effect, as do angle and type of squeegee blade as a result of filling and emptying a well, or pool, of coating. Change the print angle from 15 to 30 degrees, round the squeegee edge or change to a softer or harder material.

Raised UV spot coating can create eye-stopping effects. Companies will be able to produce the dimensional products they’ve been looking for with the correct screen, tailored coating for the specific job and the correct press.

Are offline coaters now available with LED UV curing capabilities? Are there advantages in using LED?

Yes and no. LED lamp heads are available over a conveyor belt to put behind offline coating equipment. However, they still are limited by ink and coating availability. It still is a somewhat new curing process, so there are not as many types of coatings available for LED curing on the market.

The advantages of LED are many but are limited to the application. LED can provide faster curing times, but there can be challenges with heavy ink/coating deposits by screen printing. There also have been yellowing issues with certain types of LED clear coats. Curing through LED systems will continue to grow, but it is highly recommended that companies check with their ink/coating suppliers to be sure the suppliers have a product that will fit their applications.

PostPress would like to thank David Rose, Sakurai USA, for his assistance with this article. Having recently celebrated its 26th year as a US corporation, the Schaumburg, Illinois-based manufacturer has spent years helping its customers make use of the latest technology in order to stay competitive in today’s challenging economic environment. For more information, visit www.sakurai.com.

The View from 30 Feet: Cultivating Caution in the Workplace

by Jeff Peterson, editor-in-chief, PostPress

Business gurus often talk about the view from 30,000 feet – the big picture that provides a look at overall operations. Perhaps, however, the focus should be on the view from 30 feet – a close-up of specific processes and procedures that make an impact now.

Finishing and binding environments afford many opportunities for potential accidents. As a result, it is important for companies to establish a comprehensive safety program – perhaps even more so than in other types of plants based on the variety of equipment used in finishing and binding departments.

In most manufacturing plants, three or four different types of equipment might be used to produce a specific product. However, a finishing and/or binding facility could have as many as 20 to 30 different machines. This creates the need for more specific safety rules.

All plants should be concerned with several areas, including knowing the laws for each specific region and/or state. Safety regulations are not always consistent from state-to-state. All factories also should have an Emergency Preparedness and Response program in place – no larger safety issues exist than those potentially caused by fire, tornadoes, hurricanes, flood or a chemical spill. Furthermore, all companies should have response personnel trained in first aid, CPR and the use of an automated external defibrillator (AED). It may not be mandatory for all personnel, but at least one person, or more, should be trained to administer first aid on site for all shifts.

Establishing a consistent program

A quality safety program can be set up in many ways. The key is to make sure a consistent, comprehensive program is available for new and existing employees to follow. For example, at Trojan Litho, headquartered in Renton, Washington, safety is engraved within company culture. Trojan provides mandatory safety training once a month and covers, in detail, one specific topic. New Trojan employees participate in a safety orientation their first day on the job. Two weeks later, those employees and managers are expected to review that safety training and address specific job safety functions in a more in-depth way.

“As a safety department, we spend a great deal of time on the shop floor every day talking with the employees,” said Sandy Burns, Trojan Litho’s environment health and safety manager. “We believe constant engagement is the greatest help in making sure safety procedures are being followed correctly.”

Trojan Litho also has implemented “total productive maintenance” (TPM) and performs an annual audit on all of its equipment, which helps the company address and stay on top of any safety issues with its machinery.

At MCD Incorporated, a print finisher in Madison, Wisconsin, training sessions are scheduled every two months and focus on a key area identified by OSHA. A video is played, along with questions and answers, followed by a quiz for all the employees. Employees must sign in for the training. For those who cannot participate, a make-up session is scheduled.

In addition, MCD has created a safety team from employees who work in different areas of the plant. “Every month, we do safety inspections and have a member of the safety team, along with a non-member, go through the shop and look for safety violations,” explained Glenn Gauger, MCD production manager. “This helps make safety more than just the safety team’s responsibility.” The safety team at MCD also will hold a cookout periodically as a reward when the plant is doing well across the board in all areas of safety.

Independent Printing Co., Inc., De Pere, Wisconsin, also believes that providing proper safety guidelines for employees is of utmost importance. The company offers safety and material data sheet training during initial orientation before an employee is ever allowed on the production floor. Lift truck certification also is required by any employee who will be operating powered hand trucks. “We even go so far as to require stretching exercises by all employees before their shift begins to help prevent injury or strains,” stated Jim Smarzinski, finishing supervisor.

Dressing the part

Wearing the proper clothing and safety glasses also is an important aspect of safety on the production floor. It is imperative that companies have specific written rules on what is considered proper attire and when safety glasses are needed.

“Because we have so many different types of production areas on the MCD shop floor, we don’t have specific rules across the board,” explained Gauger. “However, there are rules in place with personal protective equipment (PPE) for all employees, which include no open-toed shoes and restrictions on baggy clothes to prevent anything being caught on a machine.”

Independent Printing has similar rules on clothing, including long pants only (no shorts) in the production area and a ban on open-toed shoes. “We have rules for specific functions, such as requiring cut gloves when changing knives or having welding gloves on when handling hot stamping dies and cases,” added Smarzinski. “In addition, safety glasses are required for certain functions, such as operating a die grinder.”

“We have areas and tasks that require specific PPE,” stated Burns. “This includes hearing protection for some areas, tasks that require safety glasses, gloves, etc.” Trojan Litho similarly has a strict policy on excessivly baggy clothes and requires long-sleeved shirts (uniform shirts are provided). In addition, no jewelry is to be worn, long hair must be tied back and, as with most plant rules, closed-toed shoes must be worn at all times on the production floor.

Rewarding safety

To keep safety in the forefront of all the employee’s minds, Trojan Litho has established a monthly bingo game where numbers are drawn daily and prizes are awarded to the winners. The tie-in with safety is that if there is a recordable incident, the game is canceled and will not start up again until the beginning of the following month.

“This has been a fun way to keep safety in the minds of our employees at all times,” concluded Burns. “Everyone knows how important safety is in our plant – from management down to part-time workers. We are very proud of our programs and safety record.”

The Foil & Specialty Effects Association recently updated its Safety Self-Inspection Checklist that was specifically developed for the finishing and binding industries. The checklist covers several areas, including facility, protecting employees and equipment. It is an excellent way to help start or update your current safety program. If you are interested in receiving this detailed checklist, contact Brenda Schell for a PDF.

Tech Watch: Gietz’s ROFO 910 PLUS Hot Foil Machine

by Lara Copeland, assistant editor, PostPress

Since 1892, Gietz, Gossau SG, Switzerland, has supplied the printing and packaging industry with high-performance machines. The company builds its machines exclusively in Switzerland before they are delivered worldwide. Recently, the company upgraded the ROFO foil stamping series that was first introduced over a decade ago. The 36″ width ROFO PLUS flexible web machine was upgraded for improved performance of wide web applications. “The Gietz ROFO 910 PLUS is specifically designed for the requirements of foil stamping and blind embossing,” noted Steve Leibin, executive vice president of business development for Matik, the exclusive North American distributor for Gietz. The ROFO series from Gietz offers flat-flat hot foil stamping, embossing and hologram application capabilities for web-fed applications.

The stamping and foil transfer is performed by a toggle-operated platen press by means of flat stamping dies. This principle allows a versatile application of the machine, a minimal consumption of foils and the use of low-cost tools. Used in the print finishing of printed and plain web substrates, it enhances the value of flexible packaging, gift wrapping, chocolate and shopping bags, and cigarette packs. The 910 PLUS also is well-suited to the security industry for its ability to add holograms on currency and security applications. “Hot foil and holograms are being applied on PET, PP, PC, laminated films and thin paper substrates, which are impossible on traditional sheet-fed machines. Plus, the web-fed process enhances profitability,” explained Leibin.

The machine demonstrates its flexible performance range by processing paper, cardboard, plastic films and composite substrates. “It also includes many features exclusive to Gietz, such as the VACUFOIL high-speed foil transport system; multiple, fully adjustable dwell settings to optimize time under pressure for hot foil stamping; both longitudinal and transverse foil feed; short set-up times and modular flexibility,” Leibin revealed. One advantage for the hot foil stamping “flat-flat principle” is the deep reliefs. It also allows structure and micro embossing, in addition to a combination of foiling and embossing, at one time. Up to eight foil feeds are available and, therefore, eight registered hologram webs also are available.

“The ROFO 910 PLUS can add value to flexible packaging, film and paper applications that are challenging or impossible for sheet-fed machines,” continued Leibin. Additionally, due to the modular construction, it is possible for tailor-made customer solutions. The machine can be configured with optional sheeting, stacking, slitting or diecutting capabilities for inline production efficiencies.

In other packaging markets – such as label and folding carton – the added value that hot foil offers is well recognized; however, it is not well known or often utilized in the flexible packaging segment. As Leibin pointed out, “pouches are becoming common on store shelves. Hot foil on pouches enhances the value of the product and helps that pouch jump off the shelf at the moment of truth in the shopping aisle.”

Gietz customers offering hot foil stamping and hologram capabilities in the flexible packaging market are experiencing “excellent growth by offering further innovation to this fast-growing market,” Leibin reported. He said customers have purchased second ROFO machines or added multiple stamping units in a single ROFO line to achieve creative solutions with greater profitability. “Customers are excited by the unique and superior capabilities they can offer their customers,” exclaimed Leibin.

Technical Details

The maximum substrate web width for the ROFO 910 PLUS is 35.8″. Its maximum substrate weight is 300g/m² and the minimum paper weight is 40g/m², with the option to handle very thin film substrates as low as 12 micron PET. The continuous substrate web pull maximum is 800mm/31.5″ and its minimum is 50mm/2″. The machine’s stamping area is at a maximum of 31.5×28.3″ (800x720mm). It has a new maximum speed of 393″/min (120m/min) and up to 10,000 strokes/hr. The maximum pressure of the press is 165 US tons.

The ROFO 910 PLUS weighs approximately 18.2 US tons with its base measuring approximately 37.7×13.5″(11.5×4.1m), while the height reaches 11.8″ (3.6 m). The standard equipment includes VACUFOIL foil transportation system, two longitudinal foil feeds, high-capacity baling press for waste foils and touchscreen machine control. Optional equipment can include up to 10 foil feeds (eight longitudinal and two transverse) and hologram equipment up to eight foil webs. The ROFO series also is available in 750mm and 1020mm web widths.

SGP Sets Direction for 2017 – Sustainability Goes Far Beyond Inks and Paper

by Brittany Sutphin, executive director, Sustainable Green Printing Partnership (SGP)

At SGP, we believe that sustainability is a means of continuous improvement for every aspect of your business – from process to people to profitability. After all, if your business isn’t pro?table, it can’t be sustainable. That’s why our comprehensive accreditation ensures that printing facilities hit the benchmark across the spectrum and, inevitably, create a more responsible supply chain.

2017 is a critical year for the SGP and the industry at large. Due to the significant impact businesses have on the environment, there is an increasing expectation on businesses to implement sustainable business practices into the core of their operations.

Since its inception, SGP certification has provided a cross-industry sustainability initiative that supports the entire sustainability profile of print facilities. The multi-attribute certification is unique to the industry as it takes into account the entire print facility: its process, product and social areas. As part of the certification process, SGP assists printing facilities in reducing their energy consumption, eliminating waste, increasing recycling efforts and implementing innovative practices for a greener printing process.

In 2017, SGP anticipates certifying more than 50 new facilities this year, doubling the number of certified sustainable printers, following the increasing recognition for the certification amongst print buyers and the printing industry. Beyond creating real cost and resource savings for each unique facility, the certification of 50 new facilities will provide a significant impact on the environment.

Ensuring production of printed materials with the smallest environmental footprints possible, SGP’s industry-specific criteria and metrics address important environmental factors, such as waste, recycling, energy, water, air emissions, procurement of materials and much more.

We are proud of those facilities that have worked to achieve SGP certification as it is a challenging task but results in countless benefits. SGP-certified facilities represent all print platforms and sizes in the United States and Canada. Beyond creating real cost and resource savings, SGP certification differentiates businesses in the crowded marketplace and institutes a more accountable, sustainable supply chain. Currently, SGP-certified facilities benefit the environment in the following ways:

62 percent of certified facilities divert a higher volume of materials from landfills and incineration by increasing recycling.
62 percent of certified facilities significantly reduce VOC emissions.
52 percent of certified facilities report reduced energy consumption, lowering operating costs and waste.

As we encourage new certifications, there also are some great developments as we work with brands on their sustainability initiatives. As consumer demand for sustainability increases, brands are challenged to set ambitious sustainability goals. Developing supply chains that make a difference takes foresight and perseverance, and retail and consumer brands are taking on this challenge.

To further support this effort, we recently partnered with ANN INC. to launch the SGP Brand Leader Program, providing tools print buyers need to become champions as they align their print procurement best practices with their organization’s sustainability initiatives and goals. SGP Brand Leaders are committed to working with their print providers to achieve SGP certification and lower their environmental footprint, providing an increased sustainability profile.

“At ANN INC., we have taken a leadership role in infusing sustainability into our printed marketing and retail graphics programs. By working with SGP-certified printers, we have assurance that our printers are prioritizing sustainable business practices within their facilities through the third-party certification,” said Libra Balian, senior director of marketing operations at ANN INC. “We can’t just focus on using certified paper and other green substrates. The operational component of the printing process is equally important to reducing our marketing carbon footprint.”

SGP is committed to making it easy for brands and buyers to minimize their environmental footprint with respect to printing purchased, creating a powerful demonstration of commitment to sustainability along value chains. Print buyers are utilizing printers certified by SGP that share a similar sustainability mindset, which makes it easier for brands to accelerate meeting their sustainability goals and objectives. Adopting the externally-validated standard of SGP criteria as a benchmark, there is no need for print buyers and brands to develop “green” standards, checklists or scorecards, thus reducing costs associated with vendor qualification and verification.

SGP’s Brand Leader program is one of many steps the organization will take this year as it works to increase recognition from the printing industry and print buyer community. In addition to certifying printers that comply with rigorous environmental best practices, the organization will conduct conferences, seminars, academic studies and sharing sessions to help print manufacturers and print buyers create sustainable supply chains.

Print facilities interested in eliminating waste, reducing energy consumption, transitioning to sustainable materials and winning new business from organizations that require sustainable printing practices from their suppliers should visit www.sgppartnership.org/certification/ to learn more about becoming SGP certified in 2017.

The Foil & Specialty Effects Association (FSEA), Topeka, Kansas, recently joined with the Sustainable Green Printing Partnership (SGP), Sayville, New York, as a Resource Partner for the SGP community. To learn more about working with SGP as a patron or Brand Leader, please contact Brittany Sutphin at [email protected] or 703.359.1376.

Quality Stitching Wire Matters

by Kristopher Shaw, sales manager, WCJ Pilgrim Wire

Stitching wire is one of the last items a printer or binder thinks about; however, there have been some interesting changes with stitching wire in the last few years, including the increase in the use of colored stitching wires (PET coated and alloys) and the use of stainless steel wires used in specialty production runs. The wires used in binding or finishing departments are in the form of saddlestitching, loop stitching, bookletmaking, side stitching, inline press stitching and corner stitching.

As the industry has evolved, so has stitching wire. Quality of wire, path of wire, wire delivery, spool sizes and de-spooling equipment are all major factors in how stitching wire is going to perform in the field. With the continued demand for increased run speeds and overall profit, high-quality stitching wire and proper machine set-up are a must for today’s binding/finishing departments.

Quality of wire

An ideal wire is chrome-like in appearance with special friction-reducing additives to resist peeling and flaking. It provides a superior workability while forming into a staple.

Stitching wire is not straight. Each wire package has a desired curvature of the wire. The radial or circular curvature is known as “cast.” Cast is measured as the diameter of a free turn of wire. The axial component is referred to as “camber.” Camber is measured at the offset in the ends of one turn of freely hanging wire. Larger cast and smaller camber are characteristics of a high-quality wire. This allows the wire to go into the stitching head more smoothly, producing less drag, and will provide fewer dropped stitches. In turn, the stitching head will work more efficiently with less energy and with less maintenance. So, checking on the straightness of the wire can be very important.

Path of wire

A clean path for the stitching wire from the spool to the stitching head is critical in getting a positive stitching outcome. The coating can be easily chipped, scraped or damaged by running the wire past an unprotected steel bracket, worn wire guides, spring tubes or dirty felt pads. The felt pads must be checked frequently, oiled and rotated, or replaced, on a regular schedule. Wire guide springs and felt pads are a normal wear part on any stitching head. Flat spots on guides and springs, along with a dirty felt pad wiping system, can cause flaking issues that will jam the stitching head, stop production and cause additional maintenance and repair costs.

The right size wire for the job

The majority of stitching wires used in today’s binderies and inline stitching operations are 24 and 25 gauge. These two gauge sizes amount to a 21.3 percent difference in product yield, which translates into 21.3 percent more staples when using a 25 gauge over 24 gauge. In simpler terms, imagine if a staple or stitch is one inch: that would allow for 2,304 more staples by using the 25 gauge wire over 24 gauge.

Recommended stitching wire gauge

25 gauge stitching wire is the recommended thickness for work that is 1/16 to 7/32 of an inch.
24 gauge stitching wire is the recommended thickness for work that is 1/16 to ¼ of an inch.

These are only suggestions as paper type, density, coatings and stitcher set-up can change the stitching wire size required. Larger diameter wire substantially affects the yield of the wire, along with the increase in the amount that will be paid in postage.

Spool sizes, de-spooling equipment and winding

Stitching wire comes in many different packages and generally ranges from 5lbs to 1,000lbs in size. Primary usage and machine type determines the size of spool required, but running speeds and space availability also play a crucial role.

Standalone stitchers that are hand fed usually use five or 10lb spools. Collators with stitchers used for short-runs of five to 10,000 books also can use this type of spool. Saddlestitchers for longer, mid-range runs will use 35, 40 and 70lb spools. High-speed collator/stitchers and web operations using inline stitchers will use 200lb, 650lb smart-drum and even larger 1,000lb smart-pull wire systems.

A larger spool or drum has economical and production advantages. Larger packages cost less per pound of stitching wire to manufacture, and larger packages require fewer spool changes during the manufacturing process.

Utilizing larger wire packages will reduce spool changes, thus increasing the output of books per hour. A normal spool change averages two minutes per spool changed, and generally a saddlestitcher runs anywhere from two to four stitcher heads at a time. With four stitcher heads running a job of over 100,000 pieces with 5lb spools, a saddlestitcher would be stopped for spool changes a minimum of 16 minutes alone. Changing to a 35lb or 40lb spool would wipe this changeover time to zero.

Different size packages have different characteristics that can give the end user advantages. For instance, as stated earlier, a larger circle diameter improves the performance of stitching heads with less friction due to less straightening required and fewer dropped stitches. The larger diameter packages, such as the 650lb smart-drum and 1,000lb smart-pull spools, have larger circle diameters to improve stitcher head performance since less straightening is required.

Proper de-spooling equipment is essential to complement the high-quality wire being used. Matching the correct de-spooler with the spool is essential to problem-free production.

Kristopher Shaw is the sales manager for WCJ Pilgrim Wire. To learn more on WCJ Pilgrim’s full line of stitching wire and related products, visit www.wcjwire.com.

Poly Covers: The Newest Trend in Binding

by Brittany Willes, editor, PostPress

When it comes to binding covers, traditional paper covers have long reigned supreme. However, technology since has allowed users a wide variety of cover options to choose from, the most popular being poly covers. Unlike paper covers, poly covers are heat- and stain-resistant, waterproof and exceedingly durable. “Poly covers are the hottest trend in binding covers,” explained Spiral Binding Company Product Manager Joe Bondonna. “They offer a modern and professional look, which is the perfect solution for businesses looking to enhance and protect their corporate message.”

According to Bondonna, any corporate communication package currently being produced using paper can be produced using poly material. As such, poly covers act as a cost-effective solution for marketing presentation products. Additionally, they are available in see-through translucent poly and opaque poly materials in a variety of colors, thicknesses and finishes that offer a durable and attractive look.

Poly covers also are able to be custom-designed. Companies like Spiral, which offers custom-branded poly covers, often assist customers with innovative design ideas to create products to fit their customer’s exact needs. “Corporate branding is a key component to every company’s marketing communication,” said Bondonna. “Many of our customers have an existing design plan; however, Spiral can take that design plan and realize it into products that complement a company’s brand strategy.”

As environmental issues continue to make headlines, many companies have begun paying more attention to their own sustainability practices. Developing eco-friendly practices and reputations is more important than ever – something the use of poly covers can assist with. Even with the – often erroneous – push to “go paperless,” there always will be a need for printed documents. Unlike clear PVC covers, poly covers are 100 percent recyclable, allowing users who routinely bind great quantities of printed documents to do so without fear of creating more environmental pollution and waste materials.

“Although produced using plastics, poly covers still are completely recyclable and eco-friendly,” said Bondonna. “Most poly materials now are being produced using some pre-consumer waste materials. As more poly materials get returned into the manufacturing supply stream, more poly material will be produced using post-consumer waste. This is similar to how steel, aluminum and glass are recycled.” This is good news for companies committed to reducing waste and helping to create more environmentally sustainable resources.

In addition to being fully recyclable, poly materials can be used for a great many projects beyond cover materials. “Poly covers are only the tip of the iceberg,” stated Bondonna. For instance, poly materials have been used to create loose leaf binders and tabs, which are just as attractive, durable and versatile as poly covers. “Folders and envelopes have been a traditional document carrier for many years. Versatile poly folders and envelopes can be custom produced with imprinting and material colors to make your documents stand out,” said Bondonna.

Poly materials even can be used for such products as tote boxes. According to Bondonna, “Having the right kind of outer packaging makes a lasting impression. Tote boxes are an ideal presentation carrier, and they offer a great deal of flexibility. They allow for multiple presentation products to be grouped together in one unified package.”

Versatile and environmentally-friendly, it’s little wonder that poly covers have become such a popular option for users looking to bind a variety of applications.

Industry Influencer: Cindy Crouse

Cindy Crouse joined IADD as CEO in 1995. Since then, she has worked to help IADD members – and the industry – with knowledge of the latest technologies and to give members opportunities to form relationships in order to maximize success.

Cindy Crouse has spent decades working in the diecutting industry. Currently, she serves as the CEO of the International Association of Diecutting and Diemaking (IADD) providing executive management, substantive guidance, support and direction to the IADD leadership. Having grown up in the industry, Crouse brings many years of experience and insight to the world of dies, assisting in identifying substantive issues and stimulating and encouraging projects and activities that benefit IADD members and the industry as a whole.

What drew you to the industry as a career?

I grew up knowing about the converting industry because my father was a diemaker for 50 years and was a member of the IADD since its inception in 1972. My brothers and I were those odd kids who deconstructed the boxes our presents came in and inspected the diecutting, foil stamping and embossing on our birthday cards. But, as I progressed through the workforce, I ultimately became an association manager for two different legal organizations.

One day, in 1995, my two worlds collided – the IADD needed a CEO, and the search committee mistook a letter I had written to my dad about options for finding one as my application for the position. It dawned on me that it would be a privilege to be associated with the decent and hard-working people of this industry. What continues to attract me is that our industry impacts and improves so many facets of our everyday lives.

What important changes have you witnessed in the industry during your time with IADD?

Advanced automation of industry processes has been a key change in the past 20 years. Simple lasers, CAD and automatic bending and routing systems became much more sophisticated, while presses simultaneously got smaller and grew in size/speed. Similar to the printing industry, affordable technology fueled a perception away from “distinctive craft” and a shift to “self-make,” blurring the lines between supplier and customer. The latest disruptive technologies, such as digital (dieless) cutting, robotics and 3D printing (additive manufacturing), pose similar challenges and opportunities.

The increased number of mergers and acquisitions has changed the market landscape and balance of power, as the number of individual players decreases and certain companies become powerhouses able to insist on lower prices from their suppliers. In response, we’re seeing a greater number of strategic alliances forming between smaller companies who wish to capitalize on leveraging their strengths to better serve customers.

Other changes include the decrease in job run sizes, commoditization of products and the erosion of customer loyalty, all of which negatively impact profitability.

What will be the biggest challenges faced by those in the industry in the next few years? How will IADD continue to advocate and provide services for those individuals?

Attracting, developing and retaining enough people with the skills and talents to keep growing their businesses and ensuring their company’s success will be huge challenges. Fueled in part by the retirement of the baby boomer generation, expected economic expansion, the decline of technical education programs and a negative image of manufacturing among younger generations, this skills gap needs to be addressed by many different stakeholders.

IADD hopes to assist members by participating in a number of carefully chosen programs – such as alliances with technical schools, apprenticeship programs and career fairs – while also building online training courses and introductions to the industry to improve the overall image of our type of manufacturing.

Small and mid-sized companies have been the lifeblood of our industry, but many are worried that they can’t compete with global companies with greater financial and other resources. IADD will continue to educate its members about operational efficiencies, affordable technologies and better informational management systems, as well as promote the value of strategic alliances and provide opportunities for networking.

What trends do you see for the industry in the next few years?

Fueled by online sales, we’ve become accustomed to purchasing products on demand, with items delivered almost instantly to our doors. This purchasing style has raised our delivery expectations and has begun migrating toward all businesses. This may lead more of our industry companies to develop products closer to where they will be sold, either by opening smaller regional plants and shops or by partnering with companies in strategic geographic locations.

More of our members will embrace the use of advanced analytical software to improve their decision-making, streamline their day-to-day plant operations and to identify business opportunities. With mobile apps providing access to data on the go, managers will react in real time, and the more predictive software will help them create new competitive advantages and better meet customer needs.

How will the IADD continue to serve and influence the industry?

IADD realizes that we live in quickly changing, disruptive and challenging times, and the only way to serve and influence the industry is to gather, analyze, distill and communicate useful knowledge that impacts our members. We will continue to work to help them understand how to apply this information and new technologies to their own operations. We will continue to provide them with opportunities to meet influential industry experts and to form relationships and alliances to maximize their success.

Association News: FSEA

FSEA Now Offering Printers401K Program

FSEA recently has been approved as an official association to offer the Printers401K Program, which has been very successful for many in the graphic arts industry. This is a great opportunity for FSEA members to offer a 401K program at a low cost with a strong track record of returns for company owners and employees. To learn more about the Printers401k Program, please contact John Moynihan or Joe Trybula with Diversified Financial Advisors, LLC at 314.786.9000 or [email protected]. They will be glad to explain the benefits of this unique program and discuss how they can help maximize your retirement plan.

FSEA Gold Leaf Awards

The 24th Annual FSEA Gold Leaf Awards is in full swing, and there looks to be more entries than ever. “We don’t have a final count on our entries quite yet, but we believe it could be another record year,” commented FSEA Executive Director Jeff Peterson. “The expansion of categories in areas such as cold foil, laser cutting, and digital coating and foil has opened up even more opportunities for entries.” Winners will be on full display and announced during the new Be Here! Bash that will take place May 18 during the IADD•FSEA Odyssey in Schaumburg, Illinois.

FSEA would like to thank all of its sponsors for the 24th Annual Gold Leaf Awards:

Platinum Sponsors
API Foils
BOBST North America
Compact Foilers LTD
h+m USA, L.P.
Infinity Foils, Inc. – a UEI Group Co.
ITW Foils
Kurz Transfer Products
Metal Magic
Univacco Foils Corporation
Universal Engraving, Inc. – a UEI Goup Co.

Gold Sponsors
Brandtjen & Kluge
Brausse Group
Crown Roll Leaf
MGI USA Inc.
Owosso Graphic Arts, Inc.
Sun Chemical

What’s New For FSEA at IADD•FSEA Odyssey

This year’s IADD•FSEA Odyssey will be better than ever with several new events that will be tied into the Odyssey. First, FSEA and IADD are excited about the brand new Be Here! Bash, which will take the place of the traditional Odyssey banquet. The Be Here! Bash will be a fun, casual atmosphere with several food stations and drinks. There will be plenty of seating, but attendees will be free to walk around and look at the Gold Leaf Award winners that will be displayed around the room. Abbreviated presentations will take place for the Gold Leaf Award winners and the IADD Lifetime Achievement Award recipient.

FSEA and IADD also are planning a special get-together and reception for both young professional groups – this includes the FSEA Young Alliance that was kicked off this past year by FSEA. The casual meeting will provide an opportunity for young professionals in both associations to network and discuss new ideas for the group moving forward.

Lastly, FSEA and IADD have partnered with the Great Lakes Graphics Association (GLGA) to offer a special half-day workshop, titled “Industry Update: Metallic Foil & UV Coating Decorating.” The workshop presentations will take place the second day of Odyssey on Thursday, May 18 from 8:30 a.m. to 12:15 p.m. There will be a special price for attending the full workshop, or each session can be attended separately. For more details and to register, visit www.odysseyexpo.com.

Application: Touchdown! DataGraphic Scores with Super Bowl 50 Invitation

by Lara Copeland, assistant editor, PostPress

Football fans around the country observe the National Football League (NFL) Super Bowl each winter by holding and attending parties. Similarly, the NFL commissioner celebrates the Super Bowl by hosting an annual party the Friday before the big game. To celebrate the event’s 50th anniversary in 2016, the NFL asked DataGraphic, Brentwood, New York, to create the invitation for its yearly party. The final product represents the five decades of the Super Bowl’s existence while commemorating its golden anniversary.

When Chris Stackhouse, NFL art director, brought his design concept to Glenn Schuster, president of DataGraphic, the team created an invitation that conveyed 50 years of the Super Bowl’s greatest players. Covering a story this long in the making required Stackhouse to design a collector’s set of five unique invitations, and to complete the project, DataGraphic used a Mitsubishi UV Litho press, a Kluge EHD press, a Pot Devin mounting machine and an M&R flatbed screen printing press and UV dryer.

On the front of each invitation in large, gold foil is the number “50” set against a black background. Across the entire front of the card, from top to bottom, is a repeating list of past MVPs and the accompanying Roman numerals representing the Super Bowls in which they played. The background was foil stamped with a clear hot stamping foil.

The back of the invitation features a silhouetted player collage alongside the party details. Schuster’s team was challenged with getting the 4-color imagery in the silhouette to show up perfectly on the metalized silver cover (24pt. Hampton Bright Silver Cover) without overwhelming the invitation. To meet this requirement, DataGraphic’s printing technique entailed creating a white base consisting of two hits of opaque UV white for the silhouetted player collage that would then be overprinted in 4-color process.

Next, the cards were foil stamped five-up (one of each design). Each lot was foil stamped with Crown 370 Gold and embossed with a silhouette of either a player or coach. The fronts of the cards then were foil stamped with the same Gold 370 and the clear gloss for all five lots. The top and bottom sheets were mounted to the middle sheet to achieve the 51pt thickness, and a final trim was performed. Finally, it was gilded in metallic gold, with a serial sticker adhered to it before being inserted into the sleeve.

The invitation’s sleeve was created with 92lb So Silk Black Cover and 80lb Royal Sundance Smooth Black Cover. It received a multi-process crossover pattern of laser cutting and foil stamping. The foil stamping was done with a first pass of clear foil and then a second pass of gold foil. The number “50” was laser cut in the Roman numeral pattern. The laser cut “50” aligns perfectly with the gold “50” on the invitation – allowing it to show through the sleeve. The sleeve’s NFL symbol was embossed in register with the foil stamping, and the background on both sides of the sleeve utilized a step and repeat graphic of Roman numerals – representing the Super Bowl’s 50-year tradition – that were foil stamped with clear foil to create the pattern.

One of the production challenges for DataGraphic was getting the foil to perfectly register to the laser cutting on the sleeve. “There was no tolerance for error since certain words and symbols were literally split in half with one side being foil stamped and the other half laser cut,” Schuster explained. He continued by saying that it was probably the biggest concern since the cards were gilded and the gilding process required a certain amount of the sides of the cards to be ground off in preparation for the gilding.

DataGraphic and the NFL partner each season to create an invitation package for the commissioner’s celebration during Super Bowl week. The two parties have built a rapport over the years, and DataGraphic continues to impress its customer. “They absolutely loved the result,” Schuster exclaimed. The completed invitation not only wowed the NFL, it also earned DataGraphic a silver award from the Foil & Specialty Effects Association in the laser cutting category of the Gold Leaf Awards this past year.