JDF Case Study: POINT CZ, s.r.o - CIP4

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JDF Case Study: POINT CZ, s.r.o - CIP4


POINT CZ, s.r.o

2012 JDF-Enabled Print Automation

Case Study

Page 1 of 23


Executive Summary

2012 JDF-Enabled Print Automation

Case Study

POINT CZ, s.r.o. company was established in 1993 as a pre-press studio. In 1994, the first Heidelberg

Speedmaster printing machine was purchased and thus the company entered the polygraphy market officially.

Since the beginning, it has been a family business and there has been no change to this status, so

far. This year, Vladimír Sázavský Sr., the original owner, has transferred the company onto his two sons,

who took part in its management from the very beginning.

POINT CZ, s.r.o. provides complex services in the field of flat sheet and digital offset printing and

subsequent book-binding processing. Since 1993, the company has built up its position as one of the

strongest polygraphic enterprises in the Czech Republic. The first factory building was constructed on the

premises of a former agricultural cooperative, Medlov, in 1994. In 2006, the company purchased the second

manufacturing enterprise in Jedovnice, which focused on manufacture of calendars and twin-wire

binding products. Throughout its history, the company has gradually constructed new manufacturing

premises with the total area of 7,500 m2. Today, POINT CZ operates in four localities – the manufacturing

is concentrated in production plants in Medlov (Brno-venkov district) and Jedovnice (Blansko district)

municipalities, while customer service centers are situated in Brno and Prague.

POINT CZ – Numbers:

� 150 employees, out of whom 102

work in the production sector

� 6 workdays a week, 3 shifts per day

� total production area of 7 500 m2

� total storage area of 1 500 pallet

positions

� production capacity of ca. 5 400

000 kg of paper per year

� 4 500 000 pieces of calendars per

year are processed in the Jedovnice

production plant

� company annual revenue over EUR 11 million

POINT CZ offers its customers a wide range of printed products and a variety of other services in the

field of the flat sheet offset printing and recently also digital offset printing and subsequent book-binding

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2012 JDF-Enabled Print Automation

Case Study

processing. Typical products include brochures, catalogues, books, calendars, diaries, boxes, CD pouches,

booklets, inlays and also a number of products requiring manual processing.

The main portfolio is formed by customers from the industrial sphere and multinational corporations,

which we supply with all mercantile printed matters. Regarding POINT CZ strategic position in the heart

of Europe, we have also elaborated a complex logistic system for our customers.

Ecological orientation of POINT CZ and its efforts for

supporting the renewal of natural sources are proved

not only by the fact that we are holders of both FSC

and PEFC certificates, showing our strong support of

sustainable forestry, but also in the technological projects

implemented in the production operation aimed at

decreasing of volatile substances (VOC) to minimum.

The company achieved decrease of negative impacts

on the environment by means of print technology with

the minimum content of alcohol (up to 3 %) and use of print inks on the basis of vegetable oils. POINT

CZ also very successfully operates EcoClean technology, which is unique equipment for recycling of

washing solutions, being the only company operating this technology in the Czech Republic and at the

same time one of few in the world.

Another ecologically important project is implementation of the recuperation and recirculation equipment

used in the production plant, where we use the heat gained from the printing process in the form of water

cooling of the printing machines for heating of the production halls. It is a significant part of energy savings

in production by means of which we also eliminate adverse impacts on the environment. Together

with the powerful air-conditioning and moistening units it creates environmentally friendly and favorable

workplace.

Printing Machinery of POINT CZ

The machinery incorporates the best brands available on the global polygraphic market. The basis consists

of 6 Heidelberg Speedmaster printing machines of 26 printing towers in B1 and B2 format and one

machine for digital offset printing.

Type Colours Printable area Production speed

SM 102-10-PCS 5+5 colours (or 4 colours + varnish) 680x980mm 12.000 sheets/hr

CD 102-4+LX2 4 colours + varnish 680x980mm 12.000 sheets/hr

SM 102-2 1+1 colour (or 2 + 0 colour) 680x980mm 15.000 sheets/hr.

CD 75-4+LX2 4 colours + varnish 510x720mm 15.000 sheets/hr.

CD 74-5-LX-C 5 colours + varnish 510x720mm 12.000 sheets/hr.

SM 74-1 1 colour machine 510x720mm 10.000 sheets/hr.

HP Indigo 7500 Digital colour press 317x464 mm 120 A4 ppm

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Bookbinding machines and machines for finishing:

2012 JDF-Enabled Print Automation

Case Study

Machine Brand Type Max. format

Gang Stitchers

MÜLLER MARTINI (with criss-cross delivery

Apollo)

Unit

s

Bravo Plus 297 x 420 mm 8 + 1

THEISEN & BONITZ SPRINT 304 QSM 250 x 350 mm 10

MKW RAPID 42/UT36/GS/DP 500 x 500 mm 4

HEIDELBERG ST 100 305 x 349 mm 6 + 1

PFAFFLE (specialized for calendar production)

F 209 500 x 700 mm 4

Collation THEISEN & BONITZ TB SPRINT B216 VP 500 x 700 mm 16

machines MKW RAPID 42/UT36/GS/DP 500 x 500 mm 36

Calendar

production

Folding

machine

RENZ automatic binding line for books and

calendars

IL 750 750 x 800 mm

TwinWire RILECART PB-796HD 600 x 700 mm

TwinWire JBI WIRE.O-BIND 3500 MK2 350 mm

TwinWire SOLARCO CALENDAR 55A 560 mm

RILECART – perforating FAR 4/42 400 x 370 mm

HEIDELBERG Stahlfolder TH82 820 x 120 mm

HEIDELBERG Stahlfolder KD78 780 x 100 mm

HEIDELBERG Stahlfolder TH56 560 x 900 mm

HEIDELBERG Stahlfolder (2x) Ti52 Proline 520 x 530 mm

HEIDELBERG Stahlfolder (2x) Stahl Ti52 520 x 530 mm

Folding

and gluing KAMA ProFold 74 740 x 740 mm

Lamination AUTOBOND Mini 76 TH 700 x 1000 mm

MKW RAPID 50/SFT 550 500 x 500 mm

Cutting POLAR (3x) 115XT 1115 x 1115 mm

machines POLAR (2x) 92EMC 920 x 920 mm

MAXIMA MS115BP 1115 x1115 mm

Die-cut KAMA TS74 520 x 720 mm

Perfect binding HORIZON BQ240

Paper drilling FILEPECKER IV

machines NAGEL-CITOBORMA 180

Packaging MINIPACK-TORE 50/70 Digit

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2012 JDF-Enabled Print Automation

Case Study

� A summary of the situation before and after the integration

The whole project was focused on implementation and extension of the information system (IS) use during

enhancement of company’s internal efficiency. Within the frame of the project, this concerned implementation

of ERP/ERM (Enterprise Resource Planning/Management) in particular, including system

configuration and adaptation to optimized processes and organizational structure. Innovation of current

company’s ICT technologies, necessary for IS upgrade, represented an integral part of the project, as well.

The need for quick and operative execution of printing-works clients’ orders puts a great emphasis on the

efficiency and productivity of the managerial IS, capable of comprising, controlling and evaluating of all

spheres of the company activity in the real time.

Within the frame of company operation efficiency enhancement and in order to strengthen its competitive

advantage on both domestic and foreign markets, POINT CZ invested in renewal of its machinery. At

present, it is necessary to link new up-to-date high-performance machines with all parts of company IS

and, at the same time, interconnect these parts so that it may be possible to utilize this advanced technology

to its full potential. The new machinery owned by the company is equipped with software enabling

such integration; however, existing company IS and its separate parts did not satisfy the requirements of

this level. Therefore, the aim of the project was interconnection of this company machinery with other

operational technologies and company IS on the basis of JDF (Job Definition Format) unified data input

format, which is supported by all manufacturers and suppliers of polygraphic machines and technologies.

By means of this project the company was able to switch over to direct ONLINE administration of all its

centers, which enabled to keep and further extend its client portfolio and production capacity and further

strengthen its competitive advantage in the field of the offset printing on domestic and foreign markets.

The second stage of the project concentrated on solution of polygraphic market needs by means of electronic

business and support of electronic contact between print submitter/customer and manufacturer via

the internet. The project objective is to allow customer to perform full online demand/order administration,

followed by printing order input into the system, including supporting data and monitoring of the

whole production process including the consecutive logistics. This goal was achieved by full implementation

of the system into the existing structure in such a manner that it is as automated as possible and

communicates up to the level of particular machines, information systems and employees leading to the

interconnection with the whole company workflow.

� The main benefits/results of the integration

o Achievement of online communication with customers in the whole extent of the order workflow

at standard products

o JDF/JMF connection of HP Hiflex MIS Solution– Heidelberg Prinect (PRM) will assure real-time

saving in printing machines preparation time of 502 output hours / year, which means productivity

increase by 5,3% and 907 output hours / year in machine runtimes, which means productivity

increase by 4,7%.

o Implementation of HP Hiflex MIS Solution and JDF/JMF connection with AGFA Apogee

showed cumulative profit of time fund of marketing, calculation, pre-press, technology and production

management departments amounting to 9 261 hours, which means productivity increase

by 19,6%.

o In storage management, the total amount of saving was 3,3% regarding costs, storage room and

assurance of exact overview. Achievement of a significant decrease in warehouse stock by 10%

and by 20%, once the project is completed.

o The whole workflow is performed in the single environment of HP Hiflex MIS Solution, which

guarantees that, through the whole process, the same order data are available to everyone, nothing

is overwritten and thus the lowest possible order error rate is achieved. All other data and auxiliary

files are linked to the order and can be found easily, as well.

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2012 JDF-Enabled Print Automation

Case Study

o Shortening of the average production time of a standard order from 4 to 2 days from order receipt

to shipment.

o Shortening of the time necessary for creation of individual product calculation from 10 to 5 minutes.

o Decrease of the number of complaints by 15% on the grounds of workflow integration, accurate

product definition and technology description.

o 20% cost savings in the sphere of printing spoilage decrease.

o Savings in the non-economic sphere by increasing product quality and service provision, improvement

of communication and interaction, extension of sharing and knowledge database transfer,

adaptation to changes and differences in customers’ demands, decrease of security risks and

most of all in sustaining and strengthening the competitive advantage of the company.

o Customers have obtained a tool for monitoring the progress of selected product manufacture and

also of products ordered via the web interface. By means of central product administration and

other specifications, we are capable of flexible response to market needs, adding new products

quickly (format adjustments, changes in page extent, adding substrate, etc.), price adjustment, and

creation of marketing events customized to the given period and market needs.

Section I. Background

Brief description of the initial situation in 2007 when there were the following initial SW systems:

o MIS iPoint - a tool developed by our Company based on SQL and ASP and containing functions

for inquiries, calculations, orders, statuses, purchase orders, billing schedules and delivery notes.

The system's advantages were its web interface, scalability and easy customization. Nevertheless,

the development of this system was expensive and ineffective, it gradually lost contact with modern

developer trends and lacked advanced data collection functions from production resulting in

an insufficient financial and performance controlling.

o Standalone workflow systems – AGFA Apogee and PREPS pre-press systems, CTP system

AGFA PrintDrive, a system for setting the ink fountains of the DIPS machines

o A stand-alone warehouse and accounting system from the QI company

o The initial level of the process workflow can be briefly described as follows:

� An inquiry from a customer (email)

� Creation of an inquiry form by a dealer in the iPoint (definition of the exact product specification)

� Creation of a calculation

� Creation and dispatch of an offer

� Creation of an order with a partial linkage to the calculation, a necessity to supply the

production process technology

� Nonexistent linkage to the store of material - an independent solution at the level of an

accounting system (a system from the QI company)

� Production workflow control only through manual changes in the order states

� Job-ticket in the form of HTML without any configuration data for production facilities

� Duplicate manual order creation in the Apogee pre-press system, manual pre-flight of

print data, and manual creation of elimination schemes according to the production

process

� Production process verification of the elimination correctness, verification of the delivered

data contents (+ dummy) and subsequent approval for the production of printing

plates, PPF (CIP3) data export

� Automated PPF data conversion in the DIPS system and manual import of the generated

data for ink fountain settings in the individual printing machines

� Absence of data reports from the process of order printing (a variety of colours measuring,

machine settings)

� Order development in the course of the production according to the printed job-ticket

� Shipment with the delivery note generation from iPoint

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2012 JDF-Enabled Print Automation

Case Study

Significant qualitative increase in the numbers of production facilities and technologies supporting the

JDF/JMF implementation was achieved in the course of the implementation as concerns the production

technologies.

Our Company has been promoting the strategy of delivering products of the highest quality from the very

beginning and this is the base for investments in the machinery and production equipment. We have been

continually renewing our equipment of the Heidelberg brand in the field of offset printing. Besides uncompromising

printing quality, these machines are equipped with state-of-the-art technology for data

linkage with the Prinect system and JDF/JMF support.

Identical situation exists in the field of CTP where we are equipped with the best-quality technology for

printing plate manufacturing - the AGFA Galileo system (violet laser for silver plates) and the AGFA

Apogee Prepress system can also be linked via JDF. We have entered the digital print segment with the

same pursuit of quality - we are equipped with the state-of-the-art HP Indigo 7500 system with the HP

SmartStream Production PRO rip, supporting variable data printing and JDF/JMF communication.

All the above-mentioned systems provide for linkage based on the JDF/JMF platform with the http protocol

support but at the beginning we hardly used them since it was necessary to create specific conditions

and configurations for the JDF links assuring their optimum utilization.

Section II. Objectives

1. Strategic targets

It is a strategic target of our Company to rank among the most significant polygraphic businesses in the

field of commercial conventional and digital printing in the Central European region.

To achieve this objective it will be necessary to:

o Attain a stable growth of the production volumes by at least 15% annually.

o Increases in productivity and work efficiency in all activities of the Company.

o It is necessary to open new B2B, B2C and B2B2C business channels based on on-line communication

to expand the spectrum of our business opportunities.

o A gradual transformation of the business model into a marketing-oriented company

2. Partial targets of the project

The long-term targets imply the following partial targets for this project:

o Attainment of a transparent and flexible production process.

o Attainment of precise financial and performance controlling.

o The data and communication workflows must be able to absorb, without any growth in the numbers

of employees, the planned increases in the average numbers of purchase orders for 2008 –

450/month, 2009 – 600/month, 2009 – 700/month, end of 2011 – 1 200/month,

end of 2013 – 1 500/month.

o Shortening of the average order production time between the order receipt and shipment from 4 to

2 days.

o Conversion of calculations of standardized products into an online model.

o Shortening of the time required for creating a calculation for an individual product from 10 to 5

minutes.

o Attainment of the maximum possible shortening of the required production times for processing

of partial production operations.

o Reductions in material costs.

o Conversion of communication with customers into an Internet platform and an on-line model to

the maximum possible extent.

The Company has opted for the maximum development of IT technologies and production automation as

a means of achieving these targets.

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2012 JDF-Enabled Print Automation

Case Study

After achieving these project targets and the resulting creation of new automated production processes it

will be possible to realize additional investments in the production machinery and technology equipment.

Section III. Methodology

Step 1: MIS

The HP Hiflex MIS Solution and JDF communication were the first and essential implementation steps:

o Attainment of a fully hybrid production workflow controlled by a central MIS providing for bidirectional

on-line communication with production "satellite" subsystems (Heidelberg, AGFA)

o Concurrent integration of the printing machines into the data workflow. Due to the printing machine

brand unification (Heidelberg machines) there arises the possibility to use the Heidelberg

Prinect system.

o Communication via the JDF/JMF polygraphic standard.

o Possible future expansion of communication for post-press.

o Introduction of the POLYGRAPHIC MIS with the following required parameters:

� Facilitation of the most precise setting of the processes and workflows in the

POLYGRAPHIC production

� Facilitation of a universal bidirectional communication via JDF/JMF within the whole

workflow spectrum

� Facilitation of an inter-system communication with additional Company systems - links

to the warehousing activities,

� Accountancy, expeditionary outputs

� An open system - facilitation of customization of the environment, outputs and process

settings according to the Company's

� Custom practices and currently used procedures while using our own IT personnel

� Support for localization of the individual parts of the Company - link Brno - Medlov - Jedovnice

and support for a terminal

� Solution (+ a scheme)

o The following systems best comply with these parameters:

� HP Hiflex MIS Solution complies with all the above-specified requirements for MIS.

� Heidelberg Prinect printing machine communication system, Pressroom Manager modules

for print control, Integration Manager and MIS Connector for MIS linkage and

JDF/JMF communication.

� Expansion of the AGFA modules for JDF/JMF communication (JDF server, JDF-

Stripping, JMF-Link)

o Additional required steps:

� Construction of robust server farms in two locations - Brno, Medlov

� Construction of a high-speed private data circuit Brno-Medlov-Jedovnice (100 MB)

Step 2: webshop

The objective of the offered solution consisted in the possibility to create several interactive portals with a

central management. Based on the requirements of our current clients we had to search for solutions both

in the B2B (ClosedShop) and B2C (OpenShop) fields.

Layout customization of the particular webshop, product configurations based on a detailed internal analysis of

the specific client's requirements, project prices and the possibility to configure final products only specified

and displayed on the clients´ pages were additional requirements that the solution had to comply with. Full online

management of an inquiry, automatic entry of a print order into the Company's MIS, pre-flight of basic

print data, creation of a job-ticket and monitoring of the whole production process of a selected product and

expedition and tracking of a shipment should belong among the standards of on-line order placement. The

business model was supposed to unite the current portfolios of the offset and digital prints and offer complex

services in the field of print production and the subsequent bookbinding processing.

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2012 JDF-Enabled Print Automation

Case Study

The JDF/JMF communication is an integral part of the polygraphic business and facilitates more flexible

and more transparent description of production processes required for the manufacturing of the final

product. Therefore one of the conditions the offered solution had to comply with consisted in a direct

linkage and central management of the order database, material stores and, last but not least, the Company's

clients. Based on a detailed analysis of the products offered at the market the final decision has

been made in favour of the HP Hiflex Web-to-Print Solution solution provided by HP.

Section IV. Implementation Story

History - facts - implementation steps:

2008: stand-alone module warehouses

In the course of the HP Hiflex MIS Solution customization for our Company conditions we encountered

significant differences between the HP Hiflex MIS Solution and iPoint systems philosophies and therefore,

to facilitate the smoothest possible transition to the new MIS, we had to synchronize the system outputs

to assure similar results and avoid significant price differences.

Therefore we didn't use the common procedure of the complete system deployment during the HP Hiflex

MIS Solution implementation but gradually replaced the individual parts - the workflow modules.

While synchronization between the MIS systems was in progress, we implemented the paper storage system

module linked to purchase orders, where we shortly registered positive results in the form of storage

space savings, precise overview and decrease in warehouse stock. Immediately afterwards we extended

the storage module to other articles as well.

� 2009 HW+SW upgrade in control panels of all Heidelberg (CP2000) printing machines to attain online

linkage between the printing machines and the Prinect control system. The upgrade scales depended

on the individual machine versions and years of manufacture.

� 2009 PRM: linkage from AGFA PrintDrive to the PPF (CIP3) base. Shutdown of the original DIPS

system and its complete replacement by PRM with on-line links to the individual printing machines.

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2012 JDF-Enabled Print Automation

Case Study

The Prinect system, Pressroom Manager module (PRM) has since been used mostly in the following

two fields: mainly for direct production control (order printing at machines), reading of preset machine

values in case of order reprints and for using statistical functions and making comparisons between

machine performances. We also use the Prinect Press Reporting system, which preserves

reports from order measuring for complaint procedures and for print quality monitoring. This kind

of use is just part of the Prinect system, which will only bring higher efficiency in the order workflow

after its connection with the MIS on the JDF platform.

� 2010 AGFA Apogee Prepress v.6 extension by the modules: JDF server, JDF-Stripping, JMF Link.

By the installation of the required modules we have created the environment needed for the communication

by means of the http protocol with the existing system HP Hiflex MIS Solution. By the Apogee

system configuration we have achieved an automated order creation in Apogee, based on the

calculation made in the MIS system. The administration data of the order from MIS such as the order

number, description, data about the client including the address and contacts are automatically interpreted.

The definition of the production plan, automatic pre-flight, excluding according to folding

schemes, setting the output objective, setting the trapping, range of colours, number of pages and the

raster – all of that may be set by the user for individual orders by means of the so-called

¨Grayboxes“. Bilateral communication will be used for the production planning.

� 2010 upgrade of the corporate HW

The process of HP Hiflex MIS Solution implementation also required a major change in the HW area;

considering the localisation of individual parts of the company and requirements of individual

partial SW we have made a complex renewal of the server system in the company to the state-of-theart

system (blade system) and we have initiated the transition to a terminal system.

� 2010 HP Indigo 7500, RIP, HP Smartstream Production PRO

This digital technology integration into the existing company portfolio was a well designed and logic

step leading to satisfaction of the demand in the segment of low-cost and variable printing. This offer

extension has also brought about an increase in the volume of small-size orders. The pressure on

even faster order processing reassured us that the W2P investment was a right deal. By the standard

products definition we have offered a tool for the clients for on-line calculation and presentation of

the sales price of the relevant product. It was again the right step considering the time saving of the

quotations department and repeating orders only serving for price comparison.

� 2010 calculation

Following the acquisition of HP Indigo we implemented the calculations module in digital printing

that has provided a saving in terms of the speed of calculations of simple short orders and fast response

for the customer just as it is required in digital printing.

� 2010 W2P webshop

The HP Hiflex Web-to-Print Solution expands the services portfolio provided by HP. After a detailed

analysis according to the clients requirements, output from our MIS system from the point of

the quantity of the calculated final products and adjustment to the local specific market we have created

a database of standard products to be offered by means of the W2P solution.

1.) Definition of standard products (maximum and minimum format of pages, possibility of own

format definition, minimum and maximum scope of processed pages, possibility of creating own

scope, range of colours, definition of the range of substrates offered, definition of book-making

processing and subsequent product refining, on-line display of the predefined number of copies

with the option of own number of copies creation)

2.) Creation of calculation formulas necessary for the precise definition of the sales price

3.) Selection of the dispatch partner and subsequent configuration of dispatching items

4.) Selection of the partner for on-line payments specific for the relevant area

5.) Changes and creation of a common design of the W2P layout and adjustment to our requirements,

localisation into Czech language, creation of own forms

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2012 JDF-Enabled Print Automation

Case Study

6.) Creation of Muster calculations in MIS for standard products of W2P for the reason of creating

the production and technological process

� 2011 Prinect modules of Integration Manager, MIS Connector

At present we are about to complete the process of communication between the HP Hiflex MIS Solution

and the Prinect system by means of JDF in offset printing.

� 2011 workflow of orders

For digital printing we have implemented the module of the production workflow running with orders

for digital printing fully in HP Hiflex MIS Solution and it fully replaces the original iPoint system,

i.e., from the quotation, through the order filing, order confirmation to the customer, planning,

production bag generation and JDF generation, confirmation of the control of the data in pre-press,

printing, book-making operations up to the generation of the dispatch note in the dispatch and finally

invoicing and closing the order.

Section V. Resulting Workflow/Processes — A description of the resulting workflow, including

any applicable workflow or process diagrams. At a minimum this must include two workflow diagrams:

both the starting workflow (prior to the implementation being described in the application) and

the final workflow. Interim phases of workflow may be diagramed, but are optional.

STARTING POSITION

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2012 JDF-Enabled Print Automation

Case Study

HP Hiflex MIS Solutionhas provided for setting the standard and the most frequently used products for

quick creation of quotations both in the area of the definition of product attributes (format, material, range

of colours, etc.) and in the area of all processing technologies offered and used by us (printing, bookmaking

operations and final processing).

Also in the area of workflow we have customised the environment and individual parts of HP Hiflex MIS

Solution so that they correspond as much as possible to our habits and requirements. In spite of that,

the transition to the HP Hiflex MIS Solution workflow in result of a different system structure required a

new approach and a different working method in individual system components, which was needed for

correct system functioning of the whole workflow in the future for complex use of new technologies and

the JDF system.

For standard products, the orders may be done with the use of the W2P superstructure beyond the standard

production workflow. All individual products may only be made by the standard production workflow.

ACTUAL JDF/JMF WORKFLOW INTERFACE

PREPRESS

AGFA Apogee

&

AGFA Print Drive

AGFA Gallileo VXT

JDF & JMF

HIFLEX Web2Print

Open Shop & Closed Shop

XML & SOAP

(direct connection)

MIS HIFLEX

JDF & JMF JDF & JMF

DEVICE MANAGEMENT SYSTEM

PRESS (OFSET)

Heiderberg PRINECT

- MIS Connector

- Integration Manager

- PressRoom Manager

Heiderberg SM 102-10

Heiderberg SM 102-2

Heiderberg CD 102-4

Heiderberg XL 75-4

Heiderberg CD 74-5

PHYSICAL DEVICES

PRESS (DIGI)

HP Smart Stream

Production Pro

JDF & JMF

POSTPRESS

Manager for

Post Press

Operations

HP Indigo 7500 Post Press Devices

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Workflow superstructure Web-To-Print

2012 JDF-Enabled Print Automation

Case Study

1.) Product selection – the client, based on an intuitive product matrix, defines a product consisting

of a definition: Format, Number of pages, Range of colours, Substrate selected, Bookbinding processing,

Refining

2.) Online quotation – for a product configuration by the client the sales price will be automatically

displayed, possibility of individual cost calculation

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2012 JDF-Enabled Print Automation

Case Study

3.) Ordered product specification:

� Entering own description for better overview at the side of the client

� Package type

� Possibility of the use of order of a certified print making

� Dispatch specification (type of dispatching company, personal collection)

� Specification of print data (open data, print PDF, etc.)

� Generating a technical sheet and offer in the PDF format

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2012 JDF-Enabled Print Automation

Case Study

4.) Definition of a delivery address and payment method, acceptance of general business terms

and conditions

5.) By sending of the order it is automatically filed in HP Hiflex MIS Solution

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6.) Online print data pre-flight

2012 JDF-Enabled Print Automation

Case Study

7.) Matching the order from the webshop with the quotation from the MIS –JDF generation.

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2012 JDF-Enabled Print Automation

Case Study

At this point, the order is transferred to the standard production workflow

Standard production workflow

� The whole process is commenced by a customer´s demand (mainly e-mail communication) treated

in the HP Hiflex MIS Solutionmodule of calculation; the output is an automatically generated

offer sent to the customer´s e-mail.

� After the order is confirmed by the customer the dealer files the order in the HP Hiflex MIS Solutionand

generates the order confirmation for the customer.

� After the completion and check of all the needed data in the HP Hiflex MIS Solution the order is

planned, and at the same time a production bag is generated, JDF is generated, the order is filed in

the Apogee and assigned to the production plan that is thus updated.

� In the case of order relating to HP Indigo the order is filed into the HP SmartStreame Production

PRO

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NETWORK

TOPOLOGY

2012 JDF-Enabled Print Automation

Case Study

� The move takes place by means of 20 km long own microwave data connection between two corporate

branches - the business, quotation and prepress parts are localised at the company headquarters

in Brno and the production plant with printing and book-making in Medlov 20km away.

Part of specific book-binding equipment is located in another branch in Jedovnice also having a

data connection with the headquarters and being supported by the workflow HP Hiflex MIS Solution.

� The next step is printing and the way of the order through the whole series of book-binding and

finishing operations while all the production components have their own tag in the production

plan and they are differentiated by positions. The system supports the terminal collection of the

data from the production.

� The last step of the order workflow is its dispatch when a dispatch note is generated and labels are

printed including a link to carriers according to the method of order delivery to the customer´s

address.

� After the order sending, the dealer issues an invoice and closes the order.

Compared to the digital printing, the order workflow in offset printing varies by the component in the

form of CTP. CTP is also in the production plant in Medlov and all the required data are transferred by a

long data connection.

Page 18 of 23


2012 JDF-Enabled Print Automation

Case Study

The workflow still takes place partly by means of the original iPoint system (technology), partly by

means of HP Hiflex MIS Solution (paper logistics). A complex transition to HP Hiflex MIS Solutionwill

take place after resolving the connection of offset printing by means of JDF system. We are currently finalising

this connection, the generated JDF file from the HP Hiflex MIS Solution will directly go through

the CTP workflow (AGFA Apogee) to the Heidelberg Prinect Pressroom Manager system and printing

machines.

Section VI. Optional Detail

The financial efficiency of the project is assessed in terms of total investment costs for the entire project

and its impacts on the productivity of direct suspension process and the resulting financial effects.

The resulting values of real financial savings per year are given:

A) PRINTING

� Set-up of the printing machine

based on individual value of reduced preparation time for each printing machine. These values

are then evaluated according to the number of real set-ups for the machine. Based on this procedure,

we calculate with rough time savings per month. According to the individual average hourly

rates we quantify gross cost savings for the month and year.

This cost saving is theoretical. Real cost savings per one year is achieved by the reduction of the

gross value of the average efficiency coefficient of the machine (this value intentionally reduces

the effect to adequately eliminate all the possible risks).

� Machines operation

The calculation procedure is identical to the calculation of machine set-up; however it takes into

account also the number of machine hours per calculated period.

B) COMPANY PROCESSES

The resulting financial benefit of the investment is evaluated through the value of increased productivity

of individual departments and thereby time fund gained. These values were quantified in

a separate document. Due to the limited space we do not give the detailed calculations.

Financial efficiency of the project

The overall financial efficiency is given by a real financial savings per year (Print set-up + print machines

running + company processes) with the following account:

� Coefficient of implementation level and project effectiveness

reflects the period of time - its effectiveness

� Coefficient of contribution to the reduction of selling prices

here we reduce the effect from the point of view of pricing policy of the company. In fact, we

transfer the results of higher productivity and the resulting financial effects to the side of our increased

price attractiveness and competitiveness.

� Net financial impact (internal revenue from services)

here is expressed the resulting financial benefit of the project, taking into account the above coefficients

“Real financial savings per year (CZK) TOTAL X Coefficient of implementation level

and project effectiveness X (1- Coefficient of contribution to the reduction of selling prices)”

The conversion rate for year 2011 is 24,70 CZK / EUR.

Page 19 of 23


Financial analysis of JDF/JMF connection MIS HIFLEX ‐> HEIDELBERG, PressRoomManager

MACHINES SET‐UP

Time savings Gross time

Financial Gross financial

Real time Real financial

No of plates / No of set‐ups per 1 set‐up savings Average savings / savings / year Efficiency savings / year savings / year

Machine

month / month (min) /month (hrs) hourly rate month (CZK) (CZK) coefficient (hrs) (CZK)

Printing machines in format B1

SM 102‐10‐P 1386 176,4 11 32,34 4400 142 296 1 707 552 60% 232,848 1 024 531

CD 102‐4‐L 831,6 207,9 6 20,79 3200 66 528 798 336 60% 149,688 479 002

SM 102‐2 415,8 207,9 4 13,86 1800 24 948 299 376 60% 99,792 179 626

Total for B1 machines 2 633 67 233 772 2 805 264 482 1 683 158

Printing machines in format B2

XL 75‐4‐L 1219,68 308,7 6 30,87 1700 52 479 629 748 70% 259,308 440 824

CD 74‐5‐L 1193,346 289,8 6 28,98 1750 50 715 608 580 70% 243,432 426 006

SM 74‐1 46,2 63 0 0 900 0 0 0% 0 0

Total for B2 machines 2 459 60 103 194 1 238 328 503 866 830

Total for all printing machines 4 043 592 985 2 549 988

Productivity increase 5,03%

MACHINES OPERATION

2012 JDF-Enabled Print Automation

Case Study

Real financial

savings / year

(CZK)

Real time

savings /

year (hrs)

Efficiency

coefficient

Gross financial

savings / year

(CZK)

Financial

savings /

month

(CZK)

Average

hourly rate

Gross time

savings

/month (hrs)

Increase of

average

printing speed

No of machine

hrs / month

Machine

Printing machines in format B1

SM 102‐10‐P 472,5 5% 23,625 4400 103 950 1 247 400 60,00% 170,1 748 440

CD 102‐4‐L 472,5 5% 23,625 3200 75 600 907 200 60,00% 170,1 544 320

SM 102‐2 472,5 5% 23,625 1800 42 525 510 300 60,00% 170,1 306 180

Total for B1 machines 1 418 71 222 075 2 664 900 510 1 598 940

Printing machines in format B2

XL 75‐4‐L 472,5 5% 23,625 1700 40 163 481 950 70,00% 198,45 337 365

CD 74‐5‐L 472,5 5% 23,625 1750 41 344 496 125 70,00% 198,45 347 288

SM 74‐1 157,5 0% 0 900 0 0 0,00% 0 0

Total for B2 machines 1 103 47 81 506 978 075 397 684 653

Total for all printing machines 3 642 975 907 2 283 593

Productivity increase 4,7%

Page 20 of 23


Structure and timing of investment costs

STAGES

1. stage, by 6/2009

2. stage, by 12/2009

3. stage, by 6/2010

4. stage, by 12/2010

5. stage, by 6/2011

No of

employees in

workflow hrs / month

2012 JDF-Enabled Print Automation

Case Study

Financial analysis ‐ internal processes MIS HIFLEX and JDF/JMF connection to other production systems

Gain of time

fund at

department /

year

No of

Activities and individual outputs (control milestones)

activity

1 Conclusion of all tenders. Evaluation of fulfilment of all requirements of the tender.

2 HIFLEX implementation (adjustment of environment and linkage to HIFLEX programm)

3 Agfa Apogee HW (server)

4 Heidelberg Prinect, Pressroommanager + 5 x upgrade CP2000

5 PRM (Heidelberg) ‐ maintainance

Total expenses for the stage

2 HIFLEX implementation

3 HW ‐ networks ‐ services

5 PRM (Heidelberg) ‐ maintainance

6 Preparatory work (Heidelberg) for transition to JDF conectivity

7 Preparatory work (Agfa) for transition to JDF conectivity

Total expenses for the stage

2 HIFLEX implementation ‐ fulfillment of project phases

3 HW ‐ networks ‐ services, partial fulfillment

5 PRM (Heidelberg) ‐ maintainance

6 preparatory work (Heidelberg) for transition JDF conectivity

7 Integrace AGFA Apogee, modul JMF connector

8 Use of consultancy services

Total expenses for the stage

2 HIFLEX implementation ‐ fulfillment of project phases

3 HW ‐ networks ‐ services, partial fulfillment

5 PRM (Heidelberg) ‐ maintainance

6 preparatory work (Heidelberg) for transition JDF conectivity

7 Integration of AGFA Apogee, modul Autostrip

8 Use of consultancy services

Total expenses for the stage

2 HIFLEX implementation ‐ fulfillment of project phases, finishing JDF implementation

3 HW ‐ networks ‐ services, final state, evaluation

5 PRM (Heidelberg) ‐ maintainance

6 Termination work (Heidelberg), transition to full JDF conectivity

7 Integration AGFA Apogee ‐ finishing, performance evaluation of JDF integration

Total expenses for the stage

PROJECT EXPENSES IN TOTAL BEFORE VAT

Real financial

savings /year

(CZK)

Hourly rate / Productivity Current time

Department

employee increase fund / year

Sales 10 1 575,00 357,14 10% 18 900 1 890 675 000

Cost accounting 3 472,50 317,46 40% 5 670 2 268 720 000

Prepress 4 630,00 416,67 20% 7 560 1 512 630 000

Technology 3 472,50 317,46 30% 5 670 1 701 540 000

Production management 5 787,50 317,46 20% 9 450 1 890 600 000

Total 47 250 9 261 3 165 000

Productivity increase 19,6%

Expenses

before VAT

0

384 800

206 980

3 498 790

50 000

4 140 570

901 389

309 020

58 360

51 600

149 666

1 470 035

750 000

370 000

65 016

56 760

100 622

24 155

1 366 553

604 810

378 200

65 016

56 760

100 622

24 155

1 229 563

893 391

735 800

86 688

25 800

51 600

1 793 279

10 000 000

Page 21 of 23


Investment project financial plan

10 000

2009

2011

Total project expenses (in CZK thousand, excl. VAT):

Planned date of project commencement (year):

Expected date of investment operation end (year) - min.

1. Project cash flow (in CZK thousand)

Line Project operation outcomes in CZK thousand 2008 2009 2010 2011 2012 2013 2014

1 Net financial impact (internal revenue from services) 0 3 839 3 919 3 839 4 799 4 799 4 799

2 Other revenues 0 0 0 0 0 0 0

3 TOTAL OPERATING REVENUES operating 0 3 839 3 919 3 839 4 799 4 799 4 799

4 Material consumption 5 6 7 7 7 8 8

5 Energy consumption 0 31 48 56 60 65 70

6 Costs of services 11 15 15 15 18 18 18

7 ADDED VALUE -16 3 787 3 849 3 761 4 714 4 708 4 703

8 Personal expenses (wages+social welfare) 237 712 800 820 840 860 880

9 Property insurance 0 2 3 3 3 3 3

10 Investment depreciation (excl. VAT) 52 958 2 360 2 974 2 526 810 320

11 Other expenses 0 0 0 0 0 0 0

12 TOTAL OPERATING EXPENSES operating 305 1 724 3 233 3 875 3 454 1 764 1 299

13 Operating profit/loss -305 2 115 686 -36 1 345 3 035 3 500

14 Other financial revenues 0 0 0 0 0 0 0

15 TOTAL FINANCIAL REVENUES 0 0 0 0 0 0 0

16 Cost interest 0 0 0 0 0 0 0

17 Leasing expenses 0 0 0 0 0 0 0

18 Other financial expenses 0 0 0 0 0 0 0

19 TOTAL FINANCIAL EXPENSES 0 0 0 0 0 0 0

20 Financial profit/loss 0 0 0 0 0 0 0

21 Tax rate (indicate as a decimal number, e.g. 0.25) 0,21 0,20 0,19 0,19 0,19 0,19 0,19

22 Income tax (absolute amount) 0 423 130 0 256 577 183

23 Net profit/loss (after the income tax deduction) -305 1 692 556 -36 1 089 2 458 3 317

2012 JDF-Enabled Print Automation

Case Study

Line Current capital required for the project operation in CZK thousand 2008 2009 2010 2011 2012 2013 2014

24 Operating stock 0 0 0 0 0 0 0

25 Receivables from customers 0 183 367 458 458 458 458

26 Liabilities towards suppliers 0 116 141 156 152 152 152

27 Změna čistého pracovního kapitálu 0 68 158 77 4 0 0

Line Project financing resources in CZK thousand 2008 2009 2010 2011 2012 2013 2014

28 Subsidies 0 0 0 0 0 0 0

29 New credits and loans accepted for project financing

0 0 0 0 0 0 0

30 Instalments of newly accepted credits and loans

0 0 0 0 0 0 0

31 Applicant´s own resources 207 5 401 2 589 1 803 0 0 0

Page 22 of 23


Line Acquisition of long-term project investments (excl. VAT) in CZK thous 2008 2009 2010 2011 2012 2013 2014

32 Total project expenses (i.e. long-term assets acquired (excl. VAT)

207 5 401 2 598 1 794

Line Additional Information 2008 2009 2010 2011 2012 2013 2014

33 Number of employees for investment operation 3 3 3 3 3 3 3

2. CALCULATIONS - NPV, IRR, return period RP

Line CASH FLOW 2008 2009 2010 2011 2012 2013 2014

34 OPERATIVE CF = net profit/loss + depreciation -253 2 650 2 916 2 938 3 615 3 268 3 637

35 Change in net working capital 0 -68 -158 -77 -4 0 0

36 OPERATING CF 1 = OPERATING CF + changes in ČPK

-253 2 582 2 758 2 861 3 612 3 268 3 637

37 Subsidies 0 0 0 0 0 0 0

38 OPERATING CF = OPERATING CF 1 + subsidy -253 2 582 2 758 2 861 3 612 3 268 3 637

39 Accepted new credits for investment financing

0 0 0 0 0 0 0

40 Instalments of new credits 0 0 0 0 0 0 0

41 Capital contribution from investor´s own resources

207 5 401 2 589 1 803 0 0 0

42 CASH FLOW FROM FINANCING 207 5 401 2 589 1 803 0 0 0

43 Purchase of investment assets 207 5 401 2 598 1 794 0

44 INVESTMENT CASH FLOW -207 -5 401 -2 598 -1 794 0 0 0

45 TOTAL CASH FLOW -253 2 582 2 749 2 870 3 612 3 268 3 637

46 FINANCIAL ASSETS GENERATED BY THE PROJECT

-253 2 329 5 078 7 947 11 559 14 828 18 465

2012 JDF-Enabled Print Automation

Case Study

Line Discount rate

Resulting DR No-risk DR For the risk

47 Discount rate – in %, rounded to 2 decimal points (derived from state bonds rates)

3,07% 3,07% 0,00%

Line DISCOUNTED CASH FLOW 2008 2009 2010 2011 2012 2013 2014

48 Purchased property (investments) 207 5 401 2 598 1 794

49 OPERATING CASH FLOW (non-discounted) -253 2 582 2 758 2 861 3 612 3 268 3 637

50 Average OPERATING CASH FLOW – non-discounted

2 734 0 1 1 1 0 0 0

51 CASH FLOW for IRR calculation -460 -2 819 160 1 067 3 612 3 268 3 637

52 DISCOUNT FACTOR (at the discount rate: 3,07%)

1,0000 0,9702 0,9413 0,9133 0,8861 0,8597 0,8341

53 Purchased assets (investments) (discounted) 207 5 240 2 446 1 638

54 OPERATING CASH FLOW (discounted) -253 2 505 2 596 2 612 3 200 2 810 3 034

55 Total investment, i.e. sum of investments 9 531

16 505

Sum of OPERATING CASH FLOW – discounted

(sum of investment effects)

56

Line FINAL ASSESSMENT

57 NPV net present value 6 974

58 IRR internal rate of return 40,43%

59 RP Return period 3,66

Average period of investment depreciation

60 3,00

APID

Page 23 of 23

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