March 2004

2004 Flexographic Pre Press Platemakers Association Annual

Convention

Bill Ceperich

Pitman CompanySr. Vice President

Packaging Division

March 2004

Facilities Management

What is it?

Do I have it?

What Do I Do To Cure It?

Why Do I Want It?

March 2004

FM ‘s Used in Many Industries

Blood Dump for Doctors

Food Services – Office Cafeteria

Consultancy Services – Human Resources, Book-Keeping, Payroll, Etc.

March 2004

What is Facilities Management?

• According to PIA study facilities management is:– Mutually beneficial relationship allowing each

participant to leverage core strengths– Encompasses a number of possible scenarios– Defined by the customer, not the provider

March 2004

Define the Term “Facilities Management”1. Facilities Management is the prepress supplier

having some production equipment and some full time personnel at the customer site.

2. Facilities Management is providing some equipment at the customer site without full-time on-site personnel.

3. Facilities Management is providing the customer with and having full responsibility for on-site equipment and on-site personnel to maintain a full production facility at the customer site.

4. All of the above.

March 2004

Facilities Management Allows

• Close Loops

• Lower Costs

• Reduce Labor

• Shorten Cycle Times

March 2004

What does Tradeshop Provide?Multiple Possibilities – Each with possible variations

Full Service: Tradeshop sends file ready for O/P to Converter. Tradeshop owns equipment and staff at converter.

Truly a remote tradeshop.Equipment Only: Tradeshop sends files ready for O/P to Converter. Tradeshop owns equipment at converter.Staffing and Management: Tradeshop sends files ready for O/P to Converter. Converter owns equipment. Tradeshop

staffs or manages staff.

Tradeshop Converter

March 2004

What’s Important?• Communications, staffing and process controls are

more important than technology.• FM must be customized to the needs of the client.

There is no off-the shelf solution.• FM is not a cure-all, but can be a valuable and

profitable service.• The prepress industry, on the whole, is not

actively marketing FM services and must change its attitude to be successful.

March 2004

What’s Important To The Customer?

• FM must save the customer time.• FM must save the customer money.• FM must give the customer more

control over the prepress process, not less.

March 2004

• The lesson in FM is to automate, not populate.

• The FM process must be profitable from day one.

• Who’s selling whom?

• Prepress houses are waiting for their customers to ask for FM.

March 2004

Issues & Considerations For Successful Facilities Management

1. Overall Volume:

2. Consistency of Volume:

3. Pricing:

4. Additional Work:

5. Overtime:

6. Contract Review/Renegotiation:

7. Contract Buy Out:

March 2004

Issues & Considerations (cont’d)

8. Physical Space:

9. Support Equipment:

10. Insurance:

11. Local Labor Laws or Union Rulings:

12. Government Compliance:

13. Management Systems:

14. Equipment:

March 2004

Issues & Considerations (cont’d)

15. Customer Data:

16. Job Tracking/Trafficking:

17. Production:

18. Exclusivity:

19. Job Costing/Auditing:

20. Is It Profitable:

March 2004

What You Must Know To Sell Facilities Management

• Long Selling Cycles & Longer Start-Ups

• Downsizing Helps FM Sell

• Digital Workflows Enhance FM

• You Must Show a Savings for Your Customer

And…A Profit For Yourself

March 2004

Pricing: Six Simple Steps To SuccessStep 1: Determine the amount that the

customer is currently spending on prepress annually.

Step 2: Project your costs. This must include all on-site equipment, staff, and consumables, as well as incidental costs, such as remote management services, insurance, etc.

March 2004

Step 3: Add your profit margin to the unit costs, as you would in any pro-forma.

Step 4: Compute your “add on” pricing.

Step 5: Compute incremental charges.

Pricing to Succeed.

March 2004

Step 6: Review pricing every six – twelve months and adjust accordingly. Make sure you build the review process into the base contract.

Pricing to Succeed.

March 2004

Start UP

Problem Solving

Streamline Production Process

Eliminate Waste

Focus On Customer Service

Restimulate Prepress Staff

Renew Customer CommitmentAn

Infi

nit e

Cyc

le

A Facilities Management Life Cycle

March 2004

FM can be valuable tool for your future.

– Increase Profits

– Customer Retention

– Increase Volume

– Market Expansion

March 2004

How Do We Maintain OurPrePress Business?

• One Answer = FM

• Another = Find More Customers

• Another = Do Nothing

March 2004

Innovate or Die

It’s Just That Simple!!!