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 Executive Summary - Druckhaus Berlin-Mitte GmbH (DBM) has been using HIFLEX MIS for
a number of years. In February 2003, they began the implementation of electronic scheduling
and connectivity between HIFLEX MIS and their MAN Roland presses using JDF. |
The improvements in communication resulted in dramatic improvements to their business:
This case study examines the benefits of the implementation, which resulted in a Return on Investment (ROI) of 991.9%.
The Net Present Value (NPV) of this investment is $2,090,834.
DBM and HIFLEX were awarded an exclusive honorable mention in the 2005 CIPPI award for best cost/benefit
realization as a result of process automation implementation. |
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| Best cost/benefit realization as a result of process automation implementation |
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Druckhaus Berlin-Mitte GmbH (DBM) is a modern sheet-fed printing plant with approximately 100 employees.
The company's production centers on general commercial printing, direct mail, posters and books.
DBM use a PDF workflow. The press-room features two MAN Roland 700 presses, one MAN Roland 900,
and a Heidelberg Speedmaster. In finishing, DBM have a variety of folding machines, mailing machines,
a saddle-stitcher, and a perfect binding line. |
DBM has been using the estimating and order processing functions of the HIFLEX MIS for some time.
Due to the use of an internally-developed scheduling tool (with no links to MIS), and islands of
automation, there was a great deal of data re-entry.
The lack of timely internal communication, led
to press-run interruptions for more urgent jobs and a considerable amount of non-productive time
spent in production meetings.
Manual time sheets were kept, as well as manual logs of material consumption and production quantities.
At the end of each shift, the time sheets were collected and checked by the head of the department,
who then forwarded them to the accounting department.
This forwarding occurred two or three times per day and production data was entered into HIFLEX job
costing system at least one day in arrears.
As production planning was not synchronized with any shop floor data collection, this workflow lacked
the necessary flexibility and transparency
to run production optimally. Only retrospective analysis of production data was possible and the
(short-term) planning horizon was reduced. |
DBM's goals in implementing JDF/JMF connectivity between the HIFLEX MIS and the MAN Roland
presses were to greatly improve efficiency
in the area of order processing, as well as production planning and processing and, thus, make significant time
and cost savings. Improve process automation
would improve transparency and flexibility.
In particular, DBM wanted to eliminate the re-keying of job specifications that were already available in the
HIFLEX MIS, and to streamline the flow of relevant
production data from the MIS (through scheduling) to the press.
DBM goal was to see a return on their investment within 2 years. Over the life of the investment
(5 years) the investment should have paid
back double (ROI of 100%). The Net Present Value (NPV) was estimated with $235,863 (discounted by 8%),
which equates to an Internal Rate of Return
(IRR) of 50%.
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The JDF implementation at DBM started in February 2003 and progressed in several steps. Today (April 2005),
DBM profits from a fully integrated workflow between the HIFLEX MIS and the MAN Roland presses. |
The Return On Investment (ROI) of the JDF implementation at DBM was 991.9% over five years.
The Net Present Value (NPV) is $2,090,834 which equals an Internal Rate of Return (IRR) of 236%.
Increase in sold productivity
The direct effect of the JDF connectivity project was an increase in productive hours (print run hours)
in the first period of +3% (2002 compared to 2003) and another +17% in the following period (2003 compared to 2004)
summing up to a total of +20% (2002 compared to 2004).
Reduced production meetings
With process automation via JDF/JMF, DBM succeeded in optimizing communication processes in production and
significantly reduced non-productive time. These cost savings have been achieved by avoiding unnecessary
production meetings.
Wage bill reduction
Herbert Preissler sums up the benefit of the process automation implementation as follows: "We save
time and money thanks to the JDF/JMF connectivity between HIFLEX MIS and our MAN Roland presses.
It enhanced transparency and flexibility throughout the entire production process and increased our production
by 20 percent. The costs of production meetings were dramatically lowered; moreover, our wage bill was reduced
by one and a half people, one in the area of scheduling and a half through savings in re-keying of job data." |
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Click here to read about more CIPPI Awards won by HIFLEX and its customers
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CIP4 is an international consortium for the integration of processes in prepress, press and postpress. The CIP4 organization defines and maintains the JDF specification. HIFLEX has been a full member of the CIP4 organization since January 2002. |
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