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March 2004 2004 Flexographic Pre Press Platemakers Association Annual Convention Bill Ceperich Pitman Company Sr. Vice President Packaging Division
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March 2004 Facilities Management What is it? Do I have it? What Do I Do To Cure It? Why Do I Want It?
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March 2004 FM ‘s Used in Many Industries Blood Dump for Doctors Food Services – Office Cafeteria Consultancy Services – Human Resources, Book-Keeping, Payroll, Etc.
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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
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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.
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March 2004 Facilities Management Allows Close Loops Lower Costs Reduce Labor Shorten Cycle Times
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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
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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.
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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.
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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.
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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:
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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:
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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:
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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
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March 2004 Pricing: Six Simple Steps To Success Step 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.
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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.
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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.
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March 2004 Start UP Problem Solving Streamline Production Process Eliminate Waste Focus On Customer Service Restimulate Prepress Staff Renew Customer Commitment An Infinite Cycle A Facilities Management Life Cycle
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March 2004 FM can be valuable tool for your future. –Increase Profits –Customer Retention –Increase Volume –Market Expansion
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March 2004 How Do We Maintain Our PrePress Business? One Answer = FM Another = Find More Customers Another = Do Nothing
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March 2004 Innovate or Die It’s Just That Simple!!!
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