Hello and welcome everybody for my side as well. Jacob, I work for Heidelberg in Germany … I work under the German flag today. We’re going to talk about data. We’re going to talk about numbers. The reason we do … on this Workflow event is to try and to figure out where and how to improve.
First of all a question, how many of you just from my understanding are customers today? How many? There’s one customer … just suppliers, which is good. Thank you. Two potentials. We know that you’re the point … let’s say quite difficult industry. We know that we’re trying to improve in order to make some profits, every day in and out.
Like John said in the previous presentation, you need to understand every element of your business in order to do this improvement. This is not just about the press. This is not about the delivery. It’s not about the sales frontend. It’s about the whole … it’s about the whole entire value chain that you’re offering to your customers.
Only if you achieve that extremist streamlined you can achieve to have a profit at the end. That’s why we’re going to do this presentation which is aiming at business intelligence for the graphic industry. We’re not talking about label industry, digital industry, offset or packing industry, this covers the whole portfolio of the products that ….
First of all, some statistics, some numbers. This, we call the Milky Way. This is a snapshot of prices out in the market. It shows trends of OEE, so the effectiveness of the output of a printing press. I think we have 200-and something here, 280 connected presses. What we see is actually that this is the average run length, so jobs are batching up. We all know that the wrong things are getting shorter but we also see the effectiveness of the presses. Obviously, a press which is running 24/7, 18,000 sheets per hour don’t do any make … don’t have any standstill at all. That is 100% OEE if all the sheets which comes out of the press are sellable, so high quality.
Obviously, that is not the fact. That is not the case that cannot be achieved ever but what is interesting to see is our market, I’ve chosen Europe, Scandinavia, it’s not different, we only are averaging 25% effectiveness out of our presses. If you look at the investment, the cost of a press, I’m not sure that you’re happy about that number but that is the real issue. That is the fact. We’re not able to push our expensive equipment more than 25% in average.
Then you see some of the guys which are up here. There are some guys around who actually … something different. They are getting around 50% effectiveness out of the exact same device which you have purchased. It’s the exact same equipment so how can it be that these guys are able to push it more than doubling the output that some of the average market is doing?
Next fact, this is why. I hope for you the few customers who’re in here you can recognize some of this. This is your company. I guess you’re not different than anybody else. I have been visiting a lot of companies worldwide and they’re all complaining, “We have this kind of Workflow. We’re doing that kind of … we have those different … so expensive.” They’re all the same. It’s like we have an industry standard of pain points.
It’s not different from company to company. It’s the same thing that you’re finding. In average, the job takes three days. You’re always busy in the estimating job administration, scheduling, and in pre-press. It’s like those areas are filled, the capacity is filled. You’re working 100% … and post-press. Those are … press. It’s like as I just explained you’re only utilizing those equipment by 25% or less.
Post-press is always a roadblock. It’s a bottleneck. It’s a nightmare, and then you get into the invoice and shipping, always also complaining, “We do not have any free capacity.” And why is this? Because you do not have predefined processes. You’re not doing the right presetting. We’re talking about Workflows today and automation, and this why you need to automate from the first customer touchpoint in the estimation process. You need to use this data, the knowledge that you’ve gained from the online customer services, use this data in order to preset the entire product chain within your company.
That is crucial that from the first customer touchpoint you’re gathering data and you’re using this data to kickstart your production. Only by achieving this you’re unlocking potential with inside your company. You’re freeing up time, and you can concentrate on the most important part within your company, quality and speed and utilization of the expensive device.
To put that in numbers, the Milky Way that I showed you before, an average press in Copenhagen area is turning 30 million sheets per year. I guess you have your own numbers what your presses are doing but 30 million sheets, that is what they’re doing in Copenhagen area. The guys that I’m talking about actually who understands to using software to preset, to automate throughout their production, they can do 90 million impressions on the exact same device. You can see the money, the outcome which actually is being generated by more than doubling the outcome on the same device, you have some more margin at the year end. It makes sense.
How to achieve this? Well, in Heidelberg we’re selling a software portfolio which is called Prinect. Prinect is an infrastructure of the graphic company. We have functionality all the way from the first customer touchpoint until the finest invoice, covering pre-press, covering press preset, covering automation for the post-press area, et cetera, et cetera. It’s an infrastructure. It’s a ecosystem within the graphic company.
We have nailed that down to six key improvement areas. Starting with the first customers, the integration, the understanding of your most important assets, your customers, how do serve them the best? Which channels do you need to available in order to get business into your company? When you have the attention of your customers, when you do business with them, make sure that you recycle, you reuse that learning, that data that you can for online ordering all which channels that you’re using in order to kickstart the production.
That means that you’ll reduce your touchpoints. Many of you, I would say nearly all of you, have around 15 to 16 touchpoints inside your company. John mentioned it before in his previous presentation, start measuring. Start understanding when and why and how does somebody or something inside your company take a piece of paper, takes the order back, reads this and tries to understand, “What is my task? How many times does that actually happens?” I would say minimum 15 times.
We need to reduce that to four, okay? That is what this smart print shop does, reduce the touchpoints. Increase the productivity and uptime, obviously that’s outcome. That’s the output, that’s the benefit of automation. Have the expensive devices run full speed at the maximum time available. They reduce paper and inventory. Let’s say paper is an expensive resource when it’s just lying in the stack, it doesn’t make any sense to tie money in the warehouse. Make sure that you know when you should use the paper.
When is the availability of the material? The raw materials need to be delivered into your print shops at the proper time, and you know when that is. Of course, you need to have data to make that happen. Consistency and repeatability. When we have this, let’s say, well greased gear, when we have the preset stand, we have the processes defined, you do not need to rethink the wheel every time you receive an order. You need to have a streamlined process line so everybody understands and knows exactly what they need to do. “Well, how should we react when we have less hours available that we have production? What should we do by orders? How should we treat this kind of products, et cetera, et cetera?”
All that needs to be set and ready and needs to be repeated all day in and out. How do you control this? Now I get to my point. Obviously, like John said before, you do not want to put that down to paper. You need an intelligent solution to assist you to monitor and warn you and help you to understand the data that are coming in. We’re living in, let’s say, a modern world where the equipment is helping us. We have IOT capabilities in all our devices. That means that they are telling us exactly which state it’s in, what is it doing, and what does it expect to do next? All this data we are collecting automatically and not just from the presses. From the sales order intake channels, from the estimating system, from the pre-press solution and the post-press, and of course, also for deliveries and invoicing. We know exactly what goes on with all your product chain within Prinect.
For the last 18 months we have been working heavily to build this online business intelligence platform called Prinect Smart BI. The platform takes all the data that you already have generated and sorts and filters and sends it to you so you’re able to work with this … already stress day that you’re carrying out. It is an easy tool and it can be accessed from anywhere.
Depending on who you are and what your role are within your company, if you’re the owner, if you’re the production manager, if you’re press operator, you have different tasks and responsibilities. Obviously, you need some data to support you to carry out the tasks that you’re responsible for. We have built the system so we have a subset of reports, we have some standard reports that you will gain when you subscribe to the solution in order so you can straight ahead go in and view and monitor and react to the learnings that data give you.
Here’s an example to a management dashboard. Obviously, if you’re the owner or sales manager, you’d like to know the sales, the earnings, the conversion rates, et cetera, et cetera by a glance. You do not want to spend hours and hours to get these reports update. It of course needs to be available to you instantly when you need it.
As I said, we have built this presets of reports. We have two different modules. We have a business module for you guys who’s going with our MIS system, our business manager, and then we have a production module for you guys who’re using our Prinect portfolio. If you have a press from Heidelberg that has a preset device in front, you have access to all these kinds of data.
We also know by experience because this is not the first time or the first tool that we actually support analytics to our customers. We know that you want different stuff. Meaning that we can provide standard functionality but some of you would like to tweak that or create your own, modify what we have already provided to you, and obviously that is a solution that we have incorporated in Prinect Smart BI. It’s like drag and drop. It’s extremely easy to create your own stuff and share it within your company because that brings me to the next point.
It’s not enough that it’s only the … level. That is, it’s not … management group … extremely important for everybody within your organization. This needs to be also visible and tangible for the operators. They need to be a part of the journey that you’re going on because you’re now going to improve your business based on real numbers, so everybody should be presented and have access to the data at a glance. We have introduced something called dashboards where depending on who you are in your companies, they can have their own dashboards with the numbers which is relevant for their ….
… well … you’re carrying out your daily business as you used to. You’re creating the data out of the devices automatically. If you want to tweak that in the … device is doing, by default we can create functionality easily for that. We’re capturing the data, and every 24/7 we bring that data securely to our cloud application, where we ensure that it’s structured, it’s clean, and it’s up to date before we punch it back into report frontend.
As I said, I’ve been working with this with my team in Germany and Belgium for 18 months now, and I had six main tasks when I go the job of building this platform here. We need fast analytics. The industry need the answer right now. We do not, as I said already, spend hours or days to get an update on a report. “Where is the data? I need that number before I can build my report because I need to present it to the board?” That’s not how it works. It needs to be instant.
They also need to be supporting more than just Heidelberg data. Now I’m saying perhaps a dangerous but that’s a fact. We cannot close the world around Heidelberg anymore. Tried that, it didn’t work. Now we’re doing something different. We need to be open to other data sources, and it could be that it could be let’s say, the algal in the water. It could be the humidity in the press building. It could be all the sensors around, or it could also perhaps be delivery GPS coordinates from your delivery trucks.
We don’t know yet, and that is not for me to decide. We just need to be able to understand where you’d go and have the possibility to do something about that. We needed to be always up to date. I already said that. Automatically, it’s not another time consuming task that we’re bringing to you, no. It’s a tool which is available always up to date.
Ease of use, we also know that you may not want to go out and hire analytical people, what about IT people for start et cetera, et cetera? No, that is not the case here. It needs to be easy to use, and it has to be done by drag and drop, so everybody should be able to operate within your business intelligence platform. The dashboards, I already taught that, everybody inside your organization, this is a call to chance. You’re doing to act by numbers so the dashboards are crucial. It needs to be easy to share it, to understand it, to view it, and if there are something that you need to … it would be easy to be transferred from a dashboard and into the specific number.
That was … so my time is okay, right? Because that brings me to my final slide here which is a live demonstration. Obviously, outside in the … so we can go much more deep into the reports, and then we can … how this will assist you depending on which state that you’re in, and also I encourage you to pick up our giveaway. It’s a white paper we have written, which describes the smart print shop. This is not just for intelligence but this is actually the six key improvement areas of the print shop.
How to get started in order to work and react into a smarter way of doing business. But let me jump slightly fast here into … the solution. Good. I said something about dashboards. Dashboard is a collection of visuals from different kind of reports. Below this, I have multiple reports. Specific reports which are aiming into make ready time, color qualities, waste percentage, seasonality, name it, but obviously, you do not as an operator of something, owner or sales manager, or press … you do not want to spend time going into specific reports to find the data which is relevant for you.
No, you simply just ping, “Okay, I need to follow as a sales manager of course need to follow the margin and the sales value.” As the press room responsible you of course need to follow the waste percentage. Again I’m sorry this is getting really high, but then you can build your own dashboards by easy drag and drop. You have a dashboards available and if you want to go into a specific number, you simply just click that number and you’ll drill directly into the report itself. But I want to show you something which is even more cool because, again, I’m trying to reduce time here.
I’m trying to make this easy for you, so let’s say that you’re responsible for the press room, and the waste percentage is going up. We’re looking at a trend …. it’s not just day by day or job by job this trends that we’re looking at. I can see there is a trend that my waste percentage is going up, so now I need the system to assist me so if it goes up even higher I get the information because maybe I have seven different things that I need to keep my eyes on.
The function to do that is that I simply just click on the waste percentage and I go into manage my alerts. This gives me a tool where I can set some triggers, so I’ll just add a trigger for the waste that if the waste percentage goes above a certain threshold like 11% please inform me. What will happen when we have enabled all these different triggers is that my mobile phone or my e-bill, whichever channel that I choose to get the information on will be alarmed.
The system is working for me underneath day in and day out, and making sure that I am informed what is going on inside my company. But the idea was that I wanted to go into … see this, let me just enlarge this again, sorry. I want to go into the waste percentage. I simply just click it, and I’m transferred into the report. This is just, and again, an example of report. All reports are built the same way. The first page is built like key factors. This is where we think that you should focus.
Main page, main data, main numbers, and main information. That is all happening on page one. If you want to go deeper into the knowledge, deeper into the data we have more pages available for you, but what you could see on page one is exactly with different selections, filtering models, how is my situation on the waste? As I said, we’re looking at trends because a trend showing something is either good or bad. Do I need to improve or should I just carry on like I’m doing today?
That’s what BI is all about. Understanding my current situation making sure that I do not need to improve it. With this tool we can go into all the specific operations within the company. We know exactly from second to second … what is happening. What is the press doing? Which time type are we looking at? Who is doing it? What do we need to improve to make sure that we are raising our utilization, our OEE, which I showed you on the first slide so you guys will be part of the top five in the Milky Way star map. That is way to do it.
There’s a lot more to it, and I really, really hope that you’ll spend five, 10 minutes with me and the Heidelberg team out there in the assuming station out and discover some later on today. Is there any questions?
Sorry guys, all the way from … Thank you.
… we have been talking about this for a very long time without knowing the facts … all right? How is it possible that … or something else. We need to know the facts. This also we have been talking about … we need to have tools and workflows that can accommodate that because there are tools and workflows that come through different vendors, suppliers and they need to talk to each other, and if someone can then connect all that and can make it visible, visualize the data, now we have … this is ….
I’m very, very happy that you have opened the … look, this is okay, they are representing … together suppliers and companies have a need to understand the basics before we can apply the rest, so I hope … Yes, I hope-
Yes, it’s interesting because you say that you’re more transparent today than before. Is that a fact or is it just what you say because in the sake of all the customers in the industry, they have a lot of different kind of … I was happy to see the other … on your list and not only Heidelberg-
And how about the finishing? I would like to see a lot of … equipment there because the fact is that at the customer base they have lots of-
So what you’re saying now is that you would be more transparent to integrate even other kind of equipments into the Prinect system. Is that so or-?
For you guys to kinda hear it, the question is will Heidelberg be more transparent than we have been in the future, I guess that is the question? I think this is not just about Heidelberg. I think every supplier has been kind of protective about their own data. Are you able to give we the data? Am I able to take the data and punch it into the reporting system? I think it’s no longer about that. It’s about right now, the world is changing. We are based on data, and we now have a platform which supports multiple input, so-
Yep, but that’s fine. It’s really nice to hear.
… that’s just the fact. We’re using standard Microsoft technology that is not normal. Also, for Heidelberg usually we build everything up by ourselves. It takes 200 years, then it’s really good. Then it’s really, really good, but it’s also may be past season, right? We’re using standard tools which makes us move way faster, and even faster than the industry right now. That gives us a huge opportunity.
We’re also changing our business model, last point. We’re changing our business model for the software, for the Prinect portfolio because we know that it is, let’s say, first of all it’s labor intensive to implement it. It’s expensive to purchase like 42 different licenses, and we changed all that.
How did you change it, sorry?
It is changed, so now you get the whole Prinect portfolio to get all the whistles and bells, everything that we offer as a software company, you get that and paying by click. The amount of plates that you’re outputting determines the price of the portfolio. That means if you’re really a small company, and you still needs a lot of different tools because you have different kinds of customers you don’t have to spend thousands of Euros in order to get on board on this journey. For the small guys and middle guys and the industrial guys, we have now this huge business model that everybody can participate.
That’s actually good, and I think this is exactly what … and exactly what … thank you … thank you very much for …-
Pleasure. Come on. Thank you.