MPS lean production

Know your costs!

Control your costs!

How to be effective in this business

“Lean”

“a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.”

Source: www.wikipedia.org

o Matured industry: Flat features Price is the difference No product loyalty

o Knowledgeable customero Price sensitivityo Lack of knowledge of the actual printing

costs: hidden costs

o Customer is eager to outsource his problems

The printing industry

Auto-fulfillment

MPS

Bill per Cartridge

Cost per Page

Existing inneficiencies

Customer• Stock at the customer

• Cartridges get lost

• Duplicated ordering

• Wrong ordering

• Ordering burden

Dealer• Stock at the customer

• Cartridges get lost

• Duplicate delivery

• Wrong delivery

• All manual

Customer

Moving from a transaction model

into a service (MPS) model

ProtectedExposed to Risk

Dealer

Transactional model

Customer

Exposed to RiskProtected

Dealer

Service MPS model

Services

Consumables

Devices AUTO FULFILLMENT

benefits all the players involved

COSTS THE DEALER KNOWS

COSTS DEALER THINKS HE CONTROLS

Toner wasted when cartridge is replaced

Duplicated delivery of supplies

Stock of supplies at the customer

Unneeded technical visits

Unnecessary customer calls

Collecting missing counters

OTHER OVERCOSTS

US $ 90,000

US $ 78,000

US $ 300,000

30% of visits

80% of calls

- 100%

US $ 468,000

*Assumptions: 1500 copiers; cost of a full set of supplies 300$; local stock of supplies at 67% of customers; duplicated deliveries 12% of

shipments; toner wasted when cartridge is replaced 15%.

Manual validation of orders -100%

Billing effort -100%

MPS 360

Assessment

• Dealer

• End Customer

MPS proposal

• Pages volumes

• Printers needs

• Volume of consumables

Cost per page

Automatic fulfillment

Replacements tracking

Pages printed tracking

Management of empties

Purchasing forecast

Warehouse turnover

Profitability tracking

• Per printer

• Per cartridge type

Quality

• Printer reliability

• Cartridge

• Service

19%

17%

9%

6%

13%

9%

8%

8%

11%

What aspects are the most important to manage the printers and copiers of your customers?

Collecting page counters in an automated way

Eliminate the need to stock toner at the customer

Reduce the time required to bill the pages printed

Stop losing cartridges shipped to customers

Know when a customer replaces a supply (toner, drum etc..) too early

Auto-fulfillment of orders from printers and copiers

Reduce the amount of technical visits to my customers

Plan the service visits to my customers

Know in advance what supplies and parts will be needed by my customers

Source: Survey contucted by Nubeprint Jan 2014

Managing printers is not an easy

task…

FULL MPS34%

[CATEGORY NAME][PERCENTAGE]

MEDIUM ISSUE28%

MAJOR ISSUE26%

Not Compliant4%

MPS Compliance (% of models analyzed)

FULL MPS

MINOR ISSUE

MEDIUM ISSUE

MAJOR ISSUE

Not Compliant

Source: Nubeprint MPS Compliance Report Jan 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BrotherCanon

DatacardDell

Epson

Gestetner

HP

IBM

Intermec

Konica Minolta

Kyocera

Lanier

Lexmark

Lomond

Memjet

MuratecNEC

NRGOce

OKIOlivetti

Panasonic

Pantum

Ricoh

Riso

SAGEM

Samsung

Sato

Savin

Sharp

Sindoh

Tally Genicom

TOSHIBA

UTAXXerox

Zebra

Managing printers is not an easy

task…MPS Compliant

index

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BrotherCanon

Datacard

Dell

Epson

Gestetner

HP

IBM

Intermec

Konica Minolta

Kyocera

Lanier

Lexmark

Lomond

Memjet

Muratec

NECNRG

OceOKI

Olivetti

Panasonic

Pantum

Ricoh

Riso

SAGEM

Samsung

Sato

Savin

Sharp

Sindoh

Tally Genicom

TOSHIBA

UTAX

XeroxZebra

Managing printers is not an easy

task…Normalized

MPS index

Auto-Fulfillment is critical

Customers are

device

agnostic.

70% of the costs in an

MPS contract are

consumables

Success in MPS depends exclusively on:

“your capacity to manage your costs”

o Auto fulfillment systems tracks the usage of the cartridge and provides :

a) When to ship to the customerb) When the user should replace the cartridgec) When & what consumable is ready for collection &

remanufacturingd) Future needs: Who, When & How muche) Quality (ISO…) & Performance control

o System is independent to the printer HWo The yield to trigger the alert is predetermined

based on printer needs (days, not remaining level %)

AUTO FULLFILMENT service

To be PROFITABLE in MPS, monitoring is a

MUST, but NEVER ENOUGH…. It requires:

Current

Customer calls:

Needs for Toner or Parts

Errors on shipments

Material costs:

Toner replaced too early

Unnecessary shipping

Stocks

Other costs:

Manual billing process

No profit control at contract

level

Unnecessary Tech. Visits

Environmental policies

Yield Management

Alerts based on remaining printing days of any toner or part

Avoided based on the consumable & parts reliability of alerts.

Track cartridge replacements and measure efficiency

Alerts of consumable & parts are filtered reliability of alerts

Accurate forecast of future needs. Manage local stock at

customer when it is needed.

Reports for billing available 1st day of the month

Automatic profitability per printer, model, contract …

Prevent when parts will be exhausted. Get on-line status of the

printer.

Reliable forecast of empty cartridges (when & where)

Automated control of every smallest detail having an impact on daily operating costs

8% Duplicated supply orders

8% Excess inventory at customer site

10% Toner replaced prematurely: Wasted

30% Unnecessary technical visits

70-80% Unnecessary end user calls

SUCCESS in MPS is measured by your profit…

…not by the volume

You can bill pages but, you can t influence your

PROFIT if you don t know where is your leakage:

o Ability to use most cost effective hw, consumables & parts

o Streamline supplies order fulfillment

o Streamline inventory management

o Customers loyalty: Highly accurate information allows for superior

customer/contract assessment

o Grow his profit, customers base & revenue

o Efficiency: sales representatives, back office and mgmt. access on-

line to key business information.

The Dealer benefits!...

o Supplies: no more calls/emails/web ordering for supplies

o Output devices availability: 100%

o Quality and reliability controlled

o Costs are controlled and optimized

o Tailored assessment based on actual (known) printing needs

o Flex printing environment: any brand of hw, consumable or part

… and the Customer benefits too!

Squeeze every ounce of profit

out of your MPS contracts!