The FM Challenge
Another important factor in efficiency is utilization rate. Simply put, the higher your utilization rate, the lower the costs of manufacturing. Companies that achieve 75 percent utilization rates or sellable time are operating at a world class performance level. Given variable demands many in-plants face, they are forced to run on overtime during peak demand periods (increasing manufacturing costs) and then see equipment sit idle when demand drops (decreasing utilization rates). Variable demand is one of the greatest challenges faced by any print manufacturer; for in-plants, the greater the demand peaks and valleys, the stronger the case for using FMs or outsourcing.
Howie Fenton is an independent consultant who focuses on analyzing/benchmarking the performance of printing operations. Fenton helps companies use metrics, best practices and workflow strategies to streamline operations. Call (720) 872-6339 or email howie@howiefentonconsulting.com
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