Chargeback Bolsters Steelcase In-plant

Implementing a chargeback system, says Steelcase's Al Schmidutz, was one of wisest moves he has made.

By Kristen E. Monte

"IT IS something that continually needs to be tweaked to make it better, and we constantly have to measure and update it."

"It," according to Al Schmidutz, is the chargeback system he implemented at Steelcase's in-plant a few years ago. This system, he says, is the foundation for the many significant changes he has made during his nearly five-year tenure with the company. His entry into the printing industry, though, started several years earlier.

Born and raised in Flint, Mich., Schmidutz left home after high school, in 1985, and moved to Ann Arbor to begin his printing career with Braun-Brumfield, a commercial book manufacturer now owned by The Sheridan Group.

"I wasn't sure what I was getting into at the time, but I knew it was a good trade to learn," says Schmidutz. "Once I started working there I knew right away that this was the career path that I wanted to follow."

Braun-Brumfield gave Schmidutz the opportunity to try his hand at all areas of the press floor, training him in everything from running a press to folding and binding.

"I learned every aspect of the business," says Schmidutz.

Closer To Home

After five years there, during which he took business courses at the local community college, Schmidutz decided he wanted to be closer to home. So he took a position in the in-plant at McLaren Health Care Corp., in Flint. Starting in the bindery, he worked his way around different departments. After about seven years, he was promoted to in-plant manager.

Schmidutz spent three more years with the in-plant, managing a staff of six. After a two-year stint as an account manager with Xerox, he was recruited by Steelcase, a manufacturer of office products and services. Schmidutz replaced the retiring in-plant manager.

"It was comfortable because the job was a perfect fit for my background," Schmidutz says of his initiation. "My staff welcomed me right away and were receptive to change."

And change there was. Schmidutz says that before he started, an IT director realized the benefits of integrating printing services with the IT infrastructure and made an investment in digital output technology. Schmidutz joined the in-plant as this transition was taking place and got to work on implementing the new technology and crafting the workflow.

Before the IT integration, the Grand Rapids, Mich.-based in-plant was a mix of traditional offset equipment, a centralized copy center and a sign shop, which engraved plastic name plates. The in-plant produced one- and some two-color printing.

The upgrades drastically changed the in-plant's workload. Today, the sign shop does everything from vinyl graphics for Steelcase's vehicle fleet to event signage. The print center is networked with production printers. The offset shop produces four-color jobs on its 26˝ Heidelberg presses.

Yet, Schmidutz considers his most significant achievement to be the implementation of a fully loaded chargeback system. The system has been running for more than three years and has given his shop a solid base to operate on par with commercial printers, competing in both price and production.

"As with any operation, commercial or otherwise, it's not perfect, but I can show you most any facts, costs or historical information—at any level—within minutes," boasts Schmidutz. "This is so valuable in so many ways."

When asked about the secret to his many successes Schmidutz does not take full responsibility; he modestly credits the ability of his staff to accept, and act on, the changes over the past five years.

"The staff are really the ones who make it happen every day," he emphasizes. "They are truly the ones who have built the relationships and the trust of the customer base."

He adds that the in-plant's future will depend on the opportunities in Web-based workflow, management of the printer/MFP fleet and implementing solutions that enable Steelcase globally.

"I don't believe that in-plant management has much to do with volume and building the in-house business, but more to do with strategy and direction," he says. "Build a strategy and direction and the operation will work itself out."

Schmidutz, an avid sports fan, lives with his Yorkshire terrier named Paris Hilton. Outside of work, he can be found outdoors bow-hunting, golfing, snowmobiling or riding his Harley.