In-plant finds Advocate in Management

Thanks to strong support from corporate management, Printing Services at Advocate Health Care is now a state-of-the-art in-plant… with an iGen3 to boot.

According to Webster's Dictionary, an advocate is a person who pleads for a cause or propounds an idea. For Printing Services at Advocate Health Care, this definition couldn't be more apt.

While some in-plants struggle to justify their existence to an ever-skeptical parent company, at Advocate, upper management fully supports Printing Services. So much so that, over the past five years, the corporation has made massive improvements to its 28-employee, 25,000-square-foot in-plant, replacing nearly every piece of production equipment.

Based in Oak Brook, Ill., Advocate Health Care is a non-profit organization that operates nearly 200 medical facilities in and around Chicago, including eight hospitals.

"The real story here involves the senior executives of this multi-billion dollar corporation taking an active interest in our in-plant print shop," says Printing Services Manager Steve Safron. Management fully funded the in-plant's transition into a state-of-the-art facility, he says. "We had our entire wish list granted."

How did such a significant improvement come about?

"Initially it wasn't much of an incremental investment to make. We just weren't using the resources we had," reports Jonathan Bruss. As vice president of Supply Chain Management, Printing Services is a part of his division.

Bruss says most of the hospitals weren't using Printing Services, but were utilizing their own limited services or outsourcing the work. Then, in 2001, Bruss hired consultants to administer a cost-benefit analysis to determine how the corporation should handle its printing. The in-plant was looked at very closely to determine if it should be continued or if outsourcing was a better option.

The analysis indicated that Printing Services' capabilities were underutilized, and that its production costs were well below outside prices. As a result, a corporate mandate was issued requiring printing orders to go through Printing Services.

"It was evident that if the in-plant was to successfully manage this new volume we would need new equipment," Safron remembers. "Much of our equipment was three or four decades old."

Creating A Wish List

Safron was asked to assess the capital needs to get the in-plant ready for the anticipated increase in demand, and he left nothing off his list. He pitched his wish list to Bruss and upper management and was quite pleased when it was fully met.

"I was totally elated," Safron beams. "In our case, insourcing proved to be the best business decision."

Bruss agrees that the organization is best served when it drives as much volume as possible through Advocate Printing Services. Printing costs go down and many of the transaction costs are eliminated. Advocate Health Care quickly recognized the return on its initial investment.

Upgrades Aplenty

Over the next few years, the in-plant upgraded its entire arsenal, adding:

• A Heidelberg computer-to-plate system

• Three Heidelberg Printmaster presses

• Two Xerox DocuTech 6135s

• A Polar cutter

• A Stahl folder

• A C.P. Bourg bookmaker

• Five Mac and PC workstations

• A new delivery vehicle

This partial list doesn't include the most noteworthy addition: a Xerox iGen3 digital color press. Advocate Printing Services is one of only a handful of in-plants with an iGen3. So far, Safron couldn't be happier.

"With this new technology, I expected it to have more technical problems and a bit less productivity," he says about the iGen3, "but in reality, everything has exceeded my expectations."

The in-plant uses the iGen3 in two ways: to print short- to medium-run four-color work that was previously produced on offset presses and to print variable data pieces.

"The iGen3 has allowed us to tailor higher-volume communications towards our target audience," Safron says.

To a corporation that employs 24,500 associates and caters to 4,600 physicians and their patients, having a variable-data printing source with the capabilities of the iGen3 is a great asset.

"We want to build and maintain relationships with our customers," Safron explains. "And we want to be able to produce communications with content that speaks more directly and effectively to the recipient."

The iGen3 produces offset-quality four-color variable work, newsletters, postcards, brochures, posters and even custom-made manila-style folders printed on card stock.

Historically, the mainstay of the printing work done at Advocate involves the production of thousands of unique medical and administrative forms, which are often revised on short notice. The DocuTechs and iGen3 make it possible to rapidly manufacture these forms as needed. Advocate facilities utilize an enterprise-wide management tool to electronically requisition forms.

The need for printed forms in general is trending downward as medical forms continue to migrate into electronic medical records. Making up for some of that lost print volume are the personalized, full-color communications pieces now being produced by the in-plant.

"Each month brings higher print volumes as a result of our new capabilities provided by the iGen3," Safron shares. "The in-plant realized a 15 percent increase in print volume last month over previous months, resulting mostly from obtaining jobs that would have otherwise been outsourced."

Safron recounts a recent project consisting of 500 full-color booklets that the shop was able to produce for $1,350; previously the job had cost $4,500 when outsourced to a commercial printer.

Of course, an iGen3 is an expensive piece of equipment. Startup costs included preparing the facility to accommodate the machine.

"We converted a stock room," Safron comments. "We had to pull additional power into that room, as well as upgrade the lighting, flooring and ventilation. We made a request for about $15,000 for capital improvements to the facility, and management approved it on the spot."

When the request for capital improvements was presented, Bruss and Advocate Health Care CFO Lawrence Majka personally came to the in-plant to gain a better understanding of the proposed iGen3 installation. This was no small gesture, since the facility is in Mt. Prospect, Ill., 20 miles north of corporate headquarters. For the CFO to travel all that way and spend the morning at the print shop meant a great deal to Safron.

"Management took an interest in what the print manager had to say," he explains. "They took the time to evaluate our proposal rather than dismissing it."

Because only certified techs can operate the iGen3, Advocate contracted to have two full-time Xerox associates work the machine. Each is trained to operate either the DocuTechs or the iGen3.

The two Xerox staffers, combined with the other 28 in-plant employees, allowed for a very smooth transition through a period of significant challenges and change.

"Although our equipment and technology has rapidly changed, our staff has always been exceptional," Safron proudly declares. "This transition has worked because our people have been able to readily adapt to new technologies and do it very well. We really have outstanding dedication from our people."

All of the new technology has forced the staff to make some adjustments. "We have one associate that started as a typesetter with us over 25 years ago." Safron says. "She has consistently adjusted to the rapid rate of change in the prepress department, and now operates a Mac G5 graphics workstation and is an expert with Quark XPress and Adobe Creative Suite."

In the past year the in-plant has added a number of server applications. One of them is MediaBank, a central repository for digital images such as logos, ads, photos and campus maps.

Another server houses a Web-based application from Press-Sense that allows the in-plant's customers to create and submit job orders and obtain instant pricing from their desktops. Additionally, they can view and route PDF proofs of orders, track production and manage re-orders. The improved efficiency has received positive feedback from customers.

When asked why it is hard for some companies to embrace the idea of an in-house print shop, Safron has this to say:

"I think that it all comes down to the relationships that the print shop manager is able to build with the decision makers in the organization. So, when the requests are submitted for financing new technologies and initiatives, senior managers already have some comfort level that the recommendations will be in the organization's best interest.

"I also believe that in-plant managers should avoid being a thorn in the side of the administration at all cost," he continues. "I meet with [Jonathan Bruss] once a month, and discuss all relevant issues at that time. Otherwise, I resolve everything right here. I make sure everything stops with me. My boss only hears the good stuff."

And Safron has plenty of "good stuff" to tell him.