You've Got To Earn It

Do you need new equipment? Keep records, do research and network. Only then can you get what you need.

"SHOW ME the money!"

A single, colorful line might work for a football star in a movie (Jerry Maguire), but an in-plant manager requesting funds for a new purchase must work like a galley slave to be shown something other than the door.

The justification process must start before you even know you need equipment. It must be a daily task involving obsessive record keeping and reams of research. It must not go on in secret. Rather, the higher-ups should be kept apprised of your findings and notified when you are gathering statistics to support a new purchase.

Finally, after a purchase is brought home, an in-plant manager should gather information about its performance to present to the boss as sort of a friendly "I told you so."

The justification process includes three ongoing tasks:

• Record keeping and documented planning.

• Research into available products.

• Networking, networking, networking.

Carrying out all of these tasks at once, in addition to making sure your shop is supplying quality work, is a big challenge.

At American United Life Insurance in Indianapolis, James Dalton, print services manager, says he has heard in-plant managers complain about the time pressures they face. But he remains unmoved.

"A lot of people say 'I don't have time to network,' " Dalton says. " 'I don't have time to plan.' Well, I'm telling you: that's why in-plants close."

Homework: It's Not Just For Kids

It's a maxim history teachers use to inspire students to open their books: You can't know where you're going, if you don't know where you've been. Similarly, an in-plant can't begin to justify a purchase if it doesn't know what kind of work it is doing now or what kind of work it expects to do with the machine it wants to buy.

In Dalton's case, he inherited an operation where no figures were kept and no monitoring was done.

"I knew whatever we would do in the future would be based on what we were doing now," Dalton relates. "So the first thing I did was start keeping records, start keeping track of things. Once you know that you can make an educated decision about the direction you need to head."

The list of jobs that need to be documented is substantial, but straightforward: everything. In-plants should track the volume of printed sheets they are producing on each machine. Statistics should be cross-referenced between black-and-white and color printed material. And specific jobs should be cross-checked against the turn-around time and price of local commercial printers.

"You really need to monitor [your operation] for about a year," Dalton advises. "You're not going to see any changes in three months. But if your company is growing, and you're doing different things and you're promoting your services well, over a year's time you're going to see...a trend you can actually graph."

While this volume of record keeping may sound extreme, it could save the in-plant.

"You've got to be careful before you go asking [for money]," warns David Kasler, director of print services at Ohio University in Athens, Ohio. "Find out where your in-plant stands. If you're already saving them money, it's much easier to say 'we're already saving money for your company. We can do more if you let us spend X amount of dollars.' Let's say your equipment is old, and you're wanting to update the equipment, but you've been going in the red. When you ask them for money they're going to say, 'Hmmm...it's time we look at outsourcing.'"

Apples and Oranges

Keeping a written account of all work might tempt an in-plant manager to incorporate all of the statistics into the justification report. But only statistics relevant to the specific item being purchased should be included.

Celeste Maia Cron got a unique perspective on the justification process when she took over as State Printer for the state of California's in-plant in Sacramento, Calif. As she puts it, when she arrived there was already a plan "in the hopper" to purchase a used, five-color 40˝ Heidelberg press with an in-line finisher.

"When I reviewed the package submitted prior to my arrival," she relates, "I could understand why it was turned down."

Cron says the main problem was that the in-plant had tried to cross-justify the purchase using Printing Industries of America statistics regarding how much private printers throughout the industry charge per hour for the press. But the in-plant should have gotten prices from local printers.

"I made them go back and do an apple-for-apple justification," Cron explains, "because they were doing apples and oranges and that doesn't hold up."

Soliciting prices from local commercial printers gave Cron statistics that reflected the local economy—something the initial proposal failed to do. The result of her efforts: Cron's supervisors granted her request.

Having learned from that, she has the following advice to give to in-plant managers who are pitching management on a new purchase.

"Be concrete. You need to show, by your data, a justification for the purchase. I find that, in a bureaucratic structure, if I have the data, I don't have near the problems I could have. It's a matter of being detailed and comparing apples to apples, and not getting sidetracked by issues that aren't relevant."

Vision Quest

Once you've found out where you are, you are in position to look at where you're going. It matters. Planning to go on the way you have been may leave the in-plant at a disadvantage a couple of years down the road.

"There are a number of employees depending on you for their future," Dalton levels. "As a leader you need to let them do the work, and you do the planning and have the vision so that, five years from now, they still have jobs and you still have an in-plant operation."

When Dalton entered on-demand printing earlier this year it was the culmination of a three-year plan. He spent a year gathering data, a year planning to incorporate on-demand printing and a year in a formal search for a solution. The entire time he maintained his print shop's records and kept upper management apprised of his findings.

But while keeping his superiors informed, Dalton didn't overwhelm them with technical material. Instead, he concentrated on the tangible ways on-demand printing would benefit the company.

"The people you work for may not recognize printing issues," Dalton points out, "but they do recognize a good investment."

Imagine your boss has no knowledge of printing and is suddenly deluged with heavy, technical information. It would be a challenge to understand it all. Don't challenge your boss. Make it easy for your boss to say "Yes."

At the same time, inform management of technological developments as you learn about them. Don't expect them to learn everything in one sitting.

"Always keep them informed of the direction the industry is going," notes West Barton, director of print services at Brigham Young University in Provo, Utah. "We invite our direct supervisor to participate in shows and to find out what's going on in the industry so that he is knowledgeable."

Barton encourages other managers to move toward digital printing. He says that two built-in justifications for digital technology are cost-effectiveness of the work produced and the image boost that comes with state-of-the-art equipment.

Convincing upper management of those benefits is easier if you have already established a good working relationship.

"You've got to build a history," contends Dean Sutera, director of printing at Portland, Ore.-based Fred Meyer Inc., where he is a 22-year veteran. "If the company knows that what you propose always comes through, then your chance of getting something is great. If you propose frivolous things that aren't backed up or really aren't necessary—or don't prove themselves in the long run—you're going to have trouble."

One way Sutera backs himself up and keeps management informed is by keeping a separate file for each of his acquisitions, including item, price, date of purchase and his proposal package, plus any projections he made about how the item would impact the shop. That way, he can point to his strong track record each time he needs to make a new purchase. Further, if there is ever a change at the top, he has documented evidence of his successes.

Dealing With Vendors

By now it's time to formulate a short-list of vendors, make appointments and work to pick a solution.

According to Sutera, the key is not to rush. The longer the decision-making process takes the more prices drop. Taking your time increases your chances of making the right decision—and renders the right decision less expensive. The more time you take to gather information, the better-equipped you are when it comes time to face the person who signs the checks.

Sutera says making that final choice is harder if you are incorporating on-demand printing. Calculating costs is more complicated with digital equipment. Sutera says he used to calculate the work of one operator on one press working one job. Now, at any given time, one operator is running one or more jobs on three or four printers or copiers. The equation becomes much more difficult to figure.

Kasler, from Ohio University, advises in-plant managers to put the onus on the manufacturer. After you've done your research and narrowed down a list of prospects, call the finalists and say "I'm ready to buy? What can you do for me?"

Another tip is to network with other in-plant managers to gather information about the quality and reliability of the equipment you're looking at purchasing. Testimonials from people who have already used a machine can be a big help in convincing management to take the leap.

"Networking is a critical element to success in purchasing," Dalton asserts. "That's one advantage in-plants have over commercial printers. All us in-plants are in this thing together and we encourage one another to come over and look at what we're doing."

Network On-line

Enhance your networking efforts by subscribing to these two on-line services created strictly for in-plants. If you have e-mail capabilities (and otherwise qualify) you can participate in a daily "virtual roundtable," asking other managers about new equipment and comparing experiences.

IPMAServ: available to IPMA regular members only. Send an e-mail to laaron@ipma.org with the words "Subscribe IPMAServ." Include your name, company, phone number and e-mail address.

Hardcopy: available to college and university in-plants. Send an e-mail with the same information to racham01@ulkyvm.louisville.edu.

Used Equipment: Brokering A Deal

Purchasing used equipment can be a boon or a huge source of frustration. But you can make the process easier and more efficient if you follow some simple advice.

As the director of the University of Virginia's printing and copying services, Scott Keeney has had some experience purchasing used equipment. He also innovated a new idea along the way.

"The thing we've always had the biggest problem with," Keeney admits, "is getting a purchase through our own institutional system in a timely manner. We've gone to our purchasing people and told them what we're interested in buying and that we haven't found one yet, but we want to spend up to X amount of dollars on it."

Keeney then wins himself a year-long approval to shop around, based on a report that is exactly like the one he would make for a new piece of equipment. Then he contacts a broker, looks for ads in magazines, and keeps his ear to the ground. If they find a machine they like they can generally have a bid on the broker's table in less than 48 hours.

Other advice:

• Secure a warranty of at least 90 days on a used item.

• Don't settle on one machine. Look for alternatives in case you don't land your top choice.

• Have the machine checked thoroughly before you buy.

• Check with other shops that use the same model to make sure the machine in question will operate to your standards.