Management Information Systems (MIS); Enterprise Resource Planning Systems (ERP); Customer Relationship Management Systems (CRM) and “lean thinking” are the latest of the self-acclaimed panaceas to help Printers manage their business better, make more money, and increase productivity. What magic!
The reality is, if you perform a careful, objective analysis of your current business processes, and develop a comprehensive acquisition and implementation plan – MIS systems can improve and simplify process flow, find costs which to date have been unbilled, and increase productivity and capacity by reducing redundant paper work. Not magic – just logic.
Common business challenges in printing companies include:
- Estimating that is inconsistent and not timely.
- Purchasing responsibility that is scattered resulting in late or unallocated costs against dockets
- Excessive consumable inventories because there is no tracking mechanism
- Waste and spoilage are not accurately measured or managed (most Printers think they incur 10% waste and remakes – industry studies show a more realistic number is 25% – 30%) On gross sales of $5MM – waste = $1.45MM
- AA’s and house errors go unrecorded and unbilled.
- Poor sense of, and response to, operational problems – i.e. decisions made based on gut response, filtered information, or personal opinion instead of verified data.
- Scheduling failures not tracked – therefore there’s no real handle on plant load or capacity.
- Multiple administrative software programs in place for estimating, billing, contact management etc., that have no inter-operability
- Companies build process flow around the personalities of the individuals in a job rather than around what the company or the customer needs.
A good MIS system can alleviate almost all of the above issues and more.
By now, most people in the industry are aware of the benefits of an MIS system and if you’ve been to a Trade Show in the past 5 years, it’s unlikely you’ve been able to avoid a demonstration of a system.
Generally, MIS systems break down into one of 3 categories:
Generally, MIS systems break down into one of 3 categories:
Category #1:
Single or limited function (i.e. estimating only/ contact management only)
Single or limited function (i.e. estimating only/ contact management only)
Category #2:
Comprehensive functions include:
– Estimating
– Quotations (automatic quote letters)
– Contact Management
– Order Entry
– Job Tracking
– Imposition Planning
– Change Orders
– Critical Path Scheduling (requires operator update)
– Shop Floor Data Collection (entered by operators)
– Purchasing
– Inventory Control
– Sales Analysis
– Accounts Receivable
– Accounts Payable
– General Ledger
– Fixed Assets
– Executive Summary
Comprehensive functions include:
– Estimating
– Quotations (automatic quote letters)
– Contact Management
– Order Entry
– Job Tracking
– Imposition Planning
– Change Orders
– Critical Path Scheduling (requires operator update)
– Shop Floor Data Collection (entered by operators)
– Purchasing
– Inventory Control
– Sales Analysis
– Accounts Receivable
– Accounts Payable
– General Ledger
– Fixed Assets
– Executive Summary
Category #3
All of the above plus:
All of the above plus:
Direct Machine Interface (automatically pulls data from presses and bindery equipment)
Dynamic Scheduling (live, interactive – every time a job doesn’t meet the schedule, the schedule reflows and red-flags that the job is off schedule, and shows how it is impacting the total pressroom schedule.)
– Internet enabled fulfillment
– Digital Asset Management
– Remote Proofing
– Digital Asset Management
– Remote Proofing
Selecting an MIS System
- Is the system user friendly? Allow for A & B type personalities to use the system! Make sure the splash screens are easy to understand.
- Browser based has eliminated the need for cross platform Mac and PC applications. If it can’t talk to a Mac – don’t buy it. The last thing you want is all your prepress operators wasting time going to a PC to enter data!
- Database software – SQL? Oracle? FileMaker Pro? XML
Whatever the software, it must be open for interface with any existing (or future) software you have – especially for connection to Accounting programs, and the transference of historical data.
- JDF and supports CIP4 (if this is something that’s key to your company – it must be part of your MIS system)
- Evaluate what reports you need to run your business – get consensus on this!
The cost of an MIS System:
Purchasing or renting the software is the tip of the iceberg. Don’t forget to factor in Hardware upgrades, servers, networking upgrades, the “per user” price, training, annual service/support and upgrades.
Purchasing or renting the software is the tip of the iceberg. Don’t forget to factor in Hardware upgrades, servers, networking upgrades, the “per user” price, training, annual service/support and upgrades.
Pitfalls
To ensure success of your MIS system – get total buy-in from everyone! Assimilate a team representing all aspects of the company’s functions. However, MIS systems are not about I.T., or accounting. The deciding vote on which system to purchase, and the implementation should not be given to either of these departments since they are not Manufacturing.
To ensure success of your MIS system – get total buy-in from everyone! Assimilate a team representing all aspects of the company’s functions. However, MIS systems are not about I.T., or accounting. The deciding vote on which system to purchase, and the implementation should not be given to either of these departments since they are not Manufacturing.
Once your team has narrowed the choice down to 1 or 2 systems, get the Demonstration.
Version of the system installed on several computers throughout the plant. Go through it with each department and show them how it will make their jobs easier. Then, leave it with them for a test run.
Do your homework – talk to other users!
Marg Macleod is the Manager of the Digital Imaging Assoc., and Toronto Sales Manager for Tri-Graphic Printing.
