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Commercial Printing Technology Upgrade

Karyn Lewis
Digital Print Processes 2082-401-02
Fall 2006

Background of Monroe Litho
About Monroe Litho
Monroe Litho Inc. of Rochester, NY is looking into the feasibility of upgrading or changing its
current equipment and workflow system in order to improve its services and bring in more
business. Monroe Litho, Inc. is a Lithographic printing company that serves as a dependable
provider of typesetting, one and two-color printing, and mailing services primarily to its local
customers. The company is one of 17 commercial printing subsidiaries owned by the Atlanta-
based Graphic Industries Inc, which ranks 18th in sales of North America commercial printing
companies (American Printer). Part of Graphic Industries’ corporate strategy includes adapting to
change through technology. The Monroe shop is considering investing heavily in digital
technology with the notion of maintaining a high-quality edge in its market. The company has
won many national quality awards and certifications from customers, including Ortho
Pharmaceuticals, ADP, Kodak, Xerox, and Bausch & Lomb, and wants to continue its
professional recognition as the industry evolves.

Monroe Litho strives to offer services that meet or exceed their customers' needs. They work with
known suppliers and subcontractors to ensure that all purchased materials and services fully meet
the needs of their customers, holding to the goal of building long-term relationships that ensure
that the quality of their products, services, and integrity is never compromised. The plant operates
as a premier graphic communications company that embraces ideas and concepts, providing the
value chain of services, solutions, and products necessary to fulfill their customers' needs.

Monroe Litho Inc. is currently the only printer worldwide to hold the "Certified Supplier" status
with Eastman Kodak Company. The company is an official testing facility for Mead/Westvaco
sheetfed papers, and is recognized as a prime-printing supplier to Bausch & Lomb. Monroe Litho
has been recognized by the US Department of Labor, Occupational Safety and Health
Administration, and the New York State Department of Labor.

Current Workflow
The Rochester company is a complete sheetfed facility with all services from PrePress through
Binding and distribution available from its Rochester location. Most equipment has automated
features and preset functions that reduce manual set-up and allow Monroe Litho to increase
productivity within its current workflow. Jobs can be requested via fax, e-mail, or walk-ins.
Additionally, some jobs can be submitted over the network through FTP access.

Once jobs are received and approved, they’re are entered into a database where job tickets are
created. The job is scheduled, and then any pre-press work is done. The job is then printed,
finished, packaged and made ready for pickup or shipment

Products and Services

With their current workflow, Monroe Litho offers a variety of pre-press/pre-media, printing,
bindery, mailing, and fulfillment services. Some of their work includes pocket folders, direct mail
postcards, annual reports, pharmaceutical inserts, posters, catalogs, brochures, and catalog, rack,
and sell sheets.

Software and Equipment Used

For prepress work and page layout, Monroe Litho prefers to use Quark Express, Adobe InDesign,
and Adobe PageMaker. Other software options including Adobe Illustrator and Freehand can be
used, but these files are first converted to Encapsulated PostScript format in Quark. Adobe
Photoshop is the preferred choice when it comes to color manipulation. Microsoft products can be
used, but only at the cost of extra time on the print job. PDF files can easily be dropped into
Quark, or ripped directly from the PDF file.

Monroe currently uses an Epson 10600 Proofing System, a Kodak XP4 Approval Digital
Proofing System, Creo Lotem Computer to Plate system, Crosfield Celsis 6250 digital drum
scanner, Epson FlatBed Scitex Brisque Stations with Impose, and Iris 43 Wide Digital Proofers in
the makeready process.

Their presses include a Komori 8-color 28" x 40" plus in-line aqueous coater, a Heidelberg 6-
color 28" x 40" Series CD 102 with in-line aqueous coater and extended delivery, and a
Heidelberg 5-color 28" x 40" with in-line perfector and aqueous coater.

For the final finishing process, Monroe Litho uses Polar Electronic High Speed Cutters, Stahl
folders with color recognition scanning heads, an Optiscanner Pharmaceutical Folder with a

Robatech HotMelt Gluing System. A Muller 331 Stitcher with 6 Pockets and a Cover Feeder, a
10-Pocket Sheet Collator, Multi-Spindle Drills, Shrink Wrapping Systems, and an Automated
Polar pile turner.

Target Market and Business Goals
Digital methods enable companies to supply proofs without making films, thus saving time and
cost. Monroe Litho’s current concept for growth includes increasing client involvement in the
prepress process by developing stronger partnerships with customers via the front end of its
business. The only limitation is the amount of equipment the company has in operation. Monroe
Litho would like to produce 90 percent of their work electronically, as opposed to the 40% they
produce now (American Printer).

Most commercial printers now do some form of digital printing. Printing processes today use
scanners and digital cameras to input images and computers to manipulate and format the graphic
images prior to printing. Digital printing also is transforming prepress operations as well as the
printing process. It eliminates much of the lengthy process in transferring print files to the
printing press by directly transferring digital files to an electronically driven output device
bypassing traditional prepress operations.

A Changing Print Economy

Over the past five to seven years, digital electronics have become the pre-press norm, and
computerization of presses themselves is following not too far behind. The industry is one of the
most tightly competitive around, and to stay in the game printers have to concentrate first on
getting work out. Offset presses are designed to make tens of thousands of copies at a time, and
require plates to be made that press the images onto paper. Digital presses streamline the process,
eliminating plates and allowing for smaller orders and customized marketing materials, for which
a premium can be charged. According to Frank Romano, “Even though offset printing is evolving
to provide more economical and more competitive approaches, some of its volume will continue
to erode” (Business Forms, Labels & Systems). The offset commercial printing market is
changing, but digital printing offers the industry a promising escape route. By 2010, in fact, the
NAPL predicts 21% of the commercial printing revenue will likely come from digital printing.
This is up from 7.4% today. Conversely, traditional offset printing’s share of commercial

revenues is expected to decline to 58% by 2010, from 77% today (Wall Street Journal).
“Compared to offset, both estimates and orders are up for digital printing” (Romano). The chart
below shows the growth of offset and digital estimates and orders over four years, with a
projection through the end of 2004.

Potential benefits of Digital Printing

Print providers must constantly deal with new modes of communication, a new commercial
geography, and new business models. Prospering in this environment requires a merging of
conventional and digital technologies that Kodak terms a “blended” production approach
(American Printer).

A huge factor is the cost differential. With standard traditional printing, print buyers are basing
decisions on cost per page. With digital, the issue is the cost of acquiring a new customer or
increasing returns on an ad campaign. Instead of talking about printing several thousand direct
mail pieces at pennies per page, distributors are discussing the value of variable content in
targeted, personalized mailers for greater responses that can be mapped back to specific
campaigns (Business Forms, Labels & Systems).

Determined best workflow option

Although the digital printing industry is growing, offset will not die out. The bet option for
Monroe Litho is to invest in software and equipment that will work with their current offset setup
to increase production and services provided.

Proposed Solution
New equipment
“The level of investment is directly related to the printer’s target market and application mix”
(Pellow). Traditional commercial print firms generally place initial focus for their digital
investment on short-run, quick turnaround, on-demand jobs. The infrastructure and IT resource
requirements, however, are limited for Monroe Litho with the equipment and software they have

Because Monroe Litho already has the Creo computer-to-plate system in place, the most cost-
effective and beneficial step the company could take is to invest in an HP digital printer.
“Companies that own an HP Indigo Press have the opportunity to easily integrate with traditional
offset commercial printers and expand their digital print volume” (Media Week). “The HP- Indio-
Creo solution is a professional workflow for increased productivity, faster turnaround time, and
outstanding image and color quality.” With the purchse of the press, Monroe Litho would get
Creo’s Production Stream Server as part of a bundle. Together, this system would maximize
productivity and streamline the digital workflow.

The HP Indigo press 5000 is an ideal choice for commercial printers who want to provide digital,
full-color, offset-quality for emerging applications such as marketing collateral-on-demand,
personalized direct mail, versioned manuals and photo-related services.

New Digital Workflow

Additional digital equipment will dramatically decrease makeready time and costs. The process
of platemaking, meticulous setup, and drying will be eliminated. Post production inventory and
recycling will be reduced as well. With a Creo hybrid workflow, proofs, short runs, and
supplementary runs can all be rerouted from a traditional workflow to a digital workflow. The
Creo server’s support of JDF will enable unified workflow for the easy routing of offset jobs to
digital. The HP Indigo Press 5000 will maximize the workflow using electronic collation,
automatic duplexing, seamless job changes, and color personalization.

New Capabilities
Digital methods will help by supplying proofs without making films, thus saving time and cost.
They are more predictable and consistent than other types. A digital system will also free up press
schedules and allow the company to take on more print jobs. Some jobs can be produced
completely via electronic means—scanning, stripping, and proofing. Monroe Litho will have a
professional workflow, extended variable data printing capabilities, and superb image quality.

Projected Capital Expenditure

The cost of the press will take Monroe Litho back about $4,000. Additional costs may be in
corporate training and supplementary staff.

Savings will appear in three areas—time, labor, and film (American Printer). First, digital
proofing will allow the firm to make a good color proof for clients without producing films.

Monroe Litho will be able to turn around work much faster—within minutes instead of hours.
CEPS operators won’t even have to leave their seats, and this type of proofing won’t slow other
jobs or the next part of a current job. Monroe Litho’s customers will also gain in a more direct
way. Since it increasing productivity, digital proofing allows the firm to handle more work for
clients. The technology allows the printing company to handle more work without adding extra
personnel, while also bringing CEPS operators up to speed on new systems. The equipment will
keep Monroe Litho one step ahead of everyone else in the print industry environment.

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