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Articles

	Tech Trends
	Adding Equipment? Proper Setting Is Key
	By Hal Ettinger

 

In conducting a financial justification for a new press or other major piece of equipment, be sure to consider your physical plant. How the new equipment will (or will not) fit into your existing space and workflow has a major impact on its cost effectiveness and productivity.

Any printer considering acquiring a major piece of equipment knows that the prospect is both exciting and worry-making. The “bells and whistles” available on the new generation of presses hold the promise of increased efficiencies, new capabilities, and increased revenues. But will the hoped-for increase in business be enough to cover the added debt burden?

Most graphic communications companies have a process in place for making these kinds of financial determinations for a contemplated equipment purchase. Before they sign on the dotted line, however, there’s another critical consideration that must be taken into account: Whether the company’s current building can accommodate the new equipment so that it can operate at maximum productivity.

Why the physical requirements of the new equipment should be included in the financial justification process becomes evident when you consider the two main ways that the placement of new equipment can add to a company’s costs:

• If the equipment is not placed in an optimal location, you may not be able to run it to specifications and therefore will not fully capitalize on its cost-saving efficiencies.
• Preparing an optimal location for the equipment may require reconfiguring/expanding the physical plant and/or adding new systems/support equipment—expenses that should be considered as part of the overall cost of the equipment.

Spending the time and money up front to develop an optimal location for a new major piece of equipment pays off exponentially. Expanding or adjusting a building is a one-time cost, whereas additional costs may be incurred daily if equipment is placed in an area where it can’t run at top productivity.

Of course, the most important physical requirement for a new piece of equipment is adequate space. Determining whether there is enough room for the equipment may seem like a ‘no brainer,’ but a surprising number of buyers fail to make even the most basic calculations of physical space for the equipment and required operating areas (e.g., console, press ancillaries, staging) when considering a purchase. Some don’t even take out a tape measure to see if the area they plan to use is sufficient.

Determining the optimal location for new equipment is not just a matter of finding a place in the plant where there is adequate space. A new press might fit perfectly in a certain area, but that doesn't mean it should be placed there. An optimal location is one that allows the equipment to run at maximum efficiency within your workflow alongside similar or complementary equipment. To find the best location for a press or other major equipment, consider a number of factors, including:

• Ease of material handling. How easy is it to get raw material to the equipment and finished product away from it? Will it be adjacent to the materials handling aisle? Keep in mind that new equipment generally produces more volume than existing equipment, which means it will require a larger staging area for raw materials or second pass (in the case of a press) or more space for work-in-progress (bindery equipment).

• Impact on existing equipment. Will you be able to feed and remove material without creating bottlenecks in other operations downstream in the production process? Any piece of production equipment has a directional flow associated with it (feed to delivery). Be sure to evaluate how directional flow of the new equipment will impact the flow and material handling capability of adjacent existing equipment.

  A potential negative impact may require relocation or re-direction of existing equipment to maximize throughput. A general rule is to place like pieces of equipment (presses, for instance) parallel to each other, with the paper path in the same direction.

• Accessibility. Will the equipment be easily accessible for maintenance and service? Making it convenient for employees or service providers to move around the equipment for preventive maintenance tasks is crucial to avoid downtime due to mechanical breakdowns.

• Workflow synergies. Will the new equipment match the profile of the other equipment in the space—e.g., presses with presses, bindery equipment with bindery equipment, etc? Having like equipment in the same vicinity boosts productivity by enabling the most efficient use of staging areas and support equipment.

  Some companies believe that the operational efficiencies of new equipment—for instance, a press rated at 12,000 impressions per hour vs. 6000—can compensate for workflow inefficiencies. But that’s a misguided assumption.

  Surviving in today’s competitive environment requires minimizing waste and maximizing efficiencies throughout the entire production process. Additional volume resulting from new equipment could be contributing to existing plant inefficiencies rather than improving them.

• Adequate space for support equipment. In addition to being bigger than their predecessors, new generation presses generally require more support equipment. Make sure to factor this into your space requirement calculations.

Maximize Benefits

All manufacturers can provide minimum required dimensions for their presses. These include physical clearance requirements to allow adequate room for delivering stock and removing product.

• Adjustments to the existing building. Will the building be able to accommodate the new equipment without any major retrofit to structural, mechanical and/or electrical systems? Installation of new equipment often requires adjustment to the physical plant. The costs of such adjustments can be substantial and should be included in the financial justification for the new equipment.

New equipment holds the promise of delivering more value more quickly. You can maximize the benefits of a new equipment acquisition—and speed the return on investment—by making sure you’ve given it a place in your plant where it can perform to its highest potential.

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