FINDING THE RETURN ON CTP

Quantifying the benefits of computer-to-plate: a challenge package printers may need to approach with new diligence.

by Terri McConnell, Prepress Editor

In the span of a few hours on September 11th, our hearts were broken, our livelihoods were lost or threatened, and our determinations tested. In the path of swift and sweeping financial repercussions of those events, some packaging businesses are sure to fail or suffer. Even companies with the brightest outlooks are making provisions for a probable downturn and have become more reserved, careful, and "quiet."

Shaken by the uncertainty of our economic condition, we will be cautious. Understandably defensive. Less inured to risk.

Surviving and protecting margins will likely take managerial precedence over strategic growth. Justification—determining the value of a new investment—will become a more stringent and diligent practice. Return-on-investment for equipment will have to be strictly quantifiable and demonstrable.

The number and duration of installed computer-to-plate devices in the commercial printing world make it possible to predict with some measure of confidence the ROI on future CTP investments in that arena. Proliferation and competition have effectively normalized the cost per square inch of digital plates, and enough statistical data exists on productivity to anticipate CTP equipment payback hierarchically for a given plant output, press size, or document.

Not so true of the packaging printing world. There are inherent differences in the packaging process that make it more difficult to quantify the value of CTP equipment. First and foremost are manufacturing variables, such as repeat length.

Another significant factor in calculating ROI on packaging CTP equipment is the "point" of value. Many of the productivity benefits of using digitally imaged plates are weighted towards the printer, which has a faster makeready, less waste, and more sellable uptime. However, our industry is still heavily reliant on trade shops—which would likely be, and indeed have been, the first to invest in CTP. When the cost/value equation of improving a specific manufacturing process transcends the business model that supports it, we can expect to see the business model change. Consider the astounding number of commercial trade shops that have bought presses, and the proliferation of in-house prepress operations.

There is no question CTP is a logical and attractive evolution in package printing. One only has to see the difference to believe it. Our challenge is to come together as an industry and clearly quantify the benefits—less waste, higher quality, greater throughput—to where they are understood by application; by volume; by manufacturing process; and finally by the end-user/trade shop/printer relationship.

We can wait until consumer product companies demand we print their packaging with digital plates, and let them determine who pays for the investment. We can wait until we have reached a "critical mass" of installed machines, similar to the proportions in commercial printing, and see which companies come out the winners and losers. Or we can claim a stronger stake in our destiny by working with our suppliers to build sound models and justifications for taking the next step.

Installation profile: Pechiney answers the call to CTP

For Pechiney Plastic Packaging, the objective was to be ready to ramp up full computer-to-plate (CTP) production when the customer called for it.

Beginning in 1997, the flexible packaging converter spent several years establishing key digital process underpinnings, training press crews, and establishing standardized processes that included a company-wide color management system and other printing-by-the-numbers initiatives. Pechiney also devoted a year to buying and testing various digital materials and systems.

When the customer call came, it was Kraft on the line. "We were aware of CTP's potential, and had completed the fundamental work, but Kraft really drove the initial adaptation," says Martin Gilvarg, VP/sales and marketing, food flexible packaging. Pechiney supplies Kraft with packaging for powder drink mixes, cheese, coffee, cereal liners, and other food products.

Pechiney has made a full investment in preparation for complete CTP, including a five-year deal with MacDermid for digital and conventional printing plate systems and materials. The implementation will potentially put digital plates to work on more than 40 flexo presses, in 11 of the company's 13 flexible packaging manufacturing sites.

"Typically, flexible packaging printers face a choice between the higher fixed costs of gravure, and the lower fixed costs of flexo," explains Gilvarg. "A smaller niche segment opts for surface-printed web offset. Digital direct-to-plate flexo will clearly provide another level of quality with more favorable fixed costs than gravure and a sharper image than conventional flexo."

Pechiney currently maintains both conventional and digital platemaking workflows. Customers can individually specify if and when a digital transition should occur. The higher costs of digital plates can be balanced by their 20 percent to 30 percent better quality and reduced cycle time.