a lean approach to innovative label sourcing strategies

A Lean Approach To Innovative Label Sourcing Strategies

Les Wallace, CPP Packaging Manager les.wallace@smwe.com 425-415-3695

What is “Lean”???

“Lean” - Wikipedia

Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for.

Lean is the set of "tools" that assist in the identification and steady elimination of waste or the focus is upon improving the "flow" or smoothness of work.

http://www.expertrating.com/certifications/Lean/LEAN_FILES/Lean1.gif

Lean Tools

Keep Lean Simple Maximize Customers Value & Minimize Waste

Sourcing Strategy: Create sustainable value for customers with fewer resources.

Objectives: •  Purchase Price Reductions •  Increase Asset Utilization •  Improve Productivity

Lean Sourcing Approach Measures for Improvement

Improvement Categories

Purchase Price

Customer Value

Material Reduction

Inventory Reduction

Transportation

Material Quality (Product and Process)

Delivery Issues & Time

New Product Development Cycle Time

Overall Equipment Effectiveness (OEE)

Key Benefits

•  Greater buy-in from Purchasing, Operations, and Strategic Suppliers.

•  Greater success rate of implementing identified savings and improved performance.

•  Improve quality and reduce waste across the supply chain.

•  On-going cost reduction opportunities via collaboration with integrated partners.

Where Do We Start?

Basic Wine Label Designs

Designing for Lean Label Innovations

Approximately 80% of product costs are determined in design.

Baseline Label Cost = 98mm x 153mm coated stock, medium format press(6 colors or less),

no other value adds.

Designing for Lean Label Innovations

Added Value Alternatives* Purchase Price Impact

Extra Color + 3%

Flexo Gold + 5 %

Stardust + 10%

Uncoated or Specialized Paper + 20% to 30%

Screen/High Build + 11%

Polymer Emboss + 8%

Foil: First, Second, Third +30%,+60%,+90%

Designing for Lean Label Innovations

Alternatives* Potential Savings Impact

Select the Correct Press Format 10% - 20%

Reduce Label Size or Optimize for Press 24% - 36%

Group Production Runs 10% - 40%

High Volume Paper Stocks 25% - 35%

Innovative Printing Techniques 2% - 20%

Select the Correct Press Format or Bottle Decoration Process

Select the Correct Press Format: UV Offset Large Press Format: 58%of Total Print Process Optimal Print Run Size: Over 200K Labels Optimal # of Colors: 6 to 9 Full Rotary Foil, Emboss or Screens: Full Rotary, Minimum one each depending on press.

UV Flexo Large Press Format: 31%of Total Print Process Optimal Print Run Size: Over 200K Labels Optimal # of Colors: 5 to 11 Full Rotary Foil, Emboss or Screens: Full Rotary, Minimum one each depending on press.

UV Offset Medium Press Format: 8%of Total Print Process Optimal Print Run Size: 10K to 200K Labels Optimal # of Colors: 4 to 6 Foil, Emboss or Screens: Semi Rotary, Minimum one each depending on press.

Select the Correct Press Format:

ACL (Direct Bottle Printing): 2% of Total Print Process Optimal Print Run Size: 1 to 100K Bottles Optimal # of Colors: 3 to 5 Screen Inks Design Options: Frost, Glass Color, Gold or Metallic Inks

Digital : < 1% of Total Print Process Optimal Print Run Size: 1 to 100K Labels Optimal # of Colors: 4 to 7 + UV Varnish Foil, Emboss or Screens: Generally Off Line, Minimum one each depending on press.

The Future Wine Label Press Format Large Format Combo Press: UV Offset & Flexo

Optimal Print Run Size: Over 200,000 Labels Optimal # of Colors: 7 to 9 Foil, Emboss or Screens: Minimum of one each Additional benefits: Wide web width increases production efficiencies Reduces waste Greater Design Flexibility Sleeve technology for quick changeovers

The Future Wine Label Press Format Large Format Combo Press: Flatbed Hot Foil & Emboss/Deboss

FEATURES • Optimum foil and embossing performance • Individual or simultaneous foiling and embossing capabilities • Combined foiling and embossing unit • Foil saving system • Designed for short runs

BENEFITS • Superior hot foil and embossing quality • Fast setup time & Minimum waste • Lower foil and tooling costs

www.nilpeter.com www.pantec.com

FP-4 RHINO™:

The Future Press Format Options Large Format Combo Press:

Offset, Flexo and FP4 or RHINO™:

Improvement Categories Impact

Purchase Price Improves Label Cost

Customer Value Improves: More Design Options

Material Reduction Reduced Material Usage

Inventory Reduction No Change

Transportation No Change

Material Quality (Product and Process) Improve Print Registration & Color

Delivery Issues & Time Improves, Shorter Run Times

New Product Development Cycle Time Increases If Not Planned

Overall Equipment Effectiveness (OEE) Improves For Printer

The Future of ACL UV Curable Inks

•  Reduces carbon footprint, volatile emissions and energy usage. •  UV inks support distinctive designs and enable printing directly on

bottle with entire bottle wrap printing. •  Coat entire bottles with a full color range in opaque or transparent

UV ink.

The Future of ACL UV Curable Inks

Improvement Categories Impact

Purchase Price Improves Cost – Volume Dependent

Customer Value Improves Shelf Impact Material Reduction Reduced Material Usage – No Labels

Inventory Reduction No Label Inventory, Risk - Over Runs or Changes In Production

Transportation Increase Transportation Cost Material Quality (Product and Process) Improve Durability & Color Consistency

Delivery Issues & Time Complex Logistics

New Product Development Cycle Time Added Time – Due To Color Matching

Overall Equipment Effectiveness (OEE) Improves No Labeling

Reduce Label Size or Optimize for Press

Example for 10”Web Width

Layout

Across Around 4.875 4.375 2 2 3.208 4.375 2 3 2.375 4.375 2 4 1.875 4.375 2 5 4.875 2.875 3 2 3.208 2.875 3 3 2.375 2.875 3 4 2.375 2.125 4 4

Reduce Label Size or Optimize for Press

Optimize Label Size for Combo Runs

Label Size#1 Label Size#2

Layout label #1 Layout label #2 can be up

to .125''

smaller than #1 Across Around Across Around

4.875 4.875 4.875 3.875 1 2 1 2 4.875 5 4.875 3.75 1 2 1 2 4.875 5.25 4.875 3.5 1 2 1 2 4.875 5.5 4.875 3.25 1 2 1 2 4.875 5.75 4.875 3 1 2 1 2 4.875 6 4.875 2.75 1 2 1 2 4.875 6.25 4.875 2.5 1 2 1 2 4.875 6.5 4.875 2.25 1 2 1 2

Optimize Label Size

Improvement Categories Impact

Purchase Price Improves Cost

Customer Value No Change

Material Reduction Reduced Material Usage

Inventory Reduction No Change, But Watch Combo Runs

Transportation No Change

Material Quality (Product and Process) Improve Color Consistence for Combo Runs

Delivery Issues & Time No Change

New Product Development Cycle Time Increases if Not Planned

Overall Equipment Effectiveness (OEE) No Change

Group Production Runs

Group Production Runs •  Design for one or two label sizes for multiple SKU’s •  Target one to three plate changes to differentiate individual SKU’s. •  Understand the printers requirements for group runs to maximize

economy of scale

Group Production Runs

Improvement Categories Impact

Purchase Price Improves Cost

Customer Value No Change

Material Reduction Reduces Make-Ready Material Loss

Inventory Reduction Adds Inventory Cost

Transportation No Change

Material Quality (Product and Process) Improve Color Consistence

Delivery Issues & Time No Change New Product Development Cycle Time No Change

Overall Equipment Effectiveness (OEE) Improves for Printer

High Volume Paper Stocks

High Volume Paper Stocks

In Line Polymer Graining •  Unlimited range of emboss/deboss design options available for both

uncoated and coated stocks •  Super Matte Varnish in combination of line grain emboss/deboss on

coated stocks can be used to replicate uncoated paper or two different stocks.

High Volume Paper Stocks

Improvement Categories Impact

Purchase Price Improves Cost

Customer Value Improves Design Options

Material Reduction No Change

Inventory Reduction Inventory Reduction for Printer

Transportation No Change

Material Quality (Product and Process) Improves Material Consistency

Delivery Issues & Time No Change

New Product Development Cycle Time Reduces Material Qualification Time

Overall Equipment Effectiveness (OEE)   Improves For Both Printer and Bottling

Innovative Printing Techniques

Innovative Printing Techniques Inks and Screens

•  Clear screens can embolden elements or create a raised effect instead of Emboss

•  Metallic screens add luster and texture. Silver screen ink simulates silver foil and can add a metallic look when overprinted.

•  White screen creates opacity •  Laying down of screen gloss or clear foil on an uncoated paper stock

to give the inks overprinting on the top a glossy look, as if they were printing on coated stocks to create the look of two stocks on one label

•  Metallic inks sit on top of the paper and look more vibrant. •  For label designs that have screen gloss and high build (which

would require two screens), screen gloss can be applied to all areas and then emboss to the areas that are to be high build. The height of the emboss combined with the screen gloss can have the look and feel of high build, especially on the semi-rotary presses that have the flat-bed sculpted emboss capacity. This method keeps the label to the economy of the smaller press with one screen station.

Improvement Categories Impact

Purchase Price Improves Purchase Price

Customer Brand/Shelf Identity Improves Brand Identity & Shelf Presence

Material Reduction Can Reduce Material Usage

Inventory Reduction No Change

Transportation No Change

Material Quality (Product and Process) Improves Depending on Technique

Delivery Issues & Time No Change

New Product Development Cycle Time Increases If Not Planned

Overall Equipment Effectiveness (OEE)   No Change

Innovative Printing Techniques Inks and Screens

Innovative Printing Techniques Sculpted Emboss/Deboss

•  Sculpted embossing/debossing allows multi-level images and “domed” lettering or images. Images are embossed or debossed with a brass tool and can be combined to have raised and lowered elements on the same tool.

Improvement Categories Impact

Purchase Price Increase Tooling Cost for Rotary

Customer Value Improves Shelf Impact

Material Reduction No Change

Inventory Reduction No Change

Transportation No Change

Quality (Product and Process) Add Complexity

Delivery Issues & Time No Change

New Product Development Cycle Time Can Add Timing For Approvals

Material Quality (Product and Process) No Change

Innovative Printing Techniques Sculpted Emboss/Deboss

Innovative Printing Techniques Offset to Flexo

Improvement Categories Impact

Purchase Price Improved Pricing

Customer Value No Impact

Material Reduction Reduced Waste at Press

Inventory Reduction No Change

Transportation No Change

Material Quality (Product and Process)   Improved Color Consistency

Delivery Issues & Time No Change

New Product Development Cycle Time Print Quality Needs To Meet Marketing Approval

Overall Equipment Effectiveness (OEE)   No Change

Innovative Printing Techniques Offset to Flexo

Other Areas of Improvement

Standard Label Shipping

Eco Bin Label Shipping

Eco Bin Label Shipping Difference in Corrugate needed to hold

Approximately 10 Million Labels.

Eco Bin Standard Corrugated Boxes

Eco Bin

Improvement Categories Impact

Purchase Price No Change

Customer Value No Change

Material Reduction Corrugated Material Reduction

Inventory Reduction No Change

Transportation Improved Load Utilization

Material Quality (Product and Process)   No Change

Delivery Issues & Time No Change

New Product Development Cycle Time No Change

Overall Equipment Effectiveness (OEE)   Improves, Reduced Material Handling

WEBRUNNER Labels

Application Benefits (1999):

Bottling SPEED EXTRA Cases Per DAY: 85 BPM: 2,000 extra cases per day 125 BPM: 3,000 extra cases per day 175 BPM: 4,000 extra cases per day

Based on 24 hour operations with 3 labels ( Front, Back and Neck ) with 5,000 label per roll and 30 Change Over

•  Non Stop Labeling No Roll Change •  No Fixed Leading Edge •  Significant Productivity Gains And Flexibility For Bottling.

A Continues Web Perforated Enough To Fold But Not Break

WEBRUNNER Labels a continues web perforated enough to fold but not break

But @ Greater then 250 BPM

Improvement Categories Impact

Purchase Price Improved Pricing

Customer Value No Change

Material Reduction Reduction in Material Loss

Inventory Reduction No Change

Transportation Increased Transportation

Material Quality (Product and Process) Reduced Quality Issues

Delivery Issues & Time Improved Supper Production Flexibility

New Product Development Cycle Time No Change

Overall Equipment Effectiveness (OEE) Improves For Both Printing & Bottling

What is “Lean”???

Lean is keeping lean simple!!