What Drives TCO?
Who Pays the Price?
Once you get past the sizzle
and figure out which digital print engine is best for you, the number
that ultimately comes up is TCO--the Total Cost of Ownership. The
claims being made for TCO of many new presses are getting to be like a
description of the universe: a riddle wrapped in a mystery surrounded
by a conundrum. Cutting through the clutter, it really comes down to
the trifecta of hardware, maintenance, consumables. In each case,
paying attention to the details is worth the effort.
Hardware
The
obvious component is the print engine itself, but not so obvious are
options such as RIPS and pre- and post-processing units. It's a little
like buying a car. Some items are available individually while others
only come as part of option packages. Salespeople often tell you only
what you need to know to get the price to where you want it, so make a
point of asking about everything you can and make sure you understand
the details. Knowing more can save you money while helping you get the
total solution that is best for your operation.
For example, be
sure you understand what is being quoted regarding monthly print
volumes, uptime, utilization, and machine capacity, and how these are
calculated. For example, Océ quotes its monthly machine capacity at 70%
of how much could conceivably be printed. This provides a conservative
number when planning for potential monthly print output and provides a
buffer for peak volumes.
Now take it down a notch and look at
uptime and utilization. Sometimes these are used interchangeably but
they actually have specific definitions. Uptime is a function of
machine availability, accounting for regular and preventive
maintenance. Utilization is how much of that uptime the printer is
actually used, based on the volume of work suitable for that device.
This can vary due to operator skill, job complexity and job changeover.
While crunching numbers, don't forget pre and post devices and
the software necessary to run them. Too often companies need more
finishing capabilities but only consider one finishing option. At Océ,
we partner with multiple pre- and post- processing firms so we can
offer a wide range of choices.
When you put the whole system
together, look at finished throughput, not just uptime or print speed.
You make your money from productivity--the number of finished, sellable
documents produced and the fastest machine is not always the most
productive. For example, suppose you are printing 100-page books for a
customer that needs to be perfect bound with a full color cover. The
pages are largely monochrome but include about 30 full-color pages that
are either printed offset or from a digital press. On an Océ VarioPrint
6250 with an inline perfect binding system, books like this can be
produced in about 90 seconds, with the color pages being interposed
on-the-fly because the pre-printed color pages can bypass the imaging
engine and be joined with the monochrome pages at full-rated speed of
250 duplex impressions per minute.
Maintenance
On
the maintenance side there are generally two components, a click charge
and the base maintenance. The click is typically charged either by the
impression (page) or by the linear foot for continuous feed printers.
Base maintenances applies regardless whether you print or not. There
are many variants to this from all-inclusive plans to a super click
(combinations of equipment cost, consumables and monthly maintenance
and usage charges) to volume plans, but there is always a charge for
usage. Beware the person who says there is no click: the number is just
buried in the base price, the lease or in the consumables!
Consumables
This
is the biggest area of discussion--and it can go on and on in different
directions. Suppose you have a choice of 1 cent per impression or half
a cent, which one would you buy? The answer is far from simple or
obvious and it even varies by print engine, RIP and even document
composition software. For instance, did you know different software
gives different coverage results? So when it comes to making a
decision, there is no totally accurate way to measure it and see what
the results are--until the machines are up and running jobs in your
shop. Ask vendors for averages and once installed you should be within
5-10% of estimates. And have them put the yields in writing and keep to
their promises!
A Final Tip
The closer you look at all
the numbers the less likely you are to be surprised. The best approach
is to ask questions and make sure you collect it the same way as the
vendor and fill out your own TCO forms. Don't be afraid to ask the
vendors for their TCO numbers and see how they work. Most know their
competitors numbers, and can put those into any comparison. And don't
forget to "sanity check" your work.
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Océ helps the people who make
our world. Companies everywhere use Océ technical documentation systems
in manufacturing, architecture, engineering and construction. Each
week, high-speed Océ printing systems produce millions of transaction
documents such as bank statements and utility bills. And in offices
around the world, people use Océ professional document systems to keep
the wheels of business and government turning. Océ is also at work in
publishing on demand, newspaper production and wide format color for
spectacular display graphics. It all helps our professional customers
go 'Beyond the Ordinary' in printing and document management.
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