Printers’ CEOs neglecting ‘cost in use concept’

Over the years, most of the printing organisations have started procuring their consumables on the basis of its cost. The conversation always starts with the price but no mention to quality.
It is often seen that press owners involve themselves only when taking decision in respect of machinery with high investment and paper or board since that constitute the major part of the production cost. Unfortunately when it comes to selection of consumables, the decision is left to the middle level management team or the floor level operators, with clear policy direction that since the market is competitive all the cost cutting and saving have to be achieved within this part of the production cost. The owners of small and medium size presses are not the decision makers to use a balanced consumables portfolio.

By only factoring in the cost of buying consumables, they end-up in the wrong direction of being competitive. The consumables are small part of the production cost but they make a tremendous difference in the final print quality, machine down time, wastage and the wear and tear of expensive equipment. The discussion on consumable with the vendor starts and ends only with the price. By using standardized quality products, contrary to this, printers can achieve the real cost cutting in the production cost. But this will show result over a period of time that is where the “concept of cost in use” will justify a meaner and leaner efficient production run.

–Vijay Kr Ahuja
Raj & Co, New Delhi