PowerPoint Presentation

Opening line- Emily BowieIn order for a company to continue growing, it must constantly evolve and add new services. Value added services can easily strengthen a business and generate a larger client base.

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Step Right UpLearn all about it!Emiliy Step right up Learn all about it! You go to a carnival and they have popcorn, thats great. But if you go to a carnival and they have extra popcorn seasoning to put on the popcorn, that is value added. Today we are going to tell you about another value added service that we can offer our customers, at Perfect Image, and that is foil stamping and diecutting.

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What is Foil Stamping?Foil stamping is a value-added post-printing processPerceives eye-catching and higher quality productsUses pressure, foil film and sometimes heat and metal dies to apply imageJorie Foil stamping is a value added post printing process that is meant to draw attention to the piece. Foil stamping creates a distinctive and eye catching appeal. Research shows that by adding foil effects to your printed piece, consumers perceive a higher value and quality of your product. Foil stamping uses pressure, foil film and sometimes heat and metal dies to apply the image. 3

The FoilFoil comes in a variety of colors, finishes, and optical effectsDifferent types of foils are needed for fine lines and solid print areasFine lines = tight release foilLarge solid areas = easy release foilSilver and gold are most common foil colors Lots of testing is done for theseJorie The foil comes in rolls in a variety of colors, finishes, and optical effects. These are some examples of the foils available. The effects of the foil change with what substrate it is being applied to. You can see this difference on these two examples. Different types of foils are needed for fine lines and solid print areas. For fine lines a tight release foil is needed. For large solid areas a easy release foil is needed. There is lots of testing done for gold and silver foils because these are the most common colors. Not as much testing has been done for the other color foils. This example is one we saw being printed when we visited Subtle Impressions in Gastonia, North Carolina, a full service foil stamper. This piece shows the small details that a foil stamper can produce. A tight release gold foil was used here in order to get the small details of this piece. Our company should keep in stock a variety of foils in different colors, finishes, and releases. 4

Types of Foil StampingHot foil stampingUses pressure and temperature to applyCold foil stampingOnly needs pressure to apply Inline processFoil fusingFoil is bonded to a toner image area made with a laser printerJorie There are 3 types of foil stamping equipment. The first is hot foil stamping. It uses pressure and temperature to apply the foil area. The pressure in foil stamping is referred to as tonnage, which is the force that it uses to stamp down on the foil and substrate. This is an example of a package that has been printed with foil stamping. The foil stamping here is used so that when a consumer is shopping this package will draw their eye and catch their attention. This example shows how the attractiveness of a package can sway the consumers opinion of a product. This emphasizes how important value added services are to a print company. I am going to pass around some more examples of hot foil stamping. The second type of foil stamping is cold foil stamping. It only needs the pressure to apply the foil area, not heat. It is applied inline on a flexographic press. This is an example of cold foil stamping. Cold foil stamping is commonly utilized on labels. I am going to pass around a bunch more examples of cold foil stamping. The third type of foil stamping is foil fusing. It is a process where the foil is bonded to a toner image area that was created using a laser printer. This foil fusing is utilized in conjunction with variable printing which can be a really great value added service that our company could invest in.5

What is Diecutting?Diecutting is a value added serviceInvolves cutting the substrate into a specific shapeUses a steel cutting dieGenerally diecutting equipment located inside foil stamping equipmentJorie Diecutting is also a value added service. It involves cutting the substrate into a specific shape using a steel cutting die. The diecutting equipment is usually inside of the foil stamping equipment so that die cutting can be done at the same time as foil stamping. There is also separate diecutting equipment. Diecutting, like foil stamping, gives consumers the perceived higher value and quality of a product. This is an example of an invitation utilizing die cutting. The die cut folder hides the hand written information on the invitation. This diecutting adds a sense of higher quality, instead of just receiving a plain rectangle 5x7 invitation. 6

Ring Toss!True or false

Kelsey Foil stamping and die cutting are value added post-printing services. TRUEAll foil stamping methods utilize heat, pressure, and dies. FALSE3. Tight release foil is used for fine-lines and easy release foil is used for large solid areas. TRUE4. Red and Blue are the most common foil colors. FALSE5. Cold foil stamping is used inline in an Offset Lithography press. FALSE6. The foil of a foil fuser bonds to the toner. TRUE7. Diecutting cuts the substrate into a specific shape. TRUE8. Die cutting is always used within a foil stamper. FALSE

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Identify the NeedBusiness stationaryPromotional itemsMenusBusiness cardsPackaging materialsLabelsOld and new clientsSallieSo as you see, the value added services of the foil stamping and diecutting equipment can be very helpful to our customers. We are currently printing business stationary, promotional items, menus, and other products for our customers that could be foil stamped to add value. Increasing our foil stamping capabilities will allow us to reach new clients as well. For several months, we have been researching whether we should invest in a new foil stamper/diecutter so that we can expand our services. Tonight we will be presenting 4 different foil stamping presses in contrast to outsourcing our foil stamping needs. 8Heidelberg Varimatrix 105 CSF

EmilyStep right up to see the magnificent Heidelberg Varimatrix foil stamper.

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Heidelberg Varimatrix 105 CSFHot foil stamping, diecutting, embossing capabilitiesMaximum sheet size = 29.53in x 41.34in7,500 sheets per hour945 square feet of working space needed12 heating zonesPaper as thin as .001 pounds/square inchCorrugated as thick as .16 inches

EmilyThe Heidelberg Varimatrix 105 CSF provides hot foil stamping and die cutting with embossing capabilities. The maximum sheet size is 29.53in by 41.34in and it can run at maximum speeds of 7,500 sheets per hour. The machine will occupy 945 square feet, including workspace and has 12 heating zones. It is suitable with substrates ranging from paper to corrugated board up to a max thickness of .16 inches, allowing for decorative packaging solutions. It is designed for quick and easy set up and clean up.

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Heidelberg Varimatrix 105 CSFVariety of foils allowedChase-changing table for fast and easy set-upFoil infeed aidFoil rewinder and disposer

EmilyThere are very few limits to the type of foils required on this machine, allowing for a wide varieties of colors and manufacturers. The optional chase-changing table allows for new jobs to be set up while another job is still being die cut. The rolls of foil can be infed using an infeed aid, allowing for easier and faster feed during setup. An optional foil disposer allows for rewinding with special elements that eliminate foil breaks.

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Heidelberg Varimatrix 105 CSF

KelseyLook at the top of your Heidelberg plant layout sheet. As you can see, we decided to place the Heidelberg where the warehouse is now and add 20 feet x 90 feet to the end of the building. This just moves the warehouse over to the end of the building by 20 feet. This will allow for us to house additional equipment when we make future investments.12Bobst Masterfoil 106 PR

JorieCome one. come all to see the best press of all, the Bobst Masterfoil.

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Bobst Masterfoil 106 PR Hot foil stamping, embossing capabilitiesMaximum sheet size = 30in x 41.75 in8,000 sheets per hour1,400 square feet of working space needed12 heating zonesPaper as thin as .004 inchesCorrugated as thick as .08 inches

Jorie The Bobst Masterfoil 106 PR provides hot foil stamping with embossing capabilities. The maximum sheet size is 30in by 41.75in and it can run at maximum speeds of 8,000 sheets per hour. The equipment takes up 1,400 square feet of working space. This equipment has 12 heating zones and is suitable for lots of substrates including paper, carton board, heavy solid board, and semi-rigid plastics. It can print on paper as thin as 4 thousandths of an inch and corrugate board as thick as 8 hundredths of an inch. 14

Bobst Masterfoil 106 PR Made to deliver highest quality and greatest productivity in marketLower beam cam movementFoil unwind systemPower register IISmart FeederJorie The Bobst is jam-packed with clever features that have all been designed to deliver the highest quality and greatest productivity in the market. The new lower beam cam movement in this press allows for longer impressions and higher quality, while at the same time guaranteeing the highest production speeds. A new foil unwind system makes changing foils easy. Power Register II is another feature that delivers perfect foil-to-print register while Smart Feeder ensures consistent feeding of almost any material. The bobst offers high quality foil stamping. 15

Bobst Masterfoil 106 PR

KelseyLook at the top of your Bobst plant layout sheet. Just like the Heidelberg, we decided to place the Bobst where the warehouse is now. We added 20 feet x 90 feet to the end of the building. This just moves the warehouse over to the end of the building by 20 feet. It will allow for us to house additional equipment when we make future investments.

16Kluge EHG Series Half Sheet

KelseyLadies and gentlemen, right this way to learn about Kluge EHG. 17

Kluge EHG Series Half SheetHot foil stamping, diecutting, embossing capabilitiesMaximum sheet size = 22in x 30in1,700 impressions per hour135 square feet of working space needed2 heating zonesEZ Load MagazineToggle Base Hoist System

KelseyThe Kluge has a small footprint taking up approximately 135 square feet. It can accommodate an image area of up to 22 inches by 30 inches. The maximum operating speed is 1700 impressions per hour. This press is available with foil stamping, diecutting, and embossing capabilities and it has 2 heating zones.Some of the featured highlights of this machine are the EZ Load Magazine and the Toggle Base Hoist System. The EZ Load Magazine allows the EHG operator to lower and raise the height of the entire magazine with the turn of a switch. This enables an effortless loading of stock into the machine. The Toggle Base Hoist System assists the operator in the removal of the larger toggle base for make-ready.

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Kluge EHG Series Half Sheet

KelseyWe decided to replace the small letterpress with the Kluge. It is located between the Staging area and the 1 color 25 inch press. You can see this on your Kluge plant layout sheet. 19Thermo-type NSF Elite Foil Press

SallieCome this way to join the fun, the thermo-type NSF Elite Foil Fuser is the best one. 20

Thermo-type NSF Elite Foil PressFoil fusing, diecutting, embossing capabilitiesNo die needed because of high speed foil fusingMaximum sheet size = 14.5in x 20.5in5,000 impressions per hour192 square feet of working space1 heating zoneAutomated by a computer touch screen systemSallieIdeal for short, medium and long runs, the NSF Elite can flat foil stamp, blind and foil emboss, and die cut at speeds up to 5,000 impressions/hr. This piece of equipment does not use dies because it uses high-speed foil fusing where the foil is fused to toner to create a flat foil impression. It can also emboss an image with the same high-speed process when dimensional toner is used. The NSF Elite can imprint/ die cut up to eight positions down the length of each sheet, needing only a single die and makeready. Without the additional make-readies for multiple sheets, set up time and makeready cost is significantly reduced. The NSF Elite can run a portrait maximum sheet size of 14.5 by 20 and needs 192 square feet of working space. High degrees of automation are utilized with a touch screen Windows based computer control system and only one heating zone is needed.21

Thermo-type NSF Elite Foil PressTwo foil support shaftTwo independently programmable foil drawsTwo waste foil rewindsPre-loading and high pile capacityProduces small to large ordersSallieSeveral features included in the NSF Elite foil draw system are two foil support shafts, two independently programmable foil draws, and two waste foil rewinds. The NSF Elite also features a computer controlled, pneumatic centralized lubrication system. The computer core processes impression pressure, press speed, and run/idle time to control lubrication. Paper registration, foil draw length, counter functions, jam detect/interrupt, double feed detect, speed and impression pressure functions are all controlled and displayed through the computers touch screen.

A traditional pile feeder with a 32 high pile capacity can be pre-loaded while the press is running to minimize down time. Because of the NSF Elites pre-loading and high capacity feeder, efficiency increases and operator workload is significantly decreased, saving the company time and money.

Because the NSF Elite can produce small to large orders, has flexibility regarding pressure, registration, and foil draw adjustment, user friendly operations, and the ability to use large foil rolls and feeder capacity, it is an extremely productive and cost-efficient piece of equipment.

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Thermo-type NSF Elite Foil Press

KelseyWe decided to place the Thermo-type foil fuser in the open area next to the computerized cutter. It is located on the right side of your Thermo-type foil fuser plant layout sheet, about halfway down the sheet. 23

Basket TossPick the press

Jorie

Which press is takes up the most square footage? BobstWhich press requires no die? Foil FuserTwo presses allow for corrugate substrates? Pick one. Heidelberg and BobstWhich press allows for variable data foil stamping? Foil FuserThis press has an EZ load magazine and a toggle base hoist system? KlugeWhich press has a foil rewinder? HeidelbergTwo press require an addition to the building. Pick one. Bobst and HeidelbergWhich press replaces the small letterpress? Kluge

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OutsourcingAdvantagesCost effectiveHigh qualityDisadvantagesDont have control over the processTurnaround time can be an issue3-7 days averageSallieAn alternative to investing in new equipment is outsourcing. As we seek to expand our foil stamping capabilities, our sales force should begin to promote this service. As we take in more foil stamping business, we might find it best to use our current foil stamper and outsource our remaining needs until we reach the demand to invest in an additional foil stamper. Therefore we researched the advantages and disadvantages of outsourcing. The advantages of outsourcing are that it is cost effective because we do not need to own our own press. We will also receive high quality work from outsourcing because it has been done by foil stamping experts. These foil stamping experts use foil stamping all day, everyday as we are just a printer who offers foil stamping. The disadvantages of outsourcing are that we do not have control over the process and the turn around time is longer if outsourced. The typical turn around time for outsourcing is 3 to 7 days. 25

Outsourcing CostsCost of foil stamping a 2x2 letterhead 8.5x11 that is already printed from our print facility. Paper cost already incurred$50 makeready$40 per 1,000 sheets for run time$2 per 1,000 sheets for foil$48 for the dieTotal cost for 5,000 sheets= $308Total cost for 20,000 sheets=$938

SalliePricing for foil stamping has 4 components; which are makeready, press time, foil and stamping dies.

The cost of foil and dies is best determined by the square inch which drives pricing. The letterhead for this quote is a 2x2 area. Next, the type of foil is important. The most common foils are gold and silver, which are also the most economical. This pricing is based on gold or silver metallic foil. Next is press time. Press time is broken into make ready and run time. Makeready is the time it takes to set up the press and Run is the time necessary to process the job.

Here we have a $50 makeready. $40 per 1,000 sheets for run time, $2 per 1,000 sheets for silver and gold foil. And $48 for the die.

So 5,000 8.5x11 letterheads that are foil stamped in silver or gold equals $308. The die can be used again for the next run, so the repeat price is $260 because no die price is added in. For 20,000 letterheads that are foil stamped in silver and gold equals $938. The Run charge could be reduced to $38 per 1,000 sheets run time for the larger order quantity. This is in order to win the business. This would knock about 4% off the price.

One last item to mention would be register to print or critical register. If the foil registers precisely to print, the makeready may take more time and the Run may be slower to assure top quality. Critical register can cost slightly more to produce.

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Owning EquipmentAdvantagesReceive all profits from foil stampingCan control the processIn control of how fast you can foil stampDisadvantagesCostly equipmentHave to keep up with maintenance needsMany extra needs and elements neededSallieWe may find it better to invest in an additional foil stamper right away. Therefore we researched the advantages and disadvantages of owning our own equipment. The advantages are being able to retain all profits made from foil stamping, we can control the process, and we are in control of how fast the foil stamping will be done. The disadvantages are having to pay for the costly equipment, keeping up with maintenance costs, and incurring all of the other needs a foil stamper brings with it. 27

Extra Needs InvolvedFoilEngraverEtching machineImaging deviceDiecutterDiesWorker with special skills for equipmentSallieSome of the other needs that come along with owning a foil stamper are buying the foil, keeping up the costs of an engraver and an etching machine, costs of preparing the dies, and employing a specialty worker for this piece of equipment. 28

Cost In HouseCost of foil stamping a 2x2 letterhead 8.5x11 in house that has already been printedHeidelbergTotal cost for 5,000 sheets = $136.76Total cost for 20,000 sheets = $537.05Foil FuserTotal cost for 5,000 sheets = $77.27Total cost for 20,000 sheets = $309.10EmilyWe calculated an estimate to be able to determine how much it would cost to print the same foil stamping 2x2 letterhead on an 8.5x11 piece of paper as we calculated before for Subtle Impressions. We only considered run time in this estimate. For the Heidelberg, running only 1 shift for 5,000 sheets, we calculated the run time would cost $136.76 as compared to Subtle Impressions run time being $200. For the Heidelberg, running only 1 shift for 20,000 sheets, we calculated the run time would cost $537.05 as compared to Subtle Impressions run time being $760.

For the foil fuser, running only 1 shift for 5,000 sheets, we calculated the run time would cost $77.27. For the foil fuser, running only 1 shift for 20,000 sheets, we calculated the run time would cost $309.10.

For both the Heidelberg and the foil fuser, we can mark up our prices to include a profit and still remain competitive with Subtle Impressions.

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New/UsedBuying new equipmentWarranty Buying used equipmentWill need maintenance more often Can get rebuilt for price of new equipmentJorie One consideration we should look into when buying a foil stamper would be to buy new or to buy used. The advantage of buying new is the warranty that comes with the new equipment. Buying used equipment can be very risky because it could break more often. We would need a good maintenance man around to help with repairs. If we feel as if our maintenance man is capable of taking on this task then this could be an option for us. Another option is it to rebuild a used piece of equipment. Companies will restore an old piece of equipment for about half the price of a new piece of equipment. For now we are just going to focus on buying a new piece of equipment. 30

InstallationTwo pieces of equipment require an addition on the buildingThe BobstRequires 1,400 square feetThe HeidelbergRequires 945 square feetProduction area requires 100 additional square feetAdditional concrete would need to be poured to create reinforced slab

KelseyWhile researching the installation of the Bobst and the Heidelberg, we determined that an addition would need to be added on to our current building. The Bobst would require 1,400 square feet, and the Heidelberg would require 945 square feet. We looked into housing the equipment in an additional building also. We looked at buildings in the Columbia Classifieds, but we decided that it would be less costly to just add onto our existing building. The production area would need roughly 100 additional square feet for each machine. This would make sure that there is enough room to store the foil, the paper needed for each job, and a place to store the dies. The addition would be necessary in order to keep the same warehouse facility and production area for either of these two pieces of machinery. Extra concrete would also have to be poured to create a reinforced slab for each of these machines to sit on.

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InstallationThe remaining two fit into the current building as is. The Kluge Requires 60 square feetWould replace the small letterpress in house nowThe Thermo-type foil fuserRequires 135 square feet

KelseyWe figured out that the remaining two pieces of equipment would fit in the building as is. These two pieces of equipment are the Kluge and the Thermo-type. The Thermo-type foil fuser would require roughly 60 square feet of production area. The Kluge would require 135 square feet of production area. Since both of these machines have a small footprint, they do not require an addition to the facility. However, if we were to purchase the Kluge, we suggest replacing our small letterpress with it. Either of these two pieces of machinery would be better options for installation purposes.

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InstallationAll 4 pieces of equipment require a 3-phase power systemNeeded for equipment using a lot of powerNeeded for heating plates3-phase circuit combines 3 alternating currents of the same frequency. Each current is 120 degrees out of phase with each other.

KelseyIn order to house each of these foil stampers, we would need to run 3-phase power system throughout the facility. This power is especially needed for heating plates because a lot of amps are needed in order to produce enough heat. Luckily, we already have a 3-phase system, so this would not be a big problem if we were to purchase one of these pieces of equipment. Incase you didnt know, a 3-phase circuit combines three alternating currents of the same frequency. Each current is 120 degrees out of phase with each other.

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InstallationThree separate waves of power producedPower never drops to zeroPower delivered is always constant

Kelsey3-phase power system produces three separate waves of power as represented in this picture. The power in a three phase power supply never drops to zero. But in single phase, the power falls to zero 3 times per cycle. Thus, in a 3-phase power supply, the power delivered is constant. 34

InstallationImportant to be prepared on installation day(s)Reduces the interruption of workWho should be present on installation day(s)?Electrician to hook up pressMaintenance person to hook up press to house airRigger if press is too large for forklift

KelseyWhen purchasing a foil stamper, just like any other large piece of equipment, it is important to be fully prepared on the installation day(s). Being prepared will reduce the interruption of work. On the installation day(s), an electrician should be present to hook the press up to electricity, as well as a maintenance person to hook the press up to the house air. A rigger should also be present if there is not a large enough forklift to carry the equipment.

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Economic AnalysisThis is the Budgeted Hourly Rate comparison for each piece of equipment

EmilyBudgeted Hourly Rate Comparison- The Kluge and Foil Fuser have very similar BHRs, but we see that the foil fuser runs a lot more sheets per hour. The Bobst is the most expensive to run, its the largest and has the highest cost.

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Economic AnalysisThis is the breakeven comparison for each piece of equipment

EmilyBreak even comparison- includes time value of money- Here we compare break even point for equipment at 1 shift, 2 shifts, and the Hybrid shift. The hybrid shift involves phasing in the equipment slowly and represents a more realistic start to our new equipment. For the first 6 months we suggested the equipment would run 50% of the time as we are beginning to sell more foil stamping. For the next 6 months, we would run 75% of the time as demand grows. Our hope would be that at the end of the first year, we will be running up to our 80% efficiency goal at 2 shifts. Then for the foil fuser, we didnt complete a phase in so the last column you see is break even at 3 shifts.

We see that the soonest break even is the Kluge at 2 shifts with the foil fuser following close behind. The Kluge also has the soonest phase in break even.

It is important to remember that these numbers are dependent on consistent and growing demand for foil stamping and die cutting. Currently we have a small demand for these services, so that for these numbers to hold true, it is essential for our sales force to sell foil stamping to our clients and find new clients that want to buy foil stamping. 37

Economic AnalysisThis is the payback comparison for each piece of equipment

EmilyPayback comparison- the comparison is consistent with breakeven, it just occurs sooner than break even because it fails to consider time value of money. 38

Which press is the best after all?EmilyWhich press is the best after all?39

RecommendationThermo-type foil fuser or Outsource until we reach higher demand Emily

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Recommendation: Foil FuserDigital press allows for more VDPFoil fusion allows foil to toner contactVDP foil stampingBusiness cardsDiplomasPremium direct mail piecesStationary

SallieAfter much research, we believe that it would be best to invest in the thermo-type foil fuser if we invest in a digital press. If we decided to invest in a digital press, this will increase our digital printing volume. Since foil fusion involves foil to toner contact, any piece printed on the digital press could be foil stamped. This also allows for increased variable data printing capabilities, allowing us to sell variable data printing with foil stamping. We believe this would be a really great value added service for our customers. Think business cards, diplomas, premium direct mail pieces, stationary, all that could be personalized for the needs of our clients.

We will reach break even after 2.74 years running at 1 shift, which is a realistic expectation only if we can really push our sales force to sell this new service. The foil fuser involves an easy installation and can fit on our current building.

The Kluge many have a slightly sooner breakeven, but we believe the foil fusers variable capabilities make it easier to sell, giving it a sooner breakeven realistically. 41

Recommendation: OutsourceContinue using letterpress foil stamperOutsource excess jobsHigh qualityNo purchase neededAs demand rises, reconsider equipment investmentJorie If there is no digital press purchased, this option allows us to continue using our letterpress machine to continue foil stamping in house. As discussed previously, material to be foil stamped above our current in house capabilities should be outsourced to a full service foil stamping provider. This will ensure high quality finishing without the investment of new equipment in house. We believe we should this should continue until the demand rises in which case we should re consider investing in a new foil stamper. We would want the sales force to push the need for foil stamping on our customers so that we can invest in a new piece of equipment sooner. 42

Jorie Raffle??

With value-added features that can be tailored to meet the customers needs, Perfect Image can provide professional results that will grow our business.

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Any Questions?

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Support Materialhttp://www.bobst.com/usen/products/hot-foil-stamping/hot-foil-stampers/overview/machine/masterfoil-106-pr/#.U1XtCxavOa4http://www.heidelberg.com/www/html/en/content/products/postpress/die-cutting/varimatrix_105_csfhttp://www.thermotype.com/NSFElite.htmlhttp://kluge.biz/index.php?page=ehg-series-22-x-30

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Support Materialhttp://ohsobeautifulpaper.com/?s=foil+stampinghttp://www.thermotype.com/Foil-Tech%20Q&A.htmlhttp://www.tripplite.com/products/single-vs3-phase

Add in sources46