How to sustainably improve your results through automation
by Rainer Greive
One way to escape the increasing pressure on margins in the printing and packaging industry and to improve earnings sustainably is to automate business processes. This enables efficiency gains throughout the value chain and creates structural competitive advantages. Now is the best time to take advantage of this.
Automation is no longer a topic for the future in the printing industry, but rather an integral part of the continuous improvement of operational processes. Often, the issue is not a lack of automation approaches, but a lack of cost-effective solutions that pay for themselves within two to three years. The good news is: many manufacturers have recognized this and are working on it. All share the goal of standardizing processes as much as possible, reducing manual interventions and tasks, and establishing a seamless digital process chain. Three key directions are emerging:
Fewer staff
Automated workflows in order processing, prepress, and production are intended to significantly reduce manual tasks. Routine tasks and physically demanding work can thus be minimized or eliminated entirely. Automation therefore saves on labor costs and helps counter the growing shortage of skilled workers in our industry.
Increased performance
Automated processes enable higher speed and stability in production. Setup times are shortened, turnaround times are reduced, and machine uptime is optimized. This becomes particularly relevant when manual tasks limit production speed. Automation helps achieve more output with fewer staff.
Better quality
Standardized processes and fewer manual interventions reduce the likelihood of errors. At the same time, process reliability increases, which directly translates into higher and more consistent product quality. Inspection and testing processes can be automated, ensuring that quality remains constant even with less experienced or frequently changing staff.
In any case, operating profits increase, while at the same time reducing dependence on staffing bottlenecks. So much for the theory.
To understand where automation can truly save money, we conducted a market study and determined the actual degree of automation in companies within the printing and packaging industry. The result: even the most successful companies are often fully automated only in certain areas. On average, the degree of automation in the “Printing” department is around 72%, with 100% representing full automation. In contrast, it stands at around 47% in the CTP sector and at just 37% in shipping/warehousing. In post-press, the degree of automation varies between 33% and 64% depending on the work step.
Clearly, there is still ample potential for automation in our industry. But how can you systematically tap into this potential for your company? The following approach has proven effective in practice.
1. Determine your level of automation
In our study, we determined the level of automation in companies using a simple metric derived from the ratio between the actual state of automation of a process and the maximum technically and organizationally possible level of automation. The resulting metric (0% to 100%) shows you the status quo and the existing potential. Benchmarks can provide additional guidance by showing you where you stand compared to the competition.
2. Set automation goals
100% automation is often desirable, but not always a worthwhile goal. Therefore, set realistic goals for how far the automation of your processes makes business sense. In doing so, consider where, for example, a particularly high amount of manual effort is required, where errors occur frequently, or where processes are delayed and therefore slow. Don’t rely on assumptions; measure precisely instead. The more potential you identify, the better. Finally, create a priority list of the individual automation approaches.
3. Find the Right Solution
Screen the market for suitable automation solutions and providers. This is a time-consuming process, as the vendor landscape is growing rapidly. In our research on automation as part of this study, we identified over 250 companies involved in automating the value chain in the printing industry. In the packaging sector, the number is even higher. At this point, it makes sense to consult external experts to determine which solutions are suitable for your company. Once you have identified suitable solutions, obtain various quotes and evaluate them from both a technical and economic perspective.
4. Do the math
Automation has one central goal: it must pay off. The key metric for this is the return on investment (ROI). It indicates how long it takes for the costs of an investment to be offset by reduced expenses. Therefore, determine the maximum allowable payback period and calculate the cost savings resulting from the investment.
Keep in mind that time saved at a cost center provides additional capacity to generate more output and thus more value. This increases the monetary impact of automation. Integrate these figures into your financial management and track the effects of the investment to verify whether automation is delivering on its promised benefits.
In addition to the direct cost benefits, it is also worth considering qualitative factors, such as ergonomic improvements for your employees. Reduced sick leave translates directly into financial savings.
5. Act consistently
Leverage the automation potential in your company, invest incrementally, and prioritize strictly based on cost-effectiveness and feasibility. Involve your employees early on. This fosters acceptance and ensures everyone is on board. Establish clear project structures during implementation and prioritize careful change management, as every automation initiative also represents a significant change within the company. This ensures that automation becomes a performance booster for your organization.
