CTP Plate Making: Understanding The Real Costs: J Zarwan Partners

CTP Plat e Making:
Underst anding
t he Real
Cost s
J Zarwan Part ners
2 0 0 3 J o h n Z arwan
Cont ent s
Overview 1
Int roduct ion 2
M e th o d o lo g y an d S am p le D e m o g rap h ics 3
Plat e Product ion Process 4
Differences in Plat e Cost 5
P lan t S ize an d P late Vo lu m e 5
M an u factu re r an d Typ e o f P late 5
Processing Cost s 8
C o st o f P late P ro ce sso rs 8
F lo o r S p ace 8
C o st o f C h e m istry 8
C h e m istry fo r T h e rm al P late s 11
C h e m istry fo r Visib le Lig h t P late s Vio le t) 12
B akin g 12
I n ve n to ry 13
P ro ce sso r M ain te n an ce 13
T h e rm al P ro ce sso rs 14
Visib le Vio le t) P ro ce sso rs 16
Waste D isp o sal 16
Summary: Tot al Cost s of Chemist ry 18
About J Zarwan Part ners 19
1 CTP: Understanding the Real Costs
The move to computer-to-plate has increased the
productivity and efficiency of printers by simplifying
the production process and streamlining workflow.
Despite the cost savingsachieved by moving from
film-based plate making to CTP, there are still
important costs incurred in getting the plate from
the platesetter to the press. Most printers accept
these as unavoidable costs of doing business, and
therefore do not track these costs very carefully.
As the pressure on printers to increase efficiency
and speed continues to grow, understanding these
costs and their implications becomes increasingly
important. This white paper identifies and
highlights some of these often neglected costs
and summarizes the experiences of printers using
different types of digital plates. Reviewing this
information will assist printers in developing a clear
picture of the costs they actually incur during the
plate making process.
Key findings include the following:
Chemistry can account for as much as
30% of the price of the plate, and there are
additional hidden costs that can bring the
total cost of plate making even higher
Processor maintenance and cleaning
Process control, stability and consistency
Waste disposal
Inventory
The typical printer can spend $40,000
to $100,000 per year on chemistry and
related items.
Many, if not most, printers tend to
underestimate the total cost of chemistry,
processing, and maintenance
Printers who keep good records or whose
suppliers provided reporting relative to the
value of the chemistry purchased report
spending considerably more than those
who only estimate chemistry use
There is no free lunch
Low plate costs typically mean higher
chemistry costs
Low chemistry use is associated with
higher plate costs
Consignment buyers pay more
Those who use consumables to finance
equipment pay more
Chemistry-free reduces most costs
Process-free eliminates them entirely
Only one vendor, Presstek, offers these
solutions today
We expect more to come
Overview
Computer-to-plate (CTP) systems today all
work very well. They differ in features, speed,
automation, and, of course, laser type, but just
about all can reliably image a plate and produce
a high quality printable dot. As they move to
computer-to-plate, printers have improved
workflow efficiencies, in part by simplifying and
streamlining the prepress manufacturing process.
This is obviously true of the shift from analog to
CTP. But it also applies to the CTP process as well;
printers must continue to rationalize and increase
the efficiency of the production process as CTP
technologies continue to mature.
The cost of CTP is not limited to the cost of the
system and of the plate. Keep in mind that CTP
systemsand the costs associated with them
vary, and there are subtle differences in how they
operate, the cost centers associated with their
operation, and the overall implications to the
production workflow. This results in real
differences in the true cost of getting the plate
on to the press.
Printers must understand and know all of their
costs, regardless of where they are incurred within
the operation. They should never assume that a
given cost is unavoidable or cannot be improved.
It is an absolute requirementespecially in todays
competitive environmentto have all production
processes under control. It should also be kept in
mind that each step in the production process
represents an opportunity for error, and
elimination of process steps not only increases
efficiency and reduces cost but also reduces
opportunity for costly and time-consuming
mistakes that can increase product cycle time,
cause extensive rework, and ultimately lead to
customer dissatisfaction and, ultimately,
defection. Thus, it is critical to understand the
potential sources of error and the costs associated
with making these mistakes. A critical element in
this analysis is
understanding the
cost of each and
every piece of the
operation.
A recurring theme
in this white paper
is printers lack of
awareness of the
total cost of
getting a plate on
press. While some
printers do an
excellent job of
accounting for costs, most do not, and many
printers, unfortunately, do not even understand
the requirement. For example, as computer-to-
plate solutions began to hit the market, many did
not recognize the potential benefits of migrating
from traditional analog processes to these new,
more efficient, digital solutions. Additionally, it
is important to keep in mind that while the cost
of the chemistry itself may appear to be relatively
small, it in fact often represents a significant
proportion of the overall cost of producing a
plate. Moreover, NAPL estimates that the cost
of operating a plate processor can be as high as
$90,000 per year or more. These are not
insignificant costs, and it is critical that they be
well understood so that opportunities to reduce
them can be exploited.
Int roduct ion
K e e p in m in d th at C T P
syste m san d th e co sts
asso ciate d with th e m
vary, an d th e re are
su b tle d iffe re n ce s in h o w
th e y o p e rate , th e co st
ce n te rs asso ciate d with
th e ir o p e ratio n , an d th e
o ve rall im p licatio n s to
th e p ro d u ctio n wo rkflo w.
After imaging, most plates need additional
processing. These post-imaging costs are often
considered unavoidable, or even ignored, yet
they can add significantly to the total cost of
plate production. And remember, each
additional step in the production process
represents an opportunity for error. As one
vendor newsletter states,
All the benefits of CTP can be thrown
right out the door if the imaging and
PROCESSING parameters are not kept in
check. One bad plate can cause countless
hours of press down-time if it has not been
developed properly and will bring about a
hasty, unscheduled, processor clean. This
usually means diverting staff (from an
already reduced workforce) away from
their dedicated jobs to carry out the
maintenance.
KPG CTPeXPOSURE Newsletter,
21 October 2002
This white paper presents a thorough discussion
of the costs incurred in getting the plate on press
experienced by printers of different sizes, with
different CTP systems, and using various types
of plates, focusing principally on chemistry,
processing, and maintenance.
F ig u re 1 . P late Typ e s R e p re se n te d
Fuji Thermal
18%
KPG Thermal
18%
Agfa
16%
Other Thermal
5%
Fuji Violet
8%
KPG Sword
11%
Western Lastra
12%
Presstek
12%
During the summer of 2003, we spoke with 63
printers, gathering detailed information about their
plate and chemistry use and costs. We attempted to
speak with plants using different types of plates,
including thermal (both bake and no-bake) and violet,
representing all of the major manufacturers. As prices
can vary substantially with plate volume, we spoke
with printers of all sizes to gain a more accurate cost
picture. A number of the plants included are part of
very large organizations and national accounts. This
means that while the information we collected
represents costs incurred at the plant level, the prices
they paid naturally reflect the parents buying power.
Printers provided information about plate sizes,
volumes, and prices; amount and cost of the different
types of chemistry used (developer; replenisher;
neutralizer; and finisher); processor maintenance and
cleaning; inventory levels; and waste disposal. In most
cases, costs came from invoices or other accounting
documents, delivering a high level of confidence in
the accuracy of the information. Some respondents,
however, estimated their actual chemistry use due to
lack of complete records. As we will discuss later, it is
our opinion that they tended to underestimate these
costs, since those who provided their records or
received the information from their suppliers reported
higher relative volumes and costs than those who
simply estimated their chemistry use.
To compare the very different types of plants and
plates, we converted the costs to dollars per square
foot of plate media consumed.
Figure 1 reflects the plate types included in the study,
and the percentage of the sample each represented.
Figure 2 presents the breakdown of establishment
sizes included in the study. As you can see,
respondents were evenly distributed among small,
mid-size and larger print operations.
F ig u re 2 . E stab lish m e n t S ize
Met hodology and Sample Demographics
50-99 Employees
40%
100+ Employees
27%
1-49 Employees
33%
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P ro ce ss-fre e
T h e rm al C T P (one step)
C h e m ical-fre e
T h e rm al C T P (two steps)
N o -B ake
C h e m ically P ro ce sse d
T h e rm al C T P (three steps)
Visib le Lig h t
C T P (four steps)
P re -b ake
T h e rm al C T P (six steps)
On the platesetter, the image formation is initiated
by the laser. The latent image then must be brought
out or developed and fixed. For almost all plates,
this requires chemical processing. Some plate types
require pre-heating prior to developing, either as a
separate step (as with KPG Thermal Gold, for
example) or integrated into the processor (as with
many visible light
plates). The plates are
then developed and
rinsed, with a gum
finisher applied at the
end of the process to protect the plate and image.
Many plates can be baked after processing to
improve run length and/or chemical resistance.
Plate developing chemistry, by its very nature,
is unstable. For example, for positive working
thermal plates, the developer is typically an
alkaline solution. As plates are run through the
processor, the developer can neutralize and
weaken. Many systems rectify this through the
addition of replenisher to boost the pH. But after
a certain number of times, the pH level of the
developer can no longer be restored its worn
out and needs to be changed. The frequency
depends on plate volume, the time interval
between changes, and other manufacturers recom-
mendations. During the change of chemistry, most
printers completely clean the processor.
Figure 3 depicts the steps involved in the various
plate making processes.
Plat e Product ion Process
F ig u re 3 . P late M akin g P ro ce ss S te p s
P late d e ve lo p in g
ch e m istry, b y its ve ry
n atu re , is u n stab le .
The cost of plates can vary widely from plant to
plant, from less than $0.80 per square foot to more
than $2.00. The volume-weighted average price
paid by the plants surveyed, adjusted for rebates,
is $1.14 per square foot.
There are a number of reasons for this wide range
of prices paid for plates, including such things as
volume of plates purchased; plate contracts that
leverage preferred customer status (particularly for
national accounts); and sizes of plates. Other, more
hidden influences include rebates; using plate
purchases to finance a range of equipment; and
other incentives. While it is difficult to determine
the impact of special deals and incentives on
nominal prices, we can look at two areas-plate
volume and plate manufacturer and type-to gain a
better understanding of plate pricing variances.
Plant Size and Plat e Volume
All things being equal, one would expect larger
volume plate users to pay somewhat less than
those who use a lower volume of plates. And, as
indicated in Figure 4, this is generally the case;
but the association is actually fairly weak. In fact,
volume of plates consumed at the plant only
accounts for about 8% of the variation in plate
prices. Other factors include such things as
whether plates are purchased on consignment; are
financing an equipment purchase; or if the plant
is part of a national account or buying group.
Manufact urer and Type of Plat e
Plate prices can also vary dramatically by type of
plate and, especially, by manufacturer. Figure 5
shows the range of reported prices paid for plates,
by manufacturer and type of plate.
Differences in Plat e Cost
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F ig u re 4 . I m p act o f Vo lu m e o n P rice
Note: The prices reported by most plants were
pre-rebate; others, however, reported net prices
after rebates; and of course, some plants do not
receive rebates. In order to make the reported
prices consistent for comparison purposes, we
adjusted where appropriate for actual rebates,
or assumed the industry-standard 30%.
As we are primarily interested in the range and
variation of prices, and in order to maintain
confidentiality, the prices are indexed. The
(unweighted) overall average price paid by each
plant is shown as 0%. The high, low, and average
prices for each plate are shown relative to the
overall average price.
As Figure 5 clearly demonstrates, the ranges can be
quite wide. One plant, for example, switched from
the KPG 830 thermal plate to Spectratech to the
KPG Thermal Gold plate (not always because of
price), with a price swing of more than 40%.
There are, of course, some differences between
vendors. Western/Lastra and Spectratech, for
example, tend to be less expensive than other
brands. Presstek Anthem, which uses no
chemistry, is generally found among smaller
printers. As they have less purchasing power
based on volume than larger plants, they tend to
pay more for consumables. This is reflected in
the survey results. Nevertheless, the typical price
paid by a printer is fairly consistent across brands
and types of plates, as one would expect for a
mature product. Because of the wide range of
prices for thermal plates, there are no significant
differences between prices paid for visible and
thermal plates.
The prices paid, however, differ much more
widely withina brand or type of plate. As Figure
5 indicates, prices for Fuji violet plates appear to
have much less variation than prices charged by
-7 0 %
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P re sste k
F ig u re 5 . R an g e o f P late P rice s
other vendors. As a relatively new product, pricing
is naturally more consistent. This may change as it
enters into wider distribution. In contrast, the
more mature KPG plates have the greatest variation
in price. There are a number of reasons for this.
First, KPG has by far the largest market share in
digital plates and would, therefore, have the
greatest variety of customers. This not only means
that KPG sells to both small and large plants, but
also that KPG customers are likely to have plate
contracts and pricing that reflect the full range of
pricing options, financing, and creativity. This is
compounded by the fact that KPG does not
manufacture its own CTP system; the company
has, over the years, had strategic relationships with
a number of equipment suppliers, including Creo,
Heidelberg, and Screen. Moreover, national
accounts, which are most likely to use KPG
Thermal/Gold plates, are able to negotiate very
low prices for plates.
Perhaps nothing in the current market for products
in the printing industry is more complicated than
the pricing for plates. The nominal prices shown
on the invoice often bear no resemblance to the
real price.
First , a majority of printers receive some type of
rebate directly from the manufacturer, from their
dealer, or both. Rebates can be provided on specific
products (e.g., plates only) or on all purchases.
These rebates can be substantial, as much as 30%
or more. They are paid periodically, at varying
intervals, with quarterly being the most common,
and are earned based on meeting an agreed-upon
volume commitment. For various reasons, the
printer may elect to receive a rebate rather than
a lower price at time of purchase.
Second, plate pricing can also be used to
subsidize equipment, either directly or indirectly.
In a direct
subsidy, the price
of the platesetter,
for example, can
be tied to a plate
contract, with the
platesetter price
lowered as the
plate price and
contract length increases. Less directly, the plate
processor is provided at no charge, but, of
course, it is in fact paid for by the use of plates
and chemistry.
Third, a rebate on plates can be applied toward
loan or lease payments on the equipment. These
payments can be made by the printer (in which
case the rebate provides a more predictable cash
flow with which to make the payments) or by
the plate supplier, who may finance the purchase.
While the plate price and/or rebate is most
typically and obviously tied to the relevant
associated equipment (plates and processor or
platesetter), this is not always the case. One
printer notes, Our consumablesfinanceall kinds
of equipment, but wedont receivea rebate.In
another more complicated example, the printer
has a CTP system from one manufacturer,
workflow from a second, and is using plates from
a third vendor. In this instance, the plate supplier
purchased the workflow software for the printer
and is applying the higher plate price toward the
software purchase.
Another respondent stated, Platepricingis
extremely complicated. Wereon all sortsof different
contracts. Wedont pay for serviceat all; on some
devices, platesaretied up with theleaseagreement,
on othersnot.
P e rh ap s n o th in g in
th e cu rre n t m arke t fo r
p ro d u cts in th e
p rin tin g in d u stry is
m o re co m p licate d
th an th e p ricin g fo r
p late s.
Once the plate is imaged, it needs to be processed.
The cost of processing is not trivial. This is a real
cost center; whether or not you choose to track
these costs, you must be aware of them. NAPL
estimates the annual cost of operating a 4-page
plate processor to be $80,000 to $100,000 per
year. (Cost Study on Digital Prepress
Operations).These estimates are fully burdened
and include labor, depreciation, overhead, and
other costs.
We will focus on a few important components of
the cost of processing a plate:
The cost of the processor, including floor space.
Cost of chemistry
Cost of maintaining the processor
Inventory costs
Baking
Waste disposal
Cost of Plat e Processors
Plate processors can cost from $20,000 to $40,000
or more, depending on size, vendor, and plate type.
Very few printers, however, explicitly pay for their
processors. Almost all processors are provided free
with even a minimal volume of plates. Accordingly,
we have omitted the cost of the processor as an
explicit cost, since its cost is already buried in
the price of the plates.
Floor Space
One of the hidden costs of plate making is the cost
of the space it consumes. Printers rarely allocate
this cost because they, unfortunately, do not always
account for all of their costs. The space required for
the processor is typically small. The attitude of
most is, We have the space, so they do not see a
reason to charge for it. In fact, only one of the
plants contacted (an operation of one of the
larger printers in North America) explicitly
charges for floor space used by the processor.
Nevertheless, using even very simple
assumptions, the cost of space can be very
expensive, frequently as much as the chemistry
itself. Charges for floor space ranged from $6 to
$10 per square foot. Obviously, in higher-rent
urban areas such as New York City, San Francisco
or Boston, costs can be much higher. But even
using these lower figures, the space consumed by
the processor can cost as much as $5,000 to
$10,000 per year. Even for a moderate to large
plant that spends $100,000 to $150,000 a year
on plates, the cost of the space can amount to
10% of the cost of the plates.
Cost of Chemist ry
Chemistry is often considered a non-
discretionary cost of doing business, and thus,
these costs are often not tracked accurately.
Printers must understand and know all of their
costs. This is an absolute requirementespecially
in todays environmentin order to have all
production processes under control.
Further, each step in the production process
represents an opportunity for error. It is critical
to understand the potential sources of mistakes
and their associated costs. In so doing, it is
necessary to analyze the cost of each piece of the
operation. While the cost of the chemistry itself
may appear to be relatively small, it in fact often
represents a significant proportion of the cost of
the plate. Failure to understand its true cost can
be symptomatic of broader business issues.
Processing Cost s
Printers can spend as little as $2,500 per year
on chemistry, or as much as $75,000 or more,
depending on their plate volume, type of plates, and
operational practices. The variation in the prices of
chemistry-particularly of developer but also of
replenisher and finisher-is much less than that of the
plates. This is true both across manufacturers as well
for the same product purchased in varying volumes.
The major source of
price differential comes
from quantity
purchased at a single
time and/or container
size (e.g., 2
1
/2 gallon
jugs versus 55 gallon
drums).
Printers chemistry
practice and use,
however, differ
dramatically, even among similarly sized plants using
the same plates. And in estimating cost and
chemistry usage, not every printer included all
costs. For example, some printers indicated they
employ a replenisher, priced differently from the
developer, while others do not. Many printers
omit the cost of water or other neutralizing
processes. For printers who bake, some mention
pre-bake chemistry, while others do not.
Accordingly, their chemistry costs per square
foot vary.
Overall, however, chemistry is typically
equivalent to about 18% to 20% of a printers
annual expenditures on plates, although it can be
more than 70% and as low as 5%. There are a
number of reasons for the variation, but the
major ones are plate volume; the specific
requirements of each type of plate; and the ability
of the chemistry to be pushed beyond the
manufacturers recommendations.
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O ve rall K P G G o ld K P G S wo rd F u ji T h e rm al A g fa Vio le t F u ji Vio le t
H ig h
A ve rag e
Lo w
We ste rn /Lastra P re sste k
F ig u re 6 . C h e m istry E xp e n se as a P e rce n tag e o f P late C o st
P rin te rs m u st u n d e rstan d
an d kn o w all o f th e ir
co sts. T h is is an ab so lu te
re q u ire m e n t e sp e cially
in to d ay s e n viro n m e n t
in o rd e r to h ave all
p ro d u ctio n p ro ce sse s
u n d e r co n tro l.
$
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O ve rall K P G G o ld K P G S wo rd F u ji T h e rm al We ste rn /Lastra A g fa Vio le t F u ji Vio le t P re sste k
H ig h
A ve rag e
Lo w
F ig u re 7 . C h e m istry C o st p e r S q u are F o o t o f P late M e d ia
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P re sste k
F ig u re 8 . C o m b in e d C o st o f P late an d C h e m istry
Costs can vary based on low or high plate usage.
Although a few printers had low enough plate
volumes to need to change chemistry before the
plate volume would otherwise require it, most
printers do not feel they waste chemistry due
to low plate volumes or variability of usage.
However, in practice, the cost per plate decreases
as more plates are run through the chemistry.
Chemistry expenses are reflected in Figures 6, 7, 8,
and 9.
Chemist ry for Thermal Plat es
K P G T h e rm al/G o ld /8 3 0
Printers who use the bakeable KPG plates,
primarily the Thermal Gold, typically spend
about 20% of plate costs on chemistry, although
some plants on consignment can spend fully half
as much on chemistry as they do on plates.
Chemistry costs about $0.20 to $0.25 per square
foot of plates, on average, although the range is
from a low of less than $0.03 for high volume
national accounts to more than $0.70 per square
foot of plate material for some users. The average
chemistry expenditure is about $25,000 to $30,000
per year, reflecting the higher-volume nature of
plants using this plate and the added costs of
pre-bake chemistry, among other factors.
K P G S wo rd
The range of chemistry cost for printers who use
the no-bake KPG Sword plate is much narrower,
between 8% and 18%, as a percentage of plate
expenditures. The chemistry for the Sword costs
printers about $0.12 per square foot of plates, or
about $10,000 per year.
F u ji
Chemistry costs Fuji LHPI thermal plate
customers about $0.18 per square foot of plate
media. Some plants spend as little as $0.03 per
square foot, while the high end is about $0.45
per square foot. This is an average of 10% to
15% of the typical customers expenditure on
plates, with the low being about 3% and the high
40%. Depending on plate volume, this works
out to about $10,000 to $15,000 per year for
chemistry.
We ste rn /Lastra
A typical Western/Lastra thermal plate customer
spends about $16,000 per year on chemistry.
Although the range of total chemistry expense
is very narrow, the cost per square foot of plate
developed varies greatly and ranges from as little
as $0.05 to more than $0.65, with an average
expenditure of $0.25 per square foot. Some
printers actually spend half again as much on
chemistry as they do on plates, but on average,
chemistry expense is about 25% of the cost of
the plate.
P re sste k
Presstek plates, of course, use no chemistry.
The Anthem plate requires a water wash after
imaging. Costs are therefore zero (most
customers use tap water).
Chemist ry for Visible Light Plat es
(Violet )
A g fa
Chemistry costs Agfa visible light plate customers
about $0.20 to $0.25 per square foot of plate
media. Some plants spend as little as $0.10 per
square foot, while the high end approaches $0.80
per square foot. This is an average of a little more
than 20% of plate costs, with the low being about
6% and the high 75%. Depending on plate
volume, this works out to an average of about
$10,000 to $15,000 per year spent on chemistry.
Because Agfa violet plate customers change their
chemistry more frequently than others, typically
every week or two, smaller volume printers are
more likely to have excess waste. As one owner
put it, My chemistry costs wouldnt go up at all
if I ran twice or three times the volume.
F u ji
Chemistry costs Fuji violet plate customers less
than $0.15 per square foot of plate media. Some
plants spend as little as $0.09 per square foot,
while the high end approaches $0.20 per square
foot, for a printer with relatively small plate
consumption. This is about 10% to 15% of
the average customers expenditure on plates.
Depending on plate volume, this works out to
about $13,000 per year spent on chemistry.
Baking
The cost of baking is another cost that most
shops do not account for-other than the cost of
Chemistry Costs are More Important the Less Spent on Plates
$ 0
Tre n d lin e
C h e m istry C o sts % o f P late C o sts
P
l
a
t
e

E
x
p
e
n
d
i
t
u
r
e
s
$ 2 5 , 0 0 0
$ 5 0 , 0 0 0
$ 7 5 , 0 0 0
$ 1 0 0 , 0 0 0
$ 1 2 5 , 0 0 0
$ 1 5 0 , 0 0 0
$ 1 7 5 , 0 0 0
$ 2 0 0 , 0 0 0
$ 2 2 5 , 0 0 0
$ 2 5 0 , 0 0 0
$ 2 7 5 , 0 0 0
$ 3 0 0 , 0 0 0
$ 3 2 5 , 0 0 0
0 % 1 0 % 2 0 % 3 0 % 4 0 % 5 0 % 6 0 % 7 0 % 8 0 %
F ig u re 9 . Lo w P late U sag e D rive s H ig h e r P ro p o rtio n al C h e m istry C o sts
the oven itself, of course. Oven operating costs are
difficult to identify and track. And, as with most
things that arent measured, they do not appear to
be important in the overall scheme of things.
But in fact, for those who bake plateswhich
includes a significant proportion of those using
thermal technologythe added cost can be
substantial. Most indicated the added cost of
operating an oven (excluding the capital
expenditure for the oven itself ) is in the range
of $10,000 to $15,000 per year, although for
one $100 million printer, the reported cost was
closer to $5,000 a month.
Baking may also require a pre-bake solution, which
can add another $2,500 to $6,000 or more per
year in expenses.
Thus, it would behoove printers to gain an
understanding of the cost of baking in order to
clearly grasp its overall impact on operational costs.
Invent ory
Printers must maintain some inventory of
chemistry, both for routine operation and to
meet unexpected and emergency needs. Although
interest rates-and therefore carrying costs-are
relatively low, maintaining any inventory
nevertheless has a financial implication that
should be minimized. Those printers whose
inventory is on consignment generally pay more
for chemistry and plates.
Most hold about one to two chemistry changes in
inventory, with enough replenisher and neutralizer
to last between changes. The typical printer holds
about 7% or 8% of the annual chemistry spend in
inventory, although many have as little as 1% or
2%, and some have as much as 60%.
In practical terms, this works out on average to
one week to two months of chemistry, typically
two to three weeks. The average dollar value of
the chemistry in inventory is about $850,
although there is a fairly wide range around this,
from $125 to $2,500 or more.
Processor Maint enance
The plate processor needs to be maintained. All
brands and models, for all plate types, require
checking the chemistry and adding developer or
replenisher to maintain the proper concentration
or pH levels. Most processors also require some
minimal level of daily or weekly cleaning,
typically of parts such as rollers, as well as a
more thorough servicing at each major
chemistry change.
While maintenance schedules and practices vary,
printers generally spend about an hour each week
in routine processor upkeep, with an average of
another hour or two per week for chemistry
changeover. The overall mean is almost 2
1
/2
hours per week for processor maintenance. At
an average cost of $20 per hour ($15 labor, $5
benefits and overhead) that works out to $2,600
per year for labor for routine maintenance alone.
It should be noted, however, that NAPL
estimates fully burdened labor costs at more
than $40 per hour, which would double this
annual figure.
Maintenance requirements naturally differ by
plate type and manufacturer, as outlined below.
Thermal Processors
A g fa
Printers who use Agfa thermal plates change the
chemistry weekly, with the changeover taking
approximately four to five hours.
Standard annual cost - maintenance only: $5,000.
F u ji
Chemistry for the Fuji LHPI thermal plate is
apparently fairly forgiving. Printers using this plate
typically change the chemistry every month; many
extend the chemistry life far beyond Fujis
recommendations.
One mid-size printer
only changes the
chemistry every few
months... Weuse
stochastic screening. We
couldnt beconsistent
on reprintsuntil the
chemistry isjust right.
Wedont changeit in
order to hold thechemistry consistency, and we
found it wasnt necessary to do so. Weclean the
processor every 30,000 squarefeet or so, just to
seewhatsgoingon in thebottomof thetanks.
Thereplenishment rateshavebeen balanced to
themix of platesizesand volumesand stay
consistently consistent.
Accordingly, the average weekly maintenance for
these processors is less than 2 hours per week.
According to one respondent, Fuji isvery nice.
Thechemistry can bedumped and changed in
1-2 hours.
Standard annual cost - maintenance only: $1,750
K P G B ake T h e rm al/8 3 0 /G o ld )
As one of the most popular digital plates, the
experience and practices of printers using KPG
thermal bakeable plates (including the 830 and
particularly the Thermal Gold) are naturally
quite varied. Printers spend an average of 2 to 3
hours a week cleaning and maintaining their
processors, although some spend as little as 1
hour or as much as 10 hours. While most change
We sp e n d 5 h o u rs a
we e k cle an in g ; an d fo r
a co m p le te ch e m istry
ch an g e it take s
2 p e o p le ab o u t
1 0 m an h o u rs cle an in g .
$ 0
$ 1 , 0 0 0
$ 2 , 0 0 0
$ 3 , 0 0 0
$ 4 , 0 0 0
$ 5 , 0 0 0
$ 6 , 0 0 0
A g fa Vio le t F u ji Vio le t F u ji T h e rm al K P G G o ld We ste rn /Lastra P re sste k A g fa T h e rm al
F ig u re 1 0 . A ve rag e A n n u al P ro ce sso r M ain te n an ce C o st
chemistry weekly, the average is slightly less
frequently, with some printers only changing
chemistry every month or two.
K P G N o B ake S wo rd )
KPG Sword chemistry appears to require relatively
infrequent changes, typically every two to four
weeks. Accordingly, processors require only about
1
1
/2 to 2 hours each week to maintain; few printers
spend more time.
We ste rn /Lastra
Chemistry for the Western/Lastra DiamondPlate
LT-2 is apparently very complex. While most
printers change the chemistry weekly, a few change
it much less frequently. One respondent
commented, Western guaranteesthechemistry for a
month, but weget 4 monthsbeforewechangeit.
Processor maintenance is a bit more intensive,
however. The chemistry doesnt have to be dumped
to clean [the processor], said one printer. We
clean it oncea week, thetop rollersevery evening.
This combined with the difficulty of cleaning the
processor increases the average time allocated to
maintenance to about two to three hours per week,
with some users spending even more time.
Another printer indicated, Itsa heavy chemistry.
Wespend 5 hoursa week cleaning; and for a
completechemistry changeit takes2 peopleabout
10 man hourscleaning... Theresa lot of grit on the
dryer unit... It also takesa whileto warmit up
and get to operatingtemperature[after a change].
P re sste k
The Anthem plate from Presstek uses a water
wash. Presstek users clean the washer every week
or two, although some report doing so monthly.
Cleaning takes about 15 to 30 minutes, the more
meticulous can spend longer. We also found one
Applause beta site; as there is no water wash for
Applause, there is no processor to clean.
Standard annual cost - maintenance only: $500
We sp e n d 5 h o u rs
a we e k cle an in g ; an d
fo r a co m p le te
ch e m istry ch an g e it
take s 2 p e o p le ab o u t
1 0 m an h o u rs cle an in g .
Visible (Violet ) Processors
A g fa
Printers using Agfa LAP-V violet plates typically
change chemistry every two weeks. These plate
processors require an average of two to three hours
of weekly maintenance. One small printer indicates
he needs 25% of one full-time employee for
processor maintenance and cleaning. Another
comments, Wereon a four week cycle... Itsa5-hour
processfor 2 people(10 man-hours). Wedo full
maintenanceevery month; itsnot required but it
providesa better plateappearance. It doesnt affect
thequality of theplate, just theappearance; theres
lesssquawkingout of thepressroom.
F u ji
Chemistry for Fuji violet plates, which are
relatively new on the market, is typically changed
every one or two weeks, somewhat more often than
Fuji thermal plates. Processor maintenance is
therefore slightly greater, typically 2 hours a week.
It takesa full day to clean theprocessor, noted
one respondent.
Wast e Disposal
Most chemistry can be neutralized and made
acceptable for disposal by adding water or an
appropriate neutralizing agent. Accordingly,
almost all printers dispose of their waste chemistry
by putting it down the drain into the public
sewage system.
Nevertheless, many do not, preferring to dispose
of their waste chemistry using a hazardous waste
removal company. An exception is the Agfa
LAP-V violet plate. As with other processes,
waste chemistry is
often neutralized
and disposed in
the drain. Printers
using this plate
must remove the
silver. Although
the silver can be
treated/diluted for
disposal down the
drain with the neutralized waste chemistry, most
have it trucked away with other hazardous waste;
some also dispose of their waste chemistry in this
manner. The cost of this disposal can vary
markedly. The cost of disposal of the hazardous
waste averages about $2,500 per year, and can
range from a low of about $0.02 per square foot
of plate media to a high of about $0.15 per
square foot. This can be between 6% and 45% of
total chemistry costs, so its not insignificant.
Users of this plate technology shared the
following comments:
Thereisminimal toxicity; itson theborderline
between [safeto] dump or [havingit] removed; we
can probably dump, but wehavehazardouswaste
removal to besafe.
Wedont haveany sewage; so everythingishauled
away, even wastewater. It aint cheap.
I wish wehad considered thecost of silver. It was
never mentioned. It costs$5 per gallon just to
disposeof that.
I wish we h ad
co n sid e re d th e co st o f
silve r. I t was n e ve r
m e n tio n e d . I t co sts $ 5
p e r g allo n ju st to
d isp o se o f th at.
We can expect environmental regulations to become
even more burdensome. So, while it probably will
remain possible to neutralize the waste chemistry,
tolerances will be tighter and it is therefore likely to
become more expensive to continue to dump this
waste into the public waste system. According to
Tony King of Agfa,
Many countries now see the environmental laws
tightening with restrictions to any processor
waste being discharged directly to drain,
especially where higher pH developers are used.
So containerized collection of processor waste is
increasingly becoming the norm for many.
Print 21 Onlinewebsite
Moreover, the generator of the waste is ultimately
responsible for that waste, with no time limit, even if
all rules associated with hazardous waste handling
and disposal are followed. If an improperly disposed
of barrel is ever discovered, the printer is responsible
for its clean up, as well as the associated fines. Costs
are therefore likely to increase, either directly for
waste disposal or indirectly to ensure that the effluent
meets environmental regulations.
. . . th e g e n e rato r o f th e waste
is u ltim ate ly re sp o n sib le fo r
th at waste , with n o tim e
lim it, e ve n if all ru le s
asso ciate d with h azard o u s
waste h an d lin g an d d isp o sal
are fo llo we d .
As we have discussed here, the cost of getting
a plate on press can vary for any number of
reasons, including:
the type of plate and the accompanying
chemistry requirements
plant procedures and processes
plate volumes
While chemistry prices vary across plate types,
prices paid by printers are consistent for a
specific chemistry. Chemistry costs are, however,
influenced by the nature of the plate contract,
including pricing, length, and whether inventory
is consigned.
In addition to the cost of plates and chemistry,
other cost centers that must be considered in
accounting for total plate production costs include:
chemistry inventory (for routine use;
replacement; and emergencies)
processor, including floor space
processor cleaning and maintenance
cost of baking (if appropriate)
waste management and disposal.
Larger printers with higher volumes and
throughput tend to make more efficient use
of chemistry and pay less for it. For a typical
mid-sized printer, chemistry alone can be
$20,000 to $35,000 per year, while a smaller
printer can spend $10,000 to $15,000 per year.
With the addition of other required operating
costsexcluding capital costs - total plate
production costs can easily double the cost of
chemistry. Figure 1 summarizes the annual
expense ranges reported by printers for each of
the key cost centers discussed in this report.
Summary: Tot al Cost s of
Chemist ry
F ig u re 1 1 : S u m m ary A n n u al E xp e n se s
C o st C e n te r A ve rag e Lo w H ig h
C h e m istry $ 1 7 , 5 0 0 $ 0 * $ 7 5 , 0 0 0
I n ve n to ry $ 8 5 0 $ 0 * $ 2 , 4 0 0
P ro ce sso r $ 0 $ 0 * $ 0
F lo o r S p ace $ 1 0 , 0 0 0 $ 5 , 0 0 0 $ 1 5 , 0 0 0
B akin g $ 1 0 , 0 0 0 $ 0 * $ 6 0 , 0 0 0
M ain te n an ce $ 2 , 6 0 0 $ 5 0 0 $ 1 0 , 5 0 0
Waste D isp o sal $ 1 , 6 0 0 $ 0 * $ 5 , 0 0 0
Tot al $42,500 $5,500 $170,000
* Virtu ally n o re sp o n d e n t re p o rte d p ayin g fo r th e ir p late p ro ce sso r. A lso , so m e p late s visib le an d th e rm al
re q u ire n o b akin g . P re sste k A n th e m u se rs re p o rt n o co st fo r b akin g , in ve n to ry, ch e m istry o r waste d isp o sal.
J Zarwan Partners, founded in 2003 by John
Zarwan, works with a limited number of
companies to develop and implement market
strategy and improve business performance. Dr.
Zarwan is an internationally recognized expert in
the graphic arts, printing and publishing industries.
He has spoken at Imprinta, FOGRA, Print Media
Congress, Seybold, Graph Expo, as well as major
trade associations, including, GAMIS, IPA, PIA,
LPIA, NPPC, and Web Offset.
Dr. Zarwan has held senior management
positions in marketing, product management,
business development, and finance at Agfa
(Compugraphic) and NEC Technologies. He was
a principal at State Street Consultants, a graphic
arts marketing research firm, and vice president
of PIMS Associates of the Strategic Planning
Institute, a strategy consultancy. Dr. Zarwan has
degrees from Stanford and Yale Universities, and
a Certificate in Business from New York
University Stern School of Business.
Dr. Zarwan can be contacted at:
165 Queen Elizabeth Drive
Charlottetown, Price Edward Island C1A 3B2
Canada
Phone: 902-892-7272
Email: [email protected]
Web: www.johnzarwan.com
2003 John Zarwan
About J Zarwan Part ners

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