Slash & profit
An automated storage system has cut costs substantially by reducing newsprint inventory 90% at Transcontinental Printing.
By Ira Breskin, Contributing Editor -- Modern Materials Handling, 9/1/2004
In retrospect, it's somewhat ironic how La Pressemanaged paper stock for its daily print run.
On one hand, the paper's reporters covered the day's events for the next morning's edition of Montreal's 200,000 circulation French language newspaper. But when it came to the newsprint that displayed those stories, operations weren't nearly as just-in-time. La Presse invariably had at least 21 days of supply on hand, and often as much as 28 days' reserve.
That translated into 4,000 to 5,000 rolls of paper in inventory, often filling the three-story sub-basement of the newspaper's building in the historic district of Montreal.
That was then. Now, contract printer Transcontinental Printing Inc. has a lower-cost contract to print La Presse at its new, $100 million (Canadian) plant in the east side of Montreal. Seminal to the winning bid were savings attached to Transcontinental's ability to cut La Presse'soutsized paper stocks to less than five days' supply or 485 rolls, says Pierre Manseau, project manager
The winning bid, in turn, leveraged technology offered by an automated storage and retrieval system (HK Systems) that's responsible for much of the operating savings that Transcontinental has achieved. According to Manseau, it's the speed, flexibility and efficiency of the AS/RS that permit Transcontinental to operate with minimal inventory and manpower.
Experienced Montreal-Transcontinental is well prepared to take full advantage of the leading-edge AS/RS system. The firm, generating about $2 billion (Canadian) in annual sales, is one of North America's leading contract printers.
Transcontinental's AS/RS, which is one of a kind, facilitates expedited processing of in-bound newsprint deliveries. It also streamlines subsequent handling that ultimately translates into drastically reduced newsprint carrying/financing charges and storage costs, says Manseau. Less handling also translates into less damage to the paper, cutting costs yet again.
Moreover, frequent paper deliveries ensure that Transcontinetal remains a high-priority customer and gets fresh stock from its two primary paper suppliers, Kruger Inc. and Abitibi-Consolidated, both of Montreal.
'We want to make sure we are well served by our suppliers. They want our business. They are using our forecasts. They keep paper on the floor for us. We want to receive paper every day. It's almost just-in-time delivery of paper,' Manseau says.
Additional and significant efficiency and cost reductions stem from Trancontinental's reduced staffing at the highly automated East Montreal facility. A total of 72 employees are responsible for plant operation, compared to 180 workers employed at the former La Presse facility.
Getting paper to the pressA small crew, the only manual labor required for paper receipt and handling, receives incoming deliveries of newsprint at the loading dock early each day and feeds them onto the plant's conveyor. This Transcontinental inbound receiving team is about half the size of that used by La Presse, Manseau says.
Inbound rolls, each weighing about 3,000 pounds and sitting upright on a moving dolly, travel to a turntable that rotates in front of a fixed scanner. The scanner collects required information from the bar code label affixed to the roll, which is then automatically weighed. This information is fed to an inventory management and materials handling control system.
That system, in turn, is linked with press control software that ultimately designates specific rolls, based on individual characteristics, for specific press units. It also maintains a database that documents the performance of the roll throughout its lifetime.
Subsequently, a clamp is attached to the dolly-laden roll to steady it so that a heavy-duty hydraulic downender can turn the roll horizontally on its side, in what is called the bilge position, in preparation for storage.
Having processed the receipt data, the inventory management system assigns each incoming roll to one of the 485 storage locations. Each location holds rolls as large as 50 inches in diameter and 55 inches deep.
A conveyor, which runs adjacent to the two sets of four-level, free-standing storage racks nearby the 250-foot long Heidelberg Mainstream press, pulls the paper-laden dolly to the foot of the cradle-like storage rack assigned by the inventory management system. Racks closest to the press hold single rolls that generally are the next ones used; those across the aisle are two deep.
The Transcontinental plant's storage/retrieval machine moves freely along the aisle. It's two telescopic, retractable arms grab and cradle the roll when taking it to and from its assigned location. After storing newly received inventory, the AS/RS system can begin its next assignment: jockeying rolls for pre-press preparation.
Completing prep work of paper stock well before the start-up of the print run that usually begins after 9 p.m. translates into highly productive use of Transcontinental's bare-bones inventory and staff and ultimately more efficient press operations. Preparing and rotating rolls when convenient throughout the slack portion of the workday also facilitates level staffing and more efficient and effective use of newsprint, minimizing waste during the sometimes frenzied evening operation.
Transcontinental presses turnout as many as 48 full size news pages—including 24 with full color—during two 48-page production runs.
Responding to the cue from the inventory management system, rolls that need to be prepared prior to press loading are retrieved from storage racks and conveyed to one of two prep stations. That's where protective packaging is removed from the paper, and it's weighed and final preparations are made.
The storage/retrieval machine then brings fully prepped newsprint back to its assigned location where it's ready for use on the upcoming press run, or to an unwinding position of the press.
'The AS/RS allows us to make [changes] on press faster and better control our [last in, first out] stock. Keeping less paper on the floor saves us significant money,' Manseau says.

Click
on the icon to read how an AS/RS improved packaging and distribution at the
Chicago Tribune. (Delivered to your doorstep - July
2003
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