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An Assessment of On-Line Package Customization for Sheet Size Products Packaged in Paperboard Envelopes

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An Assessment of On-Line Package Customization for Sheet Size Products Packaged in Paperboard Envelopes Rochester Institute of Technology RIT Scholar Works Theses 2000 An Assessment of on-line package customization for sheet size products packaged in paperboard envelopes Kevin Kennedy Follow this and additional works at: https://scholarworks.rit.edu/theses Recommended Citation Kennedy, Kevin, "An Assessment of on-line package customization for sheet size products packaged in paperboard envelopes" (2000). Thesis. Rochester Institute of Technology. Accessed from This Thesis is brought to you for free and open access by RIT Scholar Works. It has been accepted for inclusion in Theses by an authorized administrator of RIT Scholar Works. For more information, please contact [email protected]. An Assessment of On-Line Package Customization for Sheet Size Products Packaged in Paperboard Envelopes By Kevin T. Kennedy A Thesis Submitted to the Department of Packaging Science, College ofApplied Science and Technology in partial fulfilJnient ofthe requirements for the degree of MASTER OF SCIENCE Rochester Institute of Technology 2000 Department ofPackaging Science College ofApplied Science and Technology Rochester Institute ofTechnology Rochester, New York Certificate ofApproval M.S. DEGREE THESIS The M.S. Degree Thesis ofKevin T. Kennedy has been examined and approved by the thesis committee as satisfactory for the thesis Requirements for the Master ofScience Degree. Gary Schum Thomas Kausch Dan Goodwin December 14, 1999 Page iii An Assessment ofOn-Line Package Customization for Sheet Size Products Packaged in Paperboard Envelopes I, Kevin T. Kennedy, prefer to be contacted each time a request for reproduction is made. Ifpermission is granted, any reproduction will not be for commercial use or profit. I can be reached at the following address Kevin T. Kennedy 151 Hillside Drive Hilton, New York 14468 Phone: (716) 392-6944 May 1,2000 Pageiv Acknowledgements I would like to express my appreciation to everyone who helped me to carry out my research and organize the results in this thesis. I'd like to thank The Eastman Kodak Company and particularly the Package Engineering and Graphics Design group for sponsoring this work. Thanks to all the people at RIT who provided support and direction, particularly the faculty ofthe Packaging Science Department and the research librarians. Thanks also to the equipment manufacturers and printers who performed trials and provided samples. Most importantly, thanks to my wife, Peggy, and my daughters, Becky and Erin for their patience and understanding during the times when I was not available to them because I was busy performing this research. Page v An Assessment of On-Line Package Customization for Sheet Size Products Packaged in Paperboard Envelopes By Kevin T. Kennedy ABSTRACT This study evaluates the on-line printing ofpaperboard envelopes as a means of supporting the need to provide customized packaging. Market forces and new business models are contributing to the need for customized packaging and rapid response to orders. Large retailers are demanding unique packaging presentations and global marketing requires localized packaging for different regions ofthe world. A business environment ofjust-in- time delivery and minimal inventory levels demand flexibility to react to unpredictable product mix and volumes. These conditions require customized packaging within short cycle times. The traditional carton printing process using offset lithography does not respond quickly enough to meet these needs. Alternate methods of applying graphics to paperboard envelopes provide the capability to respond to the need for customized packaging quickly. This study evaluates several alternative application methods to test the hypothesis that on-line graphics application can provide high quality graphic presentation for low volume, customized packages at a cost that is competitive with traditional offset carton printing. Page vi Contents Preliminary Materials ii Certificate of Approval iii Instructions for Copying iv Acknowledgements v Abstract vi Table of Contents vii List of Tables ix List of Figures x /. The Background of the Problem 1 The Move Toward Customized Packaging 2 The Power ofMass Merchandisers 5 The Needfor Localized Packaging 7 Integrated Supply Chain 8 Packaging Postponement 1 0 Package Customization ,, Traditional Offset Lithography Digital Printing Presses 1 4 Thermal Transfer Coding 20 Pre-Printed Cover Sheets 2 1 Significance of the Study 23 //. The Problem and Its Settings 24 The Statement of the Problem 25 The Hypothesis 25 Delimitations 25 Definition of Terms 26 Abbreviations 26 Page vii Assumptions 27 Customized packaging options to be evaluated 28 ///. The Data and the Treatment of the Data 32 The Research Methodology 33 The Treatment of the Data 34 The Data 35 IV. The Results - Comparison of Options 42 43 Cost Comparisons Graphic Presentation Comparisons 46 Process Compatibility Comparisons 5 1 Flexibility Comparison 52 Technical Risk Comparisons 53 Overall Comparison 54 V. Summary, Conclusions and Recommendations 55 Summary of Findings 56 Conclusions 56 Recommendations 57 Future Research 58 Reference Materials 60 Appendix 60 A - Digital Printing Presses 60 B - Xeikon Cost Calculator Spreadsheet 64 C - Vendor Supplied Digital Printing Press Performance 68 Comparisons D - Thermal Transfer Coder Print Systems 71 E - Digital Laser Cutting Equipment 73 F - Automated Sheet Counting Equipment 75 Bibliography 77 Page viii List of Tables Table 1 - Mass Merchandisers for Paper Products 5 Table 2 - Sales Volume data for individual SKUs and Monthly Delivery Volumes for Each 36 Table 3 - Fully Customized Pre-printed Carton Costs 37 Table 4 - Pre-printed Cover Sheet Costs 38 Table 5 - Total Customized Carton Costs for Standard Windowed Carton / Pre-printed Cover Sheets 38 Table 6 - Comparative Technical Information for Digital Printing Presses 39 - Table 7 Costs associated with additional capital equipment to implement each option ..40 Table 8 - Consumables costs for each option 41 Table 9 - Cost Summary Comparison Table 43 Table 10 - Cost Comparison Table for all SKUs 44 Table 1 1 - Print Quality Comparison 46 Table 12 - Process Compatibility Comparison Table 51 Table 13 - Flexibility Comparison Table 52 Table 14 - Technical Risk Comparison Table 53 Table 15 - Overall Comparison Summary Table 54 Page ix List of Figures Figure 1 - The Evolution ofManufacturing 3 Figure 2 - SKU Proliferation 7 Figure 3 - Packaging Postponement 10 Figure 4 - Color Separation Process 12 Figure 5 - Offset Lithography 13 Figure 6 - Five Color Offset Press 13 Figure 7 - Digital Printing Process 15 Figure 8 - Digital Laser Cutting Equipment 16 Figure 9 - Heidelberg Digital Press 17 Figure 10 - Indigo Digital Press 18 Figure 11 - Xeikon Digital Press 19 Figure 12 - Thermal Transfer Printer 20 Figure 13 - Friction Sheet Feeder 21 Figure 14 - Pre Printed Offset Custom Carton 28 Figure 15 - Standard Pre Printed Carton for Thermal Printing 29 Figure 16 - Standard Windowed Carton for Cover Sheets 30 Figure 17 - Digitally Printed Custom Carton 31 Figure 18 - Comparison of Carton Costs at Different Delivery Volumes 45 Figure 19 - Fully Customized Offset Printed Carton 47 Figure 20 - Thermal Transfer Coder Printing 48 Figure 21 - Windowed Carton with Cover Sheets 49 Figure 22 - Fully Customized Digitally Printed Carton 50 Pagex Figure 23 - Heidelberg Quickmaster DI-46 61 Figure 24 - Indigo Omnius 62 Figure 25 - Xeikon DCP/50-SP 63 Figure 26 - Cost Versus Run Length (Source: Xeikon) 69 Figure 27 - Cost Versus Run Length (Source: Heidelberg) 69 Figure 28 - Productivity Versus Run Length (Source: Xeikon) 70 Figure 29 - Market Position for Different Print Technologies (Source: Heidelberg) 70 Figure 30 - Markem SmartDate Printer 72 Figure 31 - Weber Easyprint Printer 72 Figure 32 - LaserSharp Digital Converting System 74 Figure 33 - Steamfeeder ST1250 Feeder 76 Page xi I. The Background of the Problem Page 1 The Move Toward Customized Packaging Market demands on companies that manufacture and market products have changed dramatically in recent years. This is particularly true for companies marketing consumer products. Modern technology has provided consumers with access to a larger base ofpotential suppliers and a correspondingly wide selection ofproducts to choose from. In the early stages ofmass production, manufacturers/marketers could provide a single standard product to meet the needs ofthe market. Consumers had access to a very limited number of suppliers and most could not afford the substantially higher cost of custom made items. Henry Ford's statement that "You can have any black."1 color you want, as long as its is indicative ofthe power wielded by the manufacturer. In most industries, market forces have shifted the balance ofpower in favor ofthe consumer. "It used to be that the manufacturer dictated what the shots."2 consumer could buy. Now it's the consumer calling all the Key Drivers for the Future ofManufacturing, Pp 1. 2 Jim Shepherd: Advanced Manufacturing Research. Boston Business Journal, October 13, 1995 Page 2 As more competitors enter the market and technology enables consumers to deal with a larger base of suppliers, manufacturing/marketing companies are forced to meet the unique needs ofdifferent types of consumers. "The number of competitors in an industry, how strongly they compete and the extent to which they battle for market share can have a great impact on where the industry stands customization."3 on the spectrum between mass production and mass The chart below illustrates the evolution ofmanufacturing
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