This is not the document you are looking for? Use the search form below to find more!

Report home > Others

A Simple Business Case for Very Large Format Offset

0.00 (0 votes)
Document Description
A Simple Business Case for Very Large Format Offset
File Details
Submitter
  • Name: roberto

We are unable to create an online viewer for this document. Please download the document instead.

A Simple Business Case for Very Large Format Offset screenshot

Add New Comment




Related Documents

A Business Case for Cultural Competency

by: samanta, 5 pages

Cultural competency is a business imperative with bottom line results in the form of products, and innovative strategies for business growth. The West Michigan Chamber Coalition defines ...

The Business Case for Corporate Citizenship

by: tegan, 11 pages

Corporate citizenship is about companies taking into account their complete impact on society and the environment, not just their impact on the economy. It is about business assuming responsibilities ...

Recommend A Simple Meditation Technique For Beginners

by: dengkane, 2 pages

Meditation is important for us, and I recommend a simple meditation technique for beginners. In nowadays, our pace of life is fast and busy, and the more essential things are being neglected by us. ...

IPTV - VNO. A new business model for IPTV

by: shizuki, 4 pages

White paper IPTV-VNO A new business model for IPTV Comarch Headquarters www.comarch.eu Al. Jana Paw?a II 39 a www.comarch.com www.comarch.pl www.comarch.de 31-864 Krakow Poland ...

A COMPLETE BUSINESS STARTING E-BOOK & SOFTWARE PACKAGE KIT FOR INDIANS

by: admin, 25 pages

A COMPLETE BUSINESS STARTING E-BOOK & SOFTWARE PACKAGE KIT FOR INDIANS” Are you looking for to have various business projects, ideas, plans, step by step manual, how to start part time ...

Large Format Printing for Retail Shows and Exhibition Signage

by: agendaera78, 2 pages

Whether or not large format print...

CHEMICAL BUSINESS OPPORTUNITY FOR INDIAN PEOPLE

by: admin, 9 pages

CHEMICAL BUSINESS OPPORTUNITY FOR INDIAN PEOPLE START SMALL CHEMICAL INDUSTRY FROM HOME “60 Secret Industrial Grade Cleaning Product Concentrate Formulation to start small scale industry from ...

how to make soap,detergent,phenyl,washing soap at home-part time small scale business opportunity for indians

by: admin, 15 pages

START SMALL SCALE CHEMICAL BUSINESS OPPORTUNITY FOR INDIAN PEOPLE CHEMICAL BUSINESS OPPORTUNITY FOR INDIAN PEOPLE START SMALL CHEMICAL INDUSTRY FROM HOME “120 Secret Industrial Grade ...

part time chemical business opportunity for everyone,start to make 350 chemical cleaning product from home-350 cleaning formulas

by: admin, 31 pages

START SMALL SCALE CHEMICAL BUSINESS OPPORTUNITY FOR INDIAN PEOPLE CHEMICAL BUSINESS OPPORTUNITY FOR INDIAN PEOPLE START SMALL CHEMICAL INDUSTRY FROM HOME “350 Secret Industrial Grade ...

part time money making business opportunity for everyone,make money from small scale industry production business

by: admin, 19 pages

85 branded quality chemical business manufacturing opportunity-85 branded cleaning formulas ebook LEARN AND EARN HOW TO START MAKING BRANDED HOUSEHOLD CLEANING PRODUCT FROM HOME MONEY MAKING ...

Content Preview
  1. A Business Case: Wide Format Sheet Fed Offset Acquisition An Operations Management Analysis for the Graphic Arts Rochester Institute of Technology Nick D. Barzelay May, 2007
  2. Approach ? Reason for acquiring VLF offset capabilities ? Business model parameters ? Business model constraints ? Capital considerations ? Cash flow considerations ? Investment analysis ? Conclusions May 14, 2007 Operations Management for the Graphic Arts 2 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  3. Acquisition Reasons ? Manufacturer’s Objective: facilitate existing printers entering into new markets with an economical, reliable, efficient, unique solution ? Aligned Customer Objectives: ? Diversification & entry into new markets ? Market differentiation & flexibility ? Single sources “under one roof” supplier ? Efficiency & cost savings ? Quality, speed, & consistency May 14, 2007 Operations Management for the Graphic Arts 3 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  4. Model Parameters 1. Equipment cost (including delivery, installation, & training) $ 7,952,000.00 2. Payback - 3 years (mandatory) 3. Financing - 3 year note at 8.25% (wsj prime) compounded annually 4. Operations - 3 shifts at 40 hours/week/shift 5. Revenue - operational costs + 10% margin May 14, 2007 Operations Management for the Graphic Arts 4 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  5. Model Constraints ? Site preparation & auxiliary equipment - not included; company situations & regional economics will affect costs & requirements ? Financing - example only; company & regional conditions will affect terms ? Revenue - Sales flat lined for investment focus ? Depreciation - 15% to accommodate 3-shift operation (NAPL recommendation) ? Productivity - does not affect investment performance as modeled (effect on sales & value added) May 14, 2007 Operations Management for the Graphic Arts 5 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  6. Invested Capital & Repayment Amortization Principal 7,952,000 Interest 1,346,715 Total Note 9,298,715 Beginning Principal Interest Total Ending Period Balance Payment Payment Payment Balance Year 1 9,298,715 2,443,532 656,040 3,099,572 6,199,143 Year 2 6,199,143 2,645,123 454,449 3,099,572 3,099,571 Year 3 3,099,571 2,863,345 236,226 3,099,571 - May 14, 2007 Operations Management for the Graphic Arts 6 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  7. Cash Flow from Operations Year 1 Year 2 Year 3 Year 4 Years 5 - 7 Total Flows Fixed Costs 1,231,108 1,231,108 1,231,108 1,231,108 3,693,324 8,617,756 Variable Costs 798,682 798,682 798,682 798,682 2,396,046 5,590,774 Overhead: Sales & Admin. 649,533 649,533 649,533 649,533 1,948,599 4,546,731 Total Operating Costs 2,679,323 2,679,323 2,679,323 2,679,323 8,037,969 18,755,261 Note Repayment 3,099,572 3,099,572 3,099,571 - - 9,298,715 Total Annual Outlays 5,778,895 5,778,895 5,778,894 2,679,323 8,037,969 28,053,976 Revenue Requirement 5,778,895 5,778,895 5,778,894 5,778,894 17,336,682 40,452,260 Marginal Profit 577,890 577,890 577,889 577,889 1,733,667 4,045,225 Total Revenue 6,356,785 6,356,785 6,356,783 6,356,783 19,070,349 44,497,485 Net Income 577,890 577,890 577,889 3,677,460 11,032,380 16,443,509 May 14, 2007 Operations Management for the Graphic Arts 7 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  8. Investment Analysis ? ROI (how well net income covers invested capital) = 177% ? Capital Turnover (how well sales cover invested capital) = 479% ? Net Income % of Sales (the relationship of net income to sales) = 37% ? NPV (net positive & negative cash flows compared to a similar investment) = $ 1,012,904.00 better than investment May 14, 2007 Operations Management for the Graphic Arts 8 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.
  9. Conclusions ? Not a cure for a weak or failing company ? Strong creative sales capabilities needed ? Healthy customer base required (both current & potential) ? Financial health must be good ? Operational health must be good May 14, 2007 Operations Management for the Graphic Arts 9 Copyright © 2007 Nick D. Barzelay. All Rights Reserved.

Download
A Simple Business Case for Very Large Format Offset

 

 

Your download will begin in a moment.
If it doesn't, click here to try again.

Share A Simple Business Case for Very Large Format Offset to:

Insert your wordpress URL:

example:

http://myblog.wordpress.com/
or
http://myblog.com/

Share A Simple Business Case for Very Large Format Offset as:

From:

To:

Share A Simple Business Case for Very Large Format Offset.

Enter two words as shown below. If you cannot read the words, click the refresh icon.

loading

Share A Simple Business Case for Very Large Format Offset as:

Copy html code above and paste to your web page.

loading