Posted on Tue, Jul 14, 2009
Warning: You may need your calculator for this one!!!
There appears to be a lot of conversation today around ‘optimizing’
printer fleets & the top of everyone’s chart appears to be that
personal printer. Many companies are saying (or being told) that they
need to get rid of those personal printers that hide in the offices of
Managers and Executives across their business. They’ve been told these
small printers are expensive to operate and should been decommissioned.
That those printing jobs should be sent to the larger MFP device
outside their office or just down the hall.
Well, in short, they’re right: there would be a cost savings from not
using those personal printers…however, are we talking about being Penny
Smart & Dollar silly? It’s time to leave our ‘gut instincts’ a look
at the math.
Let’s take a look using the LaserNetworks office as a typical company.
Within our Oakville location, there are eleven offices with their own
personal printer. The titles of these eleven employees include: CEO,
CFO, VP Sales, VP Human Resources, VP Operations, Director Customer
Support, Marketing Manager, Controller, Manager of Contracts & our
Cost Per Page Administration, Director of IT, Partner Support Manager,
and our Payroll Coordinator. While every employee at LaserNetworks is
committed to the support of our customers, these eleven employees are
often seen working well into the night…definitely beyond the typical 40
hr week.
Part I: Personal Printer Assessment. We reviewed the print history on
these personal devices over a 30 day period & came up with the
following data:
The average page volume per device was just under 500pgs/mth (let’s use 500).
The average number of print jobs/day per user was 8 (avg job size: 3.1pgs).
When the MFP device was used in place of the personal printer, it took
th e user an average of 45 seconds to retrieve the print job and return
to their desk.
Combining this date & assuming the personal printer was removed
from the office, we noted that each of these eleven users would spend
4.5 minutes per day picking up 25 printed pages. Over the course of one
month:
The average user would be away from their desk for 90 minutes (4.5min x
20 days) during the month. The combined loss in productivity across the
eleven managers would be 990 minutes or 16.5hrs. So, is this loss in
productivity justified by a substantial decrease in printing costs?
Part II: Assessing the cost of the Personal Printer. We estimated the
Cost Per Page of a Personal Printer at $0.045/page vs. the Cost Per
Page of an MFP at $0.02/page. This assessment is based on the total
costs associated with operating the device, including all supplies,
service, paper and power. This represents a delta of $0.025/page, which
certainly does look like a lot! But is it?
Based on 500 pages per user & the extra cost of $0.025/page, it
costs LaserNetworks an extra $12.50/month to have this device deployed.
When adding all eleven managers, it represents an additional spend on
print of $137.50.
So, what is better for your business:
Save $137.50/month on printing & have your key Managers and
Executive work an additional 16.5hrs/month. NOTE: This savings breaks
down to $4.17/hr.
OR
Continue to allow your Managers to focus on their key projects without
disruption & the cultural backlash of removing a key component to
their work environment.
The second part of this argument suggests that page volumes will
decrease if these managers didn’t have their own printers. This might
be true, although understanding if the Managers & Executives will
be as productive without those pages is debateable. However, assuming
that page volumes would be cut by 33%, it would increase the savings
per month from $137.50/month up to $173.80/month. This page reduction
would also result in less walking time and therefore the cost savings
increases to approximately $10.80 per hour of lost productivity. Is
their time worth more than this??? I hope so!!!
This analysis is not meant to say throw out all your MFPs and place a
new printer on every desk. It is simply providing some real data to the
emotional thought of removing those personal printers. Is a savings in
the range of $150/month worth the lost productivity or are there other
areas of the print environment (or internal operations) that can
generate substantially greater return?
I would certainly appreciate feedback from the other side & why the
above analysis is inaccurate, missing assumptions, or doesn’t apply in
this new economic environment.
Posted on Thu, Jul 09, 2009
Having just returned from a week in Alberta, I must say Calgary knows how to throw a party!! The spirit, the cowboys, the chuckwagons & rodeos…it’s hard to understand if you’ve haven’t been there.
For LaserNetworks, it’s a great time to be in Calgary. It begins
with the Annual Calgary Chamber of Commerce Golf Tournament &
finishes with our LaserNetworks Stampede Party. This year was our 3rd annual party hosted at Ranchman’s.
It was great to catch up with approximately 65 of our clients – many
old friends & great to see some new faces as well. LaserNetworks has enjoyed a fantastic year in Alberta and I would like
to thank all of our clients for their continued confidence in our
company. Our event also had a sombre tone with the sudden passing of
Dan Ryan from CNRL. Dan was a fabulous person and much respected by all
of Calgary. He was a great fan of the Stampede and we certainly enjoyed
his company at all of our events over the years. He will be sadly
missed.
The partying will continue in Calgary until mid-July and if you
are still setting your vacation plans & wondering where you’d like
to go this year, may I suggest the Stampede. There’s no guarantee
you’ll return home rested…but a great time is definitely a guarantee. For me, I need ‘home for a rest’ before heading back to Alberta later this summer for our 8th Annual Golf Tournament. We should all be well rested by then.
Cheers to Calgary for a great week!