Least Cost Printing – Why Users Don’t Print to the MFD

Many of you have attempted to reduce your document output expenses by investing in multifunction devices and connecting them to your network. The question is how many of you have realized the results you hoped for?

Success Stories

As I talk to organizations across the country and spectrum of purpose I have found a relatively small percentage that has succeeded. Almost without exception, those that met their objectives did it by removing their cartridge-based printer fleet; thereby forcing users to use the component-based multifunction devices. It is rare to find a success story within the population that left the printer fleet intact.

Where Do the Pages Go?

The observation stated above comes from the data within the detailed assessments I perform as part of my client engagement. Even today, in mixed environments the number of pages produced on printers typically exceeds those produced on MFDs in a truly mixed environment. My experience shows the hoped-for shift in user behaviors and pages did not occur on a large scale, if at all.

Why User Behaviors Did Not Change

Let me share with you a few high-level findings that are common upon an assessment of document output environments similar to yours:

• Most users are totally unaware of the page cost differential
• Many users do not have MFD print drivers loaded on their workstation
• A large number of users are unaware of workflows that would be of benefit
• Inadequate training led to fear of change

While these seem like very simple “duh” statements they are significant to the failure of most attempts to print to lower cost per page MFDs.

Awareness

When performing a detailed environmental assessment I spend a great deal of time within the user community. Invariable during the device discovery process or user interviews I am questioned as to the cause and purpose of the project.

When I explain the high-level expenses associated with document output (possibly millions of dollars) users are quite surprised. When the discussion becomes more granular it often becomes disbelief; they simply had no clue that their desktop inkjet may be generating expenses as high as $0.25 per page or that the cost per page of the MFD (copier) is half that of their laser printer. Once that discussion is complete (proven) and expense reduction tied into something important to them (maintaining their benefits for example) their attitude typically changes to one of support.

Access to Devices

Very often during one of my user discussions they relate that they do not use the MFD because they do not have access to it. Further discovery usually uncovers that they have access to it but do not have a print driver, or the correct print driver loaded on their workstation.

There are actually two somewhat separate issues here, ability to print to the MFD at all and ability to access the features and functions offered by the MFD.

During a typical on-site discovery I load quite a few print drivers for the MFD that should be used. When shown the correct print driver and the functions they can access I usually encounter a little bit of excitement exhibited by the fact they print a document before I can leave.

Workflow

Another one of the significant influencers I find is that users typically do not understand the workflows associated with the MFD and how it can benefit them:

• Access to finishing options from the print driver
• Ability to identify and print to special media such as letterhead
• Secure printing workflows
• Print and hold workflows

These discussions often result in a “ah ha” moment when they realize they can actually take advantage of the speed and functions of the MFD from the print driver and maintain control of their jobs.

Training

This last issue, lack of training is the single most significant contributor to resistance to change behaviors and obviously influences the three other issues discussed above. It is interesting that in a group interview the issue rarely presents itself; few of us want to admit we do not understand something. However, if you listen and observe carefully, and ask the question in the correct manner someone will usually identify lack of training in a second or third party inference.

When approached individually and confidentially you will have the opportunity to walk the resistant user through the process and again experience the “ah ha” moment as they discover how it actually benefits them.

Now it is quite obvious that none of this is rocket science but these issues commonly derail attempts to redefine your document output strategy. Addressing them should be part of your implementation strategy and performed by your internal resources or contracted vendor.

Admittedly, fixing these issues may not still give you all the results you were hoping for, but will contribute. For those of you thinking, "some users just do not want to change," further modification of user behaviors can be accomplished with one of the software packages designed for that purpose. An additional benefit of these tools is they also provide you the measurements from which you can manage individual users and your entire document output environment.

Least Cost Printing – A Strategy

My posting about Least Cost Printing several weeks ago created some interesting comments here and on other forums. After reading some of them it seemed to me that there may be some value in providing greater definition to the topic.

The Strategy

Least Cost Printing is a simple strategy that is designed to minimize document output costs within the mixed technology environments that most of you have in your organizations: it defines the least expensive method of output for specific job types. It is the antithesis of a program to take advantage of clients but rather allows clients to leverage their technology investments at the lowest expense.

Hard Costs & Soft Costs

When designing a least cost printing strategy you need to decide what hard costs and whether or not you wish to include soft costs such as user convenience, impact on productivity and environmental issues. The most simple example is the value of the time it takes for one of your employees to walk across a room or department to retrieve a printed job.

An Example

A simple scenario based on three assumptions about your environment follows:

• Average loaded cost of a classification of employee is $40,000/yr or $0.3205 per minute


• Average monochrome cost per page of your desktop inkjet printers is $0.0830 per page


• Average monochrome cost per page of your network laser printer is $0.0180 per page

In this scenario the cost differential is $ 0.0650 per page so what is the justification for printing to the desktop inkjet versus the network laser printer? If you estimated that an employee takes a minute (on average) to pick up a print job from the network printer your strategy would be that only jobs of five (5) monochrome pages or less can be output on a desktop inkjet printer ($0.3205 /$0.065 =4.93 pages).

Building Your Strategy

You can build your own strategy with as much complexity (or simplicity) as you like. Current expenses based on technology or model specific, employees by classification, department or individual, amortization of hardware or operating costs alone and any soft cost you feel are significant. The more granular you get the higher the savings but they will be offset by higher development and management costs. My recommendation is to start simple and refine as you go!

Expense Reduction

When working with my clients on document output environment assessments and strategy development I always include this component in my recommendations. Following the simple example above if I take all inkjet monochrome pages resulting from jobs of six (6) or more pages and assume their migration to a less cost device I can project savings based on the client’s actual environment. This is a cascading calculation, inkjet to cartridge-based laser, both of them to component-based multifunction devices and finally consideration for electronic document distribution. The same is done for color and duplex printing with a typical end result of about 35% expense reduction.

If the client is considering fleet management for their printer fleet then the calculations would obviously be made on the new contracted cost per page. The point here is that a least cost printing strategy and a fleet management program are not mutually exclusive but complementary components of managed print services.

Implementation

Historically, this type of strategy has been very difficult to implement successfully: how could you get users to conform and how did you know if they did or not. As mentioned in my first post on the topic there are software tools today that are very good at implementation of a least cost printing strategy and they can deliver a return on investment of six months or less.

For purposes of this posting I have tried to keep this discussion simple; least cost printing is a simple concept but it does take a bit of work to get there. If you would like to explore a least cost printing strategy for your organization or if you just have questions please feel free to contact me.

It is my intent to discuss this in future postings if there is interest from the readers.

“Least Cost Printing” – is it the holy grail of the Managed Print Services effort?

Over the years the convergence of technologies changed not only the way we deliver documents but the cost structure of doing so. As printer technologies evolved workflows shifted from print-once-copy-many to printing to the most convenient device. Commensurate to this was an increase in costs as page volumes moved to relatively expensive toner and ink cartridge-based engines.

So began the idea of least cost printing: as copiers transitioned to digital multifunction devices much of the effort focused on replacing printers and print-once-copy-many workflows with the MFD and concentrating print volumes to a workgroup device.

The Digital Promise

Many organizations invested in new component-based digital MFD technologies on the promise of reduced costs and even improved workflow. More often than not, this digital promise was not realized due to the inability to train their users to adopt these new workflows. The capabilities of the digital MFD remained underutilized in most enterprises as users continued to print to the desktop and workgroup toner and ink cartridge-based printers.

Fleet Management

As the marketplace realized the folly of the idea that the digital MFD would eliminate printers some began to focus on reducing the cost structure of the printer itself. The concept of fleet management began to grow and come to age enabled by improvements in the quality of remanufactured and compatible supplies.

So here we are today with half the marketplace proselytizing the benefits of fleet management while the other half continues to promote digital multifunction devices as the answer to cost containment. Meanwhile, most clients still have one foot in investments in digital MFDs and the other in fleets of printers, both toner and ink cartridge-based. For these, fleet management can without doubt reduce the expenses associated with operating printers but still not to the level of maintaining the multifunction devices.

Least Cost Printing

Simple in concept, least cost printing is one step in the evolution from fleet management to print management. It acknowledges the realities of the marketplace and can deliver dramatic results by shifting pages from higher cost-per-page devices to those with lower operating costs. Organizations can reduce office printing costs by as much as 35% with an effective least cost printing strategy.

A least cost printing strategy takes into account the actual cost-per –page of individual technologies within document output environments combined with the impact on user convenience and efficiency and drives pages to the most cost-efficient device or document delivery method for a particular job. A well designed least cost printing strategy should address issues such as color, duplex printing and electronic document distribution.

Enabling Technologies

While the concept of least cost printing has been promoted by the copier industry for a number of years to cost-justify digital multifunction devices there was not an enabling technology to train and manage users to overcome their resistance to change.

Today, there are low-impact and cost-effective enablers for least cost printing. I have used several and for the most part they are easy to install and maintain and provide an attractive return on investment.

These tools are applicable for small user groups to large enterprises who wish to leverage their technology investments and realize the digital promise. They will receive additional benefits from office printing solutions that include process controls provided by a least cost printing implementation;

• Reduced page output costs
• Improved employee productivity
• Increased utilization of technology investments
• Ability to manage office printing environments

It is my opinion that least cost printing should be part of every well-designed strategy for managing a document output environment.

Improving Your Document Output Environment

Are you the one who has been tasked with improving your organizations document output environment – where will you begin?

Taking the common path will mean following the recommendations of most of the vendors you will encounter and focus on reducing the operating costs of your network printer fleet. You may even contract with one of them to "manage" it under an MPS or fleet management umbrella.

Obviously, the network printer fleet is a major component of your document output environment but only that, a component. If you do not consider other elements such as user behaviors and workflow, or try to address the network printer fleet in isolation from the rest of the environment you are missing the greatest opportunity to maximize your environment.

It is my belief that it is just as important to understand how and where the documents originate as it is to know where they are output. Analysis of the data I find in my document environment assessments invariably allows me to identify expense reductions as high as 35% without ever addressing operating costs. Without this knowledge how can one truly maximize both the fleet and user productivity?

Three simple examples to illustrate this point:

In a recent assessment I discovered that the client was printing approximately 36,000 color pages per month from e-mail. At a contracted cost of $0.075 per page they were wasting a minimum of $2,700 per month on this unnecessary activity.

In another project the client's equipment supplier recommended they upgrade a color-enabled MFD due to increased volume. Analysis of the data showed that just over 40% of the volume was coming from another workgroup who had an MFD that did not meet their needs. Replacing the device with too much volume would not have solved the core problem.

It is not unusual to discover that a percentage of users print 100% of their documents in color without any application-based requirements to do so. Additionally they often do this on desktop printers with a cost per page averaging 20 cents.

When performing assessments many vendors map the client's devices, some even map the volumes produced by those devices but mapping the volumes by user really provides a view of how the document output assets should be placed to best meet their needs.

More often than not I encounter prospects and RFPs that are only addressing the network printer fleet without consideration of the desktop printers, facsimile machines and MFDs. It is only with a balanced deployment of all these classes of devices that you can maximize your environment. Detailed data that shows job characteristics such as size by pages allows you to develop an effective least cost printing strategy.

The point of this post is if you are setting out to re-engineer your print output environment do not shortchange yourself by limiting the scope of the project. Assessing and analyzing all components will provide you with the knowledge of their interdependencies and ultimately allow you to maximize each one individually. Stay in touch for more detailed discussions of these topics.