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7
Best Value Review of Reprographics
Executive Summary
Scope
The scope of the review covers the Council’s reprographic services. These services
include all print production, print procurement and graphic design including web
design. Hertfordshire County Council spends around £6 million each year on these
services. Two thirds is procured from external providers and a third originates inhouse. Total costs are circa £10 million, if one includes property and people time
costs associated with copying and archiving.
Print Activities
There are two principal categories of print – Dry and Wet.
The first category of ‘Dry Printing’ is often referred to as reprographics. It accounts
for circa 61 million copies per annum. It has three components: ‘desktop’ printing
attached to a PC, ‘walk up’ local photocopying and ‘fast’ volume printing. Each
component accounts for a third of the total volume.
The ‘Desktop’ printing component is worth £840k and is not centrally managed.
The ‘Walk up’ copying component is, in part, centrally managed by Impressions
(£250k). The balance (£370k) is spread at various locations across the authority.
The ‘Fast’ print component is carried out at two centres within Impressions (£340k)
and one within Wheathampstead (£190k) with a small volume placed externally.
Considerable equipment is deployed to achieve the overall output. Utilisation levels
for desktop machines are low and the large central machines work at 50% capacity.
The second category of ‘Wet Printing’ is often referred to simply as ‘Print’. It is
traditional printing via presses using inks. Wet printing is produced in-house by
Impressions and procured from external suppliers by a plethora of commissioners,
including Impressions itself. Impressions’ production is worth £400k p.a. Print
procured externally is circa £1.35M. The total spent on wet print is circa £1.75M.
Graphics Activities
Graphic design is the design of decorative artwork; the positioning and form of the
written word, in whatever media, including web sites and the effective visual
communication of that work.
Graphic Design work is done both in-house and purchased from external suppliers.
The in-house work is carried out in a number of 'centres of expertise' across the
authority. The four graphic designers in County Graphics are the largest
concentration. The in-house cost is £500k. Design procured from external sources is
estimated at £650k. The total spent on design is circa £1.15M.
Centres of Expertise and Staffing
Forty-two staff are spread across the authority. Corporate Services has staff situated in
the Impressions print unit, 17 and in the County Graphics’ design unit, 4. This is half
the total. Both units are managed through County Supplies and Contract Services
(CSCS) as separate trading units. Facilities also exist in Fire and Rescue (Graphics
and print procurement); at CSF Copy Shop, Wheathampstead (Print); at CSCS
2
(Graphic design, print procurement and web design); in CIS Design Studio (Graphic
design). Web design is also carried out in several departmental areas. Eleven
employees are dedicated to graphics design, the remainder to printing.
Performance
Service performance was assessed during the review from client feedback, a staff
survey and a focus group’s comments and can be described as generally positive with
some concerns about a lack of information. Pricing comparisons involving a 'basket'
of requirements showed that both the print and design units are competitive with
external providers.
The Review
The review has been project managed in a similar manner to that of other HCC Best
Value reviews with the principal focus upon the 4Cs and featuring a Challenge
Workshop at which a number of hypotheses were developed. These hypotheses have
been refined and developed by an Officer Review Team and agreed with the Member
Review Group led by Jane Pitman.
The agreed conclusions of the review are that:
Some savings and improvements will come from bringing traditional ‘Wet’ print
and design procurement together in a procurement portal.
Significant savings are available by moving to network printing using MultiFunctional Devices to replace existing analogue photocopiers, desktop printers
and faxes for all ‘Dry’ printing. This will be best achieved by letting a service
based contract to a major supplier / contractor on the basis of a simple copy
charge.
Service improvements and harmonisation of standards in the graphics design area
will be achieved by introducing a Head of Profession role and the creation of a
design network coupled with more flexible working. County Graphics would
cease to trade as part of this new model.
Service improvements will be achieved in the printing and graphic design areas by
the introduction of a career scheme for each and the achievement of Investors in
People for both areas.
A corporate policy statement on print and design will assist greatly the
implementation of all the recommendations.
Headline Financial Savings
The Net benefits from the review will have reached a total of £1.213 Million by the
end 2004/5 when the various projects have been fully implemented. On an annual
basis thereafter the savings will reach £689k. The principal savings are assumed to
come from the network printing model but the key is the ‘price per copy’ saving
assumed and this can only be a forecast until the actual contract is let.
Overall financial figures are in section 3 of this report
3
1. Introduction
This report sets out the final recommendations of the review and their financial
implications and a detailed action plan for implementing the recommendations.
In addition to the recommendations, the report summarises the approach to the
review, the scope, the 4Cs and the review methodology.
Also included is the Position Statement, which sets out the state of the services as they
were at the time of the review, including:
− the key processes used in Print and Design activities
− performance information collected by the review
− an assessment of the strengths & weaknesses of the different services
The Officer Review Team to manage and carry out the review is:
Peter Maguire (CSCS), Lead Officer
Andrew Hutchinson (Strategy & Consultancy), Project Manager {part}
Julian Hill (Strategy and Consultancy, Project Manager ){part}
Ant Hurrion (Strategy and Consultancy, Project Manager ){part}
Marianne Cusworth (CIS)
Chris Brown (CIS)
Don Preece (Impressions)
Ian Cooper (County Graphics)
Clare Kaye (Assistant Chief Executive) {part}
Steve Gilbey (CSCS) {part}
The Member Review Group is
Jane Pitman (Executive member and Review Chair )
Derek Ashley (Executive member)
Alan Searing (Member)
George Wenham (Member)
The Member Review group considered the recommendations presented in this report
and agreed that they should be taken forward as the final recommendations of the
review to Cabinet.
4
2. Recommendations of the review
The recommendations are in five areas as follows:
Procurement Portal – (see paragraph 2.1)
á That a central point for the procurement of print and graphics is established and
that all print and graphics requirements not delivered by the ’in-house team’ be
procured by this means.
Customer Relationship Management - (see paragraph 2.2)
á That a series of measures be taken to improve Customer Relationship
Management for all print and design services to include a) Proactive marketing
and b) Improved customer contact and liaison.
Network Printing - (see paragraph 2.3)
á That a phased programme be commenced to introduce network printing using
Multi-Functional Devices were appropriate for most desktop printing, walk up
photocopying and bulk fast printing.
á That a service based contract is let to a major supplier / contractor on the basis of
a simple copy charge to achieve the network printing.
á That Wet Printing i.e. the balance of Impressions after removing the above
printing will continue to trade.
Design Network (see paragraph 2.4)
á That a formal ‘Design Network’ based upon a Head of Profession concept is
formed and more flexible working is introduced for design staff. County Graphics
ceasing to trade will assist this harmonisation of design.
á That a career scheme being introduced for both print and design staff and the
award of Investors in People be sought for both.
Corporate Policy (see paragraph 2.5)
á That a Corporate policy statement be agreed on both the procurement of and
delivery of print and design throughout the authority.
In addition there are a number of Quick Wins set out in Paragraph 2.6
5
2.1 Procurement Portal – Recommendation 1 is:
That a central point for the procurement of print and graphics is established and
that all print and graphics requirements not delivered by the ’in-house team’ be
procured by this means.
2.1.1 Before the Procurement Portal
−
−
−
−
−
−
HCC unaware of total spend
Fragmentation of spend
No guarantee that the procurement process is robust
In-house units not used to the optimum
No management information available
No specific standards applied across HCC
2.1.2 After the Procurement Portal
− Total spend is known and can be monitored.
− Proper management information available.
− The use of the in-house teams is maximised in line with their capacity
and capability.
− Economies of scale achieved.
− All print and graphics procurement carried out in line with
procurement best practice.
− All work is carried out to agreed corporate standards.
6
2.1.3 Summary of Key factors
There is considerable evidence that the arrangements for the procurement of
print and graphics are uncoordinated, being carried out currently by many
different individuals across the organisation, and there are clear opportunities for
cost and service benefits to be obtained from managing this function more
strategically. There are several factors, which have led to this conclusion:
♦
The current fragmented approach means that, as an organisation, the
overall spend on this activity cannot be accurately measured.
♦
There is little opportunity to achieve any economies of scale.
♦
The efficiency of the in-house print unit, which has a significant
investment in print machinery is affected as work for which they have the
capability and capacity is being directed to commercial printers.
♦
The print industry has spare capacity, in both the public and private
sectors, and there is no strategy to use this market position to the
advantage of the organisation nor is there management information to
enable the in-house units to make informed decisions on future investment.
The proposed portal will co-ordinate all print and graphics procurement across
HCC corporate departments and apply proper procurement principles to the
aggregated demand whilst ensuring the most appropriate use of the in-house
units.
The HCC ICT help desk will act as a focus via a help desk for any complaints
and the portal will manage any complaints in accordance with established
procedures.
7
2.1.4 Financial Implications
With no definitive analysis of the amount spent on print and graphics procurement
across the authority there are clear difficulties in identifying the full extent of the
savings that could be achieved. However the best assessment that can be made is that
the likely total spend is approx. £2million p.a., on which an estimated 8-10% could be
saved. Against this would need to be set the costs of running the in-house team who,
it is proposed, be incorporated within the County Supplies & Contract Services
Purchasing team. These costs, based on a team of 3 are assessed as:
TABLE 1
COSTS
£ p.a.
Staff costs
64,000
Accommodation
21,000
Management and Overhead
25,000
Total
110,000
Plus a one off set up cost of up to £5,000
TABLE 2
DESCRIPTION
Savings (based on 8% of £2.m)
Costs (as table 1 plus set up)
ANNUAL (COSTS) / BENEFITS
CUMULATIVE (COSTS) / BENEFITS
£’000s
‘01/02
0
‘02/03 ‘03/04 ‘04/05 Ongoing
160
160
160
160
0
(115)
(110)
(110)
(110)
0
0
45
45
50
95
50
145
50
2.1.5 Implementation Plan
The implementation of this recommendation will require the setting up of a dedicated
unit within CSCS whose role will be to place all requirements for print and graphics,
not capable of being delivered by the in-house teams, through cost effective
contractual arrangements. The unit will have close links with key personnel across
HCC and will oversee advice to users on print and graphics requirements. Further
investigation will be required to determine the most appropriate operating basis for
this unit. This could either be through the costs of the unit being met through Service
Level Agreements (SLA) with departments, or by establishing the unit on a traded
basis within the CSCS purchasing unit, financed by on-costing individual jobs. Once
established, the unit could seek to extend its activity to schools and other users of
CSCS, where this would increase the potential for gaining further savings.
An initial assessment of the likely staffing requirement is for a team of 3, who would
either be transferred into the unit or recruited following consultation with
departments. The work to establish the unit and its operating basis would take place
during the early part of 2002, with the unit in place by the early part of next financial
year, 2002/2003.
8
2.2 Customer Service Management - Recommendation 2 is:
That a series of measures be taken to improve Customer Relationship
Management for all print and design services to include a) Proactive marketing
and b) Improved customer contact and liaison.
2.2.1 Before Customer Relationship Management
−
−
−
−
−
Marketing - unstructured
Awareness of the various units low
No central help desk
Clients uninformed about progress
Feedback from customers “bitty”
2.2.2 After Customer Relationship Management
a) MARKETING PROACTIVE
−
−
−
−
−
−
Multi media promotions
Marketing campaigns
New services promoted
Sample work displayed
Regular price info
Feedback sought
b) IMPROVED CUSTOMER CONTACT
−
−
−
−
−
−
−
−
2.2.3
Help Desk
Customer Service standards
Commissioning framework
Formal complaints procedure
Logged feedback and comments
Performance management
Customer visits - encouraged
Satisfaction levels tested
Summary of key factors
In order to achieve excellence in customer relationship management and marketing
we will need to:
♦
♦
♦
♦
♦
Actively lead the development of the quality assurance programme from the top
Involve all staff in developing the quality assurance programme
Positively enthuse and support the staff to make their best contribution
Adopt a customer first culture
Provide training and awareness sessions and make sure staff are free to attend
9
2.2.4 Financial Implications
None, as marketing included in the trading budget of ‘Wet’ print and the call centre,
help desk and complaints management will come as part of the global ICT help desk
and from the Procurement Portal and Network Printing recommendations.
2.2.5
Implementation Plan
Activity
Set Customer Service Standards
Assign a project leader
Nominate/agree staff to form task group
Task group to prepare and consult on draft standards
Agree standards
Publish and launch standards
Produce Complaints procedures
Assign a project leader
Nominate/agree staff to form task group
Task group research Corporate model and departmental
procedures
Produce draft procedures
Consult on draft procedures
Finalise and agree procedures
Publish and launch procedures
Establish performance monitoring programme
Assign a project leader
Nominate/agree staff to form task group
Task group research monitoring methods appropriate to
agreed standards
Consult on recommended programme
Agree and launch programme
Establish database
Analyse and publish information from monitoring activity
Establish customer service help desk –Talk with ITnet
and the new contractor/provider of network printing
To coincide with the launch of the Customer Service
Standards
10
Start
End
Jan 2002
Jan 2002
Jan 2002
July 2002
Sept 2002
Sept 2002
Jan 2002
Jan 2002
Jan 2002
July 2002
Sept 2002
Sept 2002
June 2002
June 2002
Sept 2002
Sept 2002
Dec 2002
July 2002
6 monthly
reports
continues
2.3 Networking Printing - Recommendation 3 is:
•
That a phased programme be commenced to introduce network printing
using Multi-Functional devices where appropriate for desktop printing, walk
up photocopying and bulk fast printing.
•
That a service based contract is let to a major supplier / contractor on the
basis of a simple copy charge to achieve the network printing.
•
That Wet Printing i.e. the balance of Impressions after removing the above
printing will continue to trade.
2.3.1 Before Network Printing.
Currently the Council has lots of devices – 1781 printers, 156 Photocopiers and
203 Facsimile machines mostly not connected. These machines ‘Dry’ print in
three main ways as desktop printing, walk up photocopying and fast printing.
Not all PC users have access to fax, scanning and duplex printing.
Fig.1
Before NETWORK
PRINTING - Rec3
County Hall
40-50% capacity
Hatfield
40-50% capacity
61 Million copies @ 2.9p
= £1.769Million
Wheathampstead
40-50%capacity
The price per copy used above in fig.1 is an average of the three types of printing and
ignores paper costs. ‘Desktop’ printing accounts for an estimated 21 million prints
and currently costs £840k including paper. Paper costs around 0.5 pence per page.
The assumption is that most desktop is single sided (simplex). ‘Walk up’ printing is
also assumed to be simplex, accounts for 20 million prints and currently costs £620k.
‘Fast’ print is assumed to be mainly two-sided (duplex), accounts for 20 million prints
and currently costs circa £550k. The total spent on ‘Dry’ Printing, including paper
costs, is just over £2 Million. The figure for consumption ignores that used in faxes
and the small amount of fast print procured externally.
11
2.3.2 After Network printing a fewer number of local Multi-Functional Devices
(MFDs) will largely replace the lots of devices and will operate as part of a
network attached to a virtual central hub. This hub will bring together the three
main fast print centres at County Hall, Hatfield and Wheathampstead and the
local devices using software.
Fig.2
After NETWORK
PRINTING Rec 3
Saving £647K per annum
when fully implemented
Hatfield
County Hall
Hub
Wheathampstead
Price per copy - No Leasing - Managed Service
MFDs provide many more facilities direct from the PC and the demand for
photocopying will reduce to be replaced by printing from the desktop. MFDs have
much improved finishing facilities for collating and stapling to those from most
desktop printers and are simpler to use than those of the typical photocopier. Double
siding and A3 printing are typically available from a simple print menu on the PC.
Users will also have access to other printers on the network either to access other
functionality or send or share large print jobs. A user’s print jobs can be sent and
printed immediately or released only when the user wants to via a pin number (for
confidentiality reasons or for convenience of collection of all jobs at once.) The wait
times will be less as the machines are generally quicker and have the facility to print
almost instantly when the image is held digitally. The repeat cycle time is much
shorter as they don’t recreate this image each time, unlike a standard photocopier,
when being operated from the desktop. The user will be in control.
It will be crucial to determine with the users the right number and type of devices and
to select the right location to suit each area /department /buildings needs. Existing
locally attached printers will be progressively rationalised with time. There will
always be areas where it will not make sense to install an MFD. In these cases
networking the right laser printer maybe more sensible or because there is no network
capability the right standalone device. The philosophy is likely to be two smaller
MFDs rather than one massive one in any area.
12
Specialist printers such as plan copiers and invoice printers will not be replaced.
The local printing process will be much faster with speeds typically 20 to 40 pages
per minute against 4 to 8 pages for many of the present printers.
The availability of duplex printing will have the effect of reducing the consumption of
paper by up to 2.5 Million pages saving up to £12.5k per annum.
MFD’s are more environmentally friendly in that they are recyclable and have lower
emission levels.
2.3.3 Let as a Service Contract (Rec. 2.3.2)
The specification will require a single cost per copy and no leasing charges. The
contract would not guarantee the contractor any volumes at all. There will be a phased
introduction of network printing.
Fast Printing is targeted to be fully networked by end of March 2003. Walk up
copying will be completed over two years by end of March 2004.
Desktop printing will be networked more progressively over 4 years with just 30%
targeted for completion by March 2003. Around 20% of desktop copying will never
be networked for reasons of confidentiality or because there is not sufficient volumes
or because no network exists.
It is important to emphasise that network printing will be phased in by seeking
user co-operation and without compulsion. It is in the contractor’s interest to
work at this for the more successful the greater his income.
However the contract also allows the authority to benefit immediately from any
reductions in total copy volumes achieved by ‘E’ programmes.
HCC’s Infrastructure Management will have technical authority over the
specification, installation and use of all network devices.
The contract would also require the contractor to have:
− Trained Engineers- permanently on a site such as County Hall.
− A programme for training HCC Staff to use the equipment.
− A Flexible Approach to the introduction.
As well as:
−
A Call Centre with remote fixes linked to HCC ICT help desk.
−
A System monitor.
−
Investment in improvements {thus keeping technology current.}
2.3.4 All dry printing will be recharged at a standard price to the authority’s users on a
price per copy basis. A higher charge will be levied for external users to be
determined locally i.e. By Wheathampstead and CIS for library users
13
2.3.5 A contracts manager should be appointed to oversee the provision of the service
working to CSCS contract management.
2.3.6 The fast print staff of Impressions and Wheathampstead would remain under
existing management but provide internal Dry printing under an Service Level
Agreement from the virtual Hub.
2.3.7 The contractor will be required to put in software to manage the hub and to
collate charges. It is also likely that such software will tell the user when they
should use the local Multi-Functional device or send the job to the central (fast
printing) hub.
2.3.8 The contractor will seek agreement of both the HCC Infrastructure Team
and ITnet before the installation of any hardware or software.
2.3.9 ‘Wet’ Printing & Complex Finishing
‘Wet’ Printing i.e. the balance of Impressions after removing ‘Fast’ printing
would continue to trade.
−
−
−
−
A price list will identify additional costs for complex finishing.
The wet print work will be commissioned via the Proc. Portal.
Investment in new kit, particularly colour will be looked at.
Impressions would retain its delivery van.
14
2.3.10 Summary of key factors
In order to ensure a successful rollout of network printing we will need to :− Sell networked printing to staff as an efficient and effective alternative to
separate fax, printer, scanner and copier on an area by area and not compel
its introduction.
− Ensure the provision of reliable IT support and a robust network service.
− Produce timely and reliable delivery of printed output.
− Overcome the restrictions of building design or put in effective alternatives
to MFD’s.
− Have viable routines for confidential printing
− Allow exceptions
− Most of all have a flexible approach
2.3.11 Financial Implications
DESCRIPTION
‘01/02
£’000s
‘02/03 ‘03/04
‘04/05
ONGOING
Cease to trade
Staff overheads
Management
Buy out of leases, ISDN links
and network connections
Savings
Savings of paper by duplex
(0)
(0)
(15)
(0)
(32)
(200)
(60)
(195)
(32)
(200)
(60)
(145)
(32)
(200)
(60)
(0)
(32)
(200)
(60)
(0)
26
545
830
10
902
10
926
13
ANNUAL (COSTS) / BENEFITS
CUMULATIVE (COSTS) / BENEFITS
11
11
58
69
403
472
620
1092
647
Savings are based on a phased roll out of Networking Printing.
‘Fast’ print at County Hall and Hatfield are likely to be done first, then
Wheathampstead next. The roll out of both ‘Walk up’ and ‘Desktop’ is dependant on
user co-operation and any leasing contracts.
15
Detailed Cost Model for network printing introduction – excluding paper savings
from duplexing.
Network Printing model
IGNORING PAPER COSTS
Fast Print
Desktop
Walkup
Per Copy
Current New
Cost
Cost Saving Copies P.A.
£
£
£
0.025 0.012 0.013 20,000,000
0.035 0.012 0.023 21,000,000
0.026 0.012 0.014 20,000,000
Fast Print
Desktop
Walkup
Savings per copy
Savings per copy
Savings per copy
Fast Print
Desktop
Walkup
Network Copies
Network Copies
Network Copies
Type
Amount transferred to Network from Analogue
01/02
02/03
03/04
04/05
05/06
yr 1
yr 2
yr3
yr4
ongoing
10%
0%
0%
100%
30%
50%
100%
60%
100%
100%
75%
100%
100%
80%
100%
0.013
0.023
0.014
0.013
0.023
0.014
0.013
0.023
0.014
0.013
0.023
0.014
0.013
0.023
0.014
2000000 20000000 20000000 20000000 20000000
0
6300000 12600000 15750000 16800000
0
10000000 20000000 20000000 20000000
Total Copy Savings
26,000
544,900
829,800
902,250
926,400
Above in round K
26
545
830
902
926
Deduct additional Costs
Item
Ceasing to trade - no surplus generated
Staff overheads - Allows for 6.5 staff and van from Impressions
Buy out leases - Budget to buy out some old leases
Management - Allows for Contract manager and admin
Yr 1
0
0
0
-15
Yr 2
-32
-200
-195
-60
Yr 3
-32
-200
-145
-60
Yr 4
-32
-200
0
-60
Yr 5
-32
-200
0
-60
Overall (Cost) / Benefit
11
58
393
610
634
16
2.3.12 Implementation plan for Network Printing
Description
Start
Create Project
Establish project Board
Establish project team/user group to set business
requirement
Give PC Users network access to fast print
Determine Network Infrastructure requirements and
compatibility of print management software
Specify contract for fast print equipment and software.
Let contract –get technical clearance from infrastructure
Management
Set up print delivery mechanism
Install print management software to offer the option to
route high volume prints to core printing services.
Establish help desk with HCC ICT and ITnet’s help.
Train users
Implement
Provide network printing to PC users
Obtain user agreement to roll out to open plan offices.
Establish help desk with HCC ICT and ITnet’s help and train
engineers
Train users
Start roll out to open plan offices
Survey traditional offices
Obtain user agreement to roll out to traditional offices.
Roll out to traditional offices
User group continues to monitor delivery and suggest
improvements
Establish impact on any of the County’s
Telecommunications network and impact on ICT
infrastructure
Review the contract management activities after the
transition stage on network printing is substantially complete
17
End
Jan 2002
Jan 2002
March 2002
March 2002
April 2002
March 2002
March 2005
April 2002
March 2006
April 2003
March 2006
2.4
A Design network - Recommendation 4 is:
•
That a formal Design Network based upon a Head of Profession concept is
formed and more flexible working is introduced for design staff. County
Graphics ceasing to trade will assist this harmonisation of design.
•
That a career scheme be introduced for both print and design staff and the
award of Investors in People be sought.
2.4.1 Before, pretty good services but:
− Unchallenging environment
− Focussed in one area
− Set working hours
− Some lack of motivation
− Limited Career Progression
− Design not the sole priority
− Ideas not cross-fertilized
− Service not customer led
− Trading for profit
2.4.2 After
−
−
−
−
−
−
−
−
−
Greater Creativity
Multi-skilled
Flexible Working
Motivated
Career Oriented
Design Focussed
More Professional
Customer Led
Not Trading for profit
2.4.3 Summary of Key factors
Information will increasingly be delivered and accessed via the Internet. Document
design must be influenced by the need to make a product easy to read on a PC screen,
a TV or whatever other media come along, as well as paper.
Graphic designers must work more closely together and with web designers to
common standards and interfaces. There are differences. Web designers don’t create
flat pages. They store data and graphic elements in databases so that they can be
extracted and assembled to meet particular needs, known as ‘enter once, use many
times’ approach. So there is a strong programming content to the work. The graphic
design activity in the web team is an integral part of the web work, with a strong IT
content, but needs a close working relationship with the graphics team to avoid any
duplication. This relationship will be looked at as part of the HertsDirect review.
Multimedia and publishing on CD-ROM will become increasingly important.
18
The review team felt that there was some evidence of a ‘staleness’ and lack of
motivation present in some of the design areas and evidence of high motivation in
others. It was also clear that designers in some areas were often focussed on
administration and print procurement rather than on design. These processes have
been separated in other areas such as Fire and Rescue. Staff turnover was also high in
certain areas reflecting the lack of career incentives.
This recommendation proposes a design network for those involved with graphic
design activities for “print” based designers.
The principal objectives of a design network are to encourage creativity and to ensure
that the Authority has a critical mass of design expertise. Initially, a design network
will assist in building an authority wide expertise (by adopting best practice models
from within and without the council e.g. the commissioning framework in Fire and
Rescue) but, in the long term, thought should be given to housing all design under one
roof. The network will promote multi-skills as a virtue by sharing knowledge and
giving designers access to a greater variety of work, e.g. giving access to the same
information for all designers via a central image /logo bank.
Agreeing a formal commissioning framework is also considered to be essential both
to the network but also for effective use to be made of the procurement portal.
Each department may warrant it’s own creative team and this can be achieved by
having a key contact in the design network for each department. This will encourage a
customer focus. Some of these contacts will, of course, remain in situ in existing
departments but will be backed up by the network. The ability to share workload
across all designers would be a benefit.
It is proposed to cease trading County Graphics and put all design and graphic activity
on a similar footing of either being a departmental overhead or on a cost recovery
basis via a Service Level Agreement (SLA).
The introduction of career schemes for both Print and Design areas will increase
professionalism and reduce staff turnover and promote multi-skilling.
2.4.4 Financial Implications
DESCRIPTION
Surplus ended by stopping the
trading of County Graphics
ANNUAL (COSTS) / BENEFITS
CUMULATIVE (COSTS) / BENEFITS
£’000s
‘01/02 ‘02/03
0
(8)
0
0
(8)
(8)
19
‘03/04
(8)
‘04/05
(8)
(8)
(16)
(8)
(24)
ONGOING
(8)
(8)
2.4.5 Implementation plan
Activity
Start
Finish
Design network for ‘print’ based designers
Agree the Head of Profession
Jan 2002
Hold team building away day
March 2002
Assign key contacts and arrange introductions to
key people in each department
From April 2002
Keep a central register of work loads
From April 2002
Circulate projects and responsibilities around the
teams
From April 2002
Share Maintenance contracts and IT support
From April 2002
Institute Regular group meetings
From April 2002
Career Scheme
Map out Career Scheme
From April 2002 Sept 2002
Obtain Personnel approval and Introduce scheme
Sept 2002
Obtain Investors in People
By Dec 2002
Encourage flexible working and concentrated
hours.
Immediate
Under one roof
Discuss potential for housing all ‘print’ based
designers under one roof
By Dec 2002
Clients
Design a formal commissioning framework with
clients
By April 2002
Discuss with departments and communications
personnel 'key' contact concept
By April 2002
20
2.5 Corporate Policy for Print and Design – Recommendation 5 is:
That a Corporate policy statement be agreed on both the procurement of and
delivery of Print and design throughout the authority
2.5.1 Before
−
−
−
−
−
Laissez-faire
No central purchasing
Maverick purchasing of both Print and Design
Design standards not followed everywhere
Little or no management information available
−
−
−
−
−
Controlled situation
Central purchasing
No maverick purchasing of Print or Design
Design standards followed everywhere
Management information available
2.5.2 After
2.5.3 Summary of Key factors
A corporate policy on both print and design and its procurement will greatly assist the
successful implementation of these recommendations and, without it, it is likely that
the network printing will not be successfully introduced.
2.5.4 Financial Implications
There are no financial implications for this recommendation.
2.5.5 Implementation plan
Activity
Start
Finish
Draft Policy once recommendations of
Best value are agreed
Jan 2002
March 2002
Submit to SMB and cabinet for
approval
April 2002
21
2.6 Quick Wins
In addition to the above major recommendations, a number of “quick wins” were
identified over the course of the review and conveyed to the relevant managers for
implementation. These included:
− Introducing Apple Mac capability and support*
− Achieving IIP status
− Installing a ‘Scissors’ lift to aid lifting at County Hall.
Other wins were the interim measures to enforce existing procurement guidelines and
the directions to management for action to review of management competencies, to
introduce business planning support and to develop alternative forms of
communication.
*Concern has been expressed in connection with the Apple Mac support capability.
This will need to be further investigated by HCC ICT and may incur extra costs.
22
3
Financial Implications
3.1 Improvements from within existing resources
There are a number of service improvements, which are made through
reconfiguring existing services within current resources – e.g. Increased
marketing relating to the CRM recommendation.
3.2 Improvements requiring additional resources
Some service improvements will require additional resources i.e. the
procurement portal and the contract manager for the network printing. In the
case of the portal it is likely that the additional resources will be provide by the
existing services. The table at 3.4 has these costs netted off.
3.3 Investments required
In order to implement the detailed service improvements some investment is
needed through a one-off injection e.g. the set up of the procurement portal.
Other one off’s will include the management software to manage the network
hub and the fleet of Multi-Functional devices. However the costing assumes that
these are absorbed within the single copy charge for network print. Similarly it
is assumed that the call centre / help desk set up costs are already included in the
costs of the recommendations for the Procurement Portal and the Network
printing. However there maybe an increase in costs associated with running the
help desk to be determined.
3.4 Financial Costs / Savings
The table below shows the summary of quantified net annual costs / savings
associated with the reconfiguration of services. Cost shown in brackets.
£’000s
REC AREA
‘01/02 ‘02/03 ‘03/04 ‘04/05 ONGOING
Procurement Portal
CRM
Network Printing
Design Network
Corporate Policy
1
2
3
4
5
Annual (Costs) / Benefits
Cumulative (Costs) / Benefits
0
0
11
0
0
45
0
58
(8)
0
50
0
403
(8)
0
50
0
620
(8)
0
50
0
647
(8)
0
11
11
95
106
445
551
662
1213
689
3.5. Review Costs
The costs of the review fall into two categories:
External costs £13,280.00
Officer Costs £59,875.00
Total
£73,155.00
23
4
Approach to the review
4.1 Scope of the review
A scoping workshop was held on 25th April 2001 at the Vintage Court Hotel in
Puckeridge to determine the scope of the review. Over 30 people attended. Those
attending included members, clients of the reprographics services, the trade union,
officers of St. Albans and North Herts District Councils and an external challenger
from Xerox. The stakeholders voted on all possible areas at the end of the session.
Unanimously recommended as being in the scope:
•
Printing – everywhere the activity is carried out in the authority and
all forms of it and its procurement
•
Copying and photocopying- everywhere the activity is carried out in
the authority and all forms of it and its procurement
•
Graphics and Design– everywhere the activity is carried out in the
authority and all forms of it and its procurement
•
Other print opportunities – areas where we currently use a third party
or areas where we could develop the business. E.g. Payroll
•
Consideration as to whether the above activities should be traded
services producing a contribution or provided services as a central
overhead.
The above scope meant that the central units of Impressions and County Graphics
were reviewed. Also, the departmental units of graphics and print procurement in Fire
and Rescue; Copy shop at Wheathampstead; CSCS Catalogue; CIS design studio at
New Barnfield and Web design were reviewed.
Several areas had a strong vote in favour though not unanimous and it was
recommended that they should also form part of the review:
•
Design opportunities (96%)
•
Network printers / copiers (92%) e.g. MFD.
•
Web design (91%)
•
Image Library (87%)
•
Corporate Identity – Management and Policing (70%)
•
Graphics design – Livery & Signage (65%)
•
Corporate Identity – Design (61%)
Although not voted on the group felt that links are required to the following reviews:
•
Translation and Interpretation Services
•
Services to people from ethic minorities
•
Adults with physical and sensory disabilities.
24
The scoping workshop recommended that the review should exclude:
•
Corporate Identity Development as this is properly part of the
Communications Review (64% against)
•
Document Management (61% against) except where it involves Printer
Management or Print policing / monitoring and distribution aspects of
both Print and “E” alternatives / replacements which do fall within.
Archiving and Storage aspects of Document management fit into the
Hertfordshire Archives and Local Studies (HALS) review. Electronic
Documents Management policy fits within the IS/ICT review and
Stuart Campbell will advance these. Finally departmental document
management systems/ workflow will be considered as each service is
reviewed on a business case basis.
4.2 Review Methodology
The review followed the standard HCC methodology and was carried out in four
stages: preparation, information collection, and hypothesis testing and reporting. At
each stage the core officer review team researched information and developed
proposals. These were tested with an external challenger at three Workshops during
the course of the review, before being presented to the Member Reference Groups for
decision.
The approach to the 4C’s was developed during the preparation stage. It was tested
with the external Challenger at a Scoping Workshop on 25th April 2001 and revised
before being presented to Members for decision.
The core review team collected information on service provision and performance
which involved consultation with users, research into comparator organisations and
alternative providers. A Position Statement was produced setting out a description of
the Reprographics service, information on cost & performance, together with an
assessment of areas where performance is strong and areas where improvement is
required. This Position Statement was tested with the external challenger at the first
Position Statement Workshop on 14th June 2001 and was the basis for focusing efforts
on those areas where action is needed to improve performance.
Hypotheses (ideas) for improving performance were developed at the Challenge
Workshop on 5th and 6th July 2001, and tested during the Hypothesis testing stage.
This has culminated in a set of draft recommendations, which were tested at the
Recommendations Workshop held on the 29th October 2001 and are now presented to
Members for consideration.
The final recommendations of the review were agreed by the MRG on 19th/20th
November 2001 before going to Cabinet on 17th December 2001.
4.3 Challenge
The primary challenge of the review was to test how customer focussed our
Reprographics services are. Our intention has been to ensure that we are utilising
resources efficiently, promoting equity for all users, consumers and citizens by
25
positively challenging all assumptions and options for change, and thereby deliver
Best Value.
We used all the interested parties who attended the “Scoping” Workshop, staff of the
County Council, the public and representatives of external organisations in both the
public and private sector at various points throughout the review to continually
challenge how we do things and how we can make our management of all the services
more effective.
Johanna Ridgeley of Xerox provided external challenge. A full list of Reference
Group members is included as an appendix.
4.4 Consultation
We consulted the following groups:
Customers – as consumers and as users of all the services - via a focus group –lead by
Marianne Cusworth.
Members - through the Member Reference Group
Staff - within the production units – individual units by staff meetings and in
workshop forums
Staff - as customers and users – feedback survey e.g. communications units etc.
Staff - as consumers –nearly 500 staff on email in the authority with a satisfaction
survey
Unison – as part of the wider reference group and in separate meetings
Potential partner organisations as potential providers, external customers e.g. users of
Wheathampstead services; Xerox; Canon; Danwood and CDS
Comparison
All internal costs were looked at e.g., costs of design function with County graphics.
Lists of questions were asked of each of the units to obtain a variety of metrics e.g.
Machine utilisation in the print units. An audit of print usage was carried out for
County Hall using an outside firm of consultants, TS Associates.
External competitor costs/prices for a basket of jobs were compared for each of the
production units –Impressions and County Graphics using recent prices.
Telephone questionnaires were conducted with various external organisations, private
and public sector and visits were carried out to a number of these organisations to
compare our services and range with theirs. We used these comparators to gain
intelligence on where our services stand relative to others. The organisations looked
at were:
− Boots The Chemist (Private sector re - network & central printing)
− Blue Skies (Private sector designers)
− Bucks County Council (Graphics)
− Bucks County Council (Printing)
− Addenbrookes Hospital (Outsourced Print)
26
− Scriptlitho (Private sector- printers)
− Essex County Council (Procurement )
− Manchester City council (Network printing)
Information was also gathered on a number of other Best Value reviews particularly:
− Dumfries & Galloway
− Walsall Metropolitan Borough Council
Further details are available as appendices.
4.5 Competition
In Hertfordshire the decision about whether or not to outsource a service is considered
separately for each case. There is not a dogmatic assumption that in-house provision
or outsourcing is necessarily the preferred options. Each case is judged on its
individual merits.
When reviewing services we considered outsourcing as one option in several of our
Hypotheses. (Particularly Hypotheses 2 –Procurement portal, Hypotheses 4 –Network
Printing and as a general issue under Hypothesis 5- organisational structure.)
How competitive the services are was informed by the outputs of the other 3Cs. In
particular, the basket of goods work gave us the view that our in-house services are
competitive.
Hertfordshire already procures a significant proportion of these services from the
private sector – in particular equipment leasing via the corporate contract on
Photocopiers. Equipment such as Desktop printers is purchased in the main and
maintained by Selection services as part of the hardware maintenance contract and by
ITnet as part of PC support. The in-house operations compete in many cases against
the private sector and significant work goes both to in-house and out-house sources.
27
5
Position Statement
Following the “Scoping” workshop it was agreed that the main areas of the review
should be:
•
Printing, copying and photocopying, graphics and design –everywhere
in the authority, all forms of them and their procurement.
•
Other print and graphics / design opportunities –In areas where we
could develop new business or where business needs will change
dramatically we should consider whether to do it ourselves in-house or
externally.
5.1 Key Processes
The key processes involved in the above areas include some or all of the below:
a) DEFINING NEED - (defining the brief, commissioning and procuring)
b) DESIGN
c) PRODUCTION & REPRODUCTION
d) PUBLISH – (e.g. Web, paper, multi media)
e) STORE
f) RETRIEVE
g) DELIVER – (Physically to the desk or virtually via internet or email)
5.2 Rationale for the Current Key Processes
In 1991, a devolved model for support service provision was recommended by
Kinsley Lord, a firm of consultants, for the authority, whereby support services were
placed closer to frontline services in departments. This has lead to the decentralised
model for the services under review with units in many departments.
Bulk printing services have been carried out since the 1950’s and are currently carried
out in three different departments of the County Council but with a large central core,
Impressions. The Impressions unit was originally formed as the ‘Disabled’ print unit
and continues to have a third of staff who are differently abled.
There was a partial re-centralisation in the graphics area, which established County
Graphics as a trading unit in 1993. However Graphics and Design services are still
run in 4 different areas excluding web design.
28
Photocopying and localised (computer attached) printing is done in every area of the
Council though Impressions offers a walk up copying service to many areas.
Web design is a growth area currently carried out in two areas and catalogues are
produced in at least two departments with the imminent arrival of an Internet
catalogue in County Supplies and Contract Services.
The central business of Impressions (printing and copying) and County Graphics
(design) account for 21 of the 42 people employed - exactly 50%.
If full-time equivalents are used the percentage rises to 60% centrally to 40%
devolved.
The in-house units / businesses have an estimated turnover of £2.5 M. Estimated
because some do not trade.
The Council’s spend on print, graphics and photocopying is somewhere in the region
of £6.0 Million.
If one includes property and people time costs associated with photocopying and
archiving the overall cost rises to around £9.4 million.
(See Draft Total Cost Picture in Appendices)
5.3 Performance Information
The core team undertook 5 mini projects to obtain performance information.
•
•
•
•
•
Customer Questionnaire (completed for all areas)
Staff survey (completed)
Basket of goods exercises for Impressions & County Graphics.
Analysis of customer feedback for County Graphics –a 1in 5 sample
over 2 years
Inventory for network printing (Council wide)
Some of the highlights are:
Departmental print units scored better than Impressions with more “Very Good” and
“Good” from the customer survey. There were very few responses saying that any of
the services were “Poor” or “Very Poor”. The biggest single area of concern was that
customers felt they were not kept informed of progress.
29
5.4 Procurement Information
Some years ago concern was expressed over the unregulated use of outside printers
and graphic designers leading to problems for the in-house teams and inconsistent
quality. There were also issues around compliance with EU Procurement Directives
and County Council Contract Regulations, which needed to be addressed. In response
to this, groups were set up to agree best practice in Graphics and Print Procurement
and it was decided that the way forward would be to set up Approved Lists as defined
by the 1988 Local Government Act for both areas. Initially this was effective in the
graphics area however there was always problems in the area of print, where some
significant providers had not responded to the tender invitation.
Although the approved lists exercise put some structure into the procurement of print
and graphics, they did not satisfactorily resolve the issues and were difficult to
maintain and last year were disbanded. A strong recommendation emerging when this
happened was that the current Reprographics Best Value Review consider the
centralising of print and graphics procurement – It was thought that this might bring
savings and greater efficiencies with less of an administrative burden.
5.5 Assessment of Strengths and Key Concerns
5.5.1. Strengths
The staff and customer surveys showed that the centralised businesses are generally
well regarded. The vast majority of responses saw the services as “Good” or “Very
Good” on speed, efficiency, co-operation of staff, approachability and keeping people
informed.
The in-house print services are used because of their convenience,
because the organisation can easily prioritise their work and because
confidentiality is assured.
Indeed, there is built in over capacity to cope with priority needs such as Members
processes.
Against ten other authorities, Impressions score was third cheapest against a basket of
goods and cheapest of those authorities that trade.
The in-house graphics and design services are used because of their convenience
again, because of cost and speed and their cultural understanding of the organisation.
There are a variety of areas where there are specialist needs such as the County
Supplies catalogue and some aspects of the Library service.
The devolved business scored well in all the surveys.
We have not got feed back as yet on the web services but will hope to get this via the
Communications review.
30
The corporate inventory system made it easy to determine what computer attached
printers there are.
5.5.2.Key concerns
Financial data was difficult to obtain and in some areas impossible. The current
coding structures make it difficult to isolate all network-printing costs such as
consumables. There is no corporate inventory of photocopiers and their leases /
purchase. A variety of cost codes are used to code running costs of printing.
Customer Care was clearly to the fore in all the comments received, with some clear
concerns expressed. The devolved units scoring best but clearly an area to be
addressed.
Client commissioning skills were felt to be weak across the piece.
Training and IT skills came out as a key issue of concern.
Around 7% of people requiring printing or graphics services did not know that the
central units existed. This and other evidence points to weak marketing.
Capacity and machine utilisation is low. Large machines located in Impressions and
Wheathampstead are occupied around 50% of the time but some desktop printers are
in use less than 3% of the time.
The small pockets of design and their relative isolation from each other leads to a
concern that we lack the critical mass whereby skills get updated by cross fertilisation.
Key clients felt that a freshness of approach is lacking and career development
seemed non existent. There are little or no incentives to produce.
5.6 Future Trends and Links to Document Management
Trends suggest that there will be an increasing use of colour and that there maybe a
decreasing demand for black and white printing within the Authority, though research
elsewhere shows printing doubling every 7 years. Digital technology is rapidly
replacing analogue in both photography and printing.
There will be more photography and use of photographic images
There will be more use of “E” from publishing to delivery systems and there will be
more use of Network printing / Multi Functional Devices and a move away from walk
up copying.
The measures recommended in this report will assist the Council in realising this
future cost effectively and contain paper use. E.g. as overall copies reduce the Council
will be able to take immediate advantage as it will not be tied into leasing agreements.
The dynamics of other technologies such as web based systems (Extranet, Internet,
Intranet) together with Document Management functionality will have a large impact
31
upon how we print and publish information most efficiently and keep paper
consumption to a minimum. This review takes these technologies into account. The
main areas of overlap are the recommendations for a centralised procurement portal
and for network printing. There will be full consultation with the appropriate officers
(Graeme Gunn-Roberts and Tony May) to ensure that delivery of these
recommendations does not conflict with the forthcoming Document Management
strategic framework.
The introduction of a commissioning framework for design and print, recommended
in this review, enables the provision of advice to be given on the best format to
provide information, whether that be electronically via the web, in paper form or a
combination of both. The commissioning process itself can be automated to ensure
best practice is followed.
The adoption of network printing also provides an impetus for staff to adopt new
working practices by reducing the number of desktop printers, photocopiers and fax
machines.
32