Improving technology printed products LLC «FolioPlus»

Economic efficiency and innovation in customers should be treated with the other party. The buyer, acquiring innovation, improving its logistical base, production technology and management. He bears the costs associated with the purchase of innovation, its transportation, development, etc. The cost effectiveness of the buyer on the use of innovation can be defined, as well as manage it, through the comparison of the following indicators:

- The cost of production and sales before and after the introduction of innovations; 
- Revenue from product sales before and after the introduction of innovations; 
- The cost of resources consumed before and after the introduction of innovations; 
- Average number of personnel, etc.

The stability of the project will be a limiting negative value of the sample rate, which remains the economic feasibility of the project. Sustainability of the project to change the sample rate is calculated based on equating to 0, the equations for calculating the NPV. The project is considered to be stable if the deviation parameters of the project (capital expenditure, sales, operating costs and macroeconomic factors) by 10% for the worse, there remains the condition NPV = 0. Sensitivity to change in the indicator is also determined by analysis, when the measure is analyzed by 10% in the negative direction of the deviation. If after this NPV is positive, then the innovation is considered to be insensitive to changes in this factor. If the NPV is negative value, then the activity has a sensitivity of less than 10% level considered risky, and on this factor.

At the present time, in accordance with the recommendations of UNIDO (United Nations Industrial Development Organization) in the international practice, the following indicators to assess the effectiveness of the organization of innovation: The integrated effect of Э_инт represents the value of the differences of the results of innovative and cost for the billing period, reduced to one, usually the initial year, that is, taking into account the results of the discount and costs. 
 
  , 
 
where T _р - current year; P_t - the result of the t-th year; З_t - innovation costs in the t-th year; a_t - discount rate (discount factor).

Index return innovations Jr.

Profitability index is the ratio of income to those given above on this same date, innovative expenditures.

Calculation of the profitability index is as follows: 
 
   
 
Where JR - the index of profitability; Д_j - income in the period j; K_t - the size of the investment in innovation in period t.

The profitability index is closely related to the integral effect, if the integral effect Э_инт is positive, then the index of profitability JR> 1, and vice versa. In JR> 1 innovative project is cost effective. Otherwise JR <1 - is ineffective. 
Rate of Return E_р represents that the discount rate at which the discounted value of income over a certain number of years is equal to innovative investments. In this case, revenues and expenses are determined by the innovative project to bring 
the estimated point in time.

 

 

 

This indicator describes the different levels of profitability specific innovative solutions, expressed as the discount rate at which the future value of cash flow from innovation brought to the present value of investment funds. 
In market economy conditions are very important indicators such as the attractiveness of the innovation projects, defined the strategy of firm-innovator, the terms of attracting financial resources and their sources, dividend policy innovator. In addition, the validity of the projects exceed the rate of bank deposits, to which, as a rule, investors are paying attention. It is also necessary to define also the break-even point of the organization, an innovator. It is determined by the volume of sales, which covers all costs of production.

Consequently, the choice of the investment object is one of important problems. The greatest preference are the kinds of innovation that can be large profit, which is very often depends on strong demand for new products or services provided.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Description of innovation and economic activity of the enterprise

 

2.1 Description of the enterprise

Printing Company "Folio Plus" was founded in 1992. The quality of products produced by "Folio Plus', confirmed by the international certification of conformity of quality management system ISO 9001-2001.

The company "FolioPlus" is a modern printing complex, which employs about 300 highly qualified professionals with rich traditions with modern technology, with a strong scientific base and universal features, which produces millions of copies of high-quality publications for the general population.

The company uses electronic phototypesetting system and the storage of fonts in digital and laser exposure on the basis of "Haifa" terminal for the set of "Poltayp 07 and 08" and imagesetters "Lazerkomp MP 2100." Photoengraving automated.

Technology used in electronic color corrector "Magnoskopen 645 IE", the device electronic retouching "Skene 600" provides for the receipt of a technological operation corrected color separations with complex variations and design.

The association effectively used and combined different types of printing. The increasing use of reserves is offset at the position and high printed. In the Binding shop installed production lines. Some of the types of machines used in the association:

- Large sheets: 54h70, 70x100, 84h108, 90õ120, 100x140,

- Roll: 84h108, 90õ120,

- Small-format: 45h60, 60h88.

We considered the company with a complete cycle of production printing produces the following products:

- Labeling, packaging products (labels, tags, price tags, labels, packaging, boxes, paper bags, etc.);

- Representative products (annual reports, corporate newspapers, business documents, calendars, brochures, leaflets, business cards, letterhead, notepads, folders, envelopes, invitations, etc.)

- Book, magazine production (book cover and the cover of magazines, brochures);

- Advertising and souvenirs (posters, flyers, brochures, full color brochures, souvenirs, postcards, catalogs, flyers, calendars, flyers, ads, banners, etc.)

Today, in a highly competitive product quality largely determines the success of the enterprise. The structure of the press and publications shall be such that each customer's desire could be fulfilled. The association produces books in hardcover and paperback, magazines, galleries of fine art, children's publications, technical literature, posters, playbills, small plates, calendars.

All these changes are explained by changes in market conditions. Large proportion of the stock is now entertaining fiction genre. Also prints labels for printing wine and liquors, which had never done before. All this is explained by the desire to get job shop companies, and thus survive. Today there is a significant reduction in circulation, which increases the number of manufactured items.

The device management enterprise is a system of interconnected bodies and personnel management. The company are continually-operating departments and services responsible for carrying out certain functions in the workplace. Employees of these departments are responsible for the results of operations.

Management structure is standard for the enterprises of this type, in the old days it was developed and approved by higher authorities and the company was deprived of the opportunity to decide what positions and specialists are needed, and what does not. It was called - typical states. Under current conditions improved organizational structure makes it possible to carry out staff reductions. At the top of the hierarchy of the management structure of the printing positions are: general director, chief engineer, deputy general director of economic affairs, deputy general director for purchasing and sales, chief accountant, deputy general director for capital construction.

The department management include: planning and economic, financial, department of logistics, accounting, sales of which department of shipments of finished goods, personnel, foreign economic relations, office, legal counsel, an automated enterprise management system, and information technology center.

There are also divisions: paper chief mechanic and energy technology laboratory, engineering department, including group of designers, health, safety and the environment, publishing department, maintenance department.

We can  see products of LLC "FolioPlus" in many international and specialized exhibitions and fairs. Of course today, the product range can not be compared with the past. All these changes are explained by changes in market conditions. Large proportion of the stock is now entertaining fiction genre. Also prints labels for printing wine and liquors, which had never done before. All this is explained by the desire to get job shop companies, and thus survive. Today there is a significant reduction in circulation, which increases the number of manufactured items.                                 

 

2.2 Analysis of the main economic indicators of the enterprise for the period 2010-2011.

 

Table 1

The main economic indicators of the company

Indicators	Unit of measurement	Studied period		Change	Growth (increase)
		2010	2011
Proceeds from sales	th.hrn	85216	126614	41398	48,58%
Cost of sales	Th.hrn	77105	74994	-2111	-2,74%

 

 

Table 1 continued

Average number, total:	p.	320	301	-19	-7,06%
Including workers	p.	307	299	-8	-8,90%
Wages fund,total	th.hrn	22220,84	27996,0	5775,16	25,99%
Average monthly Salary	th.hrn	4088	5541,57	1453,57	35,56%
Fixed assets	th.hrn	206142	216203	10061	4,88%
Gross profit	th.hrn	31311	51620	20309	64,86%
Pretax profit	th.hrn	26456	45727	19271	72,84%
Net profit	th.hrn	26456	45727	19271	72,84%

 

If we consider the situation in the company, found out the following facts:

With the industrial activity at the enterprise the situation is improving. Revenue from product sales grew by almost 1.5 times. The cost has decreased by 3%, the number of workers declined compared to 2010 by 7%, hence increased output per worker. Payroll increased, i.e, remuneration is adequate production.

All this confirms the fact that gross margins in 2011 compared to 2010 increased more than 5 times.

Further analysis shows that net income is increase compared with 2010 on 72,84%

 

2.3 Analysis of the organization of innovation activity on the LLC «FolioPlus» 

The main element of innovation policy of the company are research units, namely, the research laboratory. Research laboratories are searching for strategic technical solutions based on fundamental scientific research. At the level of business units tasks are primarily applied in nature. This product development, software quality engineering and technical services for enterprises and improvement, cost reduction. 
The process of organizing innovation activities LLC "FolioPlus" consists of the following interrelated steps:

- Define the purpose of managing innovation;

- The choice of strategy management innovation;

- Definition of innovation management techniques;

- Development of innovation management program;

- Organization of work for the implementation of the program;

- Monitor the implementation of the planned program;

- Analysis and evaluation of innovation management practices.

The organization of innovative activity has already laid for the creation and implementation of innovation, that is in the innovation process. The innovation process is the foundation of strength, that will affect the efficiency of innovative management techniques.

Let’s consider the main stages of organization of innovative activity of "FolioPlus". In the process of organizing innovation activities in the first place, is determined by the purpose of controlling this new product or operation. The purpose of innovation can be a profit, expanding segment of the market, access to new markets, etc.

The next important step in the organization of innovation is the choice of management strategy innovation. On the correct management strategy depends on the efficiency and effectiveness of innovation.

Important steps in the organization of innovative activities are the development of innovation management program and the organization of work to achieve the intended operation. Program management innovation is the agreed on terms, the results and financial support for a set of actions to achieve this goal. 
An integral part of innovation management is the organization of work to implement the planned program of action, that is the definition of certain types of activities, amount and sources of funding for these activities, specific artists, deadlines, etc.

An important step in the organization of innovation is also monitoring the implementation of the planned program of action. LLC "FolioPlus" specific sources of innovative ideas are:

• consumers - in terms of consumer research;

• scientists, if they are engaged in the invention or a search or search for new materials, product properties, which may lead to the creation of new products or services; 
• competitors, in part of its strategy and activities related to the study of consumer demand; 
• sales agents, dealers and other intermediaries;

• direct employees of the company, while in the process of the emergence of innovative ideas involved as much as possible the number of employees. 
In the process of organizing innovation management of LLC "FolioPlus" appreciates the importance of each of the following criteria: 
- The novelty and priority of the project;

- Is the technological feasibility of the project;

- Available sources of funding;

- The scale of the project (number of staff needed for its implementation);

- Availability of personnel with the necessary qualifications;

- Evaluation of business growth (slow, moderate, fast);

- The risk of business innovation.

The choice of strategy is the key to the success of innovation in the process of its organization. 
Under the company's innovation strategy, a strategy usually means the use of innovations. If the company supports efforts to implement the innovation, the likelihood that it will be accepted for implementation in an organization grows. 
Design of innovation LLC "FolioPlus" provides a certain consistency in the selection and implementation of innovative strategies, from setting goals to its implementation. 
The development strategy of the organization of innovative activities begins with the formulation of the overall goals of the organization, which must be understood by anyone. Goal setting is important in the relations firm with the external environment, the market, the consumer. The overall objective of the organization of innovation at include: the main activity of the firm, working principles in the external environment (principles of trade relations to the consumer, maintaining business relationships), organizational culture, its traditions, the working climate. 
On the basis of the analysis are the following types of innovation of LLC "FolioPlus": 
• modernization and development produced new kinds of products (materials substitution, changing the design of products, training and production of new types of agricultural machinery and spare parts);

• improving the technology of production (the purchase of new machinery and equipment, improvement of the technologies of production, harmonization and standardization of equipment and tools, acquisition and development of its software tools);

• implementation of experimental design and technological work on creation of new products, testing;

• Preparation of a new technology of production;

• Legal protection of intellectual activity (patenting).

 

 

 

 

 

 

3. Improving technology printed products LLC «FolioPlus»

Comprehensive analysis of business and technology of printing services and production of printed products used in the LLC «FolioPlus», revealed some shortcomings in the organization of industrial enterprise.

Thus, as the main areas of improvement in existing technologies LLC «FolioPlus» is proposed as follows:

1) activation of design services;

2) increasing the share of offset printing in the total volume of products and services company.

   The first trend is substantiated by the fact that in modern terms increase in sales of business entities shall be resolved in many cases by using different means of advertising, including also printed products. In this regard, the LLC «FolioPlus» is proposed to strengthen the designer service by increasing the number of employees from one person who is currently represented by companies to three, including: Art Director, Chief Designer, Designer-visualizer.

The main duties of employees for positions that are proposed for introduction in the LLC «FolioPlus» are as follows:

Art Director for printing the following responsibilities:

determines the activities in design printed products now;

taking orders for the design and creation of art and decoration solutions to design printed products;

    In view of the customer or by a literary work materials and information about the purpose of publication, targeted audience, deadlines, required quality allocates received orders between artists, designers, assigns responsibility for each stage of works by the order; controls the design team in developing projects of art decoration printing products (layouts); monitors the implementation of art and design solutions, gives instructions maker, art editors, releasing group, photographers and others; is responsible for overall appearance and quality of design books, magazines, newspapers, including cover artwork printed editions layout and composite solutions for placement on the pages of printed output text blocks, illustrations, photographs, etc., design of print advertising and representative products: posters, booklets, brochures, business cards, letterheads and so on, developing sketches trademarks, packaging, labels, etc.; develops and introduces new design elements, creates a new style of design books and publications; examines the requirements for customers to design products issued, technical capabilities for publishing the required output quality; examines and analyzes the experience of other organizations artwork printed editions, provides a comparative analysis of similar domestic and foreign printed, evaluate their aesthetic level; prepares documentation for completed art and of design development, a report on the results of work performed, analyzes the results of the department determines the prospects and possibilities of development of new types and forms of design and decoration work; develops and presents to claim head of publishing the work plan design group makes reasonable proposals for the overall development strategy of the publishers in the production of promising design products, its artistic decoration, etc.; leading card index and collection of samples is developed and implemented in the printing media art and design solutions.