PAPER G1

Purpose: For Decision

Committee :    EXECUTIVE

Date :              26 MARCH 2002

Title :              PRINTING ARRANGEMENTS

PORTFOLIO HOLDER - RESOURCES

SUMMARY/PURPOSE

At the meeting of the Resources Select Committee of 24 January 2002, Members identified that a great deal of work was being lost to local outside printers. Members felt that with immediate effect, all printing orders should be sourced through the Print Unit Manager as he is best placed and most experienced to commission such work. This report provides the background information relating to that decision.

BACKGROUND

Eighteen months ago, the Print Unit commissioned an independent Printing Specialist to examine the pricing, productivity and operation of the Print Unit in order to prepare them for Best Value. The consultant recommended several changes including recommending new printing rates which have now been adopted, the non filling of a vacant printing post to raise productivity and a reduction in photocopying charges to customers. Furthermore, the consultant proposed that it is Best Value within local authorities to ensure all printing is sourced through the Print Manager in order to ensure the in-house Print Unit’s resources are fully utilised and his specialist knowledge of the local print market is used to full financial advantage. The recommendations have been implemented with a resultant 18% productivity gain in the first 6 months of this financial year.

FINANCIAL IMPLICATIONS

The implementation of the revised pricing structure results in the Print Unit’s prices becoming highly competitive against all local and mainland printers especially for photocopying and two colour work. The Unit is now set up not to make any profit but to cover all its operational and actual costs. Therefore, the greater the volume of work processed will lower the unit cost for the Authority. The Authority’s printing requirements are in excess of the in-house capability and a procedure for Print Procurement should be put in place. This subject could well be suited to a future Best Value Review.

In the meantime, however, an analysis of local printers shows that there is considerable evidence of printing work being placed with local providers. The Wealdon system illustrates this as follows :

While it is not clear from these figures what work could have been handled in-house or indeed the degree to which the purchasing of print is not cost effective, the consequences of a free market and delegated operational budgets do not maximise the new trading and commercial awareness of the Council’s own printing services. A crucial first step should be that, from now onwards all print work should be sourced by all Directorates to the Print Unit. Where the Print Unit are unable to handle the work, or in the Print Unit Manager's view the customer lacks the specialist knowledge, the Print Unit Manager will seek the most economical source that meets the customer's requirements. This situation is exacerbated still further by certain Directorate’s purchasing external printing, a point already identified by the Resources Select Committee and the external consultant. Currently, skills and expertise exist in a number of places across the Authority and this needs to be examined as part of a Best Value Review.

The Print Unit Manager currently performs a managerial and production role. A change to his duty as recommended in this report would impact adversely upon the Unit’s productivity. As this reduction cannot be quantified at this stage, and since the Unit is required to achieve all its operational and actual costs, the Print Unit Manager may need to call upon casual operatives as and when required to successfully implement this proposal.

BACKGROUND PAPERS

None

Contact Point :            A R Drain, ☎ 823203