Discussion on investment strategy of newspaper printing equipment

In order to maintain the advantages and survival of competition, enterprises often need to invest in equipment. There are many factors that need to be considered in equipment investment, and they have a great impact on future development. When investing, often because of different roles; different environments. The purpose and purpose are different, and the most favorable way is needed. Here, newspapers invest in printing equipment as the theme, from the perspective of production supervisors, and based on personal work experience.

I. The main reasons why newspapers invest in printing equipment

To meet the needs of readers and advertisers, newspapers need to meet the needs of the explicit readers to obtain the content layout needs and the needs of readers of hidden readers, as well as the needs of advertisers. Second, to maintain competitive advantage, such as the equipment investment of the two major newspapers, China and the United States. Three made investments to survive and not be eliminated.

Second, newspaper printing equipment investment in two ways

The first way is to add new printers

---This approach refers to the purchase of new equipment to replace the existing printer.

The second way is to add some equipment to existing printers

--- This approach is to add new printing units to existing presses to meet the needs of increased layout (color or black-and-white).

Third, add a new printer need to consider factors

1. Factory space: Due to the lack of space, new newspaper printing presses are mostly designed in a tower shape, and have a height of three to ten meters. If the plant height is insufficient, there is no willingness to invest in new places to install new seals. Machines, plans to add new printers can be dispelled because it is impossible to implement.

2. The amount of equipment investment and possible costs: the amount of investment, and need to consider together to maintain the cost of the equipment environment (temperature, humidity), if there is a new plant, you need to consider the cost of setting before and after.

3. Learning time and cost required to operate a new device: The length of time that a person can study, and the costs incurred.

4. The cost of parts inventory that must be increased for new printers: The inventory of old models cannot be used, plus the cost of constructing new models of inventory.

Fourth, increase the advantages of a new printing machine

1. Plan and purchase new equipment according to the current situation and future needs, for example, increase color layout and advertisement layout, and improve the flexibility of layout arrangements.

2. The application of new manufacturing technologies and new designs may create new competitiveness, such as the design of butterfly pages in newspapers, and increase the demand for advertisers to attract readers' attention.

3. The job is more flexible and can be re-arranged according to demand.

4. The higher efficiency and quality can be achieved. The new machine should have higher efficiency and quality, but it is not necessarily the case based on experience.

Fifth, increase the shortcomings of the new printing machine

1. The price is high. Basically, the price of a newspaper printing machine is about 2 to 500 million, and the amount is quite large.

2. For the delivery and installation of a longer time, the newspaper industry as an example, the delivery time is lucky for twelve months, one year and a half is normal, the longest has reached three years. The installation time is generally three months. In addition, a new factory may be needed, which is a great cost.

3. The operation and maintenance personnel have a long period of education and training. The operation and maintenance personnel affect the subsequent operations. The new printer may take more time for training and maintenance.

4. The latter is the increase in equipment costs.

Sixth, may apply to purchase new equipment business

1. In order to meet the operator's plans for the future, it is only with new equipment. 2. There is a limit to the existing plant (no space is available), leaving the operator with no other choice. And is this the most cost-effective way?

Seven, to add some equipment on the existing printer need to consider factors

1. What is most important is whether it can meet the current and future needs of newspapers? The current demand is very simple, and the future demand is very complex; the professional impact of the assessment staff is great, and it needs to strengthen discussion with the advertising and distribution departments. Then whether to increase the flexibility of future operations.

2. It is the impact on production loss and it is easy to ignore, but the amount needed is not small.

3. It is the impact on production efficiency and quality. Whether the efficiency will really increase and the quality can maintain stability.

VIII. Advantages of Adding Some Equipment to Existing Printing Machines

1. The amount of investment is relatively low (approximately one-tenth to one-tenth of the investment in new equipment). 2. Shorter delivery time (six months to a year) and installed capacity (ten days to a month). 3. Less training and training are required for operation and maintenance personnel.

Nine, the disadvantages of adding some equipment to existing printers

1. It is the equipment that cannot satisfy all the needs of the present and the future. 2. To increase the loss and reduce the efficiency. 3. The production quality may not be stable before the printing unit is added.

X. It may be applicable to enterprises that add some equipment to existing printers.

1. In order to meet the operator's plans for the future, new equipment is not required. 2. The space for the existing plant cannot adopt the method of adding new equipment. 3. This is the most economical way. The last is that this method is the fastest way to solve existing difficulties in time. In the market where newspapers compete, the only solution that must be solved is to face immediate difficulties.

XI. Investment Evaluation Model

1. Total Investment Cost = Investment Cost + Equipment Operating Cost

2. Evaluation

. Compare differences between investment plans

. How to compare the most time and effort

-- Use of difference analysis

XII. Cost of purchasing new equipment

1. Land cost = Newly-acquired land cost - Revenue from processing existing land

2. Construction costs of plant and related facilities = Cost of new plant and related facilities - Revenue from processing existing plant and facilities

3. Equipment purchase cost = money required for equipment purchase

4. Equipment installation costs = money required to install the equipment, including handling, civil, installation, piping, wiring, etc.

XIII. Cost of purchasing new equipment

─ Existing equipment disposal costs = Sales + Dismantling + Packaging + Shipping, etc. This part may be positive or negative, mainly to see if the existing design can be sold at a higher price than demolition, packing and shipping.

─ New equipment operation cost = economic efficiency represented by production efficiency (printing speed, preparation speed) + loss (startup, shutdown and failure) + required operation and maintenance manpower + maintenance cost

. Increase the cost of some equipment on existing printers

1. Land cost = 0

2. Construction costs of plant and related facilities = cost of plant modifications and related facility construction

3. Equipment purchase cost = money required for equipment purchase

4. Equipment installation costs = money required to install the equipment, including handling, civil, installation, piping, wiring, etc.

XIV. Adding some equipment to existing printers

1. Existing equipment processing costs = 0

2. New equipment operation cost = economic efficiency represented by production efficiency (printer speed, preparation speed) + loss (startup, stoppage and failure) + required operation and maintenance manpower + maintenance cost

XV. What is difference analysis?

1. First compare the differences in the same cost items in each scenario

2. Eliminate the same part

3. Calculate only the cost of the remaining items

4. Suggestions for the investment plan (only for the cost part, but not for the benefit part)

XVI. Conclusion

1. It is a newspaper company that can meet market demand and competition through different investment methods.

2. To compare various investment methods quickly and effectively by using the difference analysis.

3. It is also most important that the costs involved in the purchase of new equipment assessments are many, but the most important is always the benefits that may be brought about.

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