Houston Chronicle SW Production Plant
Transformation and Packaging Project
Centralized Packaging for Hearst Media
South Texas Newspapers.
Houston Chronicle, Beaumont Enterprise,
Laredo Morning Times and San Antonio
Express-News
Vision
• We will be a world class service organization that relies
on efficient/optimized processes to insure flawless
execution
• Our organization is positioned to deliver exceptional
value for our audience/readers, advertisers, and is relied
on to deliver the bargained for message
• Customer service and process efficiencies are leveraged
to unlock incremental value by attracting new customers
2
Strategies
• Develop a professional management organization & culture
• Ingrain process discipline
• Implement accountability and measurement systems to insure
performance
• Ensure effective utilization of assets/tools/staff to create value
• Install financial discipline at all levels in the organization
• GROW Business - Commercial Print Opportunities (Tune in Tomorrow)
Facilities
Sunday, Direct Mail and SMC Plant - 163,137 Sf.
South West Production Plant
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Total SF. – 440,730 (118,320 unoccupied)
Harvey Wilson (East) - 78,845 Sf. Newsprint and
Distribution with Rail Spur.
Main Business office 801 Texas Ave. - 498,340 Sf.
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Office Space 278,290
Production/Industrial 220,050 (phased out)
Background & Business Case
Consolidate Kempwood to Southwest / Improve Performance
Project Scope: OVERVIEW
Strategy
• Convert fixed to variable costs
• Lower the overall cost base
Initiative
• Close & sell 160,000 square foot offsite, separate
inserting facility
• Relocate all inserting to main production facility
• Reduce operating costs by $2+ million annually
• Relocate all Texas inserting to Houston
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San Antonio
Laredo
Equipment
Prior to Project:
13 total inserters
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Sunday facility: 3 NP 630 ‘s
Main plant: (1) Double out 2299, (5) 1272P
San Antonio: (1) 2299 double out, (1) 1472 and (1) SLS-1000 17 Head inserter
After project:
3 total inserters
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One 40-1 double out Magnapack
One 32-1 double out NP-632
One double out 2299
Southwest 2nd Floor Packaging Center
One New + One Machine Relocated and One existing 2299
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(1) 40-hopper Magnapak + (1) 632 machine relocated. Existing 2299 location shown.
All shown as double-out for flexibility in layout.
Existing Press / Operating Level
ROP Stack / Tie
Lines
55’ – 0”
Pallet out-feed
Existing 2299
40-hopper Magnapak
40’ – 0”
Double-out
632 Inserter
55’ – 0”
Pallet staging
Existing (2) Single
Pallet Lifts
55’ – 0”
Existing Four
Pallet Lift
632 Inserter under Reconstruction and Reconditioning
NEW MAGNA PACK 40 Head
2nd
Floor / First Floor Pallet Storage
Pallet Gravity
Staging Racks
Pallet Storage Racks
Wide-aisle
Racks
1
Area for lift truck
picking pallets –
move to inserter
Pallet / Newsprint
Storage Below
12
20
2
12
16
12
20
12
16
Remaining
Newsprint Storage
12
12
12
12
2nd Packaging Level
1st Warehouse Level
90’
212’
1
Pallet Gravity
Staging Racks
Project Scope Insert Storage and Barcoding Management
Volume Processed
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34 million (+) inserts per week.
1,500 pallet storage in Racks
76 to 80 unique Pressruns Weekly.
Avg. weekly tons 760 (+), up from 641 last year.
Almost 24 thousand M8PP per week.
Products Produced @ SW
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Houston Chronicle
• all related Products
• Houston LaVOZ Spanish Bi-WeeKly 400K (+)
USA-Today
Beaumont Enterprise Daily and Commercial
San Antonio Express-News:
•
Sun-Comics
•
Advances Thu-Fri-Sat and other related products requiring inserting
Laredo Morning Times:
•
Sun-Comics
•
Advances Thu-Fri-Sat and other related products requiring inserting.
Distances covered to ship Insert packages
Additionally:
Houston prints Beaumont Daily
7 days
San Antonio print Laredo Daily
7 days
Pressroom Transformation
• (6) 12 unit Goss Metroliner Presses (12 Folders)