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Case Discussion
Colorscope
Who is Andrew Cha?
What did colorscope do?
What were the trends in the
industry?
What was the significance of March
1996?
Colorscope
When was it founded?
What was its sales in 1988?
Name some of its big size clients
What happened in 1988? What was the size of
the acquirer? What was the price offered?
What were the rationale behind this
acquisition move?
What was chas stand on this offer?
Colorscope
What was the impact of cheaper pc and Mac-
based microcomputers?
Did it affect colorscope?
What happened in 1990? What was the
impact on colorscope?
What happened in 1994? What did Cha want
to do for this?
The Pre-Press Production Process
How technology had changed the prepress
process?
- Time taken for conventional design and layout
- Time taken for Photography
- Time taken for pre-press layout and proofing
- Printing
- Clients
Industry Dynamics
What was the market size for printing in
1995?
What was the nature of competition?
What was the share of pre-press costs in the
price charged by printers to their clients?
What was the size of the US pre-press
market?
Why were there downward trend in prices in
the pre-press industry?
Direct Competition
What were the types of competition
Colorscope faced?
What was lacking for Cha in this
regard?
Work Flow at Colorscope
Who recorded the job specification
details?
For how many pages a separate job bag
was opened?
What were the steps involved in the pre-
press process at colorscope?
At what stage, Re-works were
introduced?
What was special about its workers?
The Future
What was the planned short-term
strategy?
What were considered critical in
improving the competitiveness of
Colorscope?
Why did cha track down hours spent on
re-work?
How did colorscope charge its clients?
Qs for the future
How to improve operations?
61003 23,000 4,500 18,500 517 4,015 5,419 2,371 691 5,487
61101 12,000 1,800 10,200 295 1,606 2,168 593 345 5,193
61102 11,000 1,500 9,500 295 1,606 2,023 593 345 4,637
61201 11,000 1,500 9,500 295 1,606 2,312 593 518 4,176
61202 23,000 3,300 19,700 517 3,212 4,191 1,186 432 10,163
61203 22,000 3,400 18,600 443 3,413 4,625 1,186 518 8,416
61204 20,000 3,200 16,800 443 3,012 4,191 1,186 691 7,278
61301 50,000 13,000 37,000 1,107 13,050 18,065 4,742 2,590 -2,554
61401 7,800 1,800 6,000 369 1,405 2,312 593 345 975
61402 8,000 3,100 4,900 295 1,907 2,312 1,186 604 -1,405
61403 8,000 3,900 4,100 295 2,008 2,457 593 259 -1,512
61404 9,000 2,100 6,900 295 2,208 2,601 593 432 771
61405 9,800 2,000 7,800 295 2,008 2,601 593 345 1,958
Job Profitability Analysis[in $]
Job no Reven. - =Gross -Job -Scann - -outpu -QC =Net
Mater margin prep Assem Profit
61501 11,000 2,200 8,800 295 2,108 2,818 593 345 2,640
61502 11,000 3,600 7,400 295 2,008 2,890 1,186 604 417
61601 20,000 3,300 16,700 517 2,610 4,336 1,186 777 7,275
61701 8,000 2,100 5,900 295 2,008 2,818 593 259 -73
61702 10,000 2,500 7,500 295 2,008 2,963 593 432 1,210
61902 12,000 2,200 9,800 369 1,907 3,035 593 432 3,464
Rent-unused 13,000
floor space
Net Profits 15,200
Inferences
10 out of 26 jobs lost money
Total NP of 13 -2,554
14 01 975
02 -1,405
03 -1,512
04 771
05 1,958
Total NP of 14 787
15 01 2,640
02 417
Total NP of 15 3,057
16 01 7,275
02 -207
03 -1,427
Total NP of 16 5,641
Customer Profitability Analysis
Customer Job no. Net Profit
Number [in $]
17 01 -73
02 1,210
Total NP of 17 1,137
18 01 647
Total NP of 18 647
19 01 -1,451
02 3,464
Total NP of 19 2,013
20 01 -753
Total NP of 20 -753
Most Profitable Customers
1. Customer Number 12 with a NP of $30,003
How ?
Rework initiated by customers
Job No. Mater Job.pre Scan Assem Output QC Total Total
hours Cost
61001 2,700 0 1606 723 593 173 32 5,795
[16*100.38 [10*72.26] [4*148.2] [2*86.32]
]
61002 1,100 0 803 434 593 259 21 3,189
[8*] [6*] [4*] [3*]
61301 1,000 148 502 723 296 173 21 2,842
[2*73.81] [5*] [10*] [2*] [2*]
61502 1,500 74 402 578 148 0 14 2,702
[1*] [4*] [8*] [1*]
61801 1,000 0 100 217 148 0 5 1,465
[1*] [3*] [1*]
61901 1,000 74 100 289 0 0 6 1,463
[1*] [1*] [4*]
Total 8,300 296 3,513 2,964 1,778 605 99 hours 17,456
Rework initiated by QC
Job No. Mate Job.p Scan Asse Outp QC Total Total
r re m ut hours Cost