Following six months of stakeholder interviews, this newsletter replaced seven separate division newsletters.

1. ınsıght
News for and about Standard Register associates April 2000
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from Pete
timing was right,” says and shipping. For the kits to be
Redding
Preston. “Our variable print- ready for insertion of the personal-
on-demand capabilities and ized items, the standard information
other technologies prepared us for each of the four types of kits is
President & CEO
to offer this type of application.” printed and assembled ahead of time.
The UPS New Start kit is pro- A bar code label identifying the kit
At the
duced in four versions, depending type is applied to the outer box.
on the type of account the cus- When UPS orders arrive at Stan-
Annual
tomer elects. Each kit includes an fast, a database is queried to deter-
outside shipping box housing six mine what variable printed elements
Meeting…
sleeves of various informational are required. This triggers the differ-
materials — both generic and per- ent printing equipment to produce
sonalized. ISG’s variable printing the elements required for that cus- On April 19, I addressed
abilities are perfect for the personal- tomer. The bar code printed on each the shareholders, Board
ized items. Examples are the cus- piece identifies the item and the members, Company officers
tomer ID card, the UPS Zone Chart customer for whom it’s produced. and associates attending
keyed to the customer’s location, When the variable printed com-
UPS gains
Standard Register’s Annual
shipping labels preprinted with the ponents for a kit are assembled, an Meeting in Dayton. I would
customer’s name, and the address associate scans the bar code on any like to share my remarks
and account number. piece to open the order and deter- with you now.
With the kit elements deter- mine which of the four types of pre-
S
tandard Register’s 1999
slick “starter
mined, the major issue was speed. assembled kits is required for that
activity resulted in
UPS wanted a fast turn-around customer. The associate then scans
$1,327,000,000 in sales and
time for kit assembly and shipping. the bar code on each piece and on
$71 million in after tax profit. That
Automation was the solution. John the kit box. If all components are
performance kept us a leader in our
Keane’s Engineering team of Ken present, the system prints out a
kit” system
industry. Two years prior, in 1997,
Kaylor, Al Fledderman and Larry shipping label. The associate then
we ended the year with $868 mil-
Walter combined to work out the inserts the variable printed items
lion in sales and $67 million in
fine points. in the appropriate places in the pre-
profit. We weren’t satisfied with
The production process begins assembled kit, applies the shipping
our 1999 results, however, and
when UPS sends its orders for new label and the kit is ready to go.
following a plan to organize the
Should one or more pieces of
A good idea and new ®
Services Group, Engineering, Cor-
company to better serve the cus-
the kit be missing at the time of
porate Manufacturing and Stanfast®
technology from Standard tomer at a lower cost, we structured
teams to put the innovative kit
the company in mid-year by going
assembly process together.
Register are providing UPS customers rate the away from a divisional model
A recent UPS customer satisfac-
to a centralized structure and
new kits significantly higher
major carrier UPS with tion survey shows their efforts paid
adding Supply Chain Services.
than past materials in every
off. The new kits were rated signifi-
an innovative and faster Ed Wohlwender came on board
cantly higher than past materials
survey category. in mid-year and has headed many
in every survey category — from
way to give customers all task forces to review opportunities
providing the necessary start-up
for cost reduction. He has been
they need to begin ship- assembly, the system triggers the
supplies to the timeliness of the
successful in a number of areas and
proper printers to produce the miss-
kit’s arrival.
ping. SR’s UPS sales team kits via Electronic Data Interchange is targeting many more.
ing pieces. A special label is also
This project involved a long (EDI). Orders contain information In January of this year, we ap-
produced to ensure that the kit is
— Corporate Account sales cycle, according to Preston about the new customer and which pointed Donna Beladi as Corporate
not shipped in error. When the kit
Herrin. Once UPS was convinced type of kit is required. At Standard Vice President-Business Develop-
Manager Preston Herrin is finally complete, the shipping
to combine the collateral materials Register, the orders are entered via ment, and an officer of Standard
label is printed and applied.
from their existing ground and air
and Account Manager our AccuServ® system, which tracks Register. In February, we appointed
UPS requires a “Quality Assurance
kits, the challenge was to create a the order and triggers the invoicing Peter Dorsman as Executive Vice
and Process Overview” manual
Andy Braselton — re- one-to-one, personalized kit that process after the kit is shipped. The President and Chief Operating
detailing every step of this produc-
would grab the prospect’s attention. orders are then sent on to ISG’s plant
sponded to an opportu- Officer, and Harry Seifert as Senior
tion process and the built-in quality
“Our good track record with UPS in the Los Angeles Stanfast print Vice President, Manufacturing Op-
control measures. Randy Blankley,
helped, and the
nity to replace UPS’s past center. The center was chosen for its erations. On April 1, we restructured
Manager – Technical Services, ISG,
proximity to UPS’s West Coast hub. field sales around Mike Jacoutot and
practice with a consistent took charge of that task.
The Engineering team agreed strengthened our marketing team
Engineering added other neat
that bar coding would be the
and organized kit, by challenging Michael Pratt to lead
features to the production process.
best way to track kit components that organization.
For instance, each kit includes a
tailored to each throughout production, assembly As we look at our industry to-
chart with the five UPS drop-off
day, it is still very fragmented with
new customer. points closest to the new customer’s
many players in the $50 million
location — a great example of SR’s
or less sales category, ripe for con-
P
variable printing. Ken Kaylor devel-
reston and Andy worked
solidation. Additionally, there are
oped a program that automatically
with UPS’s Customer
four major companies — Standard
goes out to UPS’s Web site, feeds in
Communications and
Register, Moore Business Forms,
the customer’s address to access the
Small Business Sales Groups
Wallace Computer Services and
appropriate UPS map of drop-off
to determine kit contents. They
continued on page 2…
then turned to our ISG Imaging continued on page 6…

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everyone up to date on current same high standards for every cus-
practices. Electronic resources can tomer, every time. Moreover, Salis-
be updated easily and immediately. bury shares its procedures with other
We find that eliminates confusion, plants as those facilities develop “best
since everyone sees the guidelines in class” manufacturing practices.
as soon as they are adopted.” “The registrar particularly noted
Consistency is another benefit our commitment to quality across
of this approach, Dave adds. In the the entire plant,” Randy Merritt
past, associates made decisions notes. “Since all of our production
based on the customer order in hand. involves custom work, consistent
That meant practices could vary quality can be a challenge — but
v The Salisbury Plant raises the banner proclaiming its new ISO Certification. Attending were members of the Salisbury
order-to-order. Plant-wide proce- our people are determined to pro-
management team and guests. Standing, from left: Dave Taylor; George Dutton; Donna Meagher; Dave Proeber; Tinker Taylor;
dures eliminate those inconsisten- duce a quality product, no matter
Ken Causey; Rick Miller (visiting from Corporate for Salisbury’s safety celebration); Mike Glidewell; Merrill Eversman; Jay
Shaheen; Senate aid Cindy Betts for U.S. Senator Barbara Mikulski; David Ryan, Executive Director of Salisbury Wicomico cies to produce uniform quality. what the requirements.”
v
Economic Development; Renee Stephens, Program Development Specialist for Maryland Department of Business and Eco-
Now, Salisbury product meets the
nomic Development; Randy Merritt; and, staff member Jody Beauchamp, representing U.S. Congressman Wayne Gilchrest;
kneeling, from left: George Matteson and Bill Scott, representing the entire Salisbury team.
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Salisbury joins ISO from Pete Reynolds There was an interesting edito-
Redding & Reynolds rial in last Friday’s Wall Street Jour-
9002-certıfied plants
— who ac- nal. You may recall, last Friday was
continued …
count for the day that the NASDAQ and Dow
over 35% of the sales of our prod- each declined over 300 points. The
uct in this industry. editorial, which was written prior
O
As many of you have read, it is to that, was titled “NASDAQ – What
n March 3, SR’s Salisbury
It was a time to celebrate! Reynolds’ intention to divest them- Goes Up…” by Burton C. Malkiel,
Plant proudly raised a
selves of the forms business and who is the author of “A Random
special flag signifying
The Maryland sun shone brightly on March 3, 2000, as Salisbury move to becoming an Internet Ser- Walk Down Wall Street.”
that its quality processes celebrated its ISO 9002 Certification. Representatives from the U.S.
vice Provider, initially focusing on Malkiel suggests caution in getting
meet the rigorous standards of ISO Congress and from the State and County Departments of Business
the automotive industry. As consoli- involved in chasing a stock because
and Economic Development attended, offering their congratulations
9002. The Maryland Rotary plant,
on this recognition of Salisbury’s outstanding quality program. dation of the industry continues, it has momentum on the way up.
under Plant Manager Randy Merritt,
q Plant Manager Randy Merritt told the audience: “The tradition of
Standard Register will look at the And, in fact, at the end of the edito-
joins Radcliff (KY), Toccoa (GA), the past carries forward to our future. The attainment of ISO 9002
marketplace to determine its posi- rial, he states, “Valuation metrics
and Watseka (IL) as ISO-certified. In certification is a milestone in the history of successes the Salisbury
tion regarding this inevitable trend.
Plant has enjoyed. It represents our commitment to the future.” have not changed. Eventually, every
line for future certification are the
q On behalf of the Maryland Department of Business and Economic Today, our company is situated stock can only be worth the value
Middlebury (VT) and Terre Haute Development, Renee Stephens
to move forward to take advantage of the cash flow it is able to earn for
(IN) facilities. presented a commemorative
of being a leader in business forms, the benefit of investors. In the final
plaque that will join the plaque
“ISO Certification signals
from SGS International Certifi- as well as a “B2B” (business-to- analysis, true value will win out.”
to the world that Standard
cation Services for display at the
business) Internet connection. We Lastly, I would like to announce
Register meets established plant. Following the ceremony,
have been a business-to-business my plans to retire, effective July 1.
international standards for the federal, state and county rep-
resentatives toured the facility. company since our founding in I will be 62 in June, and it is the
quality assurance,” says Harry
The visitors expressed appre-
1912, and we have consistently right time. From a business perspec-
Seifert, Senior Vice President – ciation for the positive impact
utilized new technology. We’ve tive, the board and I have been work-
Manufacturing Operations. Standard Register has had on the
even invented some during our ing on succession planning since
local economy. q In gratitude for
“All of our plants,” he notes,
the plant-wide effort that resulted history. We have been utilizing 1999, and some of the management
“follow strict quality proce- in Salisbury’s ISO certification,
e-commerce since its inception changes and restructuring have
dures and our current custom- Company management presented
through EDI and later, over the been brought about because of our
each associate with a Standard
ers recognize that.” “But ISO
Register jacket. Internet. Presently, we have what preparation. We currently have a
Certification offers an extra
we believe to be the strongest plat- very strong management team, and
level of assurance to potential
form for forms management, which I believe the company is positioned
customers.” compliance work with customer
provides services over the Internet now, as well as it has ever been, to
So what does ISO 9002 service and product support.
directly to the customer or through take advantage of future opportuni-
really mean? ISO, the Interna- As part of the preparation, sev-
a sales representative. That program ties in the marketplace as we advance
tional Organization for Stan- eral Salisbury associates attended
v George Matteson (at right), with
is called SMARTworks,® and in the our company with new products
dardization, was founded in 1946 to 34 years at Salisbury, and newest Salis- training to become internal process
coming weeks, you will hear more and services, including Internet
bury associate Bill Scott, with three
establish voluntary manufacturing, auditors for quality assurance. The
months at the plant, raise the ISO flag about our plans for that product. offerings. The Board has been work-
trade and communications stan- Salisbury plant belongs to the Lower
on March 3. Local TV stations captured
Some of you question the stock ing on choosing my successor since
dards, first in Europe, now virtually Eastern Shore Regional Technical
the event for the evening news.
price at Standard Register, particu- January of this year and is close to
worldwide. The organization is Council, which includes a consor-
larly through 1999 and into 2000 — finalizing the decision. I fully ex-
based in Geneva, Switzerland, and tium of companies pursuing ISO
Steve Miller, Director – Manufac- although, I will say our stock has pect an announcement to be made
represents some 100 member coun- certification. The training classes
turing Continuous Improvement risen 22% over the last 25 days. As in the next couple of weeks.
tries. Each member country has its are part of the consortium’s pro-
before his recent retirement and investors began to change their I want to thank Chairman Paul
own organization (the American gram. Through the classes, which
former plant manager at Salisbury, focus away from fundamentals to Granzow and members of the Board
National Standards Institute, or graphically illustrate the impor-
was involved in Salisbury’s quality momentum, and people were at for their support, and my manage-
ANSI, in the U.S.) which coordi- tance of ISO’s approach to quality
assurance effort from the begin- cocktail parties listening to 400- ment team and everyone at Stan-
nates national quality standards. assurance, employees became con-
ning. “We wanted to change the and 1000-percent gains, there was a dard Register for helping grow the
To become certified, a facility vinced of the value of certification.
‘culture’ of the plant, which had great deal of hype around start-ups company and move it forward.
undergoes a quality systems audit Salisbury’s ISO audit was per-
been a traditional, top-down
and IPOs. Many people who were And on a personal note, I want
by an accredited third party registrar, formed by SGS International
directed operation,” Steve says.
successful in that gamble spread the to thank my wife, Lorelei, and my
who decides whether it qualifies for Certification Services, which also
“To implement ISO, we needed
word, and those who were unsuc- family for supporting me all these
ISO certification. Different types of performed the audits for Standard
the involvement of associates who
cessful did not. years. I plan to travel, visit my chil-
operations — such as design, manu- Register’s other ISO-certified plants.
actually performed each quality
It is interesting to note that dren and grandchildren and finish
facturing and service — fall under When SGS representatives arrived
process. Their participation in writ-
there has been recent talk about a home in Nevada. In addition, if
separate sets of requirements (ISO in November, last year, for their
ing and implementing procedures,
moving back to value, and to re- I am lucky and work at it, I will be
9001, 9002, or 9003). To maintain two-day audit, they interviewed
as well as training other personnel,
membering that the sustaining able to improve my golf game.
certification, the organization must associates throughout the plant’s
broke down interdepartmental
value of a company is not a concept It has been a wonderful career,
be periodically audited for contin- operations. At the end of the audit,
barriers and encouraged real inter-
or vaporware, but a deliverable but as I was recently quoted as say-
ued compliance. Salisbury learned the good news:
action between management and
that a customer is willing to pay ing, “there is life after Standard
Salisbury’s journey toward certi- it would be recommended for ISO
all our employees.”
for. Standard Register is a brick-and- Register,” and I plan to go find it!
fication dates back to 1995, when 9002 certification.
Some reorganization was required
mortar company that has become Again, I want to thank everyone
plant management began investi- “The SGS auditors told us they
for Salisbury’s certification effort,
a “brick-and-click” company. We in the company and all the people
gating different types of quality were particularly impressed with
according to Plant Manager Randy
believe there is a future for our I have been associated with at
systems. Because of its worldwide our electronic documentation of
Merritt. Dave Proeber, ISO/Product
product and that it needs to be
v
Standard Register since 1962.
acceptance, the ISO quality assur- the plant’s quality processes,” Dave
Support Manager, worked on ISO
available to customers in the easiest
ance system was adopted. Proeber says. “We use both PCs and
full time for six months, preparing
possible way — and that includes
walk-up computer kiosks to keep
for the audit. Today, he combines
the Internet.

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News and Information Update
Associates key to Company’s
transformation
now, however, that information can
Through the emPOWER When we’re fully benefitting from our new
be distributed via e-mail. There’s no best-in-class processes, it will be because
initiative, Standard Register Standard Register associates accepted respon-
need to make and send hard cop-
sibility for changing and improving the way
ies. And, in most cases, there’s
is determining the best we do business.
no need for people on the
ways to enhance our pro- receiving end to make hard
copies either. They can read
cesses and systems so that them and store them elec-
tronically. That way we save
we can work smarter and time and effort on both
more cost-effectively. ends.” (If you truly elimi-
nate a 5-minute job each
T
week, over the course of a
he changes being made
year you gain a total of 260
will affect everyone
minutes. That’s an extra
within the Company,
four hours a day!)
regardless of position or adds Jeff. “The faster you
Associates who do the
responsibilities. Many of the changes do it and the more focused
best job at driving improve-
will also affect our customers, you stay, the smoother the
ments are those who think
our suppliers and other business implementation and the
in terms of the total process.
affiliates. How we manage and quicker the results.”
They look to see what hap-
build upon these changes will deter-
Learning
pens before a job arrives in
mine how Standard Register moves
to use
their area, as well as what
into the future. Our goal is to evolve
PeopleSoft
to focus on the full lifecycle of an
happens after it leaves. Then they
into a more efficient, innovative
order. For example, right now we
identify changes that need to hap-
and profitable organization. To do As with previous system
spend a certain amount of time
pen within their area to improve
this, we will need to continually implementations, Standard
entering an order, manufacturing
the process. These may include
manage and motivate the most Register associates will be responsible
the product and billing the cus-
redistributing tasks, modifying data
influential factor: ourselves. for learning our new PeopleSoft
tomer. Then, on the back end, we
entry processes or changing how applications. Because the modules
The Company spend way too much time cleaning
source documents are used. will be phased in over two years,
needs your help up our efforts because of flaws in some associates will be trained
Start now our processes and systems.
“The emPOWER team is working to before others.
General Sales Manager – emPOWER To become more efficient and
improve our most important busi- David Williams suggests: “Once
Paul Murphy agrees that now is the cost-effective, we may need to ad-
ness processes so that we can sup- you are trained on a module, com-
time to start making changes. “I just the amount of time we spend
port our customers’ changing needs municate the changes you see to
recently met with a customer who on each activity. “Ideally, we’d like
while growing the Company,” says others so they can be thinking
has some concerns about our sys- to eliminate the back end clean-up
Ed Wohlwender, Executive Sponsor about — and planning for — the
tems’ ability to elevate their docu- effort entirely. But to do this, we
of emPOWER. “The team, however, impact on their own processes.”
time and eliminating needless
ment management program to the may have to spend more time en-
cannot make these changes alone; Even though the modules are differ-
paperwork. It was quite an under-
next level,” says Paul. “Our custom- tering the order, manufacturing the
they need the immediate and ongo- ent, they share common tools, so
taking in the mid-’70s and a revolu-
ers are why we are here. We need to product or processing the invoice,”
ing support of all Standard Register you can make inferences about how
tionary change, especially for
step up to the challenge of support- says Paul. “Overall, however, the
associates. We can be a better com- you’ll be able to access information,
people in Purchasing.”
ing their changing requirements.” timeline should get shorter, which
pany, not only for our customers, send reports and handle other tasks.
TOPS (Total Order Processing
“If you understand why some- means the entire process is better,
but for our associates, as well, but “Initially, we’ll be using only
System) was developed in the early
thing is being done, take ownership faster and easier — resulting in
only if we work together and as- core functionality, but in time we’ll
’80s for Rotary products. “TOPS
™
more time for quality selling and
sume ownership of changes that be expanding our capabilities,” says
brought tremendous benefits,”
Change is good. And the other productive activities.”
need to be made. Ultimately, we are David. “If you really learn the appli-
says Jeff, “particularly in the area
all responsible for facilitating pro- cations and the core functionality,
Learning from
sooner we realize it, the of reorders — a large portion of our
cess improvements within our areas you’ll be invaluable to the Com-
past experiences Rotary business.” “It made reorder
faster we’ll be able to
and for learning our new PeopleSoft pany because you’ll have the knowl-
processing very simple, very fast,
Jeff Galbraith, Director – Rotary
applications.” edge and expertise needed to suggest
very accurate. The implementation
transform Standard Register Manufacturing and a BRT member,
and make more improvements.”
Taking ownership took longer than CMS, primarily
says he’s seen first-hand the value
and the better we’ll be able With training, associates may
because the new system touched
As Team Lead for Financials, David of moving to new processes and
d
feel better about their jobs because
virtually everyone — not unlike
to serve our customers.
Williams is well aware of how systems. “I helped implement CMS
they won’t be limited to one area
what we’re doing with Order to
emPOWER will benefit the Com- and TOPS at the York plant,” says
of responsibility. Accounts Payable,
Cash and Manufacturing.”
pany. But, he says, “We can’t gener- Jeff. “Both involved major changes,
and challenge yourself to find a Receivables and Billing all have the
Standard Register was successful
alize and say, ‘I have a problem and both were somewhat traumatic
better way to do it,” says Paul, a same look and feel, so there will be
with both implementations because
the solution is going to be emPOWER.’ at the time and both, ultimately,
Co-lead under Order to Cash and more opportunities for cross-train-
associates learned the new systems
There’s a tremendous amount of worked very well.” Jeff predicts the
a Business Readiness Team (BRT) ing and advancement.
quickly. “CMS was relatively easy
process improvements that we can same will happen with our new
member. In some cases, he notes, David concludes: “We all need
to learn,” notes Jeff. “In 30 days we
do now that cost absolutely nothing.” PeopleSoft applications.
you can make the change yourself; to get in the mode that change is
were rocking and rolling, and even
David challenges all associates to “CMS (Corporate Materials Sys-
in others, you’ll need to work with good. Once you get in that mode,
the most jaded employee was very
start eliminating one 5-minute job tem) automated our entire inven-
the emPOWER team. you’ll be ready for emPOWER when
satisfied,” he says. “TOPS was more
each week. “It’s amazing what you tory control process, so we became
It’s okay to challenge what we’ve you’re called on as a subject matter
difficult, but we got buy-in quickly
can consolidate or eliminate com- much more accurate,” Jeff adds.
been doing for even our best cus- expert, when you’re being trained
because of the obvious efficiencies
pletely. For example, some associ- “It also enabled us to do more with
tomers. Our goal is to standardize or when you’ve actually received a
of the new system.”
ates currently make hard copies of what we had. For example, the new
and cut cost, but to do so while module and are using it.”
w
“Any time you learn a new sys-
reports for distribution. The new system allowed Purchasing to send
adding — not taking away — value.
tem, there has to be much more
report distribution software will purchase approvals directly to asso-
To understand the value of im-
than 100 percent effort up front,”
send them automatically. Right ciates handling the orders, saving
proved processes, Paul says it helps