1. 2012 Employee Town Hall CRT Report Out
Production Metrics
Safety
Strategy Deployment
Value Stream Projects
Lean Efforts
Plant upgrades

2. Ink Production

3. Dispersion- Manufacturing
YTD – 12.4 Million Pounds
37% increase over last year.
3 Roll Mill Yellow into storage tank
8.1 Million pounds of dispersion vehicle

4. Varnish Manufacturing
18% Increase YTD over last year.
29% increase in structured varnish.
16.5% decrease in non structured varnish
Significant shift to retail ink = more clay base, more structured varnish.
Retail ink uses less manufactured varnish overall.

5. PMS, Fountain Solution, and MISC.

6. Safety Measures First Quarter 2012 Dart rate 3.37
Dart rate is important for tracking incidents and injuries more importantly dollars and cents make the biggest difference. (Days Away, Restrictions, and Transfers)
CRT Work Comp 2011 $5,134.58
CRT Work Comp YTD 2012 $33,264.00
Work safe.. we’re trending in the wrong direction
Quad would need $1,000,000 in sales to make up the YTD Work Comp, just to break even.

7. Quad Lean Q Strategy Deployment Value Stream Mapping
“use the collective thinking power of all employees to make their organization the best in its field."
-Professor Kaoru Ishikawa

8. Quad/Graphics' Mission Statement
We are a value driven company committed to our clients, employee owners, shareholders, communities and the environment.
As the industry leader, we take print to a higher level through service, quality and technological innovation.
We will grow profitability as the high value, low-cost producer.

9. Strategy Deployment Focus on a shared goal
Communicate that goal to all leaders
Involve all leaders in the planning to achieve that goal.
Hold each other accountable to achieve their part of the plan

10. Strategy Deployment Long Term Goals Quick Hits (now)
Secure Raw Materials at the highest quality, lowest price. (RFP)
Digital Inks – Ink jet
Mexico and South America will utilize CRT Products
CTO – TOR trade for finished Resin
Adhesives
Quick Hits (now)
Wax Manufacturing
Clay base Manufacturing
3 Roll Mill Yellow
Remove toner from Black Ink
Fountain Solution
OPV
National GEO Inks

11. Combined Wax Manufacturing
$2.9 Million Savings
Original Completion Date: July 1st, 2012
CapX: $1.2 Million
Fast Track Wax Production: April 1st- $506,000 Savings
Full Scale Production Using Molten Wax Storage Process System

12. Dry Pigment Volume Capitalization
$800k Savings (end of 2nd quarter)
Ongoing Quarterly Project
$300k 1st Quarter Savings
$500k 2nd Quarter Savings (increased savings due to new supplier)
Minus Carbon Black Increase Due to Natural Gas and Oil Market

13. Fountain Solution Scale Up
Original Completion Date: July 1st, 2012
CapX: $419k – On Target
Initial Fountain Solution Production Adds Additional $95,000 Savings
10 Plants Using Fountain Solution 100%
Some reformulations
2804 no longer
2805 work horse product
2801 Manrolands - Hartford
Projected Completion Date: July 1st, 2012

14. Manufacture Clay Base Original Completion Date: July 1st, 2012
$436k Savings
Original Completion Date: July 1st, 2012
Projected Completion Date: July 13th, 2012
CapX: $228k – On Target
Full Scale Production Delayed 2 Weeks
Clay Conveying System Needs Additional Work Due to Complexity of Clay Particle Size (must be correct)
Potential for Additional Savings for Using a Less Refined Clay

15. Manufacture National Geographic Cover Inks
$185k Savings
Original Completion Date: July 1st, 2012
Projected Completion Date: July 1st, 2012
Preliminary testing was good, need 1 additional test to move forward.
Additional Savings Due to Saratoga Also Using Ink Series

16. Manufacture Overprint Varnish
$97k Savings
Original Completion Date: July 1st, 2012
Projected Completion Date: July 1st, 2012
CapX: $25k – On Target
Raw Materials for Testing are Procured
Overprint Varnish is Manufactured
Tested in Sussex – slight formulation change needed
Additional testing

17. Remove Alkali Blue Original Completion Date: July 1st, 2012
$1 Million Savings
Original Completion Date: July 1st, 2012
Formula is Created and Ready for Release to Production
Currently There Are No Standards for Plate Curves (Bob Hallam is Working on) – Test complete 6/07

18. Supply Sheetfed Ink Projected Completion Date: July 1st, 2012
$1 Million Savings
Projected Completion Date: July 1st, 2012
Successful Ink and Fountain Solution Test in Dubuque
Currently Testing of Different Packaging
When Additional Sheetfed Ink is Rolled Out, Fountain Solution Will be Included
UPDATE – New Berlin, Dubuque, Burlington, and Waukee successfully running this ink 6/8

19. Yellow 3 Roll Mill Original Completion Date: July 1st, 2012
Projected Completion Date: July 30th, 2012
CapX: $200k – On Target
Purchased Used Mill from Germany
Will Arrive in New Jersey Week of March 12th
Buhler to Refurbish to ANSI Standards and Deliver to CR\T by May 15th, 2012 – Last week of June
All Material Needed for Base at CR/T
Project Ahead of Schedule – 4 weeks behind
$700k Savings

20. Value Stream Event and Planner
Production road map for the improvement cycle.

21. Improvement Metrics

22. Lean Events YTD Value Stream Mapping Event – 1/20/2012
Review Standard Work (Ink) – 2/1 – 3/1
Citdel Process Detail Event – 2/20/2012
Operator Balance Event – 4/05/2012
RCA Class – 5/10/2012
6-S Compound Pit – 5/14/2012
Etch Standard Work – 5/25, 5/30
RCA Class – 6/5/2012
6-S East Docks – 6/25/2012

23. Building upgrades 200 HP Boiler being installed late summer.
New AC Unit on Building one being installed early July.
Last 24 months Quads invested over $4 Million at CRT Hartford.

24. Any Questions?