Automated Print Production for the. Presented by: Shawn M. Delemeester Production Director Valpak Direct Marketing Systems Inc.

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1 Automated Print Production for the Presented by: Shawn M. Delemeester Production Director Valpak Direct Marketing Systems Inc. 21st Century

2 Agenda A Quick Company Overview Project Background RFP Process and Installation Power Systems Criticality & Extreme Weather Preparedness Importance of Maintenance Agreements

3 Valpak Manufacturing Video valpak3.mpg

4 Valpak Manufacturing Center St. Petersburg, Florida

5 Project Background Why? Two current plants at capacity, requiring nonvalue added processes. Current technology had been in place for some time and expansion was limited. Process was very manual and not scalable. Business was booming in terms of more envelopes and number of coupons in each envelope new business meant new staff, not improved efficiency.

6 Project Background What? Build a completely new manufacturing process with all new equipment. Consolidate our production operations at two existing plants into one new facility. New facility to be built in St. Petersburg, FL to meet the company s growth needs for next 10 to 20 years.

7 Project Background How? Established dedicated team to work on project Traveled the world to visit installations of latest technology and equipment options Developed a detailed product plan (charter) High-level process design Created a guiding manufacturing philosophy Lean Manufacturing Principles Industry-Proven Technologies World-Class Partners Core Manufacturing Concepts

8 Project Initiation Timeline Project Initiation Technology Research Project Scope Definition Project Proposal Project Approval Site Selection Announcement Equipment Selection Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

9 RFP Process Bidding vendors: Caterpillar, Cummins and Kohler Valpak provided a detailed: Project overview Project scope Technical requirements RFP description Testing requirements prior to shipping Installation agreement Commissioning & acceptance Valpak insisted on: One vendor per element Fulltime dedicated team Project manager Engineering support Very intense design integration meetings Strong partnerships VP of higher level involvement Why did we chose Caterpillar? They had the coolest hats!

10 Project Installation and Start Up Timeline Announcement Equipment Selection Equipment Design/Mfg Building Construction Systems Development Equipment Installation Integration Testing Work Instrs./Training Matls. Train the Trainers Employee Startup Training Mock Production Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

11 Installation Process Building was built in 5 stages Based upon timeline for equipment install Each required power and A/C Power systems and A/C Temporary Gensets and A/C in Phase #1 Utility power and Chiller supplied A/C by Phase 2 Testing Show us it will work Commissioning Show us it will work consistently Acceptance Show us it will work to specification

12 Building Completion Sequence

13 Extreme Weather Conditions Tampa Bay are is the lighting capital of the United States. 1.5 million strikes per year on avg. Tampa Bay is ranked in the top ten for the most vulnerable hurricane zones Collaborated with USF to determine worst case scenario Cat 5, mouth of Tampa Bay, Lunar high tide with Mars and Venus in alignment Built the facility to withstand Cat 4 Hurricane Raised the ground level to 18ft above sea level Tilt slab construction with maximum structural support Reinforced roof connections, minimal roof clutter/penetrations Hurricane Impact glass Curtain Walls to protect exterior equipment Invested in redundancy where it made sense Power, Water, Control systems

14 Systems Projection Criticality Continuous process flow critical 24/6 Production Mon.-Sat. Maintenance or Make-up on Sun. All systems are computer controlled different vendor systems 1 Middleware package (the router) SAP our Business management software Onsite Datacenter supports Valpak operations Valpak franchise network Data back up at Cox Atlanta Business Continuity Plan is nearly impossible

15 Caterpillar Power Systems Cat 300 Series Flywheel Generator (UPS) kva kva Generator Sets 3 Model 3516B Diesel 2250kW Volts 480 Phase 3 Sound attenuated enclosures Keeps the neighbors happy Protects the equipment Paralleling and Switchgear 3 Paralleling Switchgear 2 Automatic Transfer Switches

16 Importance of Maintenance Agreements Equipment Bumper to Bumper long-term service agreements on all equipment Monthly, Quarterly and Annual maintenance Annual load bank testing Genset Fuel gallon tanks) Electronic fuel usage monitoring Fuel tested and maintained by Caterpillar One Throat to Choke!

17 Questions and Answers

18 For More Information: Speaker: Home Page:

19 THE END

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