International Newspaper Group Pre-Press Operations….A Journey

1. International Newspaper Group Pre-Press Operations….A Journey September2013

2. Pre-Press Operations Assessment…A Journey • Objectives : • Leverage existing assets and minimize technology platforms across the publications. • Create the most efficient operating model of People, Process and Technology • Determine what if any processes should be outsourced. • A common lament? • Through acquisition and evolution, our publications have different processes and software applications. • This has brought challenges: • Too many different processes. • Technology and process was implemented to “do it like we used to”. • Process and technology is ever changing. • HUMAN ERROR; SYSTEM OUTAGES; PROCESS PROBLEMS

3. Pre-Press Operations Assessment…A Journey • A work in progress across three companies, • Dow Jones/New York Post: Started with the 9 publications • News UK: Followed with the 17 publications • News Australia: To follow • Utilize PROCESS ENGINEERING • Applied Lean and Six Sigma Improvement tools PROCESS • We started by mapping out the current pre-press processes by publication, to understand: • Who does what and when. • What technology is employed (applications). • What are the opportunities identified throughout the process.

4. Pre-Press Operations Assessment…A Journey COLOR IDENTIFIES THE APPLICATION USED PUBLICATION Alexa • “POINT OF INTEREST” • Grouped by: • Proofing • Manual processes • Ad Production • Process Performance • Software/Technology GROUP PERFORMING THE TASK

5. What Did We Find? Process NYC proofing workflow is not available in SBK . This includes color proofing. REC: Investigate why this is not possible and what benefits would be gained by so doing (L,M) 8 Any changes made here, dropped directly into Méthode, have bypassed the QA process REC: Investigate why changes occur past this point (M,M) Unable to generate quick proofs with current IT solution for printing. Printing one sheet takes up to 5 minutes, 16-24 pages x 2-3x each page. Note: this is between 3 .3 to 6 hours daily (16*5 min*2.5 times to 24*5 min *2.5 times) REC: Investigate replacement of printers for proofing. (H,M) 9 “POINT OF INTEREST” 11

6. What Did We Find? Process In all, @100 opportunities for improvement were recorded

7. What Did We Find? Process In all, @100 opportunities for improvement were recorded • Some Common Trends: • Several different groups were doing common tasks, distinct by publication. • Some of the tasks were very time-consuming as a result of the technology limitations. • Applications, even by the same vendor, were not used consistently across the publications or companies. • Some changes to ad copy made later in the process were not re-checked by an upstream Quality Control check. • Pre-flight checks of received ads for some publications failed quite often. • Unfamiliarity with editorial copy tools causes delays and rework. • Many of these are already being corrected.

8. What Did We Find? Technology • Companies used different applications to get the same work done. • One company is using three times the number of applications than another. • One publication alone has eighteen applications strung together, just to perform pre-press. • A majority of the overall applications are unique to a single publication. • Why is this important? • Production is being affected by technology breakdowns. • Significant cost and effort to maintain applications. We need a common solution to handle a common process

9. What Did We Find? Technology The systems/applications used are in a constant state of change, mostly dictated by the needs of business. Which applications affect print production the most Median Elapsed time that the application is down This volatility requires that we simplify and standardize processes and supporting applications to prevent increases in cost to maintain and operate.

10. What Did We Find? People • The review noted that “tribal knowledge” (the practice of subject matter experts fully knowledgeable in their areas but largely undocumented) was commonplace. • An overall lack of reference materials, consistent training and support supplied to the process participants that should be addressed. • The non-standardized processes (each publication performs similar tasks differently) adds to the general inability to leverage resources in times of need across publications.

11. Pre-Press Operations Assessment…Our Next Steps Common Pre-Press Tasks across all publications Manage Ads Create Pages Content Create Classified Ad Copy Typeset and Pre-flight Plan Book Assemble Pages Proof Transmit MINIMIZE VARIATION of the tasks, they should be consistent SIMPLIFY THE TASKS to reduce complexities and reduce cycle-time STANDARDIZE THE APPLICATIONS to reduce complexities and cost CONSIDER CONSOLIDATING IN A SHARED SERVICE OR OUTSOURCING

12. Pre-Press Operations Assessment…Our Next Steps AS IS Define, Measure Broadsheet; Tabloid; Magazine DJ Broadsheet; Tabloid; Magazine Common NewsCorp PRESENT STATE NI AS IS – TO BE Analyze, Improve NL Broadsheet; Tabloid; Magazine “Strawman” Common NewsCorp BENCHMARK, IDENTIFY STANDARDS TO BE Analyze, Improve Review proposed plan (DJ;NI;NL; tech and pre-press) ASSESS COSTS, ALTERNATIVES, EFFORT TO BE Implement, Control IMPLEMENTATION

13. Pre-Press Operations Assessment…Our Next Steps • Objective: • A standardized process and technology solution to address each type of publication that can be leveraged for like products across News Corporation. • Use the least amount of company resources while maintaining or improving product quality and customer service. • Our PROCESS ENGINEERING approachhelped us get here…