Appendix W: Production g and Tracking Quality Control Eli M. Noam, Production

Film: Budget • Other variables considered in the production budget include: –Running Time –Shooting Ratios 1317

Film: Budget • Running Time –Total duration as well as the complexity p y of a completed p project.

•Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1319 ed. Woburn: Focal Press, 2001, p. 55-60.

•Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1318 ed. Woburn: Focal Press, 2001, p. 55-60.

Film: Budget • Shooting Ratios –Ratio of footage g shot duringg production to footage actually used in the edited version. •Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1320 ed. Woburn: Focal Press, 2001, p. 55-60.

1

Film: Budget

Film: Budget

•Production Budget

• Budget forms must indicate all costs in order for a professional estimate to be made.

•Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1321 ed. Woburn: Focal Press, 2001, p. 55-60.

Film: Budget

Film: Budget

•Production Budget

•8. MUSIC (Fees, rights, performance) •9. GRAPHICS (Titles, animation, art) •10. EDITING •11. PERSONNEL:

___________ ___________ ___________ Staff Crew Talent

•TITLE: DATE: •PRODUCER: DIRECTOR: •CLIENT: PHONE: •ADDRESS: MEDIUM: •CONTACT: PHONE: •ALTERNATE: PHONE: •1. SCRIPT (Rights, research, writing, duplication) ___________ 2. STAGING (Sets, costumes, location fees, props) ___________ •3. EQUIPMENT (Rental, lease, use fees) ___________ •4. SPECIAL EQUIPMENT (Mounts, aerials, submarine) ___________ •5. RAWSTOCK ___________ •6. DUPING (Time code copies, off-line copies) ___________ •7. AUDIO (Effects, fees, rights, sweetening, looping, etc.) ___________ •Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1322 ed. Woburn: Focal Press, 2001, p. 55-60.

______ ______ ______

•12. TRAVEL (Transportation, lodging, per diem) ___________ •13. DISTRIBUTION (Dubs, promotion) ___________ •14. POSTAGE/INSURANCE ___________ •15. OTHER • SUB-TOTAL ___________ •OVERHEAD ___________ •CONTINGENCY ___________ •Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd • GRAND TOTAL ___________ 1323 ed. Woburn: Focal Press, 2001, p. 55-60.

• Producers must constantly evaluate the efficacy of procedures being used in production. Evaluations focus on gathering daily information. •Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1324 ed. Woburn: Focal Press, 2001, p. 55-60.

2

Film: Budget • Daily production reports are completed based on information received from each production area. Accurate records are kept for financial purposes.

Film: Budget • Weekly budget summaries are collected in order to create longterm evaluations for future budget projects.

•Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1325 ed. Woburn: Focal Press, 2001, p. 55-60.

•Source: Kindem, Gorham; Musburger, Robert. Introduction to Media Production. 2nd 1326 ed. Woburn: Focal Press, 2001, p. 55-60.

Film: Budget

Film: Budget

• Forecasting Without Fear –Research description p of films as well as general market and distribution information. •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1327 2004, p.153-168.

• Finding The Data –Analyze y the past p five years y through the following: •Trade papers •Industry Magazines •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1328 2004, p.153-168.

3

Film: Budget • Finding The Data Cont’d •Regular Newspapers and Magazines g •Festivals and Film Markets •Seminars •Industry Meetings

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1329 2004, p.153-168.

Film: Budget • Foreign and Other Data –Analyzing y g charts from Weeklyy Variety and The Hollywood Reporter depict the highbudget studio films. •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1331 2004, p.153-168.

Film: Budget • Finding The Data –Utilize resources to find a reference to the budget. –For example communicating with filmmakers. •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1330 2004, p.153-168.

Film: Budget • A compilation of average territory sales gathered from individual distributors represent the average advances from distributors in that territory. •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1332 2004, p.153-168.

4

Film: Budget • For Japan, the high is $70,000 and the low is $20,000. As a result, the most distributors will pay is 10% of the budget. The average figure is $45,000. •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1333 2004, p.153-168.

•Potential Sales by Territory for Budgets up to $1.5 Million ($ Thousands) - 2004

•Potential Sales by Territory for Budgets up to $1.5 Million ($ Thousands) - 2004 COUNTRY

HIGH

LOW

AVERAGE

45

Asia Japan

70

20

Indonesia

20

10

15

Korea

75

15

45

Hong Kong

30

10

20

India

20

10

15

Taiwan

45

10

28

Philippines

30

10

20

Other

30

15

23

Total Asia

320

100

210 *

Australia New Zealand

50

25

38

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1334 2004, p.153-168.

•Potential Sales by Territory for Budgets up to $1.5 Million ($ Thousands) - 2004

Europe South America

Great Britain

70

35

53

G Germany

65

30

48

B il Brazil

30

10

20

France

80

45

63

Mexico

50

20

35

Other

Italy

65

30

48

Scandinavia

55

25

40

Spain

50

20

35

Holland

15

5

10

Other

100

30

65

Total Europe

500

220

360 *

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1335 2004, p.153-168.

Middle East

55

25

40

135

55

95 *

30

10

20

•Note: Sales dollars courtesy of various distributors •*Do not total the averages

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1336 2004, p.153-168.

5

Film: Budget –

The gathered data serves two purposes: 1. Shows pprofits of recentlyy released films 2. Estimates the revenues of a filmmaker’s film

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1337 2004, p.153-168.

Film: Budget –Foreign Theatrical Revenue –Foreign g Ancillaryy Revenue –Total Revenue

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1339 2004, p.153-168.

Film: Budget • The following data are key determinants in developing a film budget: –Domestic Theatrical Rentals –Domestic Ancillary Revenue •Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1338 2004, p.153-168.

Film: Budget –Negative Cost, Prints and Ads, and Total Costs –Gross Profit (Loss)

•Source: Levison, Louise. Filmmakers and Financing. 4th edition. Oxford: Elsevier, 1340 2004, p.153-168.

6

Budget • As an expensive commodity, studios must analyze and establish an estimate for the overall cost of the media production, creates an outline of where and how money will be spent. •Source: S. Abraham Ravid. “Information, Blockbusters, and Stars: A Study of the Film Industry.” The Journal of Business (1999).

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• The master schedule is important to keep all levels of production in constant flow and eliminate wasteful idleness, as bottlenecks.

An organizational structure must be chosen to connect a project to oversee pproduction.

Eli M. Noam, Production

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Accurate Prediction is Impossible • Needs & tasks will change as the product progresses. • Most constantly reevaluate schedule.

Migliore, Henry R.; Production/Operations Management: A Productivity Approach. East Brunswick, NJ: Irwin, 1990, p.386. Eli M. Noam, Production

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Eli M. Noam, Production

Source: Starr Long, Online Product Development Management:

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7

Tracking Costs: General

Tracking Costs: General • Control -monitor actual time, cost, and performance -compare planned and actual figures -determine whether corrective action is needed -evaluate alternative corrective options -take appropriate corrective action Eli M. Noam, Production

Source: Schroeder, Roger G. Operations Management. New York: McGraw Hill, 1981. p. 339.

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Tracking Costs: General

-Total costs divided by number of units = unit cost.

Eli M. Noam, Production

-Direct costs (materials and labor) as well as a share of overhead and indirect costs attributed to each project. Eli M. Noam, Production

Source: Wild, Ray. Production and Operations Management. p. 93.

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Tracking Cost: General

• Firms with repetitive production of uniform goods use process g costing.

Source: Wild, Ray. Production and Operations Management. p. 94.

• Cost tracking techniques depend on firm’s product. • Firms that tailor their products to customer specifications use job costing.

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• Standard Costing-used for rapid cost feedback information. -Costs are estimated (‘standard costs’) and compared with actual costs periodically. Variations are assessed.

• Film cost-tracking is a form of standard costing. Eli M. Noam, Production

Source: Wild, Ray. Production and Operations Management. p. 95.

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8

Daily Production Report

Tracking Costs: Film

Film Film Use Gross Print No Good Waste

• Production Accountant’s job • Payroll -software licensed by payroll companies to production accountants on a film by film basis • Daily Hot Costs: amount spent vs. amount budgeted for each day of principal photography (aka Daily Cost Overviews) Source: Honthaner, Eve Light. The Complete Film Production Eli M. Noam, Production Handbook. Boston: Focal Press, 2001. p. 27-34.

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From Script to Schedule -Headings (day/night, interior/exterior), locations, cast, props, wardrobe, extras, stunts, visual and special effects, animals, vehicles, etc.

• Create Breakdown Sheets Eli M. Noam, Production

Today To Date

Script

Inventory Starting Inv. Additional Today Total

Minutes

Scenes Pgs. Pgs Prev. Prev

Retakes

Added Scenes

Setups

Pages Scenes

Prev. Prev

Prev Prev.

Today

Todav

Today

Prev Prev. Today

Script

Total

Total

Total

Total

Prev.

Scene No.

Today To Date

Added Scenes

To Be Taken

Retakes

Sound Tracks Eli M. Noam, Production

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From Script to Schedule

• For each scene, highlight required components

Source: Honthaner, Eve Light. The Complete Film Production Handbook. P. 57.

¼” Rolls

Stock Prev

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• Production managers divide scripts into acts and scenes. • The number of work days required from each actor and stuntman are determined. • Each scene is measured by its page count (measured in eighths of a page). Eli M. Noam, Production

Source: Honthaner, Eve Light. The Complete Film Production Handbook. P. 55-7.

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9

Breakdown Sheet

Daily Cost Overview

Page: Production # Date:

Show: Location:

Show Date Start Date:

Description Scene #

[Ext.]

6 8&9 #

Road leading to the lake

[Day]

1/8 5/8

Cast

Atmosphere

4

2 behind

# of pages

5 3/8

4 5/8

6/8 behind

Budgeted

Wardrobe Visual effects

Stunts Transportation

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Tracking Costs: TV

10hrs. @ $22/hr.

$242$44-

Total for today Previous total Eli M. Noam, Production Grand total

$9,738$4,000$13,738- (over)

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• Cost per viewer

-Divide total production cost by the duration of the finished program Ex: The last season of ‘Friends’ Friends -Ex: Production Cost: $10 million per episode Episode length: 23-24 minutes Cost per minute: approx. $417,000 http://www.nbc5i.com/entertainment/1852227/detail.html

$ $150$10,000($200-) ($55) $120$563-

Tracking Costs: TV

• Cost per minute

Sources: http://www.cybercollege.com/tvp007.htm Eli M. Noam, Production

Source: Honthaner, Eve Light. The Complete Film Production Handbook. P. 51.

Cost

$$65013 $300$577$960$1,687-

Addt’l prop asst. Fringe

Sound/music Eli M. Noam, Production

Actual

$$50012 $500$632$840$2,250-

Makeup Source: Honthaner, Eve Light. The Complete Film Production Handbook. P. 64.

Ahead/Behind

6

Cast overtime Shooting hrs. Meal Penalty Extras Catering Raw Stock Unanticipated

Stand-ins Special effects

Revised Finish: Shot

# of scenes

Props

Camera

Scheduled Finish: Per Call Sheet

# of pages

Boys walk towards lake The boys hide

Prod. # Day #

-Divide production costs by (anticipated) audience in thousands or millions -Ex: ‘Friends’ Final Episode Production Cost: $10 million Audience: approx. 50 million Cost per viewer: 20 cents Sources: http://www.cybercollege.com/tvp007.htm

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Eli M. Noam, Production

http://news.bbc.co.uk/2/hi/talking_point/3693205.stm

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10

Quality Control • Gantt charts and spreadsheets are used to find deviations between budgeted and actual costs as production is in progress.

•Control Costs -Prevention Costs -quality planning training -training -quality data

Aquilano, Nicholas J.; Chase, Richard B. Production and Operations Management USA: Irwin, 1995, p.500. Eli M. Noam, Production

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Quality Control

Eli M. Noam, Production

-Appraisal Costs -incoming material inspection -process inspection -final goods inspection -quality laboratories Eli M. Noam, Production

Source: Schroeder, Roger G., Operations Management. p.528.

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Quality Issues: Examples

• Failure Costs -Internal Failure -scrap -rework downgrading -retest retest -downtime downtime -downgrading -External Failure -warranty -returned merchandise -complaints -allowances Source: Schroeder, Roger G., Operations Management. p.528.

-new product review -process process planning -improvement projects

1359

• DVDs & CDs (Electronic Equipment) –A certain percentage are defective • Film shooting: technical quality of film • Plasma video screens: defective pixels Eli M. Noam, Production

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11

Quality

Total Quality Management

• Quality is monitored while the product is being produced. • Process control p plans are needed to insure quality. • Statistical sampling analysis is used. Eli M. Noam, Production

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Costs of Quality

Source: Schroeder, Roger G., Operations Management. p.527-9.

Control Costs

Appraisal Costs Internal Failure Costs Failure Costs External Failure Costs

Eli M. Noam, Production

1- quality management for a product’s entire life-cycle 2-quality management commitment throughout the organization 3- innovation Sources: Wild, Ray. Production and Operations Management. p.588. Starr, Martin K. Managing Production and Operations. Eli M. Noam, Production Englewood Cliffs, NJ: Prentice Hall,1989. p.296-297.

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Cost of Quality

• Quality control costs average 10% of sales • For well-managed g companies, p , 35% of sales Prevention Costs

•Japanese management policy, developed in 1970s •Principles p

Total Quality Costs 1363

•Control Costs -Prevention Costs -quality planning -training -quality data

-new product review -process planning -improvement projects

-Appraisal Costs -incoming material inspection -process inspection -final goods inspection -quality laboratories Eli M. Noam, Production

Source: Schroeder, Roger G., Operations Management. p.528.

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12

Costs of Quality

Cost of Quality • For film and television content production, external failure costs are potential. Studios do not refund tickets for a bad movie, movie but run the risk of customers avoiding future products.

• Failure Costs -Internal Failure -scrap -downgrading

-rework -retest

-downtime

-External Failure -warranty -complaints

-returned merchandise -allowances Eli M. Noam, Production

Source: Schroeder, Roger G., Operations Management. p.528.

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Eli M. Noam, Production

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13