Assets Returned From Lease Project: Bill Cody Black Belt September 25, 2003

2 Background n IKON assets remain with at customer locations after lease obligations are met n Nationally, 84,000 assets are tied to contract terminations yearly; 20,000 are in the West Region n Recovery rate in West Region is 88%, translating to 2,400 assets not being recovered. n Non-recovered assets at customer locations represent lost revenue opportunity from a wholesale and retail perspective with associated margin impacts n Six Sigma Process will focus on improving the recovery rate for the West to 95% thus providing IKON with incremental revenue and margin

3 Project Charter & Uncovered Opportunities n Project Charter Identified Revenue Opportunity of $1.8 million with 95% Recovery Rate Achievement n Based on further analysis - opportunity potential in excess of $3.5 million n Original Data Excluded Total Region (old Southwest District basis) n Current Process Review Activities have Identified Additional Opportunities (still to be Validated): n Headcount: n Headcount: currently 9 Associates involved within Phoenix CCC n Process benchmark in NER utilizes 2 Associates for similar volume n Cycle Time: n No current measures in place for Cycle Time n Assets remain “unrecovered” in excess of 1 year n Reduction in Cycle Time generates earlier Revenue/Margin recognition

4 Process Discovery n Current Process Focused Solely to Asset Recovery based on IOS Capital Direction which Encompasses only 6% of the Lease End Recovery Base n No Centralized Process or Ownership to Insure all Assets are Accounted => Multiple Touch Points with Minimal Interactions n Poor Process Communication between Recovery Team and Field Organizations including Supply Chain n Process Redundancies Identified creating Potential Unnecessary Manual Inputs

5 Project Improvement Focus n Process Capability will be Improved from Current Output utilizing fewer Associates: n Standardize Process and Centralize Ownership to CCC n Elimination of Redundancies currently Required n E.g. Individual Pickup Order Generation for Multiple Machines located in same Location (Process Capable - validated in Northeast and Midwest Regions) n Strengthen Communication links with Key Constituents (CCC/CC/Marketplace) through improved Process Outputs n Ongoing Process Model Validation through Key Measures and Controls

6 Next Steps n Benchmark Detailed NER Process Capability to Determine West Region Output Potential n Validation of Process Inputs and Ranking of Each n Measurement System Development focused to Volume, Defect Detection and Cycle Time Measures n Analyze Data Collected to Isolate Areas of Immediate Focus n Implement Appropriate Changes Sooner than Later when Data Supports

7 QUESTIONS?