Canon Strategic Marketing Plan - Supply Credits Marcus Downey

Background – Current Process 1. Register customer for CSMP support 2. Sell machine to customer 3. Identify all supply sales from CSMP Customers 4. File for credit with vendor 5. Current reports are generated via ODS

Background – Current Process 6. Vendor identifies eligibility of credits 7. Vendor pays credit in full or partial 8. Credit is received by Accounts Payable 9. Vendor Credit Specialist is contacted for posting information (Marketplace, Branch, etc) 10. Credit is posted to OMD

Project Definition Problem Statement: IKON does not currently take advantage of all supply credits for equipment sold under the CSMP program. Approximately 60% of all Canon equipment placements are CSMP. IKON purchases approximately $40 million per quarter in supplies from Canon. If 60% of supplies sold are for price supported customers we should claim $1.2 million per quarter ($40 mm * 60% * 5%). As not all products are included in the program the estimate is $3 million per year. In fiscal 02 IKON claimed and received $640K (460K from current OMD paths). This project is focused on improving the supply claim process. Project Definition: To increase the number of supply credits claimed from 460K to 2 million per year for OMD paths. Project Benefits: Improve cash flow, decreased cost of goods, and improved profit margins estimated at $1.54million in missed credits annually.

Project Definition, Cont’d Financial Benefits: Increase supply credits by 437% from Fiscal Year 2003. Increased income, increased cash flow Project Metric “Y”: Y1 = Price supported supplies not claimed. Y2 = Ability to identify eligible records. Defect Definition: Eligible supplies delivered under entitlements or invoiced to the customer not recognized as eligible for CSMP supply claim. Leveragability: Project can be leveraged across Region still on the OMD system.

Project Team Black Belt – Marcus Downey Champions – Linda Frisinger, Bruce Fiscus Financial Analyst – James Palmer Process Owner – Linda Frisinger Master Black Belt – Bob Conrad Team Members: IT Support – Dottie Mann Process Professional – Georg Shannon Process Professional – John Lepley Critical that instructor be able to see the title descriptions of the members to ensure the right people are represented on the team.

CT TREE The information above was preliminary numbers worked up by the financial analyst and still needs to be validated and inserted into the Project Charter.

SIPOC

Detailed Process Map

Detailed Process Map – cont.

Detailed Process Map – cont.

Detailed Process Map – cont.

Data Collection Plan

• DPMO and Zst (baseline and target) Areas to Complete • DPMO and Zst (baseline and target) • MSA completed and issues identified • Process performance and entitlement • Preliminary graphical analysis of data • Define any red flags and recommendations to resolve Next Steps

Project DMAIC Checklist/Status Problem Statement: To increase the number of supply credits claimed from 460K to $1.5 million per year for OMD paths Black Belt: __Marcus Downey ____________________ CTS’s: _______________________________________________________ Project Champion: Linda Frisinger________________ Defects to be Reduced: _________________________________________ Deployment Champion: __________________________________ Beginning DPMO/Sigma Level: ___________________________________ Master Black Belt: __Bob Conrad_____________ Final DPMO/Sigma Level: ________________________________________ Six Sigma Project DMAIC Checklist Project :__CSMP Supply Credits_____________________ Define Measure Analyze Improve Control Completion Date: q Discover Variable Relationships Establish Current Performance Establish Performance Objective ID Alternative Solutions Determine “Best Fit” Solution Establish Process Tolerances Update FMEA Develop Pilot Plan Pilot “Best Fit” Solution Validate Improved Performance Conduct Cost/Benefit Analysis Complete Improve Phase Project Review Redefine Process Capability Develop Control Plan Develop Mitigation Plan Implement Process Controls Develop Monitoring Plan Implement Process Control Plan Obtain Financial Validation Define Project Scope Initiate Team (Kick-off) ID Process Customers ID Process CTS’s ID Process Metrics (Y’s) Complete SIPOC Map Complete Define Phase Project Review Receive Approval to Move to the Measure Phase Control Phase Confirm Baseline Capability Identify Sources of Variation Complete Detailed Process Map Complete C&E Diagram & Matrix Complete FMEA Perform Data Collection for Analysis Screen Potential Causes Conduct Graphical Analysis - Conduct Hypothesis Testing Complete Root Cause Analysis Analyze Phase Develop Data Collection & Sampling Plan Identify Potential X’s Validate Measurement System Collect Data on Y’s Perform Capability Analysis Voice of Process/Benchmark Define Performance Objectives Complete Measure Phase Project Review Receive Approval to Close the Project Complete Control Phase Project Review Obtain Financial Analyst Sign Off Obtain MBB Sign Off Obtain Project Champion Sign Off Obtain Steering Committee Sign Off Complete Analyze Phase Leverage Project within Organization