Total Call Process Effectiveness Black Belt – Alan Libbert Function: Operations/Service

2 Background n Total Call Effectiveness is a measure of the ability to respond to a customer generated call for service and make the repairs necessary without a return call. n A recall is defined as when a customer has to place a service call within a certain number of days or copies after the initial call (based on segment). n Project is scoped to the Midwest Region. n Currently, there are 1,023 techs in the Midwest Region n The Midwest Region is averaging a call back rate (recalls) of 16.4% n Recalls have been measured for over 18 years. Data is readily available. A return call : incomplete for parts, incomplete for time, or a recall.

3 Project Team n Project Champion – Mike Woodard n Financial Analyst – Sharon Hunt n Black Belt – Alan Libbert n Team Members: IT Support – Tim Dzicek, Service Analyst (2) FSM’s (2) Service Technicians Master Black Belt – Dan Douglas

4 Project Definition n Problem Statement: First Call Effectiveness /Recalls currently averaging 16.4% of customer generated service calls. This means that 16.4% of the time, customer has to place a recall before defined machine performance standards (days/clicks between calls) are met. There is significant room for improvement. Excess recalls negatively impact technician productivity (cost) and customer satisfaction/retention. n Project Definition: Reduce recalls from 16.4% to 12.4% (a 24.4% reduction).

5 Project Definition n Project Benefits: n A 24.4% reduction in recall rate can reduce customer generated calls by 2.6% or 1578 calls/mo. n hrs/call =3325 hrs/mo n 3335 hrs per month/130 hrs per month (avg. mo. Tech prod hrs) =25 techs n Financial Benefits: $1.3M per year n 25 techs X $4150 (base+benefits+travel)= $104k/mo ($1.3M/yr)

6 Step 1- The “BIG Y” n Project Metric “Y”: Strategic Goal = Reduce recall rate which reduces customer generated calls Y 1 = Decrease in recall rate (recall rate = Recalls/Total Calls) n Defect Definition: n External: When a customer has to place an additional service call within a specific number of days or copies after the initial service call. n Internal: More than 12.4% recall rate weekly by branch. n Leveragability: Leverage program for application in all Regions

7 Available Data n Midwest Region performed 61,517 response time calls in August 03. (78,890 total calls) n 12,938 recalls in August 03 n 16.4% recall rate. (12,938 / 78,890 = 16.4% ) n DPMO 164,000. What is an acceptable level? 124,000 DPMO is targeted acceptable level. n Average tech territory is 130 CAT (Customer And Travel) hours.

8 Specifications Recall Parameters

9 Financial Impact n Assuming 10% Opportunity (2.5 techs) capture in April 04 = 2.5 X $4150 = $10.4k. 20% May 04, 40% June 04, 60% July 04, 90% August 04 and 100% September 04, plus year two. n In Sept of year 1, a reduction of 1 Call Center Rep can be realized. This equates to a year 1 savings of.33 X $10k and year 2 savings of $30k.

10 Project DMAIC Checklist/Status