Meter Reads-Method Project Number Black Belt Rob Zinsky Northeast region

2 Background – Current Process n There are currently up to 12 ways in which a meter read can be attained from a customer. n Missed meters equals missed revenue. n Vendor contracts can not use an estimated meter read to bill. n Currently, we bill contracts monthly, quarterly, semi- annual and annually. n In any given month, we can leave up to 40% of our meters unread. n Each machine within a fleet must have a meter read or the entire contract will not bill. n There are a wide variety of contract types today, Copy Block, Copy Management, ITT’s, Fleet and others. n Measurement system is currently off goal.

3 Project Definition n Problem Statement: The e-IKON platform requires a valid meter reading be acquired or estimated within 15 +/- days of the billing date for every billing period to facilitate invoice generation. Currently 42% of meter reads do not meet standard. This directly impacts monthly base billing revenue. n Project Objective: To improve meter collection utilized for billing, from 58% collected per month to 88%. This project will focus on the optimum method and time to perform meter collection. Project Benefits: Timely revenue billing, reduce unbilled contracts, improve cash flow and customer satisfaction while reducing customer calls into the CIT.

4 Project Definition, Cont’d n Financial Benefits: Estimated $7 million in revenue that is not billed on a timely basis. Potential cost savings in labor and overtime. n Project Metric “Y”: Y 1 = Days from Contract Bill Date. Y 2 = Improve timeliness of meters collected. n Defect Definition: 15 +/- days of contract billing. n Leveragability: Meter collection timeliness is heightened in the e-IKON environment, so optimum return would be seen in those regions first with rollout to remaining OMD regions.

5 Project Team n Champion – Deb Kok n Financial Analyst – Peter Botkee n Black Belt – Rob Zinsky n Process Owner – Deb Kok n Master Black Belt- Laura Wells n Team Members: IT Support – Linda Hample, Jason Fitzwater and Ravi Balakrishan E-IKON & Web Meter Support – Mike Aiello, Dan Brown & Beth Beran IOSC Support – Susie Davis Contract Support – Sharon Herren Oracle Support – Erike Rudolph Subject Matter Expert/Process Owner-Deb Kok

6 Financial Benefits Increase in Revenue Productivity & Efficiency Savings n Increase in Cash Flow n Personnel Savings or reallocation n Increased Customer Satisfaction, both external and internal

7 Current Meter Read Process

8 Questions n Do we treat all contracts the same? n Are the contracts we collecting on worth the invoicing? n Where are the dollars coming from? Does the 80/20 rule apply? n Do our current methods of collection meet customer expectations? n Is there any prioritization or ownership? n How do I make sense of all this data?

9 CT Flow Down

10 Critical Successes n CUSTOMERS : -External -IOSC -Vendors n PROCESS : -To obtain a timely meter read in the most cost effective manner within the LSL of 15 days prior to contract billing or the USL of 15 days after contract billing.

11 Critical to Quality n CTQ : -A meter read must be entered or estimated in order to generate an invoice -The invoice needs to be delivered on a timely basis to the customer -The invoice shall have the correct contact information so it goes to the right person -The meter read shall be for the correct machine -The invoice should be clear and concise so our customer can understand -The invoice represents our company image

12 Critical to Delivery n CTD : -The invoice shall be delivered in a timely manner -The invoice shall be sent to the right contact -The invoice shall be delivered to the right address

13 Critical to Customer n CTC : -The method in which we obtain our meters has cost associated with it, drive out the cost and pass the savings on to the customer -The method of delivery has cost associated with it -Minimize administrative costs on customers and IKON’s end

14 Big Y/Primary Metric n Days from Contract Bill Date for each meter read as measured on a daily basis.

15 Scorecards Contracts Metric ReferencePrior WeekDate at beginning of measure mentEnding ##8/48/58/68/78/8 # Missing Meters Current* 1,2453,4082,1111,7701, # Missing Meters Past Due* 8,7827,1046,9686,8236, # Missing Meters (Oracle) 10,02710,5129,0798,5938,4818,472 # Florida Missing Meters Current* 1725,1274,8874,5464, # Florida Missing Meters Past Due* # Total Missing Meters19,03210,22115,66513,96613,13912,82911,837

16 SIPOC Starting Point

17 High Level Process map

18 Detailed Customer Phone Process Endless Loop

19 Web/IVR Detail Map All Defects go To MMR

20 Vendor detailed Map

21 Detailed Process Map

22 Detailed Process Map

23 High Level Process Map w/ X’s & Y’s

24 Detailed Process Map

25 C & E Matrix

26 Need to Complete w/ Data TASK to Complete Expected Date n MSA 9/5/03 n DPMO 9/3/03 n Z shifts 9/5/03 n Process Capability 9/5/03

27 Red Flags n Data, data, data n Current Reorganization n Overlapping Charters n Personnel n Time Sensitivity

28 Next Steps n Finalize Financial Benefit n Gather data to establish DPMO & Z scores n Send out C & E Matrix to determine data collection n Visit Houston CCC n Apply this week’s knowledge