1. Canon Strategic Marketing Plan - Supply Credits Marcus Downey South Region

2. 2 Agenda  Project Definition  Gage R & R Northeast Market Area Analysis  Capability Analysis – Supply Credits CY 2002  Capability Analysis – Supply Credits January – August CY 03  Input Variables  CSMP Supply Survey  Canon Collaboration  Next Steps  Project Progress

3. 3 Project Definition Problem Statement: IKON does not currently take advantage of all supply credits for equipment sold under the CSMP program. Project Definition: To increase the number of supply credits claimed from 460K to 2 million per year for OMD paths. Amendment Submitted: 425K to 825K Project Benefits: Improve cash flow, decreased cost of goods, and improved profit margins estimated at $400,000 in missed credits annually.

4. 4 Project Definition, Cont’d n Financial Benefits: Increase supply credits by 48% from Calendar Year 2002. Increased income, increased cash flow n Project Metric “Y”: Y 1 = Price supported supplies not claimed. Y 2 = Ability to identify eligible records. n Defect Definition: Eligible supplies delivered under entitlements or invoiced to the customer not recognized as eligible for CSMP supply claim. n Leveragability: Project can be leveraged across Regions still in the OMD Path.

5. 5 Gage R & R Gage R & R (ANOVA) Monthly Credit – NE Region Jan – Mar 03 % Contribution = 44% % Study Variation = 66% 1 =Conn 2. NYC 3.=N. NENG. 4. S. NENG. 5. U-NY

6. 6 Capability Analysis CY 2002 DPMO = 626127 Zst = 1.20 In 2002 IKON Received 51% of Eligible CSMP Supply Credits.

7. 7 Capability Analysis – Aug 03 DPMO = 445128 Zst = 1.65 Through August 2003 IKON Received Approximately 51% of Eligible CSMP Supply Credits. With a Quarter to go!

8. 8 Input Variables

9. 9 CSMP Supply Survey Evaluation of Output Baselines Compare current Region effectiveness Overall Capabilities and effectiveness of personnel Assist with Areas of Improvement in Training

10. 10 Canon Collaboration Meeting: October 30, 2003 Agenda Overview Six Sigma IKON Process for CSMP Supply Credits Canon Supply Credit Process Collaboration - Opportunities for Process Improvements Next Steps

11. 11 Next Steps Compile Survey Info & Perform Analysis  Discover Variable Relationships of the Key Inputs  Establish Current Performance  Establish Performance Objectives Meet With Canon Team Lake Success, N.Y.– 10-30-03 Compile Regional CSMP Data and Submit to IKON I. T. Group for Analysis– Linda Frisinger 10-24-03 Conference Call with IT Support – Dottie Mann 10-27-03  Application Architecture & Development, ( AAD Data Migration Team)

12. 12 11) Determine Process Capability 7) Screen Potential Causes 9) Establish Operating Tolerances 10) Validate Measurement System 12) Implement Process Controls 6) Identify Variation Sources 8) Discover Variable Relationships 4) Establish Process Capability 3) Validate Measurement System 5) Define Performance Objectives 2) Define Performance Standards 1) Select Output Characteristics 12 Step Breakthrough Strategy 1) Select Output Characteristics 2) Define Performance Standards 3) Validate Measurement System 4) Establish Process Capability 5) Define Performance Objectives 6) Identify Variation Sources 7) Screen Potential Causes 8) Discover Variable Relationships 9) Establish Operating Tolerances 10) Validate Measurement System 11) Determine Process Capability 12) Implement Process Controls 1) Select Output Characteristics 2) Define Performance Standards 3) Validate Measurement System 4) Establish Process Capability 5) Define Performance Objectives 6) Identify Variation Sources 7) Screen Potential Causes 8) Discover Variable Relationships 9) Establish Operating Tolerances 10) Validate Measurement System 11) Determine Process Capability 12) Implement Process Controls On track to Complete project on time: December 31, 2003

13. 13 CSMP Supply Project Questions ?