1. Contract Setup Accuracy Project 0307-10-001 Black Belt: Rob Vaughn Week 2 Presentation Define and Measure Phase

2. 2 Background – Current Process n e-IKON platform facilitates the auto-creation of a service contract (setup) by the IBS Sales person at time of new equipment sale. n Auto-creation processing referred as OSO. n Non-OSO processing (Order Management) requires Manual creation of Service Contract. n Approximate time for processing Service Contract in OSO model is 20 min. n Currently 44% of contracts set up manually (OM)**, not through OSO processing. n 21 personnel in Contract Setup function.

3. 3 Project Definition n Problem Statement: 44% of contracts required to be set up manually, 56% via Oracle Sales Online capability. 21 FTE performing Contract Processing(Cent and SE). On-line processing approx. 20 min. per contract, Manual set-up in excess of 45 min. per contract. n Project Definition: Reduce number of contracts requiring manual set up from 44% to 20%. Project Benefits: Reduction in labor costs of 6 Contract setup personnel - $192k/yr. Current backlog of manual processing, reduced overtime labor. Improved customer satisfaction with timely billing and application entitlements.

4. 4 Project Definition, Cont’d n Financial Benefits: 44% to 20% manual set up service contracts, reduction of 6 FTE, $192k plus OT labor. Reduction in credits processed for Time & Material charges generated during timeframe contract is inactive – not developed yet. n Project Metric “Y”: Strategic Goals: Improved customer satisfaction, reduced costs. Y = # of contracts set up manually, reduce #. n Defect Definition: Manually set up contract. n Leveragability: Project currently applicable to “live e-IKON” regions Cent and SE. Leveragability to all Regions going forward, cost avoidance.

5. 5 Project Team n Black Belt – Rob Vaughn n Champion – Debbie Kok, Jim Morrissey n Financial Analyst – Gary Milliren n Process Owner – Debbie Kok n Team Members: two teams Houston and Duluth e-IKON Sales – Karl Lamb e-IKON Orders Management – Michelle Craft/Tracy Carter e-IKON Contracts – Sue Knight, Jan Chisholm, Donna Estes, Kyle Hannah, Angie Adame Sales – Bryant Young, Howard Warteman Master Black Belt – Bob Conrad, Six Sigma Academy

6. 6 SIPOC

7. 7 Current DPMO

8. 8 DPMO baseline Z n Current Process Capability: as measured in sample size of 105 daily % defects (manual contracts), both Hou and Atl combined consists of: n Mean –.433 n St dev –.197 n DPMO – 809,524 n Equates to an initial Z value of -.875 n Hou and Atl capability is similar

9. 9 Process Map (hi-level)

10. 10 Process Map - detail

11. 11 OSO Criteria

12. 12 Measurement System Analysis n Not complete n Plan – Defect Decision (OSO or Manual) at time of Processing initial request n 3 Sales Personnel, process 30 sample orders, Repeat n Attribute characteristic known (Manual or OSO) n 30 sample orders = 15 OSO, 15 Manual n 15 Manual = 5 ea from 3 categories

13. 13 Data Collection/Sampling

14. 14 Current Voice of Process

15. 15 Project Issues – next steps n Initiate Data Collection on X’s (Source/Categories of why manual and #’s) n Perform MSA, Attribute Gage R&R, id testers n Pareto X’s for size of buckets n Discussions of Technology enhancements/improvements/availability to other than Outside sales n Data on financial benefits, id current backlog, overtime, %contribution of manual contracts