1. Canon Strategic Marketing Plan - Supply Credits
Marcus Downey

2. 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

3. 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

4. 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.

5. 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.

6. 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.

7. 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.

8. SIPOC

9. Detailed Process Map

10. Detailed Process Map – cont.

11. Detailed Process Map – cont.

12. Detailed Process Map – cont.

13. Data Collection Plan

14. • 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

15. 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