1. Case Study: Recover Leased IT Assets

2. Background COMPANY is a large multinational offices services organization employing about 40,000 employees worldwide About 70% of COMPANY’s employees use desktop or laptop computers COMPANY started leasing laptop and desktop computers about 4 years ago to provide employees with the right tools to perform their jobs, and also to manage cash-flow COMPANY initiates leases several times a year. Usually a lease covers between 1,000 and 2,000 pieces of equipment to meet the organization’s timing and equipment needs

3. Problem Over the past year (2002) 11 leases for Desktop and Laptop computers have matured and COMPANY had to return the old equipment and initiate new leases for replacement equipment COMPANY was unable to recover and return all of the equipment of the matured leases – slightly more that 4,000 of the 10,000 assets were not recovered and returned to the leasing company COMPANY pays a pre-determined penalty (asset buy-out) for unreturned equipment – averaging $350/piece Total cost to COMPANY for unreturned equipment = 4,000 X $350 = $1,400,000

4. Objective Improve recovery rate of leased IT equipment from 60% to at least 88% (representing a 70% reduction in defects)

5. Defect Definition Any leased IT asset not returned in a timely (±7 days) and acceptable manner (not damaged)

6. Project Benefits 70% reduction in $1,400,000 lease buy- out expense would result in a project benefit of approximately $980,000 (1,400,000 X 70%)

7. Contributing Factors –Serial numbers not matching lease schedules –Technical issues with the bar code system –Inconsistent use of the bar code system –COMPANY owned equipment was shipped to the lease-end processing company –Equipment on leases with other lessors was shipped to the lease-end processing company –Equipment was miss-shipped to the lease end processing company

8. Process Map for Disposition Three Main Issues Detected 1.Locate Equipment = 30 min – 1 year + 2.Replace Equipment = 4 – 196 Days 3.Lease End Processing = 72 min – 35 Days

9. High Level Touch Point Map

10. Cause & Effects Matrix Top 15 Results RankInputScore 1 Asset Database700 2 Missing Equipment700 3 SN Issues700 4 Lease Schedule Issues700 5 Buyout Requests650 6 Stolen\Lost Equipment Process525 7 Inventory510 8 Receiving Process508 9 Approval Process500 10 Deployment Process500 11 Order Process500 12 Holding Equipment500 13 Back Orders500 14 Product Availability500 15 Lease-end Notification500 1.Asset Database 2.Missing Equipment 3.Serial Number Issues 4.Lease Schedule Issues 5.Buyout Requests

11. Top FMEA Recommendations ItemIssueRecommended Actions 1 Not knowing where to find equipmentImplement Asset Tracking & Validation at the Help Desk for all Touch Points and continue Physical Inventories as needed. 2 Equipment not inventoriedBetter Training, Asset Tracking\Validation by HD and Clear Documentation\Instructions 3 Equipment\People\Offices moving or soldRevise\Create Employee\Office Move\Sold Process to include updating Asset Information 4 Application issues with Asset Inventory SystemImplement new Asset Inventory application 5 End User Non-ComplianceVerify or Create Policy and Awareness (include HR) 6 Equipment in IMS\BDS\LDS LocationsIncorporate IMS Database, Accountability via Policy, Purchase not lease equipment for FM sites 7 Lease End Processor - Bad instructions for Equipment Hold Re-write the Lease End Processing Equipment Hold Policy 8 No follow through by COMPANY on Buyout Requests Place CISP team in Charge & include Follow-up process 9 Faulty Process for Stolen\Lost Equipment (IT does not know) Revise Lost\Stolen Equipment Process to include updating Asset Inventory Database 10 Assets given to employeeReinforce Policy via HR 11 Unplanned Hardware Model ChangesHold quarterly transition meetings 12 Vendor out of stockCollect monthly equipment forecasts 13 Equipment broken\not in use & not inventoriedBetter training & re-enforce policy - all equip must be inventoried working or not 14 SN issues with Lease Schedules Lease Schedule Reviews and Asset Database Compares 15 SN issues with Lease SchedulesCompare Packing Slips to Lease Schedules & Switch to Dell 16 Deployment to remote locationsContractor\Temps and\or use COMPANY Copier Service Techs or Professional Services 1. Implement asset tracking & validation at the Help Desk for all Touch Points and continue physical inventories as needed 2. Revised training and documentation for Break-fix teams 3. Revise\Create Processes for: Employee Moves Office Moves Office Closures and Sales 4. Implement new Asset Inventory System 5. Verify policy and enhance awareness via HR for end-user compliance

12. Key Improvements Made Improvement Fixed equipment holding issue at Lease End Processor Implemented weekly audit of Asset Database (400 per Month). Part of Control Plan Implemented new Help Desk Process for Asset Validation Implemented new Asset Inventory System Implemented Desktop version of Asset Inventory System Implemented new Lost\Stolen equipment Process Implemented new Employee Separation Process Implemented new Office Move\Close\Sale Process Implemented tight schedule controls (Prevent any equipment form being ordered and replaced too early) COMPANY Asset Tag placed on equipment at the factory Verified Integration of FM Location Asset Inventory into Asset Inventory System

13. Assets in the Database Control Chart Reduction in Missing Assets of 35% to 0% Prior to new asset inventory system and revised/new processes.