1. Inaccurate Cycle Billing Records in OMD - Northeast Black Belt: Jim Palmer Division: Northeast BU – Forecasting/Service/ Revenue/Base/Type of Machine

2. 2 Background – Current Process n We are looking at just the Northeast Region as this is last on the Oracle rollout schedule n This will allow sufficient benefit dollars even though the process will move into Oracle. n Soft benefit from cleaner data conversion into Oracle. n Cycle billing process has recently been centralized into Glastonbury CCC. n Present project scope does not include meter read estimation. n Scope does include all pricing and product codes. n Many original Maintenance Contracts documents remain in the Marketplace locations. n Approximately 170,000 MIF under contract

3. 3 Project Charter n PROBLEM STATEMENT: Inaccuracies in the Northeast Region Cycle Billing records result in lost revenue and impact IKON’s ability to forecast future revenue. These inaccuracies could include over-billing and under-billing of customers. n PROJECT OBJECTIVE: Correct the Base and Overage rates and other product coding in the Cycle billing records and insure the use of coding that is appropriate for equipment type and segment.

4. 4 Project Charter n PROJECT BENEFITS: Based on a prior review completed in the Connecticut marketplace there is a 2% to 5% error rate in existing billings. The Northeast Region has approximately $200mm in Aftermarket revenue. 70%, $140mm, is billed to the customer by IOSC. The remaining $60mm is billed directly by the Region. A 1% positive improvement in billing rates could result in $2 million in increased revenue. n PROJECT METRIC “Y”: Accurate pricing and coding leading to increased revenue and improved customer service. n DEFECT DEFINITION: Inaccurate pricing and coding in cycle records.

5. 5 Project Team n Project Champions n Rich Silverstein Operations n Vic Rainsford Finance n Process Leader n Tim O’Donnell Existing Cycle Billing Manager – (only 3 wks more) n Tom Magel New Cycle Billing Manager n Subject Matter Expert Diana Cyr n Team members n Carol Cross IT n Tina Rothschild former Mid Atlantic CB Supervisor n Master Black Belt Arthur Girard n Financial Analyst Dave Peters

6. 6 First Steps…  Project Charter Scope Review  Determine how much revenue from the Northeast is covered by Cycle Billing - Completed.  Review any previous samplings or audits completed to validate estimated number of and dollar value of errors.  Determine if this info can be used to validate potential benefits in terms of dollars for the entire region.  Initial Meetings - Completed  Meeting with former Process Supervisor from Phila Mktplace.  Meeting with Regional Process Leader(s)  Meeting with prospective project team to obtain high level process overview.  Develop 1 st Draft of SIPOC with Team Members

7. 7 First Draft of SIPOC

8. 8 Next Steps…Start the Define Phase  Dive deeper into mapping existing process  Next meeting in Glastonbury scheduled for week of Oct 20.  Meet with Core team  Meet with people one level below SME. The actual Worker Bee’s.  Identify CTS’s  Begin investigation of location of source data  Find original Maintenance contracts in marketplaces used for initial data entry.  Determine type and location of source data documentation for other data entry and updates.

9. 9 Project DMAIC Checklist/Status Problem Statement: Inaccuracies in the Northeast Region Cycle Billing records result in lost revenue and impacts IKON’s ability to forecast future revenue