1. Change Development Rework Leonard Sealy Corporate Supply Chain – Rochester, NY

2. Background – Current Process The Change Development team came about with the advent of eIKON in August of 2002. Since then there have been numerous request for changes to the system due to a number of reasons. The team is currently receiving approximately 80 new requests a week for a variety of changes. The problem comes from change request forms being sent in incomplete or with incorrect information which leads to the AA&D team designing scripts or new codes that do not meet the actual requirements of the functional teams. This scripts or codes then have to be reworked which results in high labor cost as well as backlog in the Change Management pipeline since the AA&D teams have to be focused on reworking issues and not being to focus on new request.

3. Project Definition Problem Statement: Submitted change requests for enhancements lead to rework in development. These are result of scope changes due to incomplete and inaccurate functional requirements on the original change request or issues with the design. Project Definition: Reduce rework time and effort in $ savings for development associated with incomplete and inaccurate requirements and code bug by 70% for FY04. Realization is reduced to 35% in savings based on the assumption that less customizations will be needed due to a more stable platform and development assessments will be done correctly the first time due to complete and accurate requirements from functional teams.

4. Project Definition Cont’d Project Benefits: AA&D are contract labor that equates to a cost of $350 per person day. Since 8/5/02(eIKOn go live) thru 7/1/03 the rework effort for missed requirements is 1647 person days totaling $576,450. For the same period, the rework effort for new requirements is 3577 person days totaling $1,251,950. To summarize, 32% of the AA&D teams effort has been spent fixing issues which should not have been encountered if the functional teams requirements were properly defined. Financial Benefits: $220,000 savings for missed requirements in contract labor savings and $478,000 savings in new requirements.

5. Project Definition Cont’d Project Metric “Y”: Y1 = $ of rework savings and time for contract labor (Infosys). Y2 = reducing number of changes received due to rework. Defect Definition: Development $ and effort related to rework for scope changes and code bugs are x above industry average. Identify standards for IKON based on sample of historical of complex, med, simple. Missed requirements are defined as requirements that were known at the time of requirements definition phase but were not clearly stated or captured in the documentation. New requirements are defined as requirements or functional enhancements that are outside the scope of the original baseline requirements document.

6. Project Definition Cont’d Leveragability: Project will be leveraged across corporation since there will be one operational Platform (eIKON).

7. Project Team Arthur Girard – Master Black Belt Fari Azad – Project Champion & Process Owner Steve Koch – Financial Analyst Leonard Sealy – Black Belt Karen Kerchusky – Change Control Analyst Team Members: Ajay Mediratta – AA&D Nancy Sheppard – Accounts Receivable Michelle Camburn – Order Management Nandita Saigal - DBA

8. Financial Impact Calculations:1) Missed Requirements: $220K=((576,450/11)*12)*.35 {% to be realized per project objective for missed requirements} 2) New Requirements: $478K=((1,251,950/11)*12)*.35 {% to be realized per project objective for new requirements} 3) Code Bugs: $33K =((46,900/6)*12)*.35 {% to be realized per project objective for code bugs} 4) Change Mgt time for processing missed & new requirement changes (technical & business review and logging): a) approximately 193 changes for missed requirements, which equate to 42 person days, and b) 156 changes for new requirements, which equate to 34 person days. 5) Total FY04 development budget of 16,560 person days vs. 424 enhancement requests (as of 9/26/03) in the pipeline that can be progressed more effectively and efficiently.

9. Process Flow – Current State

10. Project DMAIC Checklist/Status