1. Unapplied Cash: eIKON Dealer Compensation Joyce Darson NE Region CCC

2. 2 Project Overview n We bill leases and service contracts to IOSC n IOSC funds us weekly through the “dealer compensation report” n The 2 systems frequently don’t match up n Result = research, rework, added costs to apply cash at Macon Shared Service Center  n Project Objective: reduce costs associated with this research and rework

3. 3 Preliminary Data Overview As of 08/21/03 eIKON Unapplied Cash $23.6 million Dealer Comp Vendor CreditTrade A/R eIKON $4.3 M eIKON $11.8 M eIKON $7.5 M Top 3 Defects # Billing Equip.Issue= 46.5 % of errors Need service invoice Billing service issue 46

4. 4 Project Definition n Problem Statement: Unapplied cash: lease equipment record differences between IOSC and IKON make up an estimated 46.5 % of the unapplied items in the eIKON related dealer compensation as of 08/21/03. n Project Objective: - 65-70 % reduction in these defects. n Project Benefits: - Estimated headcount savings of 15 and $525K per year from FY 2004 plan of 34; (reduction in required headcount for reconciliation and research). - Existing resources will be re-allocated to support future migrations. - Pending validation with financial analyst.

5. 5 Project Definition, Cont’d n Defect Definition: Any cash transaction that can not be automatically matched. Leveragability: Project leveragability: additional savings in non-eIKON Regions

6. 6 Project Team

7. 7 Team After 6 hours of Process Mapping!!

8. 8 “Critical To” Tree

9. 9 SIPOC MSSC Cash Apps Order Mgt.

10. 10 Detailed Process Map (Steps 1 & 2 of 9) A Miracle Happens somewhere in here! Start

11. 11 DPMO and other Statistics n Y 1 = Cash Interfaced not automatically applied (eIKON dealer compensation only) DPMOZstSt.Dev.Mean Baseline: 196,500.855 8.722.4 % Target: 1.1 6 % (70 % reduction, includes allowance for shift)

12. 12 Pareto Chart of Defects Note: 46.5 % of defects relate to a billing equipment issue

13. 13 Voice of the Process: Defect % May – August 2003 Note: high defect rate in May/June due to Oracle conversion; these data points were excluded from the analysis of the current process.

14. 14 Process Capability @ 8/03 Process Entitlement @8/03, 100 % of process is outside of target

15. 15 Data Collection Plan What to Measure?Type of MeasureType of DataData Collection FormSamplingBaseline Measure % of Items UnappliedItemsContinuous Existing Excel tracking spreadsheet by week Population, by week, by reason, by pathname20% Reason Codes for Unapplied ItemsCountDiscrete Existing Excel tracking spreadsheet by week By reason, by week, by pathname 46.5 % relate to billing equipment discrepancies Detailed reasons for equipment billing issuesDetailed countDiscrete Modification of # 2 above, tracked weekly in Excel By week, by detailed reason, by pathnamet.b.d. # hours spent on research & reconciliationHoursContinuous Job responsibility analysis, starting 9/1/03 By department, by site, by weekt.b.d.

16. 16 Red Flags n Paperwork validated multiple times in process, yet errors continue. n “The cart is before the horse”: validation of Oracle funding with IOSC funding happens after Oracle invoice is generated n Funding changes by IOSC were not communicated to the CCC’s for Oracle update; note: recent leasing announcement refers to new report available, needs research/validation. n Oracle “glitches” with multiple invoice number generation for one deal adding to defects in cash application. n Poor communication throughout process.

17. 17 Recommendations n Need to get inside detail of “equipment billing issue” reason code (see data collection plan) n Process mapping addressed only initial set-up of Oracle & CLAS records; need to evaluate possible X’s related to changes to equipment records after initial set-up n Evaluate impact of “lease details” enhancement due with Oracle release IKON 1.4, Nov/Dec. timeframe

18. 18 Next Steps n Validate measurement system n Collect detailed data on “equipment billing issue” reason code n Collect data on # hours spent on research/reconciliation n Evaluate possible X’s related to changes to equipment records after initial setup n Evaluate impact of “lease details” enhancement on the process n Make it through Week 2 training (without valium)

19. 19 Martini time!!