1. David Pasquarello Ikon Office Solutions
Demo Room Utilization
David Pasquarello
Ikon Office Solutions

2. Project Team Champion – Ron Race and Len Hall
Black Belt- David Pasquarello
Financial Analyst – Carol Uhlig
Process Owner – Carlyle Singer
Team Members:
IT Support – Rick Faber
Marketing – Annette McCrary
Supply Chain – Greg Driscoll./ Brian Kehoe
Real Estate – Tom Pero
Professional Services – Steve Sebolt and Rusty Harrison
Sales Mike Jackman and Larry Halfin
Master Black Belt – Bob Conrad
Critical that instructor be able to see the title descriptions of the members to ensure the right people are represented on the team.

3. Background – Current Process
Within Ikon we don’t have a consistent process for deployment, utilization and control of demo room assets.
There are three types of demo rooms A, B and C.
“A” being the largest with the most product, and “C” being the smallest.
Marketing decides the product deployed to each demo room.
We have a recommended equipment configuration list for all three types of demo rooms.
The Marketplace is free to add or remove equipment.

4. Project Definition Problem Statement:
There is inconsistent deployment, utilization and control of demo room assets throughout the country. At present, these assets total approximately $42 million. This project will focus on determining cost effective levels and efficient allocation of these assets, specifically in the Northeast Region. There is currently a national initiative to reduce assets deployed at C Demo Rooms and to eliminate floor space by utilizing these assets in the working sales office area, instead of in a dedicated demo room. This project will help to analyze the effect of this initiative as well.

5. Project Definition
Problem Statement:
There is inconsistent deployment and utilization of demo room assets throughout the country. At present, IKON has assets deployed to demo rooms nation wide totaling approximately $42 million.

6. Project Definition, Cont’d
Project Objective
Analyze all Demo Rooms and assets in those rooms in the Northeast Region, including the Greenville SC demo room.
Measure the frequency of use of each demo room, and each asset in class A&B showrooms.
Reduce the inventory value in the showrooms while installing the equipment the customer wants to be shown.
Anticipated completion date December 15, 2003. .

7. Project Definition, Cont’d
Financial Benefits:
The hard dollar benefit is a result of reducing inventory in the showrooms.
Using a cost of capital percentage of 8%, for every $1.0 million we reduce inventory IKON saves $80,000 annually.
Project Metric “Y”:
Measure = Frequency of use of each demo room asset in of all demo rooms class A&B in scope.
Measure = Frequency of use of each demo room.

8. Project Definition, Cont’d
Defect Definition:
Ikon has $9.4 million of inventory deployed to demo rooms in the NE region. This number has already been reduced to $5.4 million via the current initiative. This project will use the $5.4 million as the baseline.
We need to know if this is the equipment the customer wants to see.
The defect is equipment that is not being utilized.
If the equipment is not being used we want it removed.
Leveragability:
Leverage benefits of improved asset allocation to all Regions. Current inventory committed to all other Regions is approximately $32.6 million.

9. Project Definition, Cont’d
Defect Definition:
The defect is equipment or demo rooms that are not being used.
Equipment customers want to see will be used.
If the equipment is not being used we want it removed.
Leveragability:
We can leverage this to all other regions. Current inventory committed to all other Regions is approximately $32.6 million.

10. We have both x and Big Y data from the Marketplace demo rooms.
Progress
We have data…finally!
We have both x and Big Y data from the Marketplace demo rooms.
No conclusions yet but a good foundation started.
The rooms are currently being restocked after year end.
Here are some findings….

11. Total Demos Per week

12. Descriptive Statistics

13. Descriptive Statistics
Normal?

14. Fat Pencil test

15. Monthly Capability

16. Demos Per Model Sept 15 to Oct 10 2003
Not on the recommended inventory list

17. Demos Per Rep
Sept 15 to Oct

18. Demo Room Utilization
“A” Type Pilot Demo Room

19. Baltimore Boston Fairfield Harrisburg Manchester New York City
No Activity Sept 15 to Oct
Baltimore
Boston
Fairfield
Harrisburg
Manchester
New York City
Portland
Richmond
State College

20. 95% of the equipment was functional at the time of the demo.
Equipment Functional
GOOD NEWS…..
95% of the equipment was functional at the time of the demo.

21. Communication Plan

22. CT Tree

23. SIPOC

24. Process Map

25. Tools used to identify Variables
Detailed process map
Key points
We only do a demo if the customer asks.
We found variables that could cause a demo not to happen. We populated and ranked those variables in the Cause & Effect matrix.
Administered a survey to answer a some high level questions.

26. Process Map Survey results
58% of our customers in the market want a demo
Out of the 58% only 74% receive a demo
44% of our demonstrations given are in the showroom
54% are done other ways. Trials, Brochure, On site.
31% of the Showroom demonstrations are rescheduled or canceled due to Equipment being non functional or not available.

27. Out of 100 customers in the market for equipment 58 ask for a demo.
Survey results
Out of 100 customers in the market for equipment 58 ask for a demo.
43 of the 58 are delivered a demo of some sort.
19 out of the 43 demonstrations given are in the showroom.
The remainder of the 43 are done by trial or on site demonstrations.

28. C&E Diagram

29. Tools Used to identify Variables
Cause and effect matrix
Key points
The variables contributing the most to a demo taking place are.
Sales Rep. Training
Sales Rep. Experience
Equipment in stock
Enablers non functional
Equipment being sold from the demo room floor

30. Cause & Effect Matrix Demo Room Utilization
C &E Matrix

31. Potential X’s
Data box 1. Percentage of your customers that request a demo of any type?
Data box 2. What percentage of box 1 typically get delivered?
Data box 3. What percentage of the demonstrations delivered were in our show room?
Data box 4. What percentage of the demonstrations delivered were on site trials or by brochure?
Data box 5. What percentage of the demonstrations done in our showroom had to be rescheduled due to lack or equipment or equipment being non functional?

32. Data collection form

33. Data Collection
We have demo room champions gathering data and reporting it to me once a week.
Due to end of year activity demonstrations have been very low and data sketchy.
Demo count is low do to end of year inventory reduction initiatives.
We expect demo rooms to be re-stocked shortly after 10/01/03 to the recommended models.

34. Measure Phase In progress. Analyze Phase In progress.
Over all progress
Define Phase Complete.
Measure Phase In progress.
Analyze Phase In progress.
We are currently between Measure and Analyze as the data flows in.
Improve Phase. Not started. Target date 11/21/03
We are looking for variable relationships as the data comes in and the
rooms are re-stocked.

35. Monitor Re-Stocking of the demo rooms
Next Steps
Monitor Re-Stocking of the demo rooms
Continue to gather and analyze the data.
Complete the FMEA. To confirm X’s.
Survey our external demo room customers.

36. Project DMAIC Checklist/Status
Problem Statement:
Black Belt: _______David Pasquarello____________________
CTS’s: _______________________________________________________
Project Champion: __Ron Race and Len Hall____________________
Defects to be Reduced: _________________________________________
Deployment Champion: __________________________________
Beginning DPMO/Sigma Level: ___________________________________
Master Black Belt:_______Scott Fowler_______________________
Final DPMO/Sigma Level: ________________________________________
Six Sigma Project DMAIC Checklist
Project :________ _________________________________
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