assets returned from lease project: 0307-01-003 bill cody black belt september 25, 2003
TRANSCRIPT
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Assets Returned From LeaseProject: 0307-01-003
Bill Cody Black BeltSeptember 25, 2003
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Background
IKON assets remain with at customer locations after lease obligations are met
Nationally, 84,000 assets are tied to contract terminations yearly; 20,000 are in the West Region
Recovery rate in West Region is 88%, translating to 2,400 assets not being recovered.
Non-recovered assets at customer locations represent lost revenue opportunity from a wholesale and retail perspective with associated margin impacts
Six Sigma Process will focus on improving the recovery rate for the West to 95% thus providing IKON with incremental revenue and margin
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Project Charter & Uncovered Opportunities
Project Charter Identified Revenue Opportunity of $1.8 million with 95% Recovery Rate Achievement
Based on further analysis - opportunity potential in excess of $3.5 million
Original Data Excluded Total Region (old Southwest District basis)
Current Process Review Activities have Identified Additional Opportunities (still to be Validated):
Headcount: Headcount: currently 9 Associates involved within Phoenix CCC
Process benchmark in NER utilizes 2 Associates for similar volume
Cycle Time: No current measures in place for Cycle Time
Assets remain “unrecovered” in excess of 1 year
Reduction in Cycle Time generates earlier Revenue/Margin recognition
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Process Discovery
Current Process Focused Solely to Asset Recovery based on IOS Capital Direction which Encompasses only 6% of the Lease End Recovery Base
No Centralized Process or Ownership to Insure all Assets are Accounted => Multiple Touch Points with Minimal Interactions
Poor Process Communication between Recovery Team and Field Organizations including Supply Chain
Process Redundancies Identified creating Potential Unnecessary Manual Inputs
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Project Improvement Focus
Process Capability will be Improved from Current Output utilizing fewer Associates: Standardize Process and Centralize Ownership to CCC Elimination of Redundancies currently Required
E.g. Individual Pickup Order Generation for Multiple Machines located in same Location (Process Capable - validated in Northeast and Midwest Regions)
Strengthen Communication links with Key Constituents (CCC/CC/Marketplace) through improved Process Outputs
Ongoing Process Model Validation through Key Measures and Controls
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Next Steps
Benchmark Detailed NER Process Capability to Determine West Region Output Potential
Validation of Process Inputs and Ranking of Each Measurement System Development focused to
Volume, Defect Detection and Cycle Time Measures Analyze Data Collected to Isolate Areas of Immediate
Focus Implement Appropriate Changes Sooner than Later
when Data Supports
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QUESTIONS?