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Background - Current Process n The preliminary data from NACO shows, in the Wal-Mart situation, that there is a/an: n 96.62% completion rate of customer surveys. n 95.65% completion rate of timely delivery of assemblies (results of customer surveys). n 92.75% rate in the timely installation of assemblies (results of customer surveys). n 82.13% rate in the timely customer training of the full functionality of the system (within 24 hours of install or network connectivity.) n Wal-Mart does not begin paying IKON until training has taken place. n There is an average of two weeks between delivery of the assemblies and training on the assemblies.
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National Accounts/Meeting Customer Expectations - Customer Training
Marty Brecht - Black BeltINAP
Background - Current Process
National Account customer expectations of product, program and information training vary from account to account.
IKON’s process of delivering, installing and performing customer product training varies from location to location.
There is a disconnect between customer expectations of training timeliness and what is actually taking place.
There is not an IKON national policy or process to install, connect, and provide timely customer training.
Background - Current Process The preliminary data from NACO shows, in the Wal-Mart situation, that
there is a/an: 96.62% completion rate of customer surveys. 95.65% completion rate of timely delivery of assemblies (results of
customer surveys). 92.75% rate in the timely installation of assemblies (results of customer
surveys). 82.13% rate in the timely customer training of the full functionality of the
system (within 24 hours of install or network connectivity.) Wal-Mart does not begin paying IKON until training has taken place. There is an average of two weeks between delivery of the assemblies
and training on the assemblies.
Problem Statement Equipment installation and connectivity is not meeting customer
expectations within 48 hours.
IKON does not connect the customer's equipment to their network timely in 6%-10% of connected national account equipment installs.
Customer training is not meeting customer expectations within 24 hours of delivery.
IKON does not have a national customer training policy.
“Y”
Late or no customer training, because of…
No clear nation-wide customer training policy. Late or no installation and connectivity. Lack of installation policy enforcement and
communication mechanisms (to the Service or Professional Services Tech).
Project Definition
Install equipment upon delivery and connect the equipment to the customer's network, when applicable, within 48 hours of delivery, thereby improving customer satisfaction, employee productivity, and revenue growth due to improved customer retention and satisfaction.To train the customer within 24 hours of installation or network connectivity, thereby improving customer satisfaction, employee productivity, and revenue growth due to improved customer retention and satisfaction, and reducing follow-up costs.
Financial ImplicationsNational Accounts/Meeting Customer Expectations - Customer TrainingSix Sigma Financial Quantifications
Delayed Cash Flow Impact - 14 days Interest
Monthly Annual
Avg # Monthly
Placements
% of Placements
14 day Training
Unit Revenue
Unit Contribution Revenue OI Revenue OI
100 75% 5,000$ 400$ 375,000$ 30,000$ 4,500,000$ 360,000$
Accelerate Cash Flow by 14 days 4,500,000$ Annual Sales360 / # of Days
12,500$ = Daily Sales6% * Interest Rate
750$ = One Day OI Impact10,500$ *14 = 14 Day OI Impact
Prospective Business Impact - 50% More Business - No Cash Flow Consideration
Monthly AnnualIncremental
Monthly Placements
Unit Revenue
Unit Contribution Revenue OI Revenue OI
50 5,000$ 400$ 250,000$ 20,000$ 3,000,000$ 240,000$
240,000$ OI Impact
Total OI Impact 250,500$
Wal-Mart ChartWal Mart Statistics
207200 198
192
170
0
50
100
150
200
250
Total Count Survey Completed On Time Delivery Installation Complete Training Complete
Statistic
Num
ber o
f Act
ions
Total Count
Survey Completed
On Time Delivery
Installation Complete
Training Complete
Wal-Mart Chart
100.00%
96.62%
95.65%
92.75%
82.13%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%
% Successful
Total Count
Survey Completed
On Time Delivery
Installation Complete
Training Complete
% Success Rate - Wal Mart
Wal-Mart Chart
33,81743,479
72,465
178,747
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Num
ber o
f def
ects
Survey Completed On Time Delivery Installation Complete Training CompleteAction
Defects per million - preliminary
Leveragibility There are 86 INAP’s in place as of October 10, 2003. There are 138 IMAP’s in place as of October 10, 2003. There are 71 pending IMAP’s as of October 10, 2003, positioned to
come on board.
294 additional accounts that would be affected by the success of this project!
7,057 INAP systems delivered through August, in FY 2003. $70,497,857 INAP sales treatable equipment dollars through August, in
FY 2003. Average FY 2003 INAP $ per system = $9,989.77 ($70,497,857 divided
by 7,057).
Project Team Champions
Mike Jenkins Bill Garcia
Financial Analyst Pam Stiner
Master Black Belt Bob Conrad
Black Belt Marty Brecht
Process Owner Mike Jenkins
Team Members: Dave Herr - National Accounts,
Headquarters Carol Ann Sweeney - Business
Services, Headquarters Marianne Morrison - Senior Manager,
IKON National Accounts Group Brett Rietzke - National Account
Manager, Wal Mart Michael McGervey - District Training
Manager, California Sarah Orphin, ITT Coordinator,
NYC/NJ John Ladota, National Account
Relationship Manager, Wal Mart Joe Corey, FS eIKON Deployment
Lead
Project DMAIC Checklist/Status
Problem Statement: Failure to install equipment upon delivery and provide connectivity, if applicable, within 48 hours. Failure to conduct customertraining within 24 hours of the equipment installation and network connectivity.
Black Belt: Marty Brecht CTS’s: install and connect within 48 hours - Customer Train within 24 hours
Project Champions: Mike Jenkins, Bill Garcia Defects to be Reduced: Two-week lag time between delivery and training
Deployment Champion: Mike Jenkins Beginning DPMO/Sigma Level: ___________________________________
Master Black Belt: Bob Conrad Final DPMO/Sigma Level: ________________________________________
Six Sigma Project DMAIC Checklist
Project :National Accounts / Meeting Customer Expectations - Installation, Connectivity, Customer Training
Define Measure Analyze Improve Control
Completion Date: Completion Date: Completion Date: Completion Date:
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
Completion Date:
Define Project Scope
Initiate Team (Kick-off)
ID Process Customers
ID Process CTS’s
ID Process Metrics (Y’s)
Complete SIPOC Map
Complete Define PhaseProject Review
Receive Approval to Move to theMeasure Phase
Receive Approval to Move to theControl 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
Receive Approval to Move to theAnalyze 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 Move to theAnalyze Phase
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 Project Review
Leverage Project within Organization
End of Section
Thank you!
