Canon Strategic Marketing Plan - Supply Credits
Marcus Downey
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Background – Current Process
1. Register customer for CSMP support
2. Sell machine to customer
3. Identify all supply sales from CSMP Customers
4. File for credit with vendor
5. Current reports are generated via ODS
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Background – Current Process
6. Vendor identifies eligibility of credits
7. Vendor pays credit in full or partial
8. Credit is received by Accounts Payable
9. Vendor Credit Specialist is contacted for posting information
(Marketplace, Branch, etc)
10. Credit is posted to OMD
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Project Definition
Problem Statement:
IKON does not currently take advantage of all supply credits for equipment sold under the CSMP program.
Approximately 60% of all Canon equipment placements are CSMP. IKON purchases approximately $40 million per quarter in supplies from Canon.
If 60% of supplies sold are for price supported customers we should claim $1.2 million per quarter ($40 mm * 60% * 5%).
As not all products are included in the program the estimate is $3 million per year. In fiscal 02 IKON claimed and received $640K (460K from current OMD paths). This project is focused on improving the supply claim process.
Project Definition:
To increase the number of supply credits claimed from 460K to 2 million per year for OMD paths.
Project Benefits:
Improve cash flow, decreased cost of goods, and improved profit margins estimated at $1.54million in missed credits annually.
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Project Definition, Cont’d
Financial Benefits: Increase supply credits by 437% from Fiscal Year 2003. Increased income, increased cash flow
Project Metric “Y”: Y1 = Price supported supplies not claimed. Y2 = Ability to identify eligible records.
Defect Definition: Eligible supplies delivered under entitlements or invoiced to the
customer not recognized as eligible for CSMP supply claim. Leveragability:
Project can be leveraged across Region still on the OMD system.
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Project Team
Black Belt – Marcus Downey Champions – Linda Frisinger, Bruce Fiscus Financial Analyst – James Palmer Process Owner – Linda Frisinger Master Black Belt – Bob Conrad Team Members:
IT Support – Dottie Mann Process Professional – Georg Shannon Process Professional – John Lepley
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CT TREE
CT Satisfaction
Y1 = Price SupportedSupplies not Claimed
Critical toQualityCritical to Cost Critical to
Delivery
Project # 0307-27-003CT Tree
Marcus Downey8/11/2003
CSMP SUPPLY CREDITS
Canon has astandard Format forsubmitting Data
All Records musthave CanonApproval Number
Percent VendorCredits receivedversus dollaramount claimed
Vendor Creditsnever submitted -lost revenue
90 Daywindow tomake claims
CT Satisfaction
Y2 = Ability to IdentifyEligible Records
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SIPOCProcess Owner:
Inputs Outputs
(Resources required by the process) 6
(Deliverables from the process) 3
Requirements Requirements
OMD correct invoice info
Location of CSMP customers supplies purchasing invoice info
Access to invoice data in OMD. IKON Coordinator
VCTS
Track current Vendor Credit customers that qualify for Vendor Programs
System that identifies CSMP customers and purchased equipment.
Database Entries Report allows processor to identify possible new CSMP registered customers. IKON Coordinator
ODS
Extract the billed info in OMD and into Excel spreadsheet
First cut at srubbing data needed to process supply credits
Need to include CSMP registered customers name, Canon supply product #'s and invoice date info to enable ODS to extract needed info from OMD. IKON Coordinator
ExcelAllows us to export into the Canon format. 2
Canon required spreadsheet format
Proper information to Canon to process the credit request claim. CANON
EmailCommunicate results of data submitted by IKON
Send back amount of money IKON will be rebated versus amount submitted Outlook/Lotus Notes, etc. IKON Coordinator
Knowledge/Skill
Persons trained to dothe individual processes that are required to receive the claims from Canon.
Employees that process the manual information into the Canon Format
Information sent to Canon in their requested format CANON
ComputersStore individual Spreadsheet Records
Historical Data for tracking amount of money claimed and received from Vendor
Used to reconcile credits with Canon IKON Coordinator
Account Registration ListsCheck for Qualified Customers 1
Qualified Customers Approval Number Need before credit is approved CANON
Canon on Line/ ISG Marketing
Website Communication Portal for Canon Dealers
Supply Program Information and Current CSMP Customer Information from Canon
allow IKON to updated CSMP Customer list & check status of qualified customers IKON Coordinator
CSMP Supply Credits Linda Frisinger
Process(Top level description of activity)
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Customers(Anyone w ho receives a deliverable from the process)
5 4
Identify CSMP Customers eligible for Supply Claims and await credits
Starts when Ikon receive customer registration from Sales Rep
Ends with Receipt for credit from Canon
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RegisteredCSMP
Customer
•Equipment Customer isregistered•Automatic qualification forCSMP Supply Program
OracleDiscoverer
•Input Supply Query inOracle•Run Supply Claim reportfrom ODS
•Pull customerInformation
EXCELSpreadsheet
• Transfer new CSMP Customers• Get CSMP Supply Credits from New Customersequipment• Check VCTS for new Customers• Check OMD for missing Information
•Transfer Data
CHECK CustomerQualification
•Manually check each account line by line•Cross Reference against currentcustomer list or expired list
•Prepare to Validate
CSMP DiscountDocument
•Sort File
• Sort by Machine Model• Check Current qualifyingmachines•Ensure use of most currentCSMP Document
Non-QualifyingMachines
• Delete Records
• Delete Non-QualifyingMachines• Sort by Marketplace•Sort by Customers Name
ApprovalNumbers
• ManualInformation Input
• Add Canon CSMP ApprovalNumbers• Copy & Paste Manually•Check OMD for missingInformation
New CSMPCustomer List
• Add New CSMPCustomers
• Add Canon CSMP ApprovalNumbers• Copy & Paste Manually
• Create one Report• Combine First time customerswith current CSMP Customers• Ensure List in Canon ExcelFormat
Consolidate List
• CombineInformation
• Sort by Toner Type andCartridge Type• Subtotal Credit Amounts foreach by Supply Type
Sub-Total SupplyTypes
• Resort File
CanonApproved
CSMPSubmission
File
• Store Copy of File
• Store copy of CSMPSubmission File on hard drive• Submit File to Canon ProgramCoordinator
Canon ProgramCoordinator
• E-Mail Spreadsheet
• E-mail File to ProgramCoordinator• Follow up with estimated timeto be processed
Money Issued toIKON
• Receive Supply Credits
Detailed Process Map - Project Name: 0307-27-003 CSMP Supply Credits
Detailed Process Map
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Detailed Process Map – cont.
RegisteredCSMP
Customer
•Equipment Customer isregistered•Automatic qualification forCSMP Supply Program
OracleDiscoverer
•Input Supply Query inOracle•Run Supply Claim reportfrom ODS
•Pull customerInformation
EXCELSpreadsheet
•Transfer Data
CHECK CustomerQualification
•Manually check each account line by line•Cross Reference against currentcustomer list or expired list
•Prepare to Validate
• Add Canon CSMP ApprovalNumbers• Copy & Paste Manually
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Detailed Process Map – cont.
CSMP DiscountDocument
•Sort File
• Sort by Machine Model• Check Current qualifyingmachines•Ensure use of most currentCSMP Document
Non-QualifyingMachines
• Delete Records
• Delete Non-QualifyingMachines• Sort by Marketplace•Sort by Customers Name
ApprovalNumbers
• ManualInformation Input
• Add Canon CSMP ApprovalNumbers• Copy & Paste Manually•Check OMD for missingInformation
New CSMPCustomer List
• Add New CSMPCustomers
• Transfer new CSMP Customers• Get CSMP Supply Creditsfrom New Customers equipment• Check VCTS fornew Customers• Check OMD formissing Information
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Detailed Process Map – cont.
Consolidate List
• CombineInformation
• Sort by Toner Type andCartridge Type• Subtotal Credit Amounts foreach by Supply Type
Sub-Total SupplyTypes
• Resort File
CanonApproved
CSMPSubmission
File
• Store Copy of File
• Store copy of CSMPSubmission File on hard drive• Submit File to Canon ProgramCoordinator
Canon ProgramCoordinator
• E-Mail Spreadsheet
• E-mail File to ProgramCoordinator• Follow up with estimated timeto be processed
Money Issued toIKON
• Create one Report• Combine First time customerswith current CSMP Customers• Ensure List in Canon ExcelFormat
• Receive Supply Credits
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Data Collection Plan
Process Owners
Vendor Credit submission Reports for past 12 months or last 4 quarters
8/29/2003 E-Mail
Corporate Purchasing
CSMP Customer Information
9/2/2003 Canon Website Access
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Areas to Complete
• DPMO and Zst (baseline and target)
• MSA completed and issues identified
• Process performance and entitlement
• Preliminary graphical analysis of data
• Define any red flags and recommendations to resolve
• Next Steps
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Project DMAIC Checklist/Status
Problem Statement: To increase the number of supply credits claimed from 460K to $1.5 million per year for OMD paths
Black Belt: __Marcus Downey ____________________ CTS’s: _______________________________________________________
Project Champion: Linda Frisinger________________ Defects to be Reduced: _________________________________________
Deployment Champion: __________________________________ Beginning DPMO/Sigma Level: ___________________________________
Master Black Belt: __Bob Conrad_____________ Final DPMO/Sigma Level: ________________________________________
Six Sigma Project DMAIC Checklist
Project :__CSMP Supply Credits_____________________
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 OffComplete Analyze Phase Project Review
Leverage Project within Organization