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Optimizing The Office.: Transforming Business Processes

Exelon faced challenges with an inefficient office infrastructure and wanted to reduce costs and improve sustainability. Xerox conducted an assessment and developed an optimization plan to reduce document devices by 80% and costs by 20% in the first year. The solution standardized equipment, improved processes with scanning, and increased uptime to 98%. It helped Exelon meet sustainability goals and achieve annual savings while transforming key business functions.

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52 views10 pages

Optimizing The Office.: Transforming Business Processes

Exelon faced challenges with an inefficient office infrastructure and wanted to reduce costs and improve sustainability. Xerox conducted an assessment and developed an optimization plan to reduce document devices by 80% and costs by 20% in the first year. The solution standardized equipment, improved processes with scanning, and increased uptime to 98%. It helped Exelon meet sustainability goals and achieve annual savings while transforming key business functions.

Uploaded by

NOSHEEN MEHFOOZ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Optimizing the office.

Transforming business processes.

Helping Exelon reduce cost every year by


improving efficiency and sustainability

Exelon Corporation Utilities Case Study


Background
• A key division of Exelon, one of the nation’s leading
energy companies, faced a challenge common to many
organizations today. It wanted to get more control over
its extensive office infrastructure, reduce costs and be
more environmentally responsible.
• In 2003, Exelon committed to a voluntary emissions
reduction goal under the EPA Climate Leaders program.
• With the Exelon 2020 program that debuted in 2008, the
Exelon family of companies charted a course to a low-
carbon future with an industry-leading plan to shrink its
carbon footprint by more than 15 million metric tons of
greenhouse gas emissions per year by 2020.
The Challenge
• The division had more than 2,700 document devices from 35
manufacturers in its office environment. Arranging for service and
supplies was time-consuming. And division leaders didn’t have an
easy way to calculate and control the total costs, since purchasing
decisions were decentralized.
• Division leaders decided to address the situation so they could
improve efficiency and reduce costs. But they realized they didn’t
have the in-house document management expertise to analyze the
infrastructure and develop an effective optimization plan. So they
called in experts from Xerox to conduct a thorough Office
Document Assessment (ODA) based on Lean Six Sigma.
• It was the first step in the development of a long-term strategic
partnership that would help Exelon realize substantial savings,
improve its approach to sustainability and transform key business
processes throughout the enterprise.
The Solution
• Xerox carefully analyzed the division’s need for document services and
assessed all of the costs involved in equipment, service, support and
supplies. The results of this analysis revealed a major opportunity for
improvement. The overall employee-to-device ratio indicated inefficiency
in the allocation of office equipment.
• In addition, some of the document devices in the office environment did
not provide the advanced scanning capabilities required for highly efficient
digital workflows. After a careful review of the ODA findings, they began
working closely with the client to develop an effective optimization plan
designed to reduce costs, improve efficiency and productivity, and lower
the division’s impact on the environment.
• A key component of the plan involved the replacement of older, inefficient
devices with state-of-the-art, networked multifunction systems.
The Solution
• Following the successful implementation, they helped
other Exelon divisions assess and optimize their office
infrastructures. Then we provided comprehensive
management services on an outsourced basis. These
enterprise-wide services covered equipment, end user
support, and a proactive approach to on-site maintenance
and supplies.
• Xerox also developed a series of innovative solutions to
improve key document-driven business processes in
Accounts Payable, the legal department and other
operational areas.
The Results
• The initial optimization project reduced the total number of
document devices in the division’s office environment by 80%. It
also rationalized the number of models and manufacturers and
improved the critical employee-to-device ratio to approximately
12:1.
• The efficiency gains helped the division save approximately 20%
in the first year with additional savings coming from continuous
year-over-year improvements.
• After the enterprise-wide rollout of the office optimization
process, Exelon reduced its overall document services cost per
employee—another key Lean Six Sigma-based efficiency metric
— by 48%. With improvements in the quality of document
devices, service and support, the client also increased
equipment uptime to 98%.
The Results
• In addition, the enterprise-wide office optimization
effort made an important contribution to Exelon’s
ambitious corporate sustainability program.
– The installation of advanced multifunction systems equipped
with scanning capabilities helped the company increase the
use of digital documents and reduce paper consumption.
– The widespread use of energy-efficient technology reduced
greenhouse gas emissions and energy consumption.
– Smart “green” office practices like duplex printing and toner
cartridge recycling also helped the company lower its impact
on the environment.
Summary
The Challenge
• Inefficient employee-to-device ratio

• Time-consuming business processes

• Need for sustainability improvements


Summary
The Solution
• Office Document Assessment based on Lean Six Sigma
• Comprehensive office optimization plan
• Networked multifunction systems with advanced scanning
capabilities
• Proactive maintenance, service and supplies management
• Business process transformation based on digital document
workflows
• Energy efficient technology and greener document practices
Summary
The Results
• 80% reduction in document devices
• 48% reduction in enterprise-wide cost per employee
• 98% equipment uptime
• Faster, more efficient business processes
• Substantial annual savings
• 55 tons of GHG (Green House Gas) eliminated
• 727 million BTUs conserved
• Reduced paper consumption

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