xerox corporation confidential information pxref-01 identifying cost and productivity savings...

Xerox Corporation Confidential Information PXREF-01

Identifying cost and productivity savings opportunities

…with the Xerox Office Productivity Advisor

XOPA Study

Xerox Corporation Confidential Information 2

Level 1: Xerox Office Efficiency Calculator

Web-based “Instant Analysis” in 5 minutes using key industry known metrics.

Level 2: Xerox Office Productivity Advisor

More in-depth Web-based tool assesses your specific document environment. Customized to your specific needs.

Level 3: Xerox Office Document Assessment

Six-Sigma based process, oriented to the enterprise level. Fee based, consultative.

Three Great Tools designed to assess your office needs:

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Equipment &Maint Costs

Consum &Operating Costs

Office Workers Infrastructure/ITCosts

Current State Proposed State Savings

Summary of Gains

XOPA Metrics

Assessment Tools: A New Way to Work for You

XOPA Study


Level 2: Xerox Office Productivity Advisor In-depth Tool Based on Your Specific

Document Environment Comprehends costs and volume for all

office Copiers, Printers, Fax Total Picture of Current State Costs Direct and Indirect Savings up to 30% vs.

Current State Study is a free, value-add service

performed by Xerox sales rep Data Sources:

6000+ 3rd party product database 300+ Industry studies

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Equipment &Maint Costs

Consum &Operating Costs

Office Workers Infrastructure/ITCosts

Current State Proposed State Savings

XOPA Metrics

XOPA Study


XOPACosts

Equipment & Maintenance Costs

Infrastructure & ITCosts

Consumable& Operating Costs

Office Worker Productivity Costs

Device cost, discount from list price, finance/lease cost, maintenance cost

Cartridges, Toner, Other Consumables, Paper, Fax-phone charges, electricity

Cost of time spent by office workers performing document production related activities

Cost of physical space occupied by equipment, filed and warehoused documents. IT support and help-desk related to document devices

Direct

Indirect

What Costs Does XOPA Estimate?

XOPA Study


Where does XOPA Data come from?

• Product Specs and Cost of Ownership:– 6000+ office product data base based on independent 3rd party Industry-Sources.

Updated every 30 days via direct feed from LYRA Research and Buyers Laboratory Inc.– Continuous validation /updates performed by 3rd party research firms

• Industry Factors, such as Labor Rates, Office Space cost, Power rates:– Collected/analyzed by Mitchell Madison Consulting for Xerox, based on Bureau of Labor

Statistics and other Government-published data sources– Detailed XOPA output reports

• Industry Document Usage data and Metrics:– Page Volume per employee by industry, mix of Print/Copy/Fax page volumes, job mix

data, Key Performance Metrics, etc.– Proprietary data, derived from 300+ Xerox Office Document Assessments (ODAs)

• Office Productivity Costs and Infrastructure Costs (Indirect Costs)– Proprietary research from 70+ customer sites studies conducted by Mitchell Madison

Consulting for Xerox

XOPA Study


Specific customer-issues where XOPA can help

• Cost identification and containment based on your environment– Identify main drivers of cost and opportunity– Shift from high-cost devices to more cost-effective devices– Provide a balanced approach to deploying single-function and multi-function devices

• How do I manage page volume between printing, copying, fax to deliver end-user customer satisfaction and cost-efficiency– Understand page volume migration and cost implications while enhancing end-user

satisfaction• How to deploy color devices cost-effectively

– When can a color device be cost-effective for B&W output – Demonstrate the cost implications of moving a portion of B&W output to Color output– Capture savings from bringing Outsourced color volume in-house

XOPA Study


What’s required to begin an XOPA study?

• Understand your overall objectives and priorities, for example– Targeted % or $ Cost reduction– Reduce # of devices– Improve Utilization of office assets– Improve end-user service levels

• Agree on sponsorship, scope, roles, and expectations• Agree on process to collect data

– Identify data collection sources– Employee and device data

• Set a timetable for Initial XOPA “Current State” findings review

Questions and AnswersNext Steps:

Thank You

Xerox Corporation Confidential Information PXREF-01

Addendum:Sample Screen Shots of XOPAAssumptionsDevice DataVolume mappingResults & Reports

XOPA Study


XOPA Customer/ Industry Input Page

XOPA Study


XOPA Assumptions Page – Coverage Samples

XOPA Study


XOPA Device Detail Page

XOPA Study


XOPA Volume Estimate Page

XOPA Study


Document production annual cost summary reportDocument production annual cost summary

Current state Proposed state Savings % Savings

Cost per page contracts 13,066 (13,066) Equipment 18,344 3,420 14,923 81%Maintenance 6,786 1,272 5,514 81%Consumables 23,275 8,591 14,684 63%

Direct device costs 48,404 26,348 22,056 46%Paper 6,525 6,233 291 4%Operating costs 11,771 11,161 610 5%Outsourced document production

Other direct costs 18,296 17,394 902 5%Total direct costs 66,700 43,743 22,957 34%

Office worker productivity 176,491 168,544 7,947 5%Infrastructure/IT costs 53,625 31,111 22,515 42%

Total indirect costs 230,117 199,654 30,462 13%Total annual cost 296,817 243,397 53,420 18%

XOPA Study


XOPA Metrics ReportXOPA metrics

Current state Proposed stateConsulting/Professional Services industry average

Benchmark

Employees per device 1.67 12.00 3.48 8 - 20Device utilization 0.98% 4.01% 2.33% 5% - 7%Direct cost per page (including paper) 5.32 ¢ 3.16 ¢ 5.23 ¢ 3.00 ¢ - 7.00 ¢Pages per employee (monthly) 1,194 1,194 1,193

Annual costs per employeeTotal direct cost per employee 926 608 752 Infrastructure/IT cost per employee 745 432 172 Productivity cost per employee 2,451 2,341 Total direct and indirect cost per employee 4,122 3,381

Employee time spent on document production Minutes per day per employee 16.5 16.2

XOPA Study


XOPA Savings Graph

XOPA Study


Monthly volume by device type reportUse to show:

• Page volume migration from higher cost devices such as ink-jet printers to more cost effective devices

Monthly volume by device type

Current state Adjustments Proposed state

Inkjet printer color 6,150 ( 6,150 ) Desktop / personal printer B&W 13,000 ( 13,000 ) Desktop / personal printer color 2,700 ( 2,700 ) Workgroup printer B&W 13,600 ( 13,600 ) Workgroup printer color 40,450 40,450 Departmental printer B&W Departmental printer color

Printer volume 35,450 5,000 40,450

Analog Copier B&W 47,600 ( 47,600 ) Analog Copier color Digital Copier B&W Digital Copier color

Copier volume 47,600 ( 47,600 )

Fax volume

Personal All in 1 MFD B&W 2,940 ( 2,190 ) 750 Personal All in 1 MFD color Workgroup MFD B&W 16,405 16,405 Workgroup MFD color Departmental MFD B&W 28,385 28,385 Departmental MFD color

Multifunction volume 2,940 42,600 45,540

Scan volume

Outsourced volume

Total 85,990 85,990

Total monthly volume

XOPA Study


Device Fleet ReportDevice fleet

Current state

Device description Qty Retain Add Qty Class (BW/Color ppm) Comment

Hewlett-Packard Deskjet 5550 6 Inkjet printer color (17/12) (B) Hewlett-Packard Deskjet 5650 6 Inkjet printer color (21/15) (B) Hewlett-Packard DeskJet 940C 3 Inkjet printer color (12/10) (B*) Brother HL-645M 2 Desktop / personal printer B&W (6) (L) Hewlett-Packard LaserJet 1200 2 Desktop / personal printer B&W (15) (B) Hewlett-Packard LaserJet 4 Plus 3 Desktop / personal printer B&W (12) (L) Hewlett-Packard LaserJet III 5 Desktop / personal printer B&W (8) (L) NEC SuperScript 870 1 Desktop / personal printer B&W (8) (L) Hewlett-Packard Color LaserJet 5N 3 Desktop / personal printer color

(10/6)(L*)

Hewlett-Packard LaserJet 1300 2 Workgroup printer B&W (20) (L) Hewlett-Packard LaserJet 4MV 3 Workgroup printer B&W (16) (L*) Lexmark Optra W810dn 1 Workgroup printer B&W (35) (L) Xerox Phaser 6250DP 1 1 Workgroup printer color (26/26) (X) Xerox Phaser 6250DX 1 1 Workgroup printer color (26/26) (X) Xerox Phaser 7750DN 1 1 Workgroup printer color (35/35) (L*) Konica Minolta 2130 2 Analog Copier B&W (30) (B) Panasonic FP-6080 1 Analog Copier B&W (60) (B) Brother MFC-4350 3 1 1 Personal All in 1 MFD B&W (6) (L*) used as standalone faxXerox WorkCentre M35 1 1 Workgroup MFD B&W (35) (L*) Xerox WorkCentre Pro 65 1 1 Departmental MFD B&W (65) (L)

Total devices 43 1 5 6

Proposed state

XOPA Study


Device Cost ReportDevice costs

Device description Current Proposed Current Proposed Current Proposed

Hewlett-Packard Deskjet 5550 6 12.88 ¢ 267Hewlett-Packard Deskjet 5650 6 13.25 ¢ 481Hewlett-Packard DeskJet 940C 3 12.99 ¢ 58Brother HL-645M 2 6.80 ¢ 82Hewlett-Packard LaserJet 1200 2 4.16 ¢ 137Hewlett-Packard LaserJet 4 Plus 3 6.04 ¢ 236Hewlett-Packard LaserJet III 5 9.50 ¢ 380NEC SuperScript 870 1 5.49 ¢ 33Hewlett-Packard Color LaserJet 5N 3 14.13 ¢ 382Hewlett-Packard LaserJet 1300 2 3.90 ¢ 140Hewlett-Packard LaserJet 4MV 3 5.38 ¢ 290Lexmark Optra W810dn 1 3.90 ¢ 180Xerox Phaser 6250DP 1 2.16 ¢ 262Xerox Phaser 6250DX 1 2.45 ¢ 298Xerox Phaser 7750DN 1 3.24 ¢ 523Konica Minolta 2130 2 3.31 ¢ 451Panasonic FP-6080 1 2.44 ¢ 828Brother MFC-4350 3 1 3.04 ¢ 3.18 ¢ 89 24Xerox WorkCentre M35 1 3.01 ¢ 494Xerox WorkCentre Pro 65 1 2.09 ¢ 594

Total devices 43 6 4.69 ¢ 2.55 ¢ 4,034 2,196

Device quantity Cost per page Total monthly cost

XOPA Study


Device Utilization ReportDevice Utilization

Device description Current Proposed Current Proposed Current Proposed

Hewlett-Packard Deskjet 5550 6 2,070 0.26%Hewlett-Packard Deskjet 5650 6 3,630 0.37%Hewlett-Packard DeskJet 940C 3 450 0.14%Brother HL-645M 2 1,200 0.99%Hewlett-Packard LaserJet 1200 2 3,300 1.09%Hewlett-Packard LaserJet 4 Plus 3 3,900 1.07%Hewlett-Packard LaserJet III 5 4,000 0.99%NEC SuperScript 870 1 600 0.74%Hewlett-Packard Color LaserJet 5N 3 2,700 1.16%Hewlett-Packard LaserJet 1300 2 3,600 0.89%Hewlett-Packard LaserJet 4MV 3 5,400 1.12%Lexmark Optra W810dn 1 4,600 1.30%Xerox Phaser 6250DP 1 - 12,153 4.64%Xerox Phaser 6250DX 1 - 12,153 4.64%Xerox Phaser 7750DN 1 - 16,143 4.58%Konica Minolta 2130 2 13,600 2.25%Panasonic FP-6080 1 34,000 5.62%Brother MFC-4350 3 1 2,940 750 1.62% 1.24%Xerox WorkCentre M35 1 - 16,405 4.65%Xerox WorkCentre Pro 65 1 - 28,385 4.33%

Total devices 43 6 85,990 85,989 0.98% 4.01%

Device quantity Total volume Utilization %

XOPA Study


Device Volume Report – Current stateCurrent state monthly device volume by function

Device descriptionDevice

quantityTotal volume Print B&W Print color Copy B&W Copy color

Fax received

Fax sent Scan

Hewlett-Packard Deskjet 5550 6 2,070 720 1,350 - - - - - Hewlett-Packard Deskjet 5650 6 3,630 1,080 2,550 - - - - - Hewlett-Packard DeskJet 940C 3 450 180 270 - - - - - Brother HL-645M 2 1,200 1,200 - - - - - - Hewlett-Packard LaserJet 1200 2 3,300 3,300 - - - - - - Hewlett-Packard LaserJet 4 Plus 3 3,900 3,900 - - - - - - Hewlett-Packard LaserJet III 5 4,000 4,000 - - - - - - NEC SuperScript 870 1 600 600 - - - - - - Hewlett-Packard Color LaserJet 5N 3 2,700 1,500 1,200 - - - - - Hewlett-Packard LaserJet 1300 2 3,600 3,600 - - - - - - Hewlett-Packard LaserJet 4MV 3 5,400 5,400 - - - - - - Lexmark Optra W810dn 1 4,600 4,600 - - - - - - Konica Minolta 2130 2 13,600 - - 13,600 - - - - Panasonic FP-6080 1 34,000 - - 34,000 - - - - Brother MFC-4350 3 2,940 - - - - 1,380 1,560 -

Total devices 43 85,990 30,080 5,370 47,600 - 1,380 1,560 -

Questions and AnswersNext Steps:

Thank You

xerox corporation confidential information pxref-01 identifying cost and productivity savings...

Documents

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