Case Study Exelon Corporation Utilities- Free Essay Solutions

Question: Case Study "Exelon Corporation Utilities". Answer: Helping Exelon reduce costs every year by improving efficiency and sustainability. Background A key division of Exelon, one of the nations 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 lowcarbon 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 didnt 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 didnt 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. Optimizing the office. Transforming business processes. Case Study Snapshot The Challenge Inefficientemployee-to-deviceratio Time-consumingbusinessprocesses Needforsustainabilityimprovements The Solution OfficeDocumentAssessmentbasedonLeanSixSigma Comprehensiveofficeoptimizationplan Networkedmultifunctionsystemswithadvancedscanningcapabilities Proactivemaintenance,serviceandsuppliesmanagement Businessprocesstransformationbasedondigitaldocumentworkflows Energyefficienttechnologyandgreenerdocumentpractices The Results 80%reductionindocumentdevices 48%reductioninenterprise-widecostperemployee 98%equipmentuptime Faster,moreefficientbusinessprocesses Substantialannualsavings 55tonsofGHGeliminated 727millionBTUsconserved Reducedpaperconsumption Optimizing the office. Transforming business processes The Solution We carefully analyzed the divisions 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, we began working closely with the client to develop an effective optimization plan designed to reduce costs, improve efficiency and productivity, and lower the divisions 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. Following the successful implementation, we helped other Exelon divisions assess and optimize their office infrastru ctures. Then we provided comprehensive management services on an outsourced basis. These enterprisewide services covered equipment, end user support, and a proactive approach to on-site maintenance and supplies. We 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 divisions 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 employeeanother 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%. In addition, the enterprise-wide office optimization effort made an important contribution to Exelons ambitious corporate sustainability program. The installation of advanced multifunction systems equipped with scanning capabilities helped the company in crease 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. Another process improvement for the heavily regulated nuclear division helped expedite the on-boarding of outside contractors, saving Exelon substantial dollars per year. About Xerox Services. Xerox Corporation is a world leader in business process, information technology and document outsourcing services. Our unique combination of industry expertise and global delivery capabilities helps you reduce costs, streamline operational processes and grow revenue while clearing the way for you to focus on what you do best: your real business. For more information on how we help energy and utility companies, visit www.xerox.com/utilities or call 1-800-ASK-XEROX.