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1.6 - Customer Requirements

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Pragmatic Improvement Pty Ltd 2005 All Rights Reserved
Six Sigma as DMAIC Phases

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Define
Prepare project charter & Operating agreements
Establish the project team
Define customer requirements
Map the highlevel process (end to end)
Tollgate Check in
Measure
Plan data collection & Map process value stream
Analyse the measurement system
Measure process & Display baseline data
Assess process stability & capability
Tollgate Check in
Analyse
Identify possible defect & variation causes
Analyse process nonvalue add
Identify data relationships Y=f(x)
Confirm root causes
Tollgate Check in
Improve
Generate and select solutions
Develop to be value stream map
Optimise solution & Pilot solution
Monitor for consistency & improvement significance
Tollgate Check in
Control
Plan implementation
Implement solutions
Standardise processes & Transfer knowledge
Confirm improvement benefits
Reward team
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Customer Requirements
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Objectives
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Identify the customer in order to listen and document the Voice of the Customer (VOC) messages. Perform KANO Analysis in order to classify customer requirements. Translate VOCs into Critical Customer Requirements (CCRs). Create output measures (Critical to Quality, CTQ) from CCRs. Translate VOBs to measures that are Critical to Process (CTP).

4 4 4 4
Key Topics
Voice of the Customer Defined Step 1: Develop a Customer-Focused Business Strategy Step 2: Listening to the VOC Step 3: Translating the VOC to CCRs Step 4: Developing Measures and Indicators
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Exploring Our Values Exercise - Part I

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Describe and rank what you think is really valued by your company
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What Do We Measure Today?

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What numbers get the most attention? What quality and performance measurements do we use? Do we have a customer focus? Do we have a quality focus? Do we have an input/output focus? Do we have a focus on waste elimination? How do we use these measures?
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Values Exercise - Part II

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How are values measured? Is the organisation measuring things that are valued?
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New Measures Arise When New Questions Are Asked

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Do questions trigger actions? If we ask questions about outputs not inputs, we get a lot of focus and measures on outputs If we ask questions about budgets, we measure budgets How many of our questions are focused on process and service quality? How many of our questions are focused on causes and inputs versus results and outputs?
New measures, and new behaviors, require that we ask new questions
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Theatre Exercise (Part 1)

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Imagine you are the General Manager of a very successful movie theatre chain with many employees. You will be out of the country for three months and have asked your staff to fax you a weekly report on Monday morning. What information/metrics would you like to see in that fax?
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Theatre Exercise (Part 2)

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You are headed to the movies with some friends

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The movie you would like to see is playing at several movie theatres in the area. All are about equidistant from your home. What criteria do you use to decide which theatre to attend?
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Who Is Your Customer?

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Define products or services provided to the customer Identify the related process
External customers pay our bills
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Internal customers use our outputs as their inputs to achieve our business objectives and ultimately satisfy external customers
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Maximizing Customer Value

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Supplier
Deliver y (CTD) Cycle Time Pric e (CTC) Cost Qualit y (CTQ) Defects
Customer
Do
Nee d
Maximizing customer value = close the Need/Do gap

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What Is Voice of the Customer?

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Voice of the Customer (VOC) is the expression of customer needs and desires

May be specific I need delivery within 3 days May be ambiguous Deliver faster
The VOC can be compared to internal data (Voice of the Process) to assess our current process performance or process capability. To be useful in a process improvement project we often need to work with the customer to understand the Ambiguous and make it Specific
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Who Are the Customers?

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Who are they?
Defined as: Any person or organization that receives a product or service (Output) from the work activities (Process) Those whose needs must be met for this process to be successful.
External: Individuals or organizations outside of your business who are usually associated with paying money for your products and services Internal: Colleagues who receive products, services, support or information from your process i.e. Engineering, Manufacturing, Quality, Marketing, Regulatory: Any government agency that has standards the process or product must conform to i.e. ACCC, EPA, FDA,
Types of customers:

Which customer?
Customers can often be logically aggregated into groups or segments (not all customers should be treated equally)
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Why Is VOC Important?

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They pay the bills, so its important to understand their needs:

Customer behavior is a key input to strategy and process design Ultimately, all the value driver levers get pulled by an external customer
They define the playing field

They serve as the referee for all competitors They define what is a value-added activity or service
They are always right
Even if we cannot meet their needs, or do so profitably.
To be more profitable, you have to convince your customers to

Buy more of your product / service Pay more for your product / service Serve their needs more efficiently (cost reduction)
Revenue Growth Economic Value Add Economic Value Add
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Who are Your Customers? (project focus)

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How Do Our Customers Communicate with Us?

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Types of Voices
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Complaints Compliments Product returns Product/service sales preferences Contract cancellations Market share changes Customer defections/acquisitions Customer referrals Closure rates of sales calls What other customer voices could you or do you use in your business?
Sources of Customer Voices

Buyer Behavior Outbound Communi cations Research Market Intelligen ce
Customers
Informal/ Formal Transacti ons
Casual Contact
Inbound Communi cations
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Customers Define Quality

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You must understand what the customers of your process care about!
Timelin ess
Flexibili ty & Options Custo mer
Accura cy
Ease of Use Price & Cost

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Aesthet ics
Performance Need Categories

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The challenge is to understand how your customers, stakeholders, process owner, etc. define and prioritize the various needs and expectations they have of your products and services, or constraints they may inject.
Quality Product or Service Features, Attributes, Dimensions, Characteristics Relating to the Function of the Product or Service, Reliability, Availability, Effectiveness, Recovery, Customer Returns, Defects, Rework or Scrap (Derived Primarily from the Customer - VOC) Process Cost Efficiency, Prices to Consumer (Initial Plus Life Cycle), Repair Costs, Purchase Price, Financing Terms, Depreciation, Residual Value, Raw Material, Energy Efficiency (Derived Primarily from the Business - VOB) Lead Times, Delivery Times, Turnaround Times, Setup Times, Delays, Up Time, Equipment Availability, Rolling Speed, Flexibility (Derived from the Customer or the Business VOC/VOB) Health, Safety and Environment Policy, Service Requirements, After-Purchase Reliability, Parts Availability, Service, Warranties, Maintainability, Customer-Required Maintenance, Product Liability, Product/Service Safety, Recordable Injuries, Lost Time, Environmental Incidents Ethical Business Conduct, Business Risk Management, Health Safety and Environment Policy, Code of Conduct
Cost
Speed
Service and Safety
Corporate Responsibility
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1. Gather the Voice of the Customer (VOC):
Customer Segmentation
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The first step in gathering the VOC, is customer segmentation.

All customers are not created equal, and do not create equal value Avoid squeaky wheel syndrome
If customers arent segmented, it may prove impossible to get a single voice, and the multiple voices may lead in opposite directions.
The Greatest Value Can Come From a Small Portion of Your Customer Base
Total Customers
Total Value
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Identify Your Customer Segments
Economic

Co-Op
Other
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Revenue Frequency Size of Customer Cost Strategic goals
Sole Proprietor
Franchise
Revenue
Publicly held
Privately held
Descriptive

Geographic Demographic Product feature Industry
Geographi c
Attitudinal
# of custome rs
Price Value Service
Price & Service

S er vi ce
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P r i c e
Customer Segment Matrix

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Objective 4 Identifying customer segments. Instructions 1. service). 2. 3.

Product/Service
Select a specific process output (product or List customers of the product or service. Identify ways to segment each customer.
Customers
Potential Segments
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Customer Segmentation Worksheet

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Customer
Internal or External?
Segments/Description
Priority
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Listening to the VOC

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Select Sources of Customer Information

Sources of Customer Information
Internal & External Data
u
Listening Post Complaints Customer Service Representatives Sales Representatives Billing Accounts Receivable Collection
Research Methods Interviews Surveys Focus Groups Observations
Existing Company Information i.e. product returns, market share, etc. Industry Experts Secondary Data Competitors
u u
u u u u
u u u
u u u u
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Communicating with Customers

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No matter what source of customer information is used, customer communication has three basic parts: 1. Asking the right questions 2. Asking questions in the right way 3. Understanding the answers
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Communicating with Customers:
Interviews
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Purpose: To learn about a specific customers point of view on service issues, product/service attributes, and performance indicators/measures.
Types of Interviews Individual Characteristics of Information Needed
Unique perspectives Senior-level participation Input from large-volume customer Information from customers with similar product and service needs mid- to lower-level participation Information from many people for a single segment Input from customers who are widely dispersed geographically Information on basic or simple issues Quick turn-around of information collection
Group
Telephone/Mail
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Communicating with Customers :
Surveys
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Purpose
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To measure the needs or the importance and performance of a product, service, or attribute across an entire segment or group of segments; furnishes quantitative data. To efficiently gather a considerable amount of information from a large population To conduct analysis that will result in data with statistical validity and integrity To measure as-is conditions and drivers To measure change and causality Surv
Telephone Review the survey objectives. Determine the appropriate sample of the population. Identify the specific areas of desired information. Write draft questions and determine measurement scales. Design the survey. Test the individual questions and the total survey against the objectives. Validate the questions and the survey (pilot). Finalize the survey.
Uses

The Survey Process

ey Opti ons
Mail
Personal
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Communicating with Customers :
Focus Groups
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Purpose
Organize information from the collective point of view of a group of customers that represent a segment To clarify and define customer needs To gain insights into the prioritization of needs To test concepts and get feedback Sometimes as a next step after customer interviews or a preliminary step in a survey process
Uses

Typically composed of 7 to 13 participants who share characteristics that relate to the focus group topic Participants will be asked to thoroughly discuss very few topics
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2. Translate the VOC into
Critical to Quality requirements (CTQs)

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Once the Voice of the Customer has been gathered, that information must be translated into Critical To Quality Critical To Voice of After Clarifying, theQuality requirements (CTQs) Is... Customer the Key Issue(s) Requirements
Products are not delivered 10 day lead time on time 1 day
I hate dealing with this company!

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Good CTQ requirements:

Are specific & measurable (and the method of measurement is specific) Are related directly to an attribute of the product or service Dont have alternatives and dont bias the design toward a particular approach or technology Are complete and unambiguous Describe what, not how
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2. Translating VOC into CTQs:
Customer Input to Key Issues to CTQs

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Actual Customer Statements The Real Customer Concerns, and Comments Values or Expectations
Voice of Customer Input
Key Customer Issue
The Specific, Precise and Measurable Characteristic
Critical To Quality Requirement
This mower should be Wants the mower to start Mower starts within two easy to start quickly and painlessly pulls on the cord The cord shouldnt be too Mower starts with a 5kg hard to pull pull on the cord I want to talk to the right person and dont want to wait on hold too long Wants to talk to the right person quickly No additional menu items on voice system Customer reaches correct person the first time within 30 seconds Vehicle Availability > 95% during 7am - 7pm
The vehicles are always breaking down
Low availability
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Activity: Defining
Customer Requirements
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OBJECTIVE:
AGENDA: 1. Assign team roles 2. Facilitator introduces tool and leads team through next steps. 3. Have 2-3 members share customer comments theyve heard. 4. Translate comments into - Key Issue - Requirements 5. Discuss next steps to validate customer requirements. 6. Prepare to report.
7.
Practice Defining Customer Requirements
TIME: 15 minutes
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Getting Value from VOC Data

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Making sense of qualitative data is an iterative process It involves interpretation and prioritization Often requires follow-up with additional research Useful tools:

Affinity Analysis Tree Diagrams
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Affinity Diagrams
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The first step in getting value from customer data is organizing it in a way that will reveal themes An affinity diagram is a good tool for this purpose since it organizes language data into related groups
Ne ed 1
The me 1
Ne ed 2
The me 3
Gather ideas from interview transcripts, surveys, etc. Generate customer need statements on cards or sticky notes Group the cards to find the affinity Label the groups of cards
The me 2 Ne ed 3 Ne ed 4
Ne ed 7 Ne ed 8
Ne ed 5
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Tree Diagrams
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Moves team from high-level customer needs to greater detail in order to define requirements A tool for breaking broad process steps or product features into greater detail Helps organize needs by level of detail Affinity Diagrams Tree Diagram
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Tree Diagrams
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Product/Service Tertiary Need Secondary Need Primary Need

Customer Requirement Customer Requirement
Customer Requirement
Customer Requirement
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Tree Diagram Example: Pizza

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Whole wheat Crust Unbleached flour No cheese Cheese Low-fat mozzarella Low-fat white cheddar
Customer wants healthy choices
Toppings
Meats Sauce Vegetables Additives
Other ingredients
Spices Oil
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Determining Critical Customer Requirements

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From Requirements to Quality
A customers perception of value & performance represents their view of the quality of a product or service Their basis for evaluation is how well their requirements have been met Evaluations are also influenced by their expectations Quality = Actual Performance - Expectations Customers weight their requirements differently The most important customer requirements become those CTQs. Represent a customer desire that must be met Have a strong correlation to the buying decision Often form the basis for competitor comparison
All requirements are not created equal

Critical To Quality Requirements

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CCR Selection Methods

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Ask Customers

Fast and specific feedback However, they may not be completely honest with you
1 0. 0 9.0 8.0 7.0 6.0 5.0 4.0
O De n-t liv ime e % ry O C rd om er p le te W R ar et ra ur n t ns y In y ve Tu n t rn or s C In orr vo ec ic t e
Key Buying Factor Analysis

Formal customer survey Force ranks the requirements
Good first cut technique to evaluate relative importance of customer requirements Segments by type of quality/customer expectation
S P Le pec ad ia r i T lO R im r d c M elae e er a n ti o ag ns N em hip De ew ent ve Pr lo od pm u en ct t
Kano Analysis
House of Quality (Quality Function Deployment)
N o r m a l Q u a li t y
E x c it i n g Q E ux ap lie tc yt e d Q u a li t y
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B P I ra Br rod mag nd ea uc e dt t O h ffe r in P g Cu rox st i m o m it y er to
CTQ Key Buying Factor Analysis

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1 0 . 0 9 . 0 8 . 0 7 . 0 6 . 0 5 . 0
S Ti pec P m ia e l O c ri rd eer R Le M el a ad a n ti o ag ns em hi en p N t ew D ev P el ro op d m uct en t
In Tu ve rn nto s ry
te
CTQ Importance
Comp any
Co mp 1
Co mp 2
Explanation: Yellow bars show relative importance of key buying factors to customers; Red line rates company performance against key buying factors; Other lines rate competitors performance against key buying factors
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B Im ran Pr ag d Br od ea uc e dt t O h ffe rin g Pr C ox us i m to i t m yt er o
O D n-t el im iv e er y % O C rd om er p le
W R ar et ra ur n t ns y
C In orr vo e c ic t e
4 . 0
Co mp 3
Kano Model
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The Kano Model is helpful in understanding different types of customer needs. There is much risk in blindly fulfilling customer needs without a good understanding of the types of requirements. Without this understanding, a team risks:

Providing superfluous quality Wowing the customer in one area, and driving them to competitors in another Focusing only on what customers say, and not what they think or believe
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The Kano Model Classifies Customer Needs

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Dissatisfiers Basic requirements. Expected features or characteristics of a product or service. These needs are typically unspoken. If these needs are not fulfilled, the customer will be extremely dissatisfied. Satisfiers Performance requirements. Standard characteristics that increase or decrease satisfaction by their degree (cost/price, ease of use, speed). These needs are typically spoken. Delighters Unexpected features or characteristics that impress customers and earn you extra credit. These needs are also typically unspoken.
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Collecting the VOC based on Kano analysis

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Dissatisfiers (Typically Unspoken) Gather them using 1on-1 interviews and focus groups
The discussion points are not well established often not discussed at all unless theres a reason to but there is often consensus after the fact
For example, in a hotel bathroom, its the provision of soap, towels, toilet paper, hot water none of which are ordinarily worthy of comment unless they are missing!
Satisfiers (Typically Spoken) Gather them using surveys (phone, email, etc.)
The discussion points are well established its the issues that advertisements address, its the basis of discussions with our neighbors
For example, in a hotel, its how long the wait is to check-in, availability of a coffee maker in the room, Internet access, size of the TV, etc.
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Collecting the VOC (cont.)

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Delighters (Typically Unspoken) Gather them using carefully orchestrated focus groups preceded by 1-on-1 and small group interviews to establish several bases for further expansion
The specific points of discussion are not known (except in the most general sense in some cases)
For example, being able to check into a hotel by swiping the credit card you used for guaranteeing the reservation one swipe of the card, one signature on the surface of the computer monitor and your room key is issued.
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The Difficulty in Collecting Delighters

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Very often, Delighters are a unique combination that is really the intersection of:
Demand on the part of the customer for products that s/he is unaware could be made available, and Supply technologists are unaware of possibilities for product innovations
So, the customer doesnt know it is possible, and the business doesnt know there is a demand
Note: Delighters are not just added features that the customer did not expect. They must truly be of value to the customer.
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Getting to Delighters
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In spite of the difficulties, there are ways to spur creative thinking sometimes it is as simple as well-planned focus groups that have a balance of:
Early adopters: progressive individuals who are able to appreciate the impact on their lives of alternative services, or combinations of services/products not offered now, and Open minded technologists with an understanding of the possibilities, both of specific concepts as well as combinations
Work with customers and suppliers to explore where there might be matches of the customers needs to the suppliers potential range of product offerings
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Uses of The Kano Model

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Validate that some of the needs spoken by the customer during the interviews and focus groups are truly Critical To Quality requirements that will have an impact on customer satisfaction or a purchase decision Determine if there were some potential requirements that were not explicitly stated by customers Test out some of the teams ideas for differentiation Determine whether some of the features that existed in previous offerings were and still are valued by the customer
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Applying the Kano Table to Develop CTQs

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For each potential need, ask the customer to assess:
How would they feel if the need WAS addressed? (Positive) How would they feel if the need WAS NOT addressed? (Negative)
Like
Negative Question Answers

Like Normal Dont Care Delight er Dont Like Satisfie r Dissati sfier Dissati sfier
Positive Question Answers
The customer has four choices in response to each question:

1. 2. Id like it It is normally that
Delight er
Normal
way (that feature is expected)
Dont Care Dont Like
3. 4.
4
I dont care I wouldnt like it
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Based on the answers to the positive and negative questions, use the table to determine the type of need
Determining Performance Targets Example

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Lets say one of your needs is related to cycle time (hotel check-in time). Guests have stated they want to be able to quickly check-in. How quickly? Ask your customers:

Answer: Thats Normal
How would you feel if check-in time took less than 5 minutes? (Positive) How would you feel if check-in took more than 5 minutes? (Negative)
n
Like
Delight er
Normal
Answer: Dont Like
Dont Care Dont Like
Check-in time more than 5 minutes is a Dissatisfier it must be met. 5 minutes is the absolute maximum check-in time.
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Determining Performance Targets Example

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Then ask your customers:
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How would you feel if check-in time took less than 2 minutes? (Positive) n Answer: Id Like It How would you feel if check-in took more than 2 minutes? (Negative) n Answer: Thats Normal
Like

Check-in time less than 2 minutes is a Delighter. If the check-in process could be designed to check-in customers in less than 2 minutes, we could definitely differentiate our offering in the marketplace Remember What is the cost impact versus
the customer value for including the feature in the final design? Is there a business case for including the feature?
Delight er
Normal
Dont Care Dont Like
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Using the Kano Model to Validate Features

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Youre uncertain of value of a particular characteristic of a previous version of your product Lets say you design and manufacture bicycles. Since none of your customers mentioned a kickstand, youre wondering whether your customers still value kickstands. If not, the team could eliminate the feature and save on product cost. You ask your customers:

Like No r mal Deli ghte r Don t Care Deli ghte r Do n t Like Sati sfier Diss atisf ier Diss atisf ier
Like
Answer: Thats Normal
How would you feel if the bicycle had a kickstand? (Positive) How would you feel if the bicycle didnt have a kickstand? (Negative)
n
No r mal
Don t Care Don t Like
Answer: Dont Like
Customers considered the kickstand a Dissatisfier, meaning that even though they didnt mention it as a Need, it had better be included in the design or theyll be dissatisfied with the product.
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Advantages of Classifying Critical Needs

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Identify the Critical To Quality requirements which have the greatest influence on customer satisfaction. Prioritizing requirements for future development. It is not very useful to invest in improving Dissatisfier requirements that are already at a satisfactory level. Performing trade-offs. If two customer needs cannot be met simultaneously due to technical or financial reasons, knowing the type of customer need can help make compromises that minimize the impact on customer satisfaction.
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3. Convert CTQs into KPOVs

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Once the Critical To Quality requirements of the product have been defined, they must be converted into Key Process Output Variables for the process The process is a function of converting inputs (Xs) into outputs (KPOVs or Ys)
Y = f(X1, X2, X3,Xn)
We must first define all of the Ys that our process must satisfy, in order to use the DMAIC philosophy to focus on the correct Xs to improve the process
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3. Convert CTQs into KPOVs:
Getting to KPOVs (Big Ys)

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Key Process Output Variables come from two sources: The Critical to Customer Requirements (Voice of the Customer - VOC) The Critical to Business Requirements (Voice of the Business VOB) These two sources come together to develop the Big Y outputs that the process must meet
___ O ___ ___ __ B ___ __
B usi Busi nesss I ness Is ___ su ___ ___ __ es ___

__
K P O V s
C T C ___ ___ Q R ___ __ s ___ ___

___ __ ___ __
Cust o C ust me r Is mer ___ su ___ es es ___ __

___ ___ __ ___ __
V O ___ ___ C ___

__ ___ ___ __ ___ __
Yn
Y1 Y2 Y3
C ___ B ___ ___ __ R ___ s __
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V C O B R
Voice of the Critical Business Business Requirements
V C O T C Q
Voice of the Critical To Quality Customer Requirements
CTQ and CBR Examples

Critical to:
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The Process
Critical to:
The Customer The Market
The Business The Regulator The Employees
KP OV s
CTQ s Price/Unit
Delivery Time
Dimensions Purity Reliability Options Service Level
CBRs
Cost/Unit Productivity Compliance with Regulations Changeover Time Safety Training Hours
Yn
Y1 Y2 Y3
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Finalizing the Big Ys

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In finalizing the Big Ys for the process, they must be:

Tangible Meaningful Measurable
KPOVs
3.6 DPMO 3 Day Lead Time $12.50 per unit cost 1500 units/person
CBRs
Cost / Unit Productivity
CTQs
No Defects Quick Delivery
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4. Create a SIPOC map

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Once the KPOVs have been identified, a SIPOC map can be created Supplier Input Process Output Customer (SIPOC) map

Suppliers All internal and external suppliers to the process Inputs All inputs to the process i.e. material, forms, information, etc. Process One block representing the entire process Outputs All outputs for both internal and external customers Customers All internal and external customers to the process
A high-level SIPOC map helps to visualize the Voice of the Customer and begin to see the relationships between the Outputs and the Inputs of the process 55
4. Create a SIPOC map:
The SIPOC map

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Go upstream to the process steps which most impact the Output and determine the Key Process Input Variables (KPIVs) which affect the KPOVs. Try to use leading measures instead of lagging measures if lagging, then close/reduce amount of lag. REQUIREMENTS REQUIREMENTS
S
Suppliers
I
Inputs MEASURE S
P
Process
O
Outputs MEASURE S
C
Customers
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PROCESS MAP
Leading and Lagging Measures

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Leading Measures tell the need to adjust process before the fact.
Evaluate inputs and adjust downstream process to reflect results of evaluation.
Lagging Measures inform about process performance and the need for adjustment after the fact.
Some close lagging measures are able to give immediate feedback to the process small likelihood of providing inconsistent service.
Evaluate results of process step and feed information upstream.
Some long lagging measures take so long to give feedback that decisionmaking is not timely and not well defined greater likelihood of providing inconsistent service.
Evaluate results of process output and feed information upstream.
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Process Mapping Symbols

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Start/Stop
Decision
Process Step Direction
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Basic Steps of SIPOC Process Mapping

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1. Define process to be reviewed - name it. Agree on beginning and end of process - bind it.
Suppliers Inputs Requirements Outputs Start Stop Customers
2. Brainstorm the outputs and customers who receive them. 3. Identify the customers requirements for each output. 4. Brainstorm the inputs and the suppliers who provide them. 59
Basic Steps of SIPOC Process Mapping (cont.)

5.
Brainstorm 5-10 process steps.
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Hints: Write one step per post-it/card All steps should begin with a verb Dont discuss process steps in detail Dont try to establish the order of the steps (yet)
6.
Arrange the process steps in sequence, discuss steps in detail to clarify the order and what the step output is. Draw lines and arrows indicating flow. Indicate key decision points with a and label the paths for each.
Actio n Step
Sta rt
Chec k
Decisi on N
Sto p
7.
Validate the process with a walk through" of the actual process. Add any missed steps, decision points or rework loops.
Actio n Step
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Activity: Mapping
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OBJECTIVE:
Map
Develop a Process
AGENDA: 1. Assign team roles 2. Select one process to map 3. Define the process boundaries start and stop 4. Identify the outputs and customers 5. Discuss customer requirements of performance 6. Identify inputs and suppliers 7. Brainstorm 5-10 process steps and arrange steps in sequence 8. Report out on challenges in mapping TIME: 40 minutes
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Versions of a Process
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What You Think It Is...

S I P O C S I
What It Really Is...

P O C
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Action Plans to Validate

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Stakeholder Check-In
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Validate your preliminary process map with key process stakeholders such as current process participants, customers, and suppliers.
Check: Identify: Ask: Assess:
To ensure the map reflects the way it really works Exception cases About typical problems and their impact Current performance and check for data
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SIPOC Uses
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SIPO C
Cause & Effect Matrix For X and Y interactions Value Stream Mapping
For deeper process analysis
Identify Key Output (Ys)

Process & Input (Xs) Variables, and Metrics Y = f(X)
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Congratulations, youve made it to the end!

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Gbdmaic1 6 Customerrequirements 090826174330 Phpapp02

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1.6 - Customer Requirements

Pragmatic Improvement Pty Ltd 2005 All Rights Reserved

Six Sigma as DMAIC Phases

Prepare project charter & Operating agreements

Establish the project team

Define customer requirements

Map the highlevel process (end to end)

Plan data collection & Map process value stream

Analyse the measurement system

Measure process & Display baseline data

Assess process stability & capability

Identify possible defect & variation causes

Analyse process nonvalue add

Identify data relationships Y=f(x)

Confirm root causes

Generate and select solutions

Develop to be value stream map

Optimise solution & Pilot solution

Monitor for consistency & improvement significance

Standardise processes & Transfer knowledge

Confirm improvement benefits

Exploring Our Values Exercise - Part I

What Do We Measure Today?

Values Exercise - Part II

New Measures Arise When New Questions Are Asked

Theatre Exercise (Part 1)

Theatre Exercise (Part 2)

You are headed to the movies with some friends

Who Is Your Customer?

External customers pay our bills

Maximizing Customer Value

Maximizing customer value = close the Need/Do gap

What Is Voice of the Customer?

Who Are the Customers?

Who are they?

Why Is VOC Important?

They pay the bills, so its important to understand their needs:

They define the playing field

They are always right

Even if we cannot meet their needs, or do so profitably.

To be more profitable, you have to convince your customers to

Revenue Growth Economic Value Add Economic Value Add

Who are Your Customers? (project focus)

How Do Our Customers Communicate with Us?

Sources of Customer Voices

Informal/ Formal Transacti ons

Inbound Communi cations

Customers Define Quality

Flexibili ty & Options Custo mer

Ease of Use Price & Cost

Performance Need Categories

Service and Safety

1. Gather the Voice of the Customer (VOC):

The first step in gathering the VOC, is customer segmentation.

1. Gather the Voice of the Customer (VOC):

Identify Your Customer Segments

Revenue Frequency Size of Customer Cost Strategic goals

Geographic Demographic Product feature Industry

Price Value Service

Price & Service

1. Gather the Voice of the Customer (VOC):