Understanding Customer Needs

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  • + littleb1977 L. Taylor Solutions 1 month ago
    This Presentation is now available for purchase in the original version which enables you to change it in any way you wish including your own branding (logo etc).
    The price is €19.95 and if you wish to purchase please send me your email address and we will send you a paypal link to pay.
  • + littleb1977 L. Taylor Solutions 2 months ago
    Hi, thank you for the kind comments. I am glad you like it. Before I can supply you with any documentation I’d need to understand who I’m dealing with first and for which purposes it would be used for.
    So could you first join my friends list on my profile and then tell me what it’s to be used for & what else you are looking for as per your comment '...or any other presentation copy of management skills for me...'

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    hi, it’s a really a nice presentation. Can you please send me the presentation copy or any other presentation copy of management skills for me on my emailid. onlyvasim@gmail.com thanks in advance.
  • + littleb1977 L. Taylor Solutions 3 months ago
    This is a small look at the methodology of Six Sigma from the Green Belt training program. Here we take a look at understanding the VoC (Voice of the Customer) vs VoB (Voice of Business) and the importance on the process design.
    Also Includes a small breakdown and explanation of KANO analysis.
    For more information please leave me a comment and I′ll get back to you asap.
    Enjoy!
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Understanding Customer Needs - Presentation Transcript

  1. 1.6 - Customer Requirements
  2. Slide 2
    Tollgate
    Check in
    Define customer requirements
    Prepare project charter & Operating agreements
    Map the high-level process (end to end)
    Establish the project team
    Define
    Tollgate
    Check in
    Assess process stability & capability
    Plan data collection & Map process value stream
    Measure process & Display baseline data
    Analyse the measurement system
    Measure
    Tollgate
    Check in
    Confirm root causes
    Identify data relationships Y=f(x)
    Identify possible defect & variation causes
    Analyse process non-value add
    Analyse
    Tollgate
    Check in
    Monitor for consistency & improvement significance
    Optimise solution & Pilot solution
    Generate and select solutions
    Develop “to be” value stream map
    Improve
    Implement solutions
    Standardise processes &
    Transfer knowledge
    Confirm improvement benefits
    Plan implementation
    Reward team
    Control
    Six Sigma as DMAIC Phases
  3. Slide 3
    Customer Requirements
    Objectives
    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).
    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
  4. Slide 4
    Exploring Our Values Exercise - Part I
    Describe and rank what you think is really valued by your company
  5. Slide 5
    What Do We Measure Today?
    • 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?
  6. Slide 6
    Values Exercise - Part II
    How are values measured?
    Is the organisation measuring things that are valued?
  7. Slide 7
    New Measures Arise When New Questions Are Asked
    New measures, and new behaviors, require that we ask new questions
    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?
  8. Slide 8
    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?
    Theatre Exercise (Part 1)
  9. Slide 9
    Theatre Exercise (Part 2)
    You are headed to the movies with some friends…
    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?
  10. Slide 10
    Who Is Your Customer?
    Define products or services provided to the customer
    Identify the related process
    External customers pay our bills
    Internal customers use our outputs as their inputs to achieve our business objectives and ultimately satisfy external customers
  11. Slide 11
    Maximizing Customer Value
    Delivery
    Customer
    (CTD) Cycle Time
    Supplier
    Need
    Price
    Do
    (CTC) Cost
    Quality
    (CTQ) Defects
    Maximizing customer value = close the Need/Do gap
  12. Slide 12
    What Is “Voice of the Customer”?
    “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”
  13. Slide 13
    Who Are the Customers?
    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.
    Types of “customers”:
    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,
    Which customer?
    Customers can often be logically aggregated into groups or segments (not all customers should be treated equally)
  14. Slide 14
    Why Is VOC Important?
    They “pay the bills,” so it’s 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 Revenue Growth
    Pay more for your product / service Economic Value Add
    Serve their needs more efficiently Economic Value Add (cost reduction)
  15. Slide 15
    Who are Your Customers? (project focus)
  16. Slide 16
    How Do Our Customers Communicate with Us?
    Buyer
    Behavior
    Outbound
    Communications
    Research
    Market
    Intelligence
    Customers
    Informal/Formal
    Transactions
    Inbound
    Communications
    Casual
    Contact
    Types of Voices
    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
  17. Slide 17
    Customers Define “Quality”
    Timeliness
    Accuracy
    Easeof Use
    Aesthetics
    Flexibility
    & Options
    You must understand what the customers of your process care about!
    Customer
    Price & Cost
  18. Slide 18
    Performance Need Categories
    • 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.
    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)
    Quality
    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)
    Cost
    Speed
    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
    Service
    and Safety
    Corporate
    Responsibility
    Ethical Business Conduct, Business Risk Management, Health Safety and Environment Policy, Code of Conduct
  19. Slide 19
    1. Gather the Voice of the Customer (VOC):Customer Segmentation
    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 aren’t 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
  20. Slide 20
    1. Gather the Voice of the Customer (VOC):Identify Your Customer Segments
    Other
    Co-Op
    Sole Proprietor
    Franchise
    Privately held
    Publicly held
    # of customers
    Price
    Service
    Economic
    Revenue
    Frequency
    Size of Customer
    Cost
    Strategic goals
    Descriptive
    Geographic
    Demographic
    Product feature
    Industry
    Attitudinal
    Price
    Value
    Service
    Revenue
    Geographic
    Price & Service
  21. Slide 21
    Objective
    Identifying customer segments.
    Instructions
    1. Select a specific process output (product or service).
    2. List customers of the product or service.
    3. Identify ways to segment each customer.
    Potential Segments
    Customers
    Product/Service
    1. Gather the Voice of the Customer (VOC):Customer Segment Matrix
  22. Slide 22
    1. Gather the Voice of the Customer (VOC):Customer Segmentation Worksheet
    Customer
    Internal or
    External?
    Segments/Description
    Priority
  23. Slide 23
    Select Sources of Customer Information
    Sources of Customer Information
    Internal &
    External Data
    Listening
    Post
    Research
    Methods
    • Complaints
    • Customer Service Representatives
    • Sales Representatives
    • Billing
    • Accounts Receivable
    • Collection
    • Interviews
    • Surveys
    • Focus Groups
    • Observations
    • Existing Company Information i.e. product returns, market share, etc.
    • Industry Experts
    • Secondary Data
    • Competitors
    1. Gather the Voice of the Customer (VOC):Listening to the VOC
  24. Slide 24
    1. Gather the Voice of the Customer (VOC):Communicating with Customers
    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
  25. Slide 25
    Communicating with Customers:Interviews
    Purpose: To learn about a specific customer’s point of view on service issues, product/service attributes, and performance indicators/measures.
    Types of Interviews
    Characteristics of Information Needed
  26. Slide 26
    Communicating with Customers :Surveys
    Purpose
    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.
    Uses
    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
    The Survey Process
    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.
    Survey
    Options
    Mail
    Personal
    Telephone
  27. Slide 27
    Communicating with Customers :Focus Groups
    Purpose
    Organize information from the collective point of view of a group of customers that represent a segment
    Uses
    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
    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
  28. Slide 28
    2. Translate the VOC into Critical to Quality requirements (CTQs)
    Voice of the Customer
    After Clarifying,the Key Issue(s) Is...
    Critical To Quality Requirements
    Once the Voice of the Customer has been gathered, that information must be translated into Critical To Quality requirements (CTQs)
    • Good CTQ requirements:
    • Are specific & measurable (and the method of measurement is specific)
    • Are related directly to an attribute of the product or service
    • Don’t have alternatives and don’t bias the design toward a particular approach or technology
    • Are complete and unambiguous
    • Describe what, not how
  29. Slide 29
    2. Translating VOC into CTQs:Customer Input to Key Issues to CTQs
    Critical To Quality Requirement
    Key Customer Issue
    Voice of Customer Input
  30. Slide 30
    Activity: Defining Customer Requirements
    OBJECTIVE: Practice Defining Customer Requirements
    AGENDA:
    Assign team roles
    Facilitator introduces tool and leads team through next steps.
    3. Have 2-3 members share customer comments they’ve heard.
    4. Translate comments into - Key Issue
    - Requirements
    5. Discuss next steps to validate customer requirements.
    Prepare to report.
    TIME: 15 minutes
  31. Slide 31
    2. Translating VOC into CTQs:Getting Value from VOC Data
    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
  32. Slide 32
    Theme 1
    Theme 3
    Need 1
    Need 2
    Need 7
    Theme 2
    Need 3
    Need 4
    Need 8
    Need 5
    2. Translating VOC into CTQs:Affinity Diagrams
    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
    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
  33. 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
    Slide 33
    Tree Diagram
    Affinity Diagrams
    2. Translating VOC into CTQs:Tree Diagrams
  34. Slide 34
    2. Translating VOC into CTQs:Tree Diagrams
    Product/Service
    Customer
    Requirement
    Tertiary Need
    Secondary Need
    Customer
    Requirement
    Primary Need
    Customer
    Requirement
    Customer
    Requirement
  35. Slide 35
    2. Translating VOC into CTQs:Tree Diagram Example: Pizza
    Whole wheat
    Crust
    Unbleached flour
    No cheese
    Low-fat mozzarella
    Cheese
    Customer wants
    “healthy choices”
    Meats
    Toppings
    Low-fat white cheddar
    Sauce
    Vegetables
    Additives
    Other ingredients
    Spices
    Oil
  36. Slide 36
    2. Translating VOC into CTQs:Determining “Critical Customer Requirements”
    From Requirements to “Quality”
    A customer’s 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
    All requirements are not created equal …
    Customers weight their requirements differently
    The most important customer requirements become those CTQs.
    Critical To Quality Requirements
    Represent a customer desire that must be met
    Have a strong correlation to the “buying decision”
    Often form the basis for competitor comparison
  37. Slide 37
    2. Translating VOC into CTQs:CCR Selection Methods
    10.0
    9.0
    8.0
    7.0
    6.0
    5.0
    4.0
    Price
    Brand Image
    Correct Invoice
    Inventory Turns
    On-time Delivery
    Warranty Returns
    % Complete Order
    Proximity to Customer
    Product Offering Breadth
    Special Order Lead Time
    New Product Development
    Relationship Management
    Ask Customers
    Fast and specific feedback
    However, they may not be completely honest with you
    Key Buying Factor Analysis
    Formal customer survey
    Force ranks the requirements
    Kano Analysis
    Good “first cut” technique to evaluate relative importance of customer requirements
    Segments by “type of quality”/customer expectation
    House of Quality (Quality Function Deployment)
    Exciting
    Quality
    Expected
    Quality
    Normal
    Quality
  38. Slide 38
    2. Translating VOC into CTQs:CTQ Key Buying Factor Analysis
    10.0
    9.0
    8.0
    7.0
    6.0
    5.0
    4.0
    Price
    Brand Image
    Correct Invoice
    Inventory Turns
    On-time Delivery
    Warranty Returns
    % Complete Order
    Proximity to Customer
    Product Offering Breadth
    Special Order Lead Time
    New Product Development
    Relationship Management
    CTQ Importance
    Company
    Comp 1
    Comp 2
    Comp 3
    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
  39. Slide 39
    2. Translating VOC into CTQs:Kano Model
    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
  40. Slide 40
    2. Translating VOC into CTQs:The Kano Model Classifies Customer Needs
    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”.
  41. Slide 41
    2. Translating VOC into CTQs:Collecting the VOC based on Kano analysis
    Dissatisfiers (Typically Unspoken) – Gather them using 1-on-1 interviews and focus groups
    The discussion points are not well established – often not discussed at all unless there’s a reason to – but there is often consensus after the fact
    For example, in a hotel bathroom, it’s 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 – it’s the issues that advertisements address, it’s the basis of discussions with our neighbors
    For example, in a hotel, it’s how long the wait is to check-in, availability of a coffee maker in the room, Internet access, size of the TV, etc.
  42. Slide 42
    2. Translating VOC into CTQs:Collecting the VOC (cont.)
    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.
  43. Slide 43
    2. Translating VOC into CTQs:The Difficulty in Collecting Delighters
    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 doesn’t know it is possible, and the business doesn’t 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.
  44. Slide 44
    2. Translating VOC into CTQs:Getting to Delighters
    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
  45. Slide 45
    2. Translating VOC into CTQs:Uses of The Kano Model
    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 team’s ideas for differentiation
    Determine whether some of the features that existed in previous offerings were and still are valued by the customer
  46. Slide 46
    Negative Question Answers
    Don’t Like
    Don’t Care
    Normal
    Like
    Satisfier
    Delighter
    Delighter

    Like
    Dissatisfier



    Normal
    Positive Question Answers
    Dissatisfier



    Don’t Care




    Don’t Like
    2. Translating VOC into CTQs:Applying the Kano Table to Develop CTQs
    For each potentialneed, 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)
    The customer has four choices in response to each question:
    1. I’d like it
    2. It is normally that way (that feature is expected)
    3. I don’t care
    4. I wouldn’t like it
    Based on the answers to the “positive” and “negative” questions, use the table to determine the type of need
  47. Slide 47
    Negative Question Answers
    Don’t Like
    Don’t Care
    Normal
    Like
    Satisfier
    Delighter
    Delighter

    Like
    Dissatisfier



    Normal
    Positive Question Answers
    Dissatisfier



    Don’t Care




    Don’t Like
    2. Translating VOC into CTQs:Determining Performance Targets – Example
    Let’s 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:
    How would you feel if check-in time took less than 5 minutes? (Positive)
    • Answer: “That’s Normal”
    How would you feel if check-in took more than 5 minutes? (Negative)
    • Answer: “Don’t Like”
    Check-in time more than 5 minutes is a Dissatisfier – it must be met. 5 minutes is the absolute maximum check-in time.
  48. Slide 48
    Negative Question Answers
    Don’t Like
    Don’t Care
    Normal
    Like
    Satisfier
    Delighter
    Delighter

    Like
    Dissatisfier



    Normal
    Positive Question Answers
    Dissatisfier



    Don’t Care




    Don’t Like
    2. Translating VOC into CTQs:Determining Performance Targets – Example
    Then ask your customers:
    How would you feel if check-in time took less than 2 minutes? (Positive)
    • Answer: “I’d Like It”
    How would you feel if check-in took more than 2 minutes? (Negative)
    • Answer: “That’s Normal”
    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?
  49. Slide 49
    Negative Question Answers
    Don’t Like
    Don’t Care
    Normal
    Like
    Satisfier
    Delighter
    Delighter

    Like
    Dissatisfier



    Normal
    Positive Question Answers
    Dissatisfier



    Don’t Care




    Don’t Like
    2. Translating VOC into CTQs:Using the Kano Model to Validate Features
    You’re uncertain of value of a particular characteristic of a previous version of your product
    Let’s say you design and manufacture bicycles. Since none of your customers mentioned a kickstand, you’re wondering whether your customers still value kickstands. If not, the team could eliminate the feature and save on product cost.
    You ask your customers:
    How would you feel if the bicycle had a kickstand? (Positive)
    • Answer: “That’s Normal”
    How would you feel if the bicycle didn’t have a kickstand? (Negative)
    • Answer: “Don’t Like”
    Customers considered the kickstand a Dissatisfier, meaning that even though they didn’t mention it as a Need, it had better be included in the design or they’ll be dissatisfied with the product.
  50. Slide 50
    2. Translating VOC into CTQs:Advantages of Classifying Critical Needs
    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.
  51. Slide 51
    3. Convert CTQs into KPOVs
    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
  52. Slide 52
    3. Convert CTQs into KPOVs:Getting to KPOVs (Big “Y”s)
    KPOVs
    Y1
    Y2
    Y3
    Yn
    VOC
    -
    Voice of the Customer
    VOB
    -
    Voice of the Business
    CTQ
    -
    Critical To Quality Requirements
    CBR
    -
    Critical Business Requirements
    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
    Customer
    Customer
    CTQ’s
    CCR’s
    VOC
    VOC
    Issues
    Issues
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    Business
    Business
    VOB
    CBR’s
    VOB
    CBR’s
    Issues
    Issues
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
    ________
  53. Slide 53
    3. Convert CTQs into KPOVs: CTQ and CBR Examples
    KPOVs
    Y1
    Y2
    Y3
    Yn
    Critical to:
    The Customer
    The Market
    The Process
    CTQ’s
    Critical to:
    The Business
    The Regulator
    The Employees
    Price/Unit
    Delivery Time
    Dimensions
    Purity
    Reliability
    Options
    Service Level
    CBR’s
    Cost/Unit
    Productivity
    Compliance with
    Regulations
    Changeover Time
    Safety
    Training Hours
  54. Slide 54
    3. Convert CTQs into KPOVs:Finalizing the Big “Y”s
    In finalizing the Big “Y”s for the process, they must be:
    Tangible
    Meaningful
    Measurable
    3.6 DPMO
    3 Day Lead Time
    $12.50 per unit cost
    1500 units/person
    KPOVs
    CBRs
    Cost / Unit
    Productivity
    CTQs
    No Defects
    Quick Delivery
  55. Slide 55
    4. Create a SIPOC map
    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
  56. Slide 56
    4. Create a SIPOC map:The SIPOC map
    Go upstream to the process steps which most impact the Output and determine the Key Process Input Variables (KPIVs) which affect the KPOV’s.
    Try to use leading measures instead of lagging measures – if lagging, then close/reduce amount of lag.
    REQUIREMENTS REQUIREMENTS
    P
    S
    I
    O
    C
    Suppliers
    Inputs
    Process
    Outputs
    Customers
    MEASURES
    MEASURES
    PROCESS MAP
  57. Slide 57
    4. Create a SIPOC map: Leading and Lagging Measures
    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 decision-making is not timely and not well defined – greater likelihood of providing inconsistent service.
    Evaluate results of process output and feed information upstream.
  58. Slide 58
    Start/Stop
    Decision
    Process Step
    Direction
    Process Mapping Symbols
  59. Slide 59
    1. Define process to be reviewed - name it.
    • Agree on beginning and end of process - bind it.
    Suppliers Inputs Outputs Customers Requirements
    Start Stop
    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.
    Basic Steps of SIPOC Process Mapping
  60. Slide 60
    Basic Steps of SIPOC Process Mapping (cont.)
    Brainstorm 5-10 process steps.
    Hints:
    • Write one step per post-it/card
    • All steps should begin with a verb
    • Don’t discuss process steps in detail
    • Don’t 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.
    7. Validate the process with a “walk through" of the actual process. Add any missed steps, decision points or rework loops.
    Action
    Step
    Y
    Check
    Start
    Decision
    Stop
    N
    Action
    Step
  61. Slide 61
    Activity: Mapping
    OBJECTIVE: Develop a Process Map
    AGENDA:
    Assign team roles
    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 mappingTIME: 40 minutes
  62. Slide 62
    What It ReallyIs...
    What You ThinkIt Is...
    S I
    P
    O C
    S I
    O C
    P
    Versions of a Process
  63. Slide 63
    Action Plans to Validate
  64. Slide 64
    Validate your preliminary process map withkey process stakeholders such as currentprocess participants, customers, and suppliers.
    • Check: To ensure the map reflects the way it really works
    • Identify: Exception cases
    • Ask: About typical problems and their impact
    • Assess: Current performance and check for data
    Stakeholder Check-In
  65. Slide 65
    4. Create a SIPOC map:SIPOC Uses
    SIPOC
    Value Stream Mapping
    • For deeper process analysis
    Cause & Effect Matrix
    • For X and Y interactions
    • Identify Key Output (Y’s) Process & Input (X’s) Variables, and Metrics
    Y = f(X)
  66. Congratulations, you’ve made it to the end!
    Slide 66
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