Critical to Customer Requirements (CTCR) - Six Sigma, … … · · 2011-01-20Critical to...
Transcript of Critical to Customer Requirements (CTCR) - Six Sigma, … … · · 2011-01-20Critical to...
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Six Sigma Qualtec – All Rights Reserved
Improving Your Business Results
Critical to Customer
Requirements
(CTCR)
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Six Sigma Qualtec – All Rights Reserved
Improving Your Business Results
Objectives
• After completing this unit, you will be
able to:
– Explain the framework for establishing
critical to customer requirements.
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Overview
• Various business drivers determine the
direction in which the business grows.
• The voice of the customer is a critical
issue to achieve success.
• Obtaining the voice of the business and
the voice of the customer are necessary
steps in defining critical success factors.
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Y = f(X)Y: Output (things important to the business and the
customer)
f: Function (how to treat and manage interrelationships)
X: Variables that must be controlled to consistently predict Y
Outputs are a Function of Inputs
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What Drives Your Business?
• What are the X’s that impact your Y’s?
Y’s
• Business
Results
• Employee
Satisfaction
• Customer
Satisfaction
X1
Mission
X2
Vision
X3
Strategic
Goals
X4
Priority Activities and
Critical Business Processes
X7
Evaluation
& Review
X5
Principles
X6
Indicators
X8
Communication
Plan
=Major
Improvement
Opportunities
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What About the Customer?
• If you are not aligned with the customer
you are toast!
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What Effects the Customer Experience?—Your Principles
What aligns you with your customer?
Customer
Focus
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Customer Requirements
• Product and service quality
• Expense/cost
• Delivery
• Integrity
• Safety
• Corporate responsibility
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Gathering Requirements
• Ask the customer:
– What do you currently like about our
product and/or service?
– What problems do you have with our
product and/or service?
– What would you like to have that you are
not getting?
– What are you getting that you don’t use?
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Customer
Wants
Customer
Needs
Turning Expectations into Requirements
Customer
Expectations
Customer
SatisfactionAgreed upon
requirements
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Iceberg of Customer Complaints
Formal Complaints
Cancellations
Public Complaints
Silent dissatisfaction
Informal complaints
Customers vote
with their feetNon-returns
Processes
Problem
Root Cause
Non-Referrals
―Sea of Trouble‖
Customer perception of
service.
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Changing Expectations to Requirements
Requirements (CTCR)
Measurable Characteristics
Effectiveness and Efficiency Measures
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How do you Identify your Customers?
• The SIPOC model is the foundation for
identifying your customers.
IS P O C
Measures
Suppliers Inputs Process Outputs Customers
Requirements Requirements
Measures
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I wanted it yesterday !
The Customer
• External
– External to the organization
• Direct customer
• Stakeholders
• Internal
– Next process is the customer
• A chain of suppliers and customers
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External Customers
Direct Customers -
Stakeholders -
Those who receive and use our products or services
Those who are affected by our work, or who have authority over us, but who may not actually use our products or services themselves, e.g., regulatory agencies
External Customers
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Internal Customers Groups or individuals whose ability to perform a job is impacted by the quality of products or services we provide them.
Internal Customers
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Capture Customer/Stakeholder Requirements
• Types of customer/stakeholder
requirements:
– Basic
• Unspoken but expected.
– Performance
• Spoken by the customer/stakeholder.
– Excitement
• Pleasant surprises that are generally unspoken
or difficult to verbalize.
(continued)
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Capture Customer/Stakeholder Requirements:
Example
Buying a Car
• Basic
– Steering wheel works, gas gauge works, horn
works
• Performance
– Good acceleration, good traction in snow, long
time between tune-ups
• Excitement
– Appearance, styling, “feel” behind the wheel
(continued)
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Customer Satisfaction
Deg
ree
of
Sati
sfa
cti
on
Clients’ satisfaction is expected to be LINEAR.
(continued)Degree of Achievement
Capture Customer/Stakeholder Requirements
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Capture Customer/Stakeholder Requirements -cont.
• Kano Model
Basic
Performance
ExcitementCustomer
Satisfaction
Degree
of
Achievement
What are your clients’ basic, performanceand excitement needs?
Customer
Dissatisfaction
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Capture Customer/Stakeholder Requirements:
Basic Needs– gets you into the market
Customer Assumption
Things they do not think about
Expected qualities
Expected functions
Things that “go without saying”
Where to get them
Your experience
Customer complaint log
Internal brainstorming
Industry standards
Product/Service brainstorming
Function trees
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Capture Customer/Stakeholder Requirements:
Performance-keeps you in the market
Voice-of-Customer
Spoken wants/needs
Formal customer requirements
More-the-better or faster-the-better
wants
Things asked for or looked for when
evaluating
Where to get them
Market research
Focus groups
Surveys/customer clinics
Contract or statement of work
Customer interviewing, sales calls
Existing information
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Capture Customer/Stakeholder Requirements:
EXCITEMENT-makes you the market leader
Customer delights
“Oh-wow’s” and “gee whiz’s”
Leap improvements
Innovation
Thoughtful engineering
Where to get them
Observe products/service in use, watch
the customers at work (or play) and
notice:
•Customer frustration (not likely to
complain)
•Customer modifications (after market)
•Unusual/unintended product uses
•Time consuming parts of usage
Involve outsiders, lateral benchmarking
Technological forecasting
Demographic trend analysis
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Capturing Internal Customer and Direct
Customer/Stakeholder Requirements
• Interviews
• Focus groups
• Surveys
• Review of customer/stakeholder
complaints
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Capturing Indirect Customer/Stakeholders’ Requirements
• Summarizing current laws and
regulations.
• Consulting with internal/external
experts.
(continued)
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Requirements Identification Example
Hotel Room
Smoking vs. non-smoking room
High-speed internet access
Pillow-top bed
Multiple shower heads
Hairdryer
Television/Cable
Video gamesB
as
ic/P
erf
orm
an
ce
/Ex
cit
em
en
t
(continued)
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Requirements Identification Example -cont.
Final thought…
• Customer expectations and how competitors meet
those needs is constantly changing.
• Features that create a distinguished product and
stimulate excitement today, become desired
performance features tomorrow.e.g.
– Intermittent wipers, auto dimming mirrors, baby
stroller cup holders
• Today’s performance features become basic needs
and expected tomorrow.
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Capture Customer/Stakeholder Requirements Exercise
Purpose: Practice identifying CTCR.
Agenda: For your process:
– Indicate how you think your customer will respond to the four
given questions.
• What do you currently like about our product and/or
service?
• What problems do you have with our product and/or
service?
• What would you like to have that you are not getting?
• What are you getting that you don’t use?
– Create a list of 3 items that you believe your customer considers
critical and identify their probable requirements.
– Identify at least one customer need in each category (basic,
performance, excitement).
Limit: Complete examples: 30 minutes
Discussion: 15 minutes
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Summary
• Business Process Management focuses
on delighting customers/stakeholders by
meeting or exceeding their needs.
• Many processes fail because the
customer requirements are not correctly
captured.