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1.6 - Customer Requirements



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2

Prepareproject charter

& Operatingagreements

Map the high-level process(end to end)

Assessprocess

stability &capability

Implementsolutions

TollgateCheck

in

Monitor for consistency &improvement

significance

Standardiseprocesses &

Transfer knowledge

Establish theproject team

Plan datacollection &Map processvalue stream

Reward team

Definecustomer

requirements

Measureprocess &

Displaybaseline data

Confirmimprovement

benefits

Planimplementation

Measure

Define

Improve

Control

Analyse

Optimisesolution &

Pilot solution

Generate andselect

solutions

Confirm rootcauses

Identify datarelationships

Y=f(x)

Identifypossibledefect &variationcauses

Analyseprocess non-

value add

Analyse themeasurement

system

Develop“to be” valuestream map

TollgateCheck

in

TollgateCheck

in

TollgateCheck

in

Six Sigma as DMAIC Phases



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3

Customer Requirements

Objectives

4 Identify the customer in order to listen and document the Voice of theCustomer (VOC) messages.

4 Perform KANO Analysis in order to classify customer requirements.

4

Translate VOCs into Critical Customer Requirements (CCRs).4 Create output measures (Critical to Quality, CTQ) from CCRs.

4 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



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4

Exploring Our ValuesExercise - Part I

4 Describe and rank what you think is really valued byyour company



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What Do We Measure Today?

§ What numbers get the most attention?

§ What quality and performance measurements do weuse?

§

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

4 How are values measured?

4 Is the organisation measuring things that are valued?



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New Measures AriseWhen New Questions Are Asked

New measures, and new behaviors, require that we ask new questions

4 Do questions trigger actions?

4 If we ask questions about outputs not inputs, we get alot of focus and measures on outputs

4

If we ask questions about budgets, we measurebudgets

4 How many of our questions are focused on process andservice quality?

4 How many of our questions are focused on causes and

inputs versus results and outputs?



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Imagine you are the General Manager of a very successful movietheatre chain with many employees. You will be out of the countryfor three months and have asked your staff to fax you a weeklyreport on Monday morning. What information/metrics would youlike to see in that fax?

Theatre Exercise (Part 1)



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Theatre Exercise (Part 2)

You are headed to the movies with some friends…

4 The movie you would like to see is playing at severalmovie theatres in the area. All are about equidistantfrom your home.

4 What criteria do you use to decide which theatre toattend?



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Who Is Your Customer?

4

Define products or services provided to thecustomer

4 Identify the relatedprocess

4

External customers payour bills

4 Internal customers use our outputs as their inputs toachieve our businessobjectives and ultimately

satisfy external customers



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11

Maximizing Customer Value

Customer Supplier

Deliver y

Pric

e

Quality

Nee

d Do

(CTD) Cycle Time

(CTC)Cost

(CTQ) Defects

Maximizing customer value = close the Need/Do gap



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12

What Is “Voice of the Customer”?

4 “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”

4 The VOC can be compared to internal data (“Voice of the Process”) to assess our current processperformance or process capability.

4 To be useful in a process improvement project we oftenneed to work with the customer to understand the

“Ambiguous” and make it “Specific”



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Who Are the Customers?

4 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.

4 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 informationfrom 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,

4 Which customer? – Customers can often be logically aggregated into groups or segments (not

all customers should be treated equally)



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14

Why Is VOC Important?

4 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

4 They define the “playing field” – They serve as the referee for all competitors

– They define what is a “value-added” activity or service

4 They are always right… – Even if we cannot meet their needs, or do so profitably.

4 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)



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Who are Your Customers?(project focus)



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How Do Our CustomersCommunicate with Us?

Types of Voices

4 Complaints

4 Compliments

4 Product returns

4

Product/service sales preferences4 Contract cancellations

4 Market share changes

4 Customer defections/acquisitions

4 Customer referrals

4 Closure rates of sales calls

4 What other customer voices couldyou or do you use in your business?

Sources of CustomerVoices

BuyerBehavior

Informal/

FormalTransacti

ons

OutboundCommunications

CasualContact

Inbound

Communications

ResearchMarket

Intelligence

Customers



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17

Customers Define “Quality”

You must understandwhat the customers of your process care about!

Ease

of Use

Aesthet

ics

Timeliness

Accuracy

Flexibility&

Options

Price& Cost

Customer



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18

Performance Need Categories

4 The challenge is to understand how your customers, stakeholders, processowner, 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)

Process Cost Efficiency, Prices to Consumer (Initial Plus Life Cycle), Repair Costs, PurchasePrice, 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, EnvironmentalIncidents

Quality

Cost

Speed

Serviceand Safety

CorporateResponsibility

Ethical Business Conduct, Business Risk Management, Health Safety and Environment Policy,Code of Conduct



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19

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

Customer Segmentation

4 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

4 If customers aren’t segmented, it may prove impossible to get asingle “voice,” and the multiple voices may lead in opposite

directions.

TotalCustomers

TotalValue

The Greatest Value Can Come Froma

Small Portion of Your Customer Base



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20


Identify Your Customer Segments

–

Economic• Revenue• Frequency• Size of Customer • Cost• Strategic goals

– Descriptive• Geographic• Demographic• Product feature• Industry

–

Attitudinal• Price• Value• Service

Revenue

# o f

c u s t o m e

r s

Pr ice

Ser vice

Other Co-Op

Sole Proprietor

Publicly heldPrivately held

Franchise

Geographic

Price &Service



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21

Product/Service Customers Potential Segments


Customer Segment Matrix

Objective4 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.



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Customer Segmentation Worksheet

Customer Internal or External?

Segments/Description Priority



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Sources of Customer Information

u Complaints

u Customer ServiceRepresentatives

u Sales Representatives

u Billing

u Accounts Receivable

u Collection

u Interviews

u Surveys

u Focus Groups

u Observations

u Existing Company Informationi.e. product returns, marketshare, etc.

u Industry Experts

u Secondary Data

u Competitors

Internal &External

Data

ListeningPost

ResearchMethods


Listening to the VOC

Se l ec t Sou rces o f Cus tomer In fo rma t i on



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24


Communicating with Customers

4 No matter what source of customer information is used, customer

communication has three basic parts:4 1. Asking the right questions

4 2. Asking questions in the right way

4 3. Understanding the answers



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25

Communicating with Customers:

Interviews

4 Purpose: To learn about a specific customer’s point of view onservice issues, product/service attributes, and performanceindicators/measures.

Individual

• Unique perspectives

• Senior-level participation

• Input from large-volume customer

Group

• Information from customers with similar product and service needs

• mid- to lower-level participation

• Information from many people for a single segment

Telephone/Mail

• Input from customers who are widely dispersed geographically

• Information on basic or simple issues

• Quick turn-around of information collection

Types of Interviews Characteristics of Information Needed



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Communicating with Customers :

Surveys

4 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.

4 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

4 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.

Telephone Mail Personal

Survey

Options



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27

Communicating with Customers : Focus Groups

4 Purpose – Organize information from the collective point of view of a group

of customers that represent a segment

4 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

4 Typically composed of 7 to 13 participants who sharecharacteristics that relate to the focus group topic

4 Participants will be asked to thoroughly discuss veryfew topics



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28

2. Translate the VOC into

Critical to Quality requirements (CTQs)

4 Once the Voice of the Customer has been gathered,that information must be translated into Critical ToQuality requirements (CTQs)

“I hate dealing with this

company!”

Products are not delivered

on time

10 day lead time ±1 day

Voice of the Customer

After Clarifying,the Key Issue(s) Is...

Critical To QualityRequirements

4 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



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29

2. Translating VOC into CTQs:

Customer Input to Key Issues to CTQs

Actual Customer Statementsand Comments

The Real Customer Concerns,Values or Expectations

The Specific, Precise andMeasurable Characteristic

• “This mower should be

easy to start”• “The cord shouldn’t be toohard to pull”

• Wants the mower to start

quickly and painlessly

• Mower starts within two

pulls on the cord• Mower starts with a 5kgpull on the cord

• “I want to talk to the rightperson and don’t want towait on hold too long”

• Wants to talk to the rightperson quickly

• No additional menu itemson voice system

• Customer reaches correct

person the first time within30 seconds

• “The vehicles arealways breaking down”

• Low availability Vehicle Availability > 95%during 7am - 7pm

Critical To QualityRequirement

Key Customer IssueVoice of Customer Input



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30

Activity: Defining

Customer Requirements

OBJECTIVE: Practice DefiningCustomer Requirements

AGENDA:

1. Assign team roles

2. Facilitator introduces tool and leadsteam through next steps.

3. Have 2-3 members sharecustomer comments they’ve heard.

4. Translate comments into- Key Issue

- Requirements

5. Discuss next steps tovalidate customer requirements.

6. Prepare to report.

7. TIME: 15 minutes



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31


Getting Value from VOC Data

4 Making sense of qualitative data is an iterative process

4 It involves interpretation and prioritization

4 Often requires follow-up with additional research

4 Useful tools: – Affinity Analysis

– Tree Diagrams



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32

Theme1

Need1

Need2

Theme2

Need3

Need4

Need5

Theme3

Need7

Need8


Affinity Diagrams

4 The first step in getting value fromcustomer data is organizing it in away that will reveal themes

4 An affinity diagram is a good toolfor this purpose since it organizes

language data into related groups – Gather ideas from interview

transcripts, surveys, etc.

– Generate customer needstatements on cards or sticky notes

– Group the cards to find the “affinity”

– Label the groups of cards



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4 Moves team from high-level customer needs to greater detailin order to define requirements

4 A tool for breaking broad process steps or product featuresinto greater detail

4 Helps organize needs by level of detail

33


Tree Diagrams

Affinity DiagramsTree Diagram



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34


Tree Diagrams

PrimaryNeed

SecondaryNeed

TertiaryNeed

CustomerRequirement

Product/Service

CustomerRequirement

CustomerRequirement

CustomerRequirement



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35


Tree Diagram Example: Pizza

Customer wants “healthy choices”

Crust

Toppings

Otheringredients

Whole wheat

Unbleached flour

Cheese

Sauce

Additives

Spices

Oil

No cheese

Low-fat mozzarella

Low-fat white cheddar

Meats

Vegetables



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36


Determining “Critical Customer Requirements”

4 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 beenmet

–

Evaluations are also influenced by their “expectations” – Quality = Actual Performance - Expectations

4 All requirements are not created equal … – Customers weight their requirements differently

– The most important customer requirements become those CTQs.

4 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



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37


CCR Selection Methods

4 Ask Customers – Fast and specific feedback – However, they may not be completely honest with you

4 Key Buying Factor Analysis –

Formal customer survey – Force ranks the requirements

4 Kano Analysis – Good “first cut” technique to evaluate relative

importance of customer requirements –

Segments by “type of quality”/customer expectation4 House of Quality (Quality Function Deployment)

Nor malQuality

ExcitingQuali

ty

Expe

ctedQuality

4.0

5.0

6.0

7.0

8.0

9.0

10.0

O n - t i m e

D e l i v e r y

% C o m p l e t e

O r d e r W

a r r a n t y

R e t u r

n s I n v e n t o r

y T u r n s

C o r r e c t

I n v o i c e

P r i c e

S p e c i a l

O r d e r

L e a d

T i m e

R e l a t i o n

s h i p

M a n a g e m e n t

N e w P r o d u c t

D e v e l o p

m e n t B r

a n d

I m a g e

P r o d u c t O f f e r i n g

B r e a d t h P r

o x i m i t y

t o

C u s t o m e r



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38


CTQ Key Buying Factor Analysis

Explanation: Yellow bars show relative importance of key buying factors to customers; Red line rates companyperformance against key buying factors; Other lines rate competitors’ performance against key buying factors

4.0

5.0

6.0

7.0

8.0

9.0

10.0

O n - t i m e

D e l i v e r y

% C o m p l e t e

O r d e r W

a r r a n t y

R e t u r n s I n v

e n t o r y

T u r n s C o

r r e c t

I n v o i c e

P r i c e

S p e c i a l

O r d e r L e a d

T i m e

R e l a t i o n

s h i p

M a n a g e m e n t

N e w P r o d u c t

D e v e l o p m e n t

B r a n d

I m a g e

P r o d u c t O f f e r i n g

B r e a d t h P r

o x i m i t y

t o

C u s t o m e r

CTQImportance

Company

Comp1

Comp2

Comp3



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39


Kano Model

4 The Kano Model is helpful in understanding different types of customer needs.

4 There is much risk in blindly fulfilling customer needs without a goodunderstanding of the types of requirements.

4 Without this understanding, a team risks: – Providing superfluous quality – Wowing the customer in one

area, and driving them tocompetitors in another

– Focusing only on whatcustomers say, and not what

they think or believe



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40


The Kano Model Classifies Customer Needs

4

Dissatisfiers – Basic requirements.Expected features or characteristics of aproduct or service. These needs aretypically “unspoken”. If these needs arenot fulfilled, the customer will beextremely dissatisfied.

4 Satisfiers – Performance requirements.Standard characteristics that increase or decrease satisfaction by their degree(cost/price, ease of use, speed). Theseneeds are typically “spoken”.

4 Delighters – Unexpected features or characteristics that impress customersand earn you “extra credit”. Theseneeds are also typically “unspoken”.



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41


Collecting the VOC based on Kano analysis

4 Dissatisfiers (Typically Unspoken) – Gather them using 1-on-1 interviews and focus groups

– The discussion points are not well established – often not discussed at allunless 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 aremissing!

4 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.



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42


Collecting the VOC (cont.)

4 Delighters (Typically Unspoken) – Gather themusing carefully orchestrated focus groupspreceded by 1-on-1 and small group interviewsto establish several bases for further expansion

– The specific points of discussion are not known (except inthe most general sense in some cases)

• For example, being able to check into a hotel by swiping thecredit card you used for guaranteeing the reservation – oneswipe of the card, one signature on the surface of thecomputer monitor and your room key is issued.



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43


The Difficulty in Collecting Delighters

4 Very often, Delighters are a unique combination that isreally the intersection of:

– Demand on the part of the customer for products that s/heis unaware could be made available, and

– Supply technologists are unaware of possibilities for product innovations

4 So, the customer doesn’t know it is possible, and thebusiness doesn’t know there is a demand

4 Note: Delighters are not just added features that the

customer did not expect. They must truly be of valueto the customer.



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44


Getting to Delighters

4 In spite of the difficulties, there are ways to spur creativethinking – sometimes it is as simple as well-plannedfocus groups that have a balance of:

– Early adopters: progressive individuals who are able toappreciate 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 ascombinations

4 Work with customers and suppliers to explore where

there might be matches of the customers’ needs to thesuppliers’ potential range of product offerings



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45


Uses of The Kano Model

4 Validate that some of the needs spoken by the customer during the interviews and focus groups are truly CriticalTo Quality requirements that will have an impact oncustomer satisfaction or a purchase decision

4

Determine if there were some potential requirementsthat were not explicitly stated by customers

4 Test out some of the team’s ideas for differentiation

4 Determine whether some of the features that existed inprevious offerings were and still are valued by the

customer



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46


Applying the Kano Table to Develop CTQs

4 For each potential need, ask thecustomer to assess:

– How would they feel if the need WASaddressed? (Positive)

– How would they feel if the need WASNOT addressed? (Negative)

4 The customer has four choices inresponse to each question:

1. I’d like it

2. It is normally thatway (that

feature is expected)

3. I don’t care

4. I wouldn’t like it

4 Based on the answers to the “positive”and “negative” questions, use the table

to determine the type of need

Don’tLike

Satisfier

Dissatisfier

Dissatisfier

–

Don’tCare

Delighter

–

–

–

Normal

Delighter

–

–

–

Like

–

–

–

–

Like

Normal

Don’tCare

Don’tLike

P

tv

Qu

o

A

we

s

Negative Question Answers



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47


Determining Performance Targets – Example

4 Let’s say one of your needs is related tocycle time (hotel check-in time).

4 Guests have stated they want to be ableto quickly check-in. How quickly?

4 Ask your customers: – How would you feel if check-in time took

less than 5 minutes? (Positive)n Answer: “That’s Normal”

– How would you feel if check-in took morethan 5 minutes? (Negative)

n Answer: “Don’t Like”

4 Check-in time more than 5 minutes is aDissatisfier – it must be met. 5 minutesis the absolute maximum check-in time.

Don’tLike

Satisfier

Dissatisfier

Dissatisfier

–

Don’tCare

Delighter

–

–

–

Normal

Delighter

–

–

–

Like

–

–

–

–

Like

Normal

Don’tCare

Don’tLike

P

tv

Qu

o

A

we

s




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48


Determining Performance Targets – Example

4

Then ask your customers: – How would you feel if check-in time took less

than 2 minutes? (Positive)

n Answer: “I’d Like It”

– How would you feel if check-in took more than2 minutes? (Negative)

n Answer: “That’s Normal”

4 Check-in time less than 2 minutes is aDelighter. If the check-in process couldbe designed to check-in customers in lessthan 2 minutes, we could definitelydifferentiate our offering in themarketplace

4 Remember –What is the cost impact versusthe customer value for including the featurein the final design? Is there a business casefor including the feature?

Don’tLike

Satisfier

Dissatisfier

Dissatisfier

–

Don’tCare

Delighter

–

–

–

Normal

Delighter

–

–

–

Like

–

–

–

–

Like

Normal

Don’tCare

Don’tLike

P

tv

Qu

o

A

we

s




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Using the Kano Model to Validate Features

4 You’re uncertain of value of a particular characteristic of a previousversion of your product

4 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 thefeature and save on product cost.

4 You ask your customers: – How would you feel if the bicycle had a kickstand?

(Positive)n Answer: “That’s Normal”

– How would you feel if the bicycle didn’t have a kickstand?(Negative)n Answer: “Don’t Like”

4 Customers considered the kickstand a Dissatisfier , meaning that eventhough they didn’t mention it as a Need, it had better be included in thedesign or they’ll be dissatisfied with the product.

Don’t

Like

Satisf ier

Dissat isfie r

Dissat isfie r

–

Don’t

Care

Delighte

r

–

–

–

No rma l

Delighte

r

–

–

–

Like

–

–

–

–

Like

No rma l

Don’t

Care

Don’t

Like

P

tv

Qu

o

A

we

Negative QuestionAnswers



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50


Advantages of Classifying Critical Needs

4 Identify the Critical To Quality requirements which havethe greatest influence on customer satisfaction.

4 Prioritizing requirements for future development. It isnot very useful to invest in improving Dissatisfier

requirements that are already at a satisfactory level.4 Performing trade-offs. If two customer needs cannot be

met simultaneously due to technical or financialreasons, knowing the type of customer need can helpmake compromises that minimize the impact on

customer satisfaction.



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51

3. Convert CTQs into KPOVs

4 Once the Critical To Quality requirements of the producthave been defined, they must be converted into KeyProcess Output Variables for the process

4 The process is a function of converting inputs (Xs) into

outputs (KPOVs or Ys) Y = f(X1, X2, X3,…Xn)

4 We must first define all of the Ys that our process mustsatisfy, in order to use the DMAIC philosophy to focuson the correct Xs to improve the process



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©Pragmatic Improvement Pty Ltd 2005 All Rights Reserved52

3. Convert CTQs into KPOVs:

Getting to KPOVs (Big “Y”s)

4 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)

4 These two sources come together to develop the Big “Y” outputs that

the process must meet

CCR’s

CTQ’s

Custome rs

su

es

Custome rs

sues

___ ___ __ ___ ___ __ ___ ___

__

___ ___ __ ___ ___ __ ___ ___

__

___ ___ __ ___ ___ __ ___ ___

__

___ ___ __ ___ ___ __ ___ ___

__

VOC

VOC

___ ___ __ ___ ___ __ ___ ___

__

___ ___ __ ___ ___ __ ___ ___

__

VOB

V

OB

___ ___ __ ___ ___ __

___ ___ __ ___ ___ __

Businessssues

Businesss

sues

___ ___ __ ___ ___ __

___ ___ __ ___ ___ __

CBR’s

C

BR’s

___ ___ __ ___ ___ __

___ ___ __ ___ ___ __

VOB

- Voice of theBusinessC

B

R

- Critical BusinessRequirements

VOC

- Voice of theCustomerC

T

Q

- Critical To QualityRequirements

Y 1

Y 2

Y 3

Y n

KPO

Vs



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CTQ and CBR Examples

CTQ’s

Price/Unit

Delivery

Time

Dimensions

Purity

Reliability

Options

Service Level

CBR’sCost/Unit

Productivity

Compliance withRegulations

ChangeoverTime

Safety

Training Hours

Critical to:

The Business

The Regulator The Employees

Critical to:

The

Customer

The Market The Process

Y

1

Y

2

Y

3

Y

n

KPOV

s



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Finalizing the Big “Y”s

4 In finalizing the Big “Y”s for the process, they must be: – Tangible

– Meaningful

– Measurable

CTQs

No Defects

Quick Delivery

CBRs

Cost / Unit

Productivity

3.6D

PMO

3DayLe

adTime

$12.50pe

runi tcost

1500units/person

KPOVs



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4. Create a SIPOC map

4 Once the KPOVs have been identified, a SIPOC mapcan be created

4 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 theCustomer and begin to see the relationships between the

Outputs and the Inputs of the process



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4. Create a SIPOC map:

The SIPOC map

4

Go upstream to the process steps which most impact the Output and determine theKey Process Input Variables (KPIVs) which affect the KPOV’s.

4 Try to use leading measures instead of lagging measures – if lagging, thenclose/reduce amount of lag.

REQUIREMENTS REQUIREMENTS

MEASURES

PROCESS

MAP

Suppliers Inputs Process Outputs Customers

MEASURES

PS I O C



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4. Create a SIPOC map:

Leading and Lagging Measures

4 Leading Measures tell the need to adjust process before thefact.

– Evaluate inputs and adjust downstream process to reflect resultsof evaluation.

4 Lagging Measures inform about process performance andthe needfor adjustment after the fact.

– Some close lagging measures are able to give immediate feedback tothe 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 providinginconsistent service.

• Evaluate results of process output and feed information upstream.



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Direction

Start/Stop

Decision

Process Step

Process Mapping Symbols



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StartStop

1. Define process to be reviewed - name it.• Agree on beginning and end of process - bind it.

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.

Suppliers Inputs Outputs CustomersRequirements

Basic Steps of SIPOC Process Mapping



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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 keydecision 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.

Check

Decision

ActionStep

ActionStep

Start

Stop

5. 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)

Basic Steps of SIPOC Process Mapping (cont.)

N

Y



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What It Really Is...

SI

P OC

SI

OC

P

What You Think It Is...

Versions of a Process



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Action Plans to Validate



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Validate your preliminary process map withkey process stakeholders such as currentprocess participants, customers, and suppliers.

4Check: To ensure the map reflects the way it really works

4Identify: Exception cases

4 Ask: About typical problems and their impact

4 Assess: Current performance and check for data

Stakeholder Check-In



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4. Create a SIPOC map: SIPOC Uses

SIPO

C

§ Identify Key Output (Y’s)

Process & Input (X’s) Variables, and Metrics

Y = f(X)

Value Stream Mapping§ For deeper process analysis

Cause & EffectMatrix§ For X and Y interactions



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Congratulations, you’ve made it to the end!

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