Critical to Customer Requirements

8/2/2019 Critical to Customer Requirements

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Six Sigma QualtecAll Rights Reserved

Improving Your Business Results

Critical to CustomerRequirements

(CTCR)


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Objectives

After completing this unit, you will beable to:

Explain the framework for establishingcritical to customer requirements.


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Overview

Various business drivers determine thedirection in which the business grows.

The voice of the customer is a criticalissue to achieve success.

Obtaining the voice of the business andthe 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 thecustomer)

f: Function (how to treat and manage interrelationships)

X: Variables that must be controlled to consistentlypredict Y

Outputs are a Function of Inputs


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What Drives Your Business?

What are the Xs that impact your Ys?

Ys

BusinessResults

EmployeeSatisfaction

Customer

Satisfaction

X1

Mission

X2

Vision

X3

Strategic

Goals

X4

Priority Activities and

Critical Business Processes

X7

Evaluation& Review

X5

Principles

X6

Indicators

X8

CommunicationPlan

=Major

ImprovementOpportunities


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What About the Customer?

If you are not aligned with the customeryou are toast!


7/29Six Sigma QualtecAll Rights Reserved


What Effects the Customer Experience?Your Principles

What aligns you with your customer?

CustomerFocus




Customer Requirements

Product and service quality

Expense/cost

Delivery Integrity

Safety

Corporate responsibility




Gathering Requirements

Ask the customer:

What do you currently like about ourproduct and/or service?

What problems do you have with ourproduct and/or service?

What would you like to have that you are

not getting? What are you getting that you dont use?




CustomerWants

CustomerNeeds

Turning Expectations into Requirements

CustomerExpectations

CustomerSatisfaction

Agreed uponrequirements




Iceberg of Customer Complaints

Formal Complaints

Cancellations

Public Complaints

Silent dissatisfaction

Informal complaints

Customers votewith their feet

Non-returnsProcesses

Problem

Root Cause

Non-Referrals

Sea of Trouble

Customer perception ofservice.




Changing Expectations to Requirements

Requirements (CTCR)

Measurable Characteristics

Effectiveness and Efficiency Measures




How do you Identify your Customers?

The SIPOC model is the foundation foridentifying your customers.

IS P O C

Measures

Suppliers Inputs Process Outputs Customers

Requirements Requirements

Measures




I wanted ityesterday !

The Customer

External

External to the organization

Direct customer

Stakeholders

Internal

Next process is the customer

A chain of suppliers and customers




External

Customers

DirectCustomers -

Stakeholders -

Those who receiveand use our productsor services

Those who areaffected by our work,or who have authority

over us, but who maynot actually use ourproducts or servicesthemselves, e.g.,regulatory agencies

External Customers




Internal Customers Groups or individualswhose ability to perform ajob is impacted by thequality of products or

services we provide them.

Internal Customers




Capture Customer/Stakeholder Requirements

Types of customer/stakeholderrequirements:

Basic

Unspoken but expected.

Performance

Spoken by the customer/stakeholder.

Excitement Pleasant surprises that are generally unspoken

or difficult to verbalize.

(continued)

I i Y B i R l




Capture Customer/Stakeholder Requirements:Example

Buying a Car

Basic

Steering wheel works, gas gauge works, hornworks

Performance

Good acceleration, good traction in snow, longtime between tune-ups

Excitement Appearance, styling, feel behind the wheel

(continued)

I i Y B i R l




Customer Satisfaction

DegreeofSatisfa

ction

Clients satisfaction is expected to be LINEAR.

(continued)Degree of Achievement

Capture Customer/Stakeholder Requirements

I i Y B i R lt




Capture Customer/Stakeholder Requirements -cont.

Kano Model

Basic

Performance

ExcitementCustomerSatisfaction

Degreeof

Achievement

What are your clients basic, performanceand excitement needs?

Customer

Dissatisfaction

I i Y B i R lt




Capture Customer/Stakeholder Requirements:

Basic Needs gets you into the market

Customer Assumption

Things they do not think about

Expected qualitiesExpected functions

Things that go without saying

Where to get them

Your experience

Customer complaint log

Internal brainstormingIndustry standards

Product/Service brainstorming

Function trees

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Performance-keeps you in the market

Voice-of-Customer

Spoken wants/needs

Formal customer requirementsMore-the-better or faster-the-betterwants

Things asked for or looked for whenevaluating

Where to get them

Market research

Focus groups

Surveys/customer clinicsContract or statement of work

Customer interviewing, sales calls

Existing information






EXCITEMENT-makes you the market leader

Customer delights

Oh-wows and gee whizs

Leap improvementsInnovation

Thoughtful engineering

Where to get them

Observe products/service in use, watchthe customers at work (or play) andnotice:

Customer frustration (not likely tocomplain)

Customer modifications (after market)

Unusual/unintended product uses

Time consuming parts of usage

Involve outsiders, lateral benchmarking

Technological forecasting

Demographic trend analysis





Capturing Internal Customer and DirectCustomer/Stakeholder Requirements

Interviews

Focus groups

Surveys

Review of customer/stakeholdercomplaints



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Capturing Indirect Customer/Stakeholders Requirements

Summarizing current laws andregulations.

Consulting with internal/external

experts.

(continued)



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Requirements Identification Example

Hotel Room

Smoking vs. non-smoking roomHigh-speed internet accessPillow-top bedMultiple shower headsHairdryerTelevision/CableVideo games

Ba

sic/Performance

/Excitement

(continued)



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Requirements Identification Example -cont.

Final thought

Customer expectations and how competitors meetthose needs is constantly changing.

Features that create a distinguished product andstimulate excitement today, become desiredperformance features tomorrow.e.g.

Intermittent wipers, auto dimming mirrors, babystroller cup holders

Todays 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 fourgiven questions.

What do you currently like about our product and/orservice?

What problems do you have with our product and/orservice?

What would you like to have that you are not getting?

What are you getting that you dont use?

Create a list of 3 items that you believe your customer considerscritical 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 focuseson delighting customers/stakeholders bymeeting or exceeding their needs.

Many processes fail because thecustomer requirements are not correctlycaptured.

Documents

Critical to Customer Requirements