Tools to Achieve Performance Excellence Translating VOC into

Tools to Achieve Performance Excellence

Translating VOC into Superior Design Robert ‘Quality. Bob’ Mitchell 3 M

Quality & Innovation • • • VOC QFD CAGE Culture Behavioral Economics Kano

Translating VOC using the QFD House of Quality • Translating Voice of Customer into validated product/service requirements • Understanding the competitive environment • Delivering on the requirements • Maintaining control • Knowledge management

QFD Process Product Planning Matrix Identifies critical customer requirements and translates them into technical requirements Product Qualification Matrix Translates technical requirements into product quality characteristics Process Planning Matrix Identifies critical materials and process steps to meet customer requirements Process Control Matrix Identifies control methods

House of Quality Deployment • First House of Quality – Customer requirements – Product performance measures – Correlation of product requirements – Competitive analysis information • Lower Level Houses of Quality – Product performance requirements – Product design / features – Process variables information – Raw material information – Control methods

1 st House of Quality Product Planning Whats I m p o r t a n c e Relationships How Much Competitive Analysis Hows Correlations

The 1 st House of Quality

The 1 st House of Quality 10. Correlations of System Requirements 9. Targets 8. Ideal values 4. Competitive perf. 7. Importance weights 3. Our performance 6. Relationships between Needs & Requirements 2. Importance ratings 1. Customer Needs (VOC) 5. System Requirements

Translating Voice of Customer into Validated Product/Service Requirements • Gathering customer needs (Voice of Customer) • Translating the voices of the customer into prioritized customer needs • Validating customer needs with the customer • Creating product/service requirements from the customer needs

Collecting the Voice of the Customer • Define the objective • Determine who to contact • Decide what to ask Interview Guide Customer Selection Matrix

Collecting the Voice of the Customer • Site Observation • “Listen” beyond the words

Methods for Gathering Customer Input Customer Intimacy Impersonal Data Questions or Statements Complaints, Customer Svc Surveys Written questionnaire • Paper • Electronic Telephone interview Face-to-face Diaries (usage) Quantitative Discrete or Continuous Language data (limited) Qualitative (limited) Focus group/Panel Moderator guided and recorders Qualitative Language data Open-ended Focused to cover specific topics Qualitative Language data Customer-Specific Requirements; Specs, P. O. s, etc. Site observation Documentation Field Sales, Tech Svc Voice of customer (VOC) Face-to-Face with Interviewer, Recorder, and Observer Become the customer Integrated Extended on-site visit Qualitative Language data Observations Direct Focused to get specific Information High-gain Open-ended Limited topics

Additional considerations to prioritize VOC • Importance to the customer • Pain for customer – How well does the competition satisfy the need now? – How well do you satisfy that need now? • How much does the customer value the satisfaction of this need? – Purchase driver? (Switching costs) – Will Customer potentially pay more? – Does the perceived value offset the switching cost?

Customer Satisfaction –Three Major Criteria 1. Performance – Defined by objective criteria – Focused on functionality 2. Perception – Subjective – Focus is on appeal, experience 3. Outcomes – Results obtained by using the service or product Creating a Customer-Centered Culture, by Robin L. Lawton (Quality Press, 1993)

Customer Value Prioritization What Customer s Value 3 What we Measure Performance 1 (Features) 2 Perception 2 (Advantages) 1 Outcomes 3 (Benefits) Creating a Customer-Centered Culture, by Robin L. Lawton (Quality Press, 1993)

The VOC “CAGE” Model Ke y Regions Sub-Regions HOW project teams A) All Agree on initially understand the B) What VOC and define Customers got Success before any wrong market research WHAT customers tell us about their needs during typical VOC research C) VOC customer insights D) Development Team got wrong A Bulls-eye; What E) Excitement SELLS. $$$. A Quality comprehensive and F) What both got accurate setused of with permission Copyright protected; wrong (David Verduyn, C 2 Cneeds Solutions Inc. www. c 2 c-solutions. com) customer that G) The will win in a B C B D F A F G E D

Simon Sinek’s “Golden Circles” “People don’t buy ‘what’ you do (products, services), people buy ‘why’ you do it (purpose)” WHAT HOW WHY Apple Computer example: What (Products/Services): Computers, i. Pods, i. Pads, i. Phones, i. Tunes, etc. How (Values): Beautiful design, simple to use, user-friendly Why (Purpose): Challenge the status quo; Think differently MN ASQ section 1203: What: Classes, Programs, Conferences How: Professional development Why: A community of practice that enhances skills to improve total customer / patient experience

CUSTOMER ENGAGEMENT HIERARCHY PASSION OFFENSE TRANSFORMATIONAL PRIDE INTEGRIT Y DEFENSE CONFI DENCE TRANSACTIONAL RATI ONAL Copyright © 2013 Gallup, Inc. All rights reserved. FOUN DATI ON TRANSACTIONAL

Copyright © 2013 Gallup, Inc. All rights reserved.

Four Types of Customers Fully Engaged Not Engaged Actively Disengaged Strongly attached and loyal. Your most valuable customers Beginnings of emotional attachment but not strong Emotionally and attitudinally neutral Active emotional detachmen t and antagonism Copyright © 2013 Gallup, Inc. All rights reserved.

Behavioral Economics Why Can’t People See the Opportunity for Innovation?

Top 5 Innovation Factors 1. Culture (employee attitudes & participation) 2. Senior Leadership Support (risk / long-term results) 3. Capabilities (workforce talent, training, & experience) 4. Strategy (alignment to profitable growth & business goals) 5. Process (effective methods & tools) Quantitative Study Comprised of 1, 486 ASQ Senior and Fellow Responses.

Culture of Innovation Creating a culture of innovation • Employee engagement • Freedom to experiment. . . and fail • Teamwork, collaboration • Customer engagement • Customers advocate for you • Participate in product design & test • Use VOC and QFD to: • Change the basis of competition • Create differentiated performance and value

Kano Model Satisfied Exciting Quality (Unarticulated Needs) Requested Quality (Stated Needs) Not Fulfilled Expected Quality (Basic needs) Not Satisfied

Why use QFD? • • Shorter Development Time Shorter Time to Business Success Better Process Understanding Fewer Engineering Changes Lower Design Cost Reduced Manufacturing Costs Satisfaction of Customer Needs Competitive Advantage

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