IENG 451 / 452 Voice of the Customer: Analysis (KANO, CTQ) IENG 451 - Lecture 08 Voice of the Customer: Analysis (KANO, CTQ) 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

Contact Methods for Data IENG 451 / 452 Contact Methods for Data There are different methods of direct contact data: Face-to-Face Interviews Telephone Interviews Surveys Focus Groups Point-of-Use Observation All of these require: Being clear about the purpose(s) Being respectful of the contacted individual(s) Deciding how, how many and which persons to contact Preparing questions beforehand Pilot Testing and revision Collecting information Transcribing and coding information collected 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies Segmentation There are different users, and their data have different value. Examples of segmentation criteria: Economic: Revenue Profit Loyalty Frequency of Use Purchase Size Cost of business Strategic Goals Descriptive: Location Personal Demographics Product / Service Demographics Attitudinal: Price Value Service 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

Face-to-Face Interviews IENG 451 / 452 Face-to-Face Interviews This method allows you to develop communication on an individual basis – permitting flexibility and probing questions – while helping the individual feel “listened to” Use early to find out what is important to customers Use interviews during a project to: Better understand customer issues Get ideas or suggestions from the customer To cheaply test ideas with customers Use at the end of a project to validate findings and get “buy-in” Mistakes to Avoid: Not having a clear purpose Not having prepared questions Not planning for the logistics – timing, sample size, costs & training Not performing practice / pilot interviews before going public 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies Telephone Interviews Similar to Face-to-Face, this method may obtain similar benefits (below), but is perceived as “less personal” Use early to find out what is important to customers Use interviews during a project to: Better understand customer issues Get ideas or suggestions from the customer To cheaply test ideas with customers Use at the end of a project to validate findings and get “buy-in” Mistakes to Avoid: Not having a clear purpose Not having prepared questions or having an overly prepared “script” Not planning for the logistics – timing, sample size, costs & training Not performing practice / pilot interviews before going public Not “hearing” the “body language” during a call 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies Surveys Similar to Interviews, this method is perceived as even less personal and cannot easily go into as much depth; but can efficiently gather more & anonymous information Use get information from many customers (quantitative data) Use as pre-work for interviews in order to: Better understand the range of customer issues / responses To identify target areas for in-depth exploration Use as a follow-up to focus groups and interviews to quantify relationships and identified patterns Mistakes to Avoid: Not having a clear purpose Not planning for the logistics – timing, sample size, costs & training Not doing a pilot survey before going public Not planning for a long enough response time or a low response rate 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies Focus Groups This method allows you to get feedback on new concepts or existing problems / products – along with a quantitative feel for the results Use for same reasons as the interviews (see before) Use with open-ended questions to get more creativity in answers Use to observe physical interactions among participants: Customer interactions with existing products / materials Customer interactions with new prototypes / materials Customer interactions with the community (providers / customers) Mistakes to Avoid: Not having a clear purpose Not planning for the logistics – timing, sample size, costs & training Not doing a pilot focus group before going public Not having an experienced focus group leader (avoid biasing the group!) 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

Point-of-Use Observations IENG 451 / 452 Point-of-Use Observations This method is very similar to Focus Groups – minus the stimulated creativity benefits and biasing dis-benefits – but with a realistic qualitative feel for the user experience Use to observe physical interactions among participants: Customer interactions with existing products / materials Customer interactions with new prototypes / materials Customer interactions with the community (providers / customers) Mistakes to Avoid: Not having a clear purpose Not planning for the logistics – timing, sample size, costs & training Not developing and testing the observation form in a pilot study! Not giving the observer(s) observation experience through a pilot study! If going on-site (to a customer): Not giving enough consideration to the customer’s logistics Not giving the customer sufficient follow-up results (partnership!) 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

Analyzing the Voice of the Customer IENG 451 / 452 Analyzing the Voice of the Customer The VOC is integral to the assessment of Value: Reduce the risk of Over-Emphasis on some features – such as those features that the customer does not view as meeting their need for the item or service Reduce the risk of Under-Emphasis of some features – such as those features that that the customer expects as a matter of market entry, but does not view as a reason to select a specific item To Identify features that entice the customer – those needs or desires that they did not recognize in seeking out the product or service, but will positively influence them to select a specific option 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies KANO Analysis Steps in performing a KANO analysis: Collect data from as many different methods as possible Identify the known and presumed customer needs For each potential need, ask the customer to assess: How they would feel if the need WAS addressed? How they would feel if the need WAS NOT addressed? Use the four levels of response (next slide) Place the customer responses into the matrix (next slide), and classify each need as a: Dissatisfier – a basic requirement that must be delivered Satisfier – a performance requirement that allows you to stay in the market Delighter – an unexpected requirement that earns extra consideration Incorporate the information into the product / service 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

KANO Analysis Levels of response in a KANO analysis: I’d like it IENG 451 / 452 KANO Analysis Levels of response in a KANO analysis: I’d like it It is normally that way (an expected feature) I don’t care I wouldn’t like it If you DON"T address it, customer responds: Like Normal Don't Care Don't Like If you DO address it, customer responds: X Delighter Satisfier Dissatisfier Dissatisfier – a basic requirement that must be delivered Satisfier – a performance requirement that allows you to stay in the market Delighter – an unexpected requirement that earns extra consideration 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies KANO Analysis HIGH Customer Satisfaction Delighter – a breakthrough need or feature that earns extra consideration Satisfier – core competitive requirements Performance requirement done poorly or not at all Performance requirement done very well Dissatisfier – a basic requirement that must be delivered LOW Customer Satisfaction 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

Critical to Quality Requirements (CTQ) IENG 451 / 452 Critical to Quality Requirements (CTQ) Customer comments are often too vague to be acted upon, so: Gather the relevant VOC data for your product / service Identify the relevant statements of customer needs on cards Use the Affinity Diagram process to find themes Using the themes, probe the customer to find out: WHY do they feel that way about the need? CLARIFY their feelings as much as possible? Ask WHY FIVE times (or as needed) Conduct further customer contact to quantify the need, i.e.: HOW – does the customer define timely? HOW – does the customer define friendly? HOW – does the customer define comfortable? Step back and examine the requirements as a set. Are there things that are missing? What are the things that were not mentioned? 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies Good CTQ Requirements Customer requirements are good when they: Are specific and easily measured Are related directly to an attribute of the product Don’t have alternative requirements Don’t bias the design towards a particular approach Describe what the need is, but not HOW it will be met 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen

IENG 451 Operational Strategies Questions & Issues 9/11/2018 IENG 451 Operational Strategies (c) 2016 D.H. Jensen