Tools to Achieve Performance Excellence

Translating VOC into Superior Design Robert ‘QualityBob’ Mitchell 3M

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 Product Qualification 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

1st House of Quality Product Planning Correlations Hows Importance Competitive Analysis Whats Relationships How Much

The 1st House of Quality These are the key parts of the first HOQ. Different software packages depict them a little differently but all contain the same key elements that are basically used for the same purposes.

The 1st House of Quality 10. Correlations of System Requirements 6. Relationships between Needs & Requirements 1. Customer Needs (VOC) 2. Importance ratings 3. Our performance 4. Competitive perf. These are the key parts of the first HOQ. Different software packages depict them a little differently but all contain the same key elements that are basically used for the same purposes. 7. Importance weights 9. Targets 8. Ideal values

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 Customer Selection Matrix Interview Guide

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

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

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 Performance Defined by objective criteria Focused on functionality Perception Subjective Focus is on appeal, experience Outcomes Results obtained by using the service or product Consider the amusement park example: Customers want small wait lines. The Park can issue “Fast Passes” so customers do not have to wait in lines, or increase the number and size of cars in the ride (actual wait time performance); and/or the Park can provide entertainment (distraction) for customers waiting in line (perception of wait time). Another example: Customers want small wait time for elevators. Businesses can increase the number, size and speed of elevators (performance); and/or businesses can put elevators near windows, or install mirrors near elevators (perception). Creating a Customer-Centered Culture, by Robin L. Lawton (Quality Press, 1993)

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

The VOC “CAGE” Model C A G E Key Regions Sub-Regions F B HOW project teams initially understand the VOC and define Success before any market research A) All Agree on B) What Customers got wrong WHAT customers tell us about their needs during typical VOC research C) VOC customer insights D) Development Team got wrong A Bulls-eye; What SELLS. $$$. A comprehensive and accurate set of customer needs that will win in a competitive marketplace. (Real-Win-Worth) E) Excitement Quality F) What both got wrong G) The “Givens” D F B C A G E Copyright protected; used with permission (David Verduyn, C2C Solutions Inc. www.c2c-solutions.com)

Simon Sinek’s “Golden Circles” “People don’t buy ‘what’ you do (products, services), people buy ‘why’ you do it (purpose)” Apple Computer example: What (Products/Services): Computers, iPods, iPads, iPhones, iTunes, etc. WHAT HOW How (Values): Beautiful design, simple to use, user-friendly WHY 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 TRANSACTIONAL INTEGRITY DEFENSE TRANSACTIONAL CONFIDENCE RATIONAL FOUNDATION Copyright © 2013 Gallup, Inc. All rights reserved.

Copyright © 2013 Gallup, Inc. All rights reserved.

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

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

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

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 Fulfilled Not Fulfilled Not Satisfied Exciting Quality (Unarticulated Needs) Requested Quality (Stated Needs) Not Fulfilled Fulfilled Expected Quality Remember, that meeting articulated customer needs is merely satisfying their basic needs. This provides customer satisfaction only until a better alternative comes along... Lower cost, better availability or service, improved perception of quality. Failure to meet expected quality is a definite dissatisfier; but meeting a basic need does not assure loyalty. We need to understand the customers’ perceptions of quality and what their expected outcome from using our product or service is before we can truly delight the customer. Example: Cell phone value migration Voice > Camera > Text Messaging > email access > web page access > Music > Movies > GPS (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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Commercially available QFD software Back Up Slides Commercially available QFD software

QFD On-Line http://www.qfdonline.com/templates/

QFD Capture Annual license required

Systems2Win Six Sigma Tools Pack (incl. QFD)

Systems2Win HoQ Template