1. Tools to Achieve Performance Excellence

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

3. Quality & Innovation
VOC
QFD
CAGE
Culture
Behavioral Economics
Kano

4. 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

5. 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

6. 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

7. 1st House of Quality Product Planning
Correlations
Hows
Importance
Competitive
Analysis
Whats
Relationships
How Much

8. 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.

9. 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

10. 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

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

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

13. 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

14. 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?

15. 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)

16. 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)

17. 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.

18. 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

19. CUSTOMER ENGAGEMENT HIERARCHY
PASSION
OFFENSE
TRANSFORMATIONAL
PRIDE
TRANSACTIONAL
INTEGRITY
DEFENSE
TRANSACTIONAL
CONFIDENCE
RATIONAL FOUNDATION
Copyright © 2013 Gallup, Inc. All rights reserved.

20. Copyright © 2013 Gallup, Inc. All rights reserved.

21. 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.

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

23. 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.

24. 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

25. 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 > access > web page access > Music > Movies > GPS
(Basic needs)
Not Satisfied

26. 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

27. Thank You

28. Commercially available QFD software
Back Up Slides
Commercially available QFD software

29. QFD On-Line

30. QFD Capture
Annual license required

31. Systems2Win Six Sigma Tools Pack (incl. QFD)

32. Systems2Win HoQ Template