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 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 Whats I m p o r t a n c e Relationships How Much Competitive Analysis Hows Correlations The 1st House of Quality The 1st 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 Market Segment Names for selected cells 1. 2. 3. 4. ____________ ____________ ____________ ____________ 1. 2. 3. 4. ____________ ____________ ____________ ____________ 1. 2. 3. 4. ____________ ____________ ____________ ____________ 1. 2. 3. 4. ____________ ____________ ____________ ____________ 1. 2. 3. 4. ____________ ____________ ____________ ____________ Our Customer Competitor Customer Dual Competitive Lapsed Customer Technology Customers 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 Customers 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 Key Regions Sub-Regions HOW project teams initially understand the VOC and define Success before any market research A) All Agree on WHAT customers tell us about their needs during typical VOC research C) VOC customer insights 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 B) What Customers got wrong D) Development Team got wrong F) What both got wrong G) The “Givens” Copyright protected; used with permission (David Verduyn, C2C Solutions Inc. www.c2c-solutions.com) 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, iPods, iPads, iPhones, iTunes, 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 Copyright © 2013 Gallup, Inc. All rights reserved. Copyright © 2013 Gallup, Inc. All rights reserved. Four Types of Customers Fully Engaged Engaged Not Engaged Strongly attached and loyal. Your most valuable customers Beginnings of emotional attachment but not strong Emotionally and attitudinally neutral Copyright © 2013 Gallup, Inc. All rights reserved. Actively Disengaged Active emotional detachment and antagonism 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 Exciting Quality (Unarticulated Needs) Requested Quality (Stated Needs) Not Fulfilled Fulfilled Expected Quality (Basic needs) 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 Thank You