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
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 QFD Process 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
Whats Hows Relationships Competitive Analysis How Much Correlations 1 st House of Quality Product Planning ImportanceImportance
The 1 st House of Quality
5. System Requirements The 1 st House of Quality 1. Customer Needs (VOC) 2. Importance ratings 3. Our performance 4. Competitive perf. 6. Relationships between Needs & Requirements 7. Importance weights 10. Correlations of System Requirements 8. Ideal values 9. Targets
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 Customer Intimacy Impersonal Integrated Surveys Written questionnaire Paper Electronic Telephone interview Face-to-face Diaries (usage) Data Quantitative Discrete or Continuous Language data (limited) Qualitative (limited) Focus group/Panel Questions or Statements Direct Focused to get specific Information Qualitative Language data Open-ended Focused to cover specific topics Qualitative Language data Observations High-gain Open-ended Limited topics Voice of customer (VOC) Face-to-Face with Interviewer, Recorder, and Observer Moderator guided and recorders Become the customer Extended on-site visit Site observation Documentation Qualitative Language data Customer-Specific Requirements; Specs, P.O.s, etc. Complaints, Customer Svc Field Sales, Tech Svc
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 What we Measure 3Performance (Features) 1 2Perception (Advantages) 2 1 Outcomes (Benefits) 3 Creating a Customer-Centered Culture, by Robin L. Lawton (Quality Press, 1993)
KeyRegionsSub-Regions 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” The VOC “CAGE” Model CA G E B B F F D D Copyright protected; used with permission (David Verduyn, C2C Solutions Inc.
Simon Sinek’s “Golden Circles” “People don’t buy ‘what’ you do (products, services), people buy ‘why’ you do it (purpose)” 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 WHAT HOW WHY Apple Computer example: 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
Behavioral Economics Why Can’t People See the Opportunity for Innovation?
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) Top 5 Innovation Factors 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 Requested Quality Expected Quality Not Fulfilled Fulfilled Not Satisfied Satisfied (Basic needs) (Unarticulated Needs) (Stated 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
Back Up Slides Commercially available QFD software