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slide1

Voice of the Customer

Presented By The University of Texas-School of Public Health

This material was produced under grant number SH-22316-SH-1 from the Occupational Safety and Health Administration, U.S. Department of Labor. It does not necessarily reflect the views or policies of the U.S. Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement by the U.S. Government.

learning objectives
Learning Objectives

By the end of this module participants should be able to:

Identify the definition of the voice of the customer (VOC)

List the importance of the voice of the customer (VOC)

Analyze the customers’ needs using four steps of the voice of the customer (VOC) analysis

Develop a tactical Supplier Input Process Output Customer (SIPOC) chart based on the voice of the customer (VOC) analysis

the dmaic process with tools

DAY 1

1&2

Phase

Define

The DMAIC Process with Tools

  • Tools:
  • SIPOC
    • Voice of Customer (VOC) Analysis
    • Value Stream Mapping
    • Process Mapping

Measure

Analyze

Improve

Control

4 create a sipoc chart

S

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P

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Boundary -

(Start of

Process)

Boundary -

(Completion

of Process)

C

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M

E

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O

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P

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PROCESS

Requirements, Specs and Information

4. Create a SIPOC Chart

Translate Customer Requirements into output specs and identify related Key Process Output Variables (KPOVs).

Go upsteam to the process steps which most impact the Output and determine the Key Process Input Variables (KPIVs) which effect the KPOV’s.

Try to use leading measures instead of lagging measures – if lagging, then close/reduce amount of lag.

The SIPOC Chart

slide5

Suppliers:

Inputs:

Outputs:

Customers:

SIPOC Chart

Start Boundary ____________

End Boundary ____________

Process

the dmaic process with tools1

DAY 1

1&2

Phase

Define

The DMAIC Process with Tools

  • Tools:
  • SIPOC
    • Voice of Customer (VOC) Analysis
    • Process Mapping
    • Value Stream Mapping

Measure

Analyze

Improve

Control

who are the customers
Who Are the Customers?

Who are they?

  • Defined as: “Any person or organization that receives a product or service (Output) from the work activities (Process)”
  • Whose needs must be met for this process to be successful?

Types of “customers”:

    • External: Individuals or organizations outside of your business who are usually associated with paying money for your products and services
    • Internal: Colleagues who receive products, services, support or information from your process – i.e. Engineering, Manufacturing, Quality, Marketing, Regulatory: Any government agency that has standards the process or product must conform to – i.e. OSHA, EPA, FDA, UL, MilSpec,etc.

Which customer?

  • Customers can often be logically placed into groups or segments (not all customers should be treated equally)
what is voice of the customer
What Is “Voice of the Customer” ?

“Voice of the Customer” (VOC) is the expression of customer needs and desires

  • May be specific – “Lifting equipment is located in 3rd floor suit 312 next to outpatient unit”
  • May be ambiguous – “Lifting equipment is in right place”

Compare the VOC to what the process actually is or what the process is actually delivering!

why is voc important
Why Is VOC Important?

They “pay for their care” so it’s important to understand their needs:

  • Customer behavior is a key input to strategy and process design

They define the “playing field”

  • They serve as the referee for all competitors
  • They define what is a “value-added” activity or service

They are always right

  • Perception is reality for your customer
  • They’ll take their business elsewhere

To meet the needs of internal customers such as Physicians and Nurses.

  • Meet safety requirements
  • To reduce wasteful activities such as non value added paper work
  • To foster team work that is patient centered
how do our customers communicate with us
How Do Our Customers Communicate with Us?

Types of Voices

Sources of Customer Voices

  • Complaints
  • Compliments
  • Surveys
  • Face to Face
  • Market share changes
  • Customer defections
  • Customer referrals
  • Through their attorneys
  • Staff Meetings
  • What other customer voices do you use in your business?
  • Outbound Communications

Customers

customers define quality
Customers Define “Quality”
  • Flexibility and Options
  • Timeliness
  • Accuracy

Customers

You must understand what the customers care about as it relates to your process.

  • Easeof Use

Aesthetics

process design requirements
Process Design Requirements

Where do Process Design Requirements come from?

  • Customers (Voice of the Customer – VOC)
  • Business (Voice of the Business – VOB)
  • Stakeholders
  • Regulatory Agencies
  • Suppliers
  • Others
process design requirements1
Process Design Requirements

Process

External

Those who receive/use the process outside your organization

Those who may be affected by production use of the product/

process (e.g. pollution)

Customer

  • A
  • B
  • C

Process/

Service

Supplier

Consumer

Stakeholders

Those who have some “stake” in the product/

service process success or failure.

Internal

“The Next Process is Your Customer”

Internal

“The Next Process is Your Customer”

Bystander

  • Management
  • Shareholder
  • Regulatory Agency

Dealers

exercise 1 making it real
Exercise # 1: Making it Real

Process

Decision to move patient

Selection of lifting equipment

Lift Patient

performance needs vs business requirements
Performance Needs vs. Business Requirements

Define how the process

must perform.

Define the operating parameters around the process.

These primarily come from the value chain partners

Examples: Cost reduction, capital limitations, space limitations, development time limitations, supplier capability etc.

  • These primarily comes from our internal/external customers
  • Examples: Lead time (e.g., time to get equipment), Defect free (e.g., injury free, pain free) Low cost etc.
  • Don’t be distracted or wowed by ‘features’(e.g., bells and whistles) asked for by the Customers. Features are often, though not always, just solutions to Performance Needs (and not business requirements?).
  • Validate the need for the feature or, better yet, gather the base need.
  • Avoid solutions until the Improve phase.
performance needs vs business requirements1
Performance Needs vs. Business Requirements

Define how the process

must perform.

Define the operating parameters around the process.

These primarily come from the value chain partners

Examples: Cost reduction, capital limitations, space limitations, development time limitations, supplier capability etc.

  • These primarily comes from our internal/external customers
  • Examples: Lead time (e.g., time to get equipment), Defect free (e.g., injury free, pain free) Low cost etc.
  • Don’t be distracted or wowed by ‘features’(e.g., bells and whistles) asked for by the Customers. Features are often, though not always, just solutions to Performance Needs (and not business requirements?).
  • Validate the need for the feature or, better yet, gather the base need.
  • Avoid solutions until the Improve phase.

Both are important!

The revised process must

meet the Performance Needs

within the framework of the

Business Requirements.

performance need categories
Performance Need Categories
  • Quality

Product or Service Features, Characteristics Relating to the Function of the Product or Service, Reliability, Availability, Effectiveness, Recovery, Customer Returns, Defects, Rework or Scrap (Derived Primarily from the Customer – VOC)

  • Cost

Process Cost Efficiency, Purchase Price, Repair Costs, Maintenance Costs.

(Derived Primarily from the Business – VOB)0

  • Speed

Lead Times, Delivery Times, Turnaround Times, Setup Times, Delays, Up Time, Equipment Availability,(Derived equally from the Customer or the Business – VOC/VOB)

Environment, Health and Safety Policy,Service Requirements, After-Purchase Reliability, Parts Availability, Service, Warranties, Maintainability, Customer-Required Maintenance, Product Liability, Product/Service Safety, Recordable Injuries, Lost Time.

  • Service and Safety
  • Corporate Responsibility

Ethical Business Conduct, Business Risk Management, Environment, Health and Safety Policy, Code of Conduct

slide18

4 Steps to Validating the Project through VOC

Gather the Voice of the Customer (VOC)

2. Translate the VOC into Critical Customer Requirements (CCRs)

3. Convert the CCRs into Key Process Output Variables (KPOVs)

4. Create a tactical Supplier Input Process Output Customer (SIPOC) chart

1 gather the voice of the customer voc
1. Gather the Voice of the Customer (VOC):

The Greatest Value Can Come From a

Small Portion of Your Customer Base

The first step in gathering the VOC, is customer segmentation.

  • All customers are not created equal, and do not create equal value
  • Avoid “squeaky wheel” syndrome

If customers aren’t segmented, it may prove impossible to get a single “voice,” and the multiple voices may lead in opposite directions.

Customers should be segmented or grouped according to their similar need for products and services

Identify and focus on the most important segments

Customer Segmentation

Total Customers

Total Value

1 gather the voice of the customer voc1
1. Gather the Voice of the Customer (VOC):
  • Economic
    • Revenue
    • Frequency
    • Size of Customer
    • Cost
    • Strategic goals
  • Descriptive
    • Geographic
    • Demographic
    • Product feature
    • Industry
  • Attitudinal
    • Price
    • Value
    • Service

Revenue

Geographic

Identify Your Customer Segments

Price and Service

1 gather the voice of the customer voc2

Potential Segments

Product/Service

Customers

1. Gather the Voice of the Customer (VOC):

- Sample Form -

Objective

Identifying customer segments using “buckets”

Instructions

1. Select a specific process output (product or service) from your division.

2. List customers of the product or service.

3. Identify ways to segment each customer.

4. Present findings to participants.

Customer Segment Matrix

sample making coffee
Sample – Making Coffee

Internal or External?

Segments/ Description

Priority

Customer

Customer Segmentation Worksheet

exercise 2
Exercise # 2

Internal or External?

Segments/ Description

Priority

Customer

Customer Segmentation Worksheet

1 gather the voice of the customer voc3
1. Gather the Voice of the Customer (VOC):

Select Sources of Customer Information

Sources of Customer Information

Internal and

External Data

Listening

Post

Research

Methods

  • Existing Company Information i.e. product returns, market share, etc.
  • Industry Experts
  • Secondary Data
  • Competitors
  • Complaints
  • Customer Service Representatives
  • Sales Representatives
  • Billing
  • Accounts Receivable
  • Collection
  • Interviews
  • Surveys
  • Focus Groups
  • Observations

Listening to the VOC

1 gather the voice of the customer voc4
1. Gather the Voice of the Customer (VOC):

Communicating with Customers

Possible sources of receiving information from your customers:

Interviews

Surveys

Focus Groups

Informal Grape Vine

1 gather the voice of the customer voc5
1. Gather the Voice of the Customer (VOC):

Communicating with Customers

No matter what source of customer information is used, customer communication has three basic parts:

1. Asking the right questions

2. Asking questions in the right way

3. Understanding the answers

slide27

Exercise # 3 : Brainstorming

Communicating with Customers

slide28

4 Steps to Validating the Project through VOC

Gather the Voice of the Customer (VOC)

2. Translate the VOC into Critical Customer Requirements (CCRs)

3. Convert the CCRs into Key Process Output Variables (KPOVs)

4. Create a tactical Supplier Input Process Output Customer (SIPOC) chart

2 translate the voc into critical customer requirements ccrs
2. Translate the VOC into Critical Customer Requirements (CCRs)

Voice of the Customer

After Clarifying,the Key Issue(s) Is...

Critical Customer Requirements

  • 10 day lead time ±1 day
  • “I hate dealing with this company!”
  • Products are not delivered on time

Once the Voice of the Customer has been gathered, that information must be translated into Critical Customer Requirements (CCRs).

Good customer requirements:

  • Are specific and measurable (and the method of measurement is specific)
  • Are related directly to an attribute of the product or service
  • Don’t have alternatives and don’t bias the design toward a particular approach or technology
  • Are complete and unambiguous
  • Describe what, not how
2 translate the voc into critical customer requirements ccrs2
2. Translate the VOC into Critical Customer Requirements (CCRs)

Making sense of qualitative data is an iterative process

It involves interpretation and prioritization

Often requires follow-up with additional research

Useful tools:

  • Affinity Analysis
  • Tree Diagrams

Getting Value from VOC Data

2 translate the voc into critical customer requirements ccrs3

Theme 1

Theme 3

Need 1

Need 2

Need 7

Theme 2

Need 3

Need 4

Need 8

Need 5

2. Translate the VOC into Critical Customer Requirements (CCRs)

The first step in getting value from customer data is organizing it in a way that will reveal themes

An affinity diagram is a good tool for this purpose since it organizes language data into related groups

  • Gather ideas from interview transcripts, surveys, etc.
  • Generate customer need statements on cards or sticky notes (in the customer’s own language if at all possible)
  • Group the cards to find the “affinity”
  • Label the groups of cards

Affinity Diagrams

slide34

4 Steps to Validating the Project through VOC

Gather the Voice of the Customer (VOC)

2. Translate the VOC into Critical Customer Requirements (CCRs)

3. Convert the CCRs into Key Process Output Variables (KPOVs)

4. Create a tactical Supplier Input Process Output Customer (SIPOC) chart

3 convert ccrs into kpovs
3. Convert CCRs into KPOVs

Once the Critical Customer Requirements of the product have been defined, they must be converted into Key Process Output Variables for the process

The process is a function of converting inputs (Xs) into outputs (KPOVs or Ys)

Y = f(X1, X2, X3,…Xn)

We must first define all of the Ys that our process must satisfy, in order to use the ADVANCE philosophy to focus on the correct Xs to improve the process

Intro Nursing System Theory...

system theory
System Theory

Inputs

Outputs

Throughput Process

3 convert ccrs into kpovs1

KPOVs

Y1

Y2

Y3

Yn

VOC

-

Voice of the Customer

VOB

-

Voice of the Business

CCR

-

Critical Customer Requirements

CBR

-

Critical Business Requirements

3. Convert CCRs into KPOVs

Customer

Customer

CCR’s

CCR’s

VOC

VOC

Issues

Issues

________

________

________

________

________

________

Key Process Output Variables come from two sources:

  • The Critical to Customer Requirements (Voice of the Customer - VOC)
  • The Critical to Business Requirements (Voice of the Business – VOB)

These two sources come together to develop the Big “Y” outputs that the process must meet

Getting to KPOVs (Big “Y”s)

________

________

________

________

________

________

________

________

________

________

________

________

Business

Business

VOB

CBR’s

VOB

CBR’s

Issues

Issues

________

________

________

________

________

________

________

________

________

________

________

________

3 convert ccrs into big ys
3. Convert CCRs into Big Ys

In finalizing the Big “Y”s for the process, they must be:

  • Tangible
  • Meaningful
  • Measurable

Finalizing the Big “Y”s

slide40

4 Steps to Validating the Project through VOC

Gather the Voice of the Customer (VOC)

2. Translate the VOC into Critical Customer Requirements (CCRs)

3. Convert the CCRs into Key Process Output Variables (KPOVs)

4. Create a tactical Supplier Input Process Output Customer (SIPOC) chart

4 create a sipoc chart1
4. Create a SIPOC Chart

SIPOC

Finalizing the Big “Y”s

Once the KPOVs have been identified, a SIPOC chart can be created

Supplier Input Process Output Customer (S IPOC) Chart

  • Suppliers – All internal and external suppliers to the process
  • Inputs– All inputs to the process i.e. material, forms, information, etc.
  • Process– One block representing the entire process
  • Outputs– All outputs for both internal and external customers
  • Customers– All internal and external customers to the process
4 create a sipoc chart2

S

U

P

P

L

I

E

R

Boundary -

(Start of

Process)

Boundary -

(Completion

of Process)

C

U

S

T

O

M

E

R

O

U

T

P

U

T

I

N

P

U

T

PROCESS

Requirements, Specs and Information

4. Create a SIPOC Chart

Translate Customer Requirements into output specs and identify related Key Process Output Variables (KPOVs).

Go upsteam to the process steps which most impact the Output and determine the Key Process Input Variables (KPIVs) which effect the KPOV’s.

Try to use leading measures instead of lagging measures – if lagging, then close/reduce amount of lag.

The SIPOC Chart

4 create a sipoc chart3
4. Create a SIPOC Chart

Leading Measures tell the need to adjust process before the fact.

  • Evaluate inputs and adjust downstream process to reflect results of evaluation.

Lagging Measures inform about process performance and the need for adjustment after the fact.

  • Some close lagging measures are able to give immediate feedback to the process – small likelihood of providing inconsistent service.
    • Evaluate results of process step and feed information upstream.
  • Some long lagging measures take so long to give feedback that decision-making is not timely and not well defined – great likelihood of providing inconsistent service.
    • Evaluate results of process output and feed information upstream.

Leading and Lagging Measures

4 create a sipoc chart4

Suppliers:

Inputs:

Outputs:

Customers:

4. Create a SIPOC Chart

End Boundary ____________

Start Boundary ____________

Process

Use the SIPOC Chart to Develop Measures

slide45

Suppliers:

Inputs:

Outputs:

Customers:

Exercise # 6 : SIPOC Chart

Start Boundary ____________

End Boundary ____________

Process

takeaways
Takeaways

The Voice of the Customer is translated into Critical Customer Requirements for the product and then Key Process Output Variables for the process.

The Voice of the Business (value chain partners) is also used to drive additional KPOVs.

A SIPOC Chart is used to develop the relationship between the KPOVs (Y’s) and the KPIVs (X’s).

The Project Problem Statement should be validated using the information from the VOC and VOB.

summary
Summary
  • Voice of the Customer (VOC) is the expression of customer needs and desires.
  • Voice of the Customer (VOC) is a important key input to strategy and process design.
  • 4 Steps to Validating the Project through VOC
    • 1. Gather the Voice of the Customer (VOC)
    • 2. Translate the VOC into Critical Customer Requirements (CCRs)
    • 3. Convert the CCRs into Key Process Output Variables (KPOVs)
    • 4. Create a tactical Supplier Input Process Output Customer (SIPOC) chart
  • A SIPOC Chart is used to develop the relationship between the KPOVs (Y’s) and the KPIVs (X’s).