6/5/2013 1 Measuring What the Customer Values: Automotive Paint Quality Metrics Linda Gerhardt, PhD Paint Quality & Competitive Benchmarking Global Center - Strategy and Planning GM ME Vehicle Systems June 2013 Paint Quality: Areas of Focus Long - Term Quality (Paint that is Durable) Perceived Quality (Paint that Looks Great) Initial Quality (Paint the is Defect Free)
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Measuring What the Customer Values: Automotive Paint ... 1 Measuring What the Customer Values: Automotive Paint Quality Metrics Linda Gerhardt, PhD Paint Quality & Competitive Benchmarking
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6/5/2013
1
Measuring What the Customer Values: Automotive Paint Quality Metrics
Linda Gerhardt, PhD Paint Quality & Competitive Benchmarking
Global Center - Strategy and Planning GM ME Vehicle Systems
June 2013
Agenda
Paint Quality: Areas of Focus
Long-Term Quality
(Paint that is Durable)
Perceived Quality (Paint that
Looks Great)
Initial Quality
(Paint the is Defect Free)
6/5/2013
2
Agenda
Paint Quality: Areas of Focus
Long-Term Quality
(Paint that is Durable)
Perceived Quality (Paint that
Looks Great)
Initial Quality
(Paint the is Defect Free)
Agenda
Initial Quality: JD Power IQS3
Initial Quality is Statistically Clustered JD Power IQS3 - First 90 Days of Ownership Paint Defects
Blemishes
Dirt
Runs
Peeling
Chips
Scratches
~2 IPHV
6/5/2013
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Agenda
Paint Quality: Areas of Focus
Long-Term Quality
(Paint that is Durable)
Perceived Quality (Paint that
Looks Great)
Initial Quality
(Paint the is Defect Free)
Agenda
Long-Term Quality: JD Power VDS
Long-Term Quality is Statistically Clustered JD Power VDS - Measured at 3 Years Paint Durability
Fading
Chipping
Peeling
Cracking
~4 IPHV
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Agenda
Paint Quality: Areas of Focus
Long-Term Quality
(Paint that is Durable)
Perceived Quality (Paint that
Looks Great)
Initial Quality
(Paint the is Defect Free)
Agenda
Perceived Quality: Defined
An Emotional Reaction
Not Easily Explained or Defined by the Customer
Direct Link to Financial Performance
Perceptions Often Hold After Actual Quality has Changed
Reputation and Past Quality Performance are Key Factors Impacting Current PQ
“… Perceived Quality is the Single Most Important Contributor to a Company’s ROI, having more Impact than Market Share, R&D, or Marketing Expenditures…”
Aaker, Dr. David, Building Strong Brands,
New York: Simon and Schuster, Ltd., 2002
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Agenda
Perceived Quality: A BIS Opportunity
Initial and Long-Term Quality are Statistically Clustered & Provide Little Opportunity for Differentiation
Perceived Quality Can be a Competitive Advantage
Opportunity + Business Drivers + Engineering Application = Decision to Drive PQ for Best in Segment (BIS)
AVS Group, The Six Financial Benefits
to Brand Identity March 2011
http://www.avsgroup.com
Commands Price Premium
Creates Perception of
Quality
Creates Greater
Customer Value
Perceived Quality Drives
Loyalty
PQ Enhances ROI & Creates Differentiation
Differentiation Increases Operating
Margin
Strong Brand
Identity
Agenda
PQ: Exterior Appearance Contribution
GMU Quality College, Course 20783
Initial Perception of Quality Occurs during the first 10 minutes
First Impressions Extend Beyond Exterior Appearance
Impressions are Not Easily Captured in Standard Quality Metrics
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Agenda
Paint PQ: Applying Engineering Methodology
Customer Input
Reliable Measurement
System
Customer Correlation
Data Collection &
Benchmarking by Region
Analysis by Market
Segment
Target Setting & Value
Engineering
Agenda
Paint Perceived Quality: A Science
Engineering Methodologies have been applied to Capture the Customer’s Emotional Reaction
PQ Dimensions have been Derived from Product Reviews and Customer Clinics / Verbatims
Objective Metrics have been Correlated with what the Customer Sees and Values
Benchmarking and Data Collection Allow Real BIS Target Setting, as Competitive Data are Analyzed
“You Can’t Manage What You Don’t Measure.”
-- Peter Drucker
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Agenda
A True Global Snapshot!
55 Brands >350 Models
All Regions 15 Countries
Agenda
Field Survey - Validated Instruments
Exterior Surface Appearance
• Nominal Orange Peel “R” Value & Surface Uniformity