Successfully Implementing Six Sigma in Sales & Marketing - VOC

Successfully Successfully Implementing Six Sigma Implementing Six Sigma in Sales & Marketingin Sales & Marketing

Successfully Successfully Implementing Six Sigma Implementing Six Sigma in Sales & Marketingin Sales & Marketing

The Voice of the Customer (VOC) Driving Design for Six Sigma

The Voice of the Customer (VOC) Driving Design for Six Sigma

Corporate Office, 84 State Street Boston, MA 02109 (617) 723-1150 www.pdcinc.com

Sheila [email protected]

A Presentation especially for:

mailto:[email protected]

www.pdcinc.com ©2004 Product Development Consulting, Inc. 2

Reference: “How Customer’s Think” by Gerald Zaltman., Harvard Business School Press; (February 21, 2003)

Approximately 80% of all new products fail

within six months or fall significantly short of their profit forecast


46% of development resources are spent on

projects which commercially fail or

never make it to market

Reference: “Accenture Study 2002


What Are Companies Doing with Customer Data?What Are Companies Doing with Customer Data?

1999 2001Marketing 18% 52%

Customer Service 16% 48%

Sales 16% 34%

Process Improvement

2% 22%

Fraud Detection 10% 14%

Product Development

4% 10%

Don’t Use Data 72% 0%

Don’t Know 0% 18%Data: Forrester Research Survey of 50 of the 100 Largest US Companies

Getting better but not fast enough to reduce defects in product development!


Is This a Surprise?Is This a Surprise?• Most companies address product definition by validating

features with their customers~ Even worse are those that say: “We know what the customer

needs better than they do”

• This approach assumes that you have the right features


At Worst You Destroy Your Six Sigma ResultsAt Worst You Destroy Your Six Sigma Results• Is there a bigger defect that a product that does

not provide the customer value?


How Defining Customer Requirements Fits into Design for Six Sigma & Product Development

How Defining Customer Requirements Fits into Design for Six Sigma & Product Development

Market Research

Engineering Research

Voice of the Customer Database

Preliminary planning & estimating

• Test & certify that the solution works in the customer environment

• Launch the product

• Introduce product & train field personnel

• Design, test and produce the complete solution

• Define & agree on customer requirements

• Define & agree on solution

• Plan the program to deliver the complete solution

• Investigate market needs, potential and technology

• Assess program viability

• Plan Product Definition Phase

Phase 0

Define / Idea

Phase 1

Measure / Product Definition

Process used & Product definition

published

Product definition document & the team knowledge gained by participating in

product definition process is used by teams from all areas for planning, design,

implementation, testing, etc.

Product Strategy

Phase 2

Analyze& Design / Implementation

Phase 3

Verification & Validation


AnalyzeCustomer

Requirements

AnalyzeCustomer

Requirements

3Process

CustomerVisit Data

ProcessCustomerVisit Data

2

THE CUSTOMER DOES NOT FEEL IN CONTROL OF THEIR DESTINY BECAUSE THEY ARE AT THE MERCY

OF THEIR CUSTOMERS AND THEY HAVE SO MUCH TO DO WITH SO FEW RESOURCES

= Top Vote Getter

= Second Vote Getter

= Third Vote Getter

JUGGLER ON A HIGH WIRE

I AM GOING TO LOSE MY JOB IF I CAN’T DO

EVERYTHING

WHEN SUPERVISOR DIDN’T GET THE RESULTS, THEY GOT ANGRY AND TOLD

OUR BOSS

THE SUPERVISOR WOULD COME DOWN ON US IF WE DIDN’T OFFER FLEXIBILITY

THERE ARE NOT ENOUGH PEOPLE TO

DO THE WORK

I AM NOT IN CONTROL

I AM EMBARRASSED WHEN CUSTOMERS

HAVE TO COME BACK IN

I’M FRUSTRATED BECAUSE I CANNOT GET ACCURATE RESULTS ON

MY EQUIPMENT

SMOOTH OPERATION

LAB IS WELL RUN -YOU KNOW, IT’S MILITARY

SMALL LAB BUT FULL SERVICE. IT’S LIKE A

GAS STATION

GRIDLOCK

CHAOS EXISTS WHEN COMPUTER SYSTEMS

GO DOWN

5 P.M. ON FRIDAY AT KENNEDY AIRPORT

HIGH VOLUME OF PARTS ARE RECEIVED

IN A.M. AND P.M.

TITLE WAVE OF PARTS AND NO ONE TO RUN

THEM

WORKERS WANT TO WORK “BY THE CLOCK”

BUT WORK-FLOW DOESN’T ALLOW TIME

FOR BREAKS

WE HAVE TO SHOUT AT ONE ANOTHER

BECAUSE IT’S SO NOISY IN HERE

PROBLEM MAINTAINING TWO SYSTEMS. NO

IMPACT ON ME; JUST COMPLAINING FOR A

FRIEND

RUSH HOUR TRAFFIC JAM

THE WAY THINGS ARE TODAY, I NEED A LOT OF ABBOTT EQUIPMENT TO PRODUCE RESULTS. I’M

RUNNING OUT OF SPACE

HAIL MARY PASS AT FOOTBALL GAME

AIR TRAFFIC CONTROLLER TRYING TO FIGURE OUT WHAT SYSTEM IS

SAYING

I CAN’T DO MY JOB . . . MY CUSTOMERS WILL LEAVE IF I GET

THE WRONG RESULT

IT MAKES ME LOOK BAD IF I CAN’T GIVE AN ANSWER

I DON’T CARE WHAT MACHINE THEY USE

AS LONG AS I GET RESULTS

I NEED A SLIDE RULE TO UNDERSTAND THIS STUFF

THE ICEMAN

I (OPERATOR) AM AT THE BOTTOM OF THE

LADDER

NOBODY CARES ABOUT ME. I’M A BUTTON PUSHER

BOSS AND OPERATOR AT EACH OTHER’S

THROATS

FEAR OF BEING REPLACED BY

MACHINE

I DON’T TRUST AUTOMATION

AUTO IS GOOD BUT I’M EDUCATED AND NOT BEING CHALLENGED

I AM STRESSED OUT

I FEAR REPLACEMENT BY AUTOMATION

WHAT ARE THE KEY IMAGES OF OUR CUSTOMER’S ENVIRONMENT?

GenerateSolutions

GenerateSolutions

4Prepare

For CustomerVisits

PrepareFor Customer

Visits

1

DFSS Companies Need a Well Structured Voice of Customer Process

DFSS Companies Need a Well Structured Voice of Customer Process

That Includes:• Images of customers’ environment

• Cross-functional team participation, including marketing, development, engineering, manufacturing

• Unambiguous measurable customer requirements

• Systematic, thorough exploration of solutions

©2004 Product Development Consulting, Inc. 9www.pdcinc.com

What Does a Structured Process Look Like?What Does a Structured Process Look Like?

Stage 2:Process Customer

Visit Data

5. Develop Image Diagram

5. Develop Image Diagram

6. Translate Voices into Requirements

6. Translate Voices into Requirements

7. Requirements Diagram

7. Requirements Diagram

8. Develop Metrics

8. Develop Metrics

Stage 3:Analyze Customer

Requirements

9. Design the Survey

9. Design the Survey

10. Administer the Survey

10. Administer the Survey

11. Analyze Existing Solutions

11. Analyze Existing Solutions

12. Analyze Results of Survey

12. Analyze Results of Survey

Stage 4:GenerateSolutions

13. Brainstorm Ideas

13. Brainstorm Ideas

14. Generate Solutions

14. Generate Solutions

15. Evaluate Solutions

15. Evaluate Solutions

16. Select Solutions

16. Select Solutions

Key:These activities are done mostly in workshops

These activities are done mostly in workshops

These are the key stages of the

process*

These activities are done outside of workshops

These activities are done outside of workshops

1. Plan the Project

1. Plan the Project

2. Develop Interview Guides

2. Develop Interview Guides

3. Interview Training

3. Interview Training

4. Gather the Voice of the Customer

4. Gather the Voice of the Customer

Stage 1:Prepare for

Customer Visits

Explore Digest Evaluate Define

Market Driven Product Definition (MDPD®)


ChallengeChallenge• How do I afford to create a customer focused

design for my six sigma process?~ And reduce time to market at the same time?

~ And, by the way, I have budget constraints too!

Timevs.

MarketOrientation

Structured VOC Process

T-T+

T+Supporting Evidence

T-Development

Time

T+

Credibility of Design

T-

Pressure for

ProgressT- Time to

Define Concept

T-

Substantive Accomplishments

T-

M-

M-

M-

M+

M+M+ M+

M+

M+ Reference: Gary W. Burchill, An investigation of TIME vs. MARKET orientation in product concept development, June 1993


ExploreExplore

Explore with Customers to Explore with Customers to

Develop EmpathyDevelop Empathy

Evaluate

DefineDigest

Explore


Active Listening

Probing

You !

Depth of Probing

Skills

Expressed Data

TacitData

Fertile Data

The Golden Nugget

(solutions)

(needs)

The Old Mine PrincipleThe Old Mine Principle


DigestDigestDigest Customer Voices to Digest Customer Voices to

Identify Vital Few ValuesIdentify Vital Few Values

Evaluate

DefineDigest

Explore



Why Should you Gather “Images”?Why Should you Gather “Images”?

• Is the key to capturing the voice of the customer~ Helps the team discover unstated requirements

• Allows the team to reach consensus regarding the customers’ environment

• Creates a single document that tells a story and can be shared

• Pinpoints the customer pain that drives their buying decisions ~ “I struggle to install the system.”

~ “This entry system is a nightmare, I dread starting it”


GOLF IS BOTH TOUGH AND FRUSTRATING SO GOLFERS NEED ALL THE HELP THEY CAN GET

WHAT ARE THE KEY CUSTOMER IMAGES OF GOLFERS RELATED TO GOLF BAGS?

“I MISTAKENLY TOOK A SIX IRON FOR A

NINE IRON ON A 110 YARD PAR THREE

AND I HIT THE SIX IRON 60

YARDS PAST THE PIN, INTO THE WOODS AND DOWN A HILL. I WAS

OUT OF BOUNDS!” “WHEN I GO

SEARCHING FOR BALL MARKERS, TEES, AND

REPAIR TOOLS AND ALL THE OTHER

ACCESSORIES THEY ARE ALL IN THE

BOTTOM OF THE BAG AND I HAVE TO DIG A WHOLE HANDFUL OF STUFF OUT TO FIND WHAT I AM LOOKING

FOR.”

MY BAG IS CONFUSING

“ I WAS RETURNING MY BUNCH OF CLUBS THAT I HAD JUST USED INTO

THE BAG WHEN MY HUSBAND YELLED HURRY UP WE ARE

HOLDING UP EVERYBODY. IT WAS

SO EMBARRASSING TO BE YELLED AT ON THE

COURSE.”

“ BAG HAS SO MANY COMPARTMENTS THAT I NEVER KNOW WHERE I PUT THE CHOCOLATE CANDY DROPS THAT I

WANT.”

I AM CONFUSED

“THE CART WAS ON THE SIDE OF THE HILL AND THE BREAK DIDN’T HOLD.

THE CART CRASHED INTO THE TREES DOWN A RAVINE, BUT MY CLUBS WERE

NOT AFFECTED.”

MY BAG IS A PAIN IN THE BUTT

“IT STARTED TO RAIN AND

MY BAG FILLED UP

WITH WATER. CAN YOU IMAGINE

HAVING TO DUMP

EVERYTHING OUT TO DRAIN THE WATER?“ I LOST A BALL IN THE WATER

AND RAN BACK TO MY BAG TO GET

MY BALL RETRIEVER. I

LOOKED EVERYWHERE

AND COULDN’T

FIND THE DAM THING.

WOULD YOU BELIEVE IT

HAD FALLEN ALL THE WAY DOWN AND

WAS IMPOSSIBLE

TO GET OUT!”

“I WAS WALKING THE COURSE AND GOING DOWN A

HILL TO GET TO THE NEXT HOLE WHEN MY BAG & CART TOOK OFF AND ROLLED ALL

THE WAY DOWN AND EVERYTHING FELL OUT.

WHAT A MESS!”

MY BAG GETS IN MY WAY

“I DRIVE A MIATA AND HAVE TO PUT THE TOP DOWN IN

ORDER TO CARRY MY WIFE AND MY GOLF BAGS. IT

STARTED TO RAIN AND WE HAD TO PUT THE CLUBS IN

THE CAR AND GET OUT OURSELVES. BOY DID WE

LOOK STUPID STANDING ON THE SIDE OF THE ROAD

NEXT TO OUR CAR.”

“WE WERE LEAVING THE AIRPORT WITH OUR

LUGGAGE AND OUR GOLF BAGS AND MY HUSBANDS

BAG KEPT FALLING OFF THE CART AND SOMEONE

TRIPPED ON IT.”

MY BAG DOESN’T HELP ME PROTECT MY EQUIPMENT

MY GOLF EQUIPMENT GOT

RUINED

“WHEN WE PLAYED IN SILVERADO, I

RETRIEVED MY GOLF GLOVE IT WAS

SOAKING WET FROM THE PREVIOUS DAY.

I T WAS VERY UNCOMFORTABLE

AND COLD.”

“MY PARTNER’S GRIPS GOT WET IN A RAIN STORM AND HE

THREW THE CLUB WHILE SWINGING

AND THE CLUB WOUND UP ON TOP

OF A HOUSE. HE LOOKED SO DUMB

AND NO LONGER HAD A SIX IRON.”

“MY PUTTER IS SO SCRATCHED FROM KEEPING IT IN MY BAG NEXT TO MY

IRONS. I MOVED IT TO BE WITH THE

WOODS AND NOW I CAN’T FIND IT

WITHOUT MOVING ALL THE WOODS

AROUND.”

“I LOST MY SHOES WHEN I WAS PLAYING

GOLF LAST YEAR AT A RESORT.

THERE WAS NO SPECIAL PLACE FOR THE SHOES AND SO I JUST

LEFT THEM WITH THE

ATTENDANT AND THEY WERE NOT THERE THE NEXT DAY.”

“I ALWAYS LEAVE MY GOLD

WATCH IN MY BAG WHEN I AM PLAYING. LAST TIME, I FORGOT IT WHEN I LEFT

THE BAG AT THE GOLF

CLUB. I PANICKED

WHEN I GOT BACK HOME, CALLED THE CLUB AND IT WAS GONE!”

MY STUFF GOT STOLEN

“MY BAG IS MY BEST FRIEND. I HAVE HAD IT FOR 20 YEARS AND

IT IS JUST ME.”

I LOSE MY GOLF EQUIPMENT

“I FELT LIKE AN ASSHOLE

DRIVING ALL THE WAY BACK TO

THE THIRD WHOLE TO

RETRIEVE MY CLUB.”

“I LOST MY SAND WEDGE ON THE

THIRD HOLE AND DIDN’T DISCOVER

IT UNTIL I REACHED THE 18TH WHEN I NEEDED IT. I

USED MY PITCHING WEDGE AND SCREWED UP

THE SHOT AND LOST THE

TOURNAMENT.”

“I AM ALWAYS LOSING MY HEAD COVERS FOR MY

WOODS AND HAVE TO BACK TRACK TO FIND THEM, OR HOPE

THEY GET FOUND AND TURNED

INTO THE PRO SHOP.

I CANNOT FIND WHAT I AM LOOKING FOR WITHOUT CHECKING SEVERAL POCKETS.


Identify VerbIdentify missing functionality by

answering the question, “What

functionality is desired but

missing for the customer?”

Identify VerbIdentify missing functionality by

answering the question, “What

functionality is desired but

missing for the customer?”

Identify SubjectWho or what performs

this functionality?

Identify SubjectWho or what performs

this functionality?

Identify ModifierWhat is scalable or variable

about the functionality?

Identify ModifierWhat is scalable or variable

about the functionality?

Subject + Verb + ModifierSubject + Verb + Modifier

Extracting Customer RequirementsExtracting Customer Requirements


Requirements Translation: PurposeRequirements Translation: Purpose

• Clearly state and document the customer needs implicit in the verbal and observational data from the interview~ Derive subliminal values from the voices of the customer

• Customer requirements are the most critical output of the voice of the customer process~ They are the CTQs (Critical to Quality) Parameters

~ The basis for sellable solutions

~ Provide new, deep insights

~ Do not constrain customer solutions


GOLFERS WANT THEIR BAG HELP THEM BE MORE SUCCESSFUL AND LESS STRESSED AT GOLF

WHAT ARE THE KEY CUSTOMER REQUIREMENTS FOR A UNISEX GOLF BAG FOR THE MASS MARKET?

GOLFER WANTS TO EMULATE A PROFESSIONAL GOLFER

= top vote getter

= second vote getter

= third vote getter

GOLFER WANTS TO

KEEP HIS BAG FOR A

MAXIMUM # OF YEARS

GOLFERS WANT THEIR BAG TO STAY IN

POSITION THEY PUT IT UNDER A MAXIMUM

NUMBER OF CONDITIONS

GOLFERS WANT A BAG THAT DOESN’T GET IN

THEIR WAY

GOLFERS HAVE TO CARRY THEIR BAG THE

LEAST AMOUNT OF TIME

GOLFER HAS A BAG THAT WEIGHS A

MINIMAL AMOUNT

GOLFER CAN MAXIMALLY REST WHILE WAITING

26

GOLFERS WANT THEIR BAG TO BE AN ASSET

GOLFER CAN KEEP

SCORE IN A MAXIMUM #

OF WEATHER

CONDITIONS

GOLFER CAN

PROTECT HIS CLUBS UNDER A MAXIMUM

# OF CONDI-TIONS

GOLFER WANTS HIS BAG TO

HAVE MAXIMUM DURABILITY

GOLFER WANTS TO

LOOK PROFESSIONAL

GOLFER HAS A BAG THAT

INCURS MINIMAL DAMAGE

REGARDLESS OF HANDLING

GOLFER WANTS TO LOOK AS MUCH AS A

PROFESSIONAL GOLFER AS POSSIBLE

GOLFER CAN

ACCESS POCKETS QUICKLY REGARD-LESS OF HOW THE

BAG IS STORED

19

GOLFER CAN

PROTECT HIS CLUBS

GOLFER CAN KEEP HIS CLUBS

CLEAN UNDER A MAXIMUM

# OF CONDI-TIONS

GOLFER WANTS

DRY GRIPS AS OFTEN AS POSSIBLE

14

GOLFER WANTS TO HOLD MAXIMUM

# OF CLUBS (NO MORE THAN 14)

GOLFER WANTS TO STORE ANYTHING THEY NEED FOR

GOLF IN THEIR BAG

GOLFER CAN HOLD A MAXIMUM

AMOUNT OF STUFF IN THEIR BAG

16

15

12

GOLFER CAN EASILY CARRY

THE BAG

GOLFER CAN CARRY THE BAG WITH MINIMAL EFFORT

GOLFER CAN CARRY THE BAG WITH MINIMUM STRESS

5

4

GOLFER WANTS TO FOCUS ON PLAYING GOLF

GOLFERS CAN FIND

WHATEVER THEY WANT

IN THEIR BAG

GOLFERS CAN FIND

THEIR ITEMS STORED QUICKLY

GOLFER CAN FIND

CORRECT GOLF CLUB

HEAD COVER QUICKLY

1

2

GOLFER FINDS NEW

BALL QUICKLY

3

GOLFER CAN RETURN CLUBS

TO BAG QUICKLY

GOLFER WANTS TO FIND

SPECIFIC CLUB AS QUICKLY AS

POSSIBLE

GOLFERS WANT TO

KNOW WHERE THEIR CLUB

BELONGS FAST

7

6

9

10

11

1321

20

22

GOLFER WANTS TO PLAY BETTER GOLF

GOLFER CAN DETERMINE HOW CLOSE TO THE PIN THE BALL IS

MOST ACCURATELY

GOLFER WANTS TO IMPROVE HIS GAME

GOLFER SELECTS THE APPROPRIATE CLUB IN A

MAXIMUM # OF CONDITIONS

GOLFER CAN REDUCE HIS STROKES UNDER A

MAXIMUM # OF WEATHER CONDITIONS

24

23

25

GOLFER LEAVES CLUBS MINIMAL TIMES

8

17

18


AnalyzeAnalyzeEvaluate to Prioritize ValuesEvaluate to Prioritize Values

Evaluate

DefineDigest

Explore


Validate, Prioritize, and Select Requirements

One-Dimensional

Attractive

Must-Be

Indifferent

Prioritization is based on Validated Customer Priorities and Not Technical Solution

Prioritization is based on Validated Customer Priorities and Not Technical Solution

• Prioritize requirements by performing a survey of broader population

• Use Reflected Sum of the Ranks (RSOR) to insure you don’t skip something important

• Use Kano method to distinguish “Attractive” from “Must-Be”, “Indifferent” and “One-Dimensional” requirements

• Select requirement and prioritize


RSOR Scores 1st or 2nd Ranking Based on Importance Scoring

1

23

4

56 7 8

9

1011

12

13 14

15

16

17

18 1920

21

2223

242526270

500

1000

1500

2000

2500

3000

3500

4000

0 1 2

Reflected Sum of the Ranks (RSOR)Reflected Sum of the Ranks (RSOR)

Don’t ignore requirement 17


What is a Kano Survey?What is a Kano Survey?

DysfunctionalDysfunctional

SatisfactionSatisfaction

DissatisfactionDissatisfaction

FunctionalFunctional

Indifference• The golfer leaves

club behind minimum times

Attractive• Golfer finds new ball quickly

Must-be• Golfer finds specific golf club

quickly

One-Dimensional

• The golfer can find their items stored quickly


Customer Requirements

and CTQs

Customer Requirements

and CTQs

Customer Voices & Project

Objectives

Customer Voices & Project

Objectives

How Does This Relate to DMADV (Define, Measure, Analyze, Design, Verify/Validate)How Does This Relate to DMADV (Define, Measure, Analyze, Design, Verify/Validate)

• Translation of the Voice of the Customer into customer requirements with critical to quality targets and ranges (CTQs) in measurable terms

QuickTime™ and aGraphics decompressor

are needed to see this picture.Measure

VOC Inputs & IdentifyRequirements (CTQs)


Case StudyCase Study


• Problems faced:~ McKinsey study said were missing focus on

customer~ Had “popup thunderstorms” - showed

prototype to customer with response: “no, not what I wanted”

~ Did not want to impose technical limitations on products prematurely

~ Implementing DFSS program and had no customer requirements definition process

• Solution:~ Institutionalized VOC process as part of DFSS~ Drove product differentiation and a

sustainable competitive advantage~ Avoided reinventing wheel – used an existing

proven, documented, repeatable VOC process~ Gained efficiency leveraging customer

requirements throughout development process.

~ Effective development of VOC cascade, since inputs & process are clearly defined in Design Control Process.

~ Consistent approach to defining the CTQs

Focus on Differentiation Focus on Differentiation QuickTime™ and a

TIFF (Uncompressed) decompressorare needed to see this picture.

“VOC gives us a common language, sentence structure, and continuity that we need for cross-functional alignment. Instead of taking the customer's word's literally, we have a framework for efficiently translating them into requirements from the start. This means our teams are free to focus on innovation and differentiation.It really goes back to our desire to redefine success. Were we successful without robust VOC process? Yes. Are we more successful with it? Absolutely. We have taken success to the next level, gotten a bigger return on our investment.”

Lucia Buehler, Group Product Director at Ethicon Endo Surgery, a division of Johnson & Johnson


Successfully Implementing Six Sigma in Sales & Marketing - VOC

Documents

customer environment

customer service

customer visits

customer value

defining customer requirements

process customer visit

product definition document

product strategy phase