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. Voice of the Customer PRESENTED BY THE UNIVERSITY OF TEXAS-SCHOOL OF PUBLIC HEALTH
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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.
Voice of the Customer
PRESENTED BY THE UNIVERSITY OF TEXAS-SCHOOL OF PUBLIC HEALTH
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
Learning Objectives
Define
Measure
Analyze
Improve
Control
1&2PHASETools:• SIPOC
• Voice of Customer (VOC) Analysis• Value Stream Mapping• Process Mapping
The DMAIC Process with Tools
DAY 1
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
OUTPUT
PROCESS
CUSTOMER
Requirements, Specs and Information
SUPPLIER
INPUT
Boundary -(Start of Process)
Boundary -(Completion of Process)
SIPOC Chart
Suppliers:
Start Boundary ____________ End Boundary ____________
ProcessInputs: Outputs: Customers:
Define
Measure
Analyze
Improve
Control
1&2PHASETools:• SIPOC
• Voice of Customer (VOC) Analysis• Process Mapping• Value Stream Mapping
The DMAIC Process with Tools
DAY 1
• 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)
Who Are the Customers?
• “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!
What Is “Voice of the Customer” ?
• 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
Why Is VOC Important?
How Do Our Customers Communicate with Us?Types of 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?
Sources of Customer Voices
Patient Behavior
ResearchMarket
Intelligence
InboundCommunic
ationsCasualContact
Informal/Formal
Transactions
Customers
Outbound Communications
Customers Define “Quality”
You must understand what the customers care about as it relates to your process.
Price and Cost
Customers
Accuracy
Flexibility and
Options
Aesthetics
Timeliness
Easeof Use
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 Requirements
Process Design Requirements
A B C
Process
Supplier
StakeholdersThose who have some “stake” in the product/service process success or failure.
CustomerExternalThose who receive/use the process outside your organization
Those who may be affected by production use of the product/process (e.g. pollution)
Process/Service
• Management• Shareholder• Regulatory Agency
Consumer
Bystander
Dealers
Internal“The Next Process is Your Customer”
Internal“The Next Process is Your Customer”
Exercise # 1: Making it Real
Process
Decision to move
patient
Selection of lifting
equipmentLift Patient
Performance Needs vs. Business RequirementsDefine how the process
must perform.
• 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.
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.
Performance Needs vs. Business RequirementsDefine how the process
must perform.
• 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.
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.
Both are important!
The revised process must
meet the Performance Needs
within the framework of the
Business Requirements.
Performance Need Categories
Quality
Cost
Speed
Service and Safety
Corporate Responsibility
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)
Process Cost Efficiency, Purchase Price, Repair Costs, Maintenance Costs.(Derived Primarily from the Business – VOB)0
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.
Ethical Business Conduct, Business Risk Management, Environment, Health and Safety Policy, Code of Conduct
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
4 Steps to Validating the Project through VOC
1. Gather the Voice of the Customer (VOC):
• 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
The Greatest Value Can Come From a Small Portion of Your Customer Base
1. Gather the Voice of the Customer (VOC):
Identify Your Customer Segments
– Economic• Revenue• Frequency• Size of Customer• Cost• Strategic goals
– Descriptive• Geographic• Demographic• Product feature• Industry
– Attitudinal• Price• Value• Service
Revenue
Geographic
Price and Service# of Cus-
tomers
0%40%80%
Column1Service
1. Gather the Voice of the Customer (VOC):
Objective• Identifying customer segments using “buckets”Instructions1. 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
Product/Service Customers Potential Segments
- Sample Form -
Sample – Making Coffee
Customer Segmentation Worksheet
Husband Internal Get the coffee filter and pull out the coffee,
Customer Internal or External? Segments/ Description Priority
Exercise # 2
Customer Segmentation Worksheet
Customer Internal or External? Segments/ Description Priority
1. Gather the Voice of the Customer (VOC):
Listening to the VOCSelect Sources of Customer Information
Sources of Customer Information
Internal andExternal Data
ListeningPost
ResearchMethods
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
1. Gather the Voice of the Customer (VOC):
Communicating with Customers
Possible sources of receiving information from your customers:1. Interviews
2. Surveys
3. Focus Groups
4. Informal Grape Vine
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
Communicating with Customers
Exercise # 3 : Brainstorming
Customer Method for Information Gathering
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
4 Steps to Validating the Project through VOC
2. Translate the VOC into Critical Customer Requirements (CCRs)
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
Voice of the Customer
After Clarifying,the Key Issue(s) Is...
Critical Customer Requirements
“I hate dealing with this company!”
Products are not delivered on time
10 day lead time ±1 day
2. Translate the VOC into Critical Customer Requirements (CCRs)
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 (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
Theme 1
Need 1 Need 2
Theme 2
Need 3 Need 4
Need 5
Theme 3
Need 7
Need 8
Exercise # 4 : Affinity Diagrams
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
4 Steps to Validating the Project through VOC
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
Inputs Outputs
Throughput Process
3. Convert CCRs into KPOVs
• 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)
CCR’sCCR’s CustomerIssues
CustomerIssues
________________________
________________________
________________________
________________________
VOCVOC________________________
________________________
VOBVOB________________________________
BusinessIssues
BusinessIssues________________________________
CBR’sCBR’s________________________________
VOB -Voice of the BusinessCBR -Critical Business Requirements
VOC -Voice of the CustomerCCR -Critical Customer Requirements
Y1
Y2
Y3
Yn
KPOVs
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
Exercise # 5 : Identifying Big “Y”s
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
4 Steps to Validating the Project through VOC
4. Create a SIPOC Chart
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
SIPOC
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
OUTPUT
PROCESS
CUSTOMER
Requirements, Specs and Information
SUPPLIER
INPUT
Boundary -(Start of Process)
Boundary -(Completion of Process)
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 Chart
Use the SIPOC Chart to Develop Measures
Suppliers:
Start Boundary ____________ End Boundary ____________
Input Measures Process Measures Output Measures
Measures that evaluate the degree to which the inputs to a process are consistent with what the process needs to effectively and efficiently convert into customer-satisfying outputs. Examples: Supplier quality Supplier on-time performance MRP accuracy Specifications
Measures that evaluate the effectiveness, efficiency and quality of the transformation processes – the steps and activities used to convert inputs into customer-satisfying outputs Examples: Process lead time Setup time Capacity of process
Measures that evaluate dimensions of the output – may focus on the performance of the business as well as those associated with the delivery of products to customers. Examples: On-time delivery Defect rate Unit cost
ProcessInputs: Outputs: Customers:
Exercise # 6 : SIPOC Chart
Suppliers:
Start Boundary ____________ End Boundary ____________
ProcessInputs: Outputs: Customers:
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 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