Voice of the Customer

1. 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.

2. 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

3. 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. 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

5. Suppliers: Inputs: Outputs: Customers: SIPOC Chart Start Boundary ____________ End Boundary ____________ Process

6. 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

7. 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)

8. 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!

9. 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

10. 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

11. 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

12. 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

13. 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

14. Exercise # 1: Making it Real Process Decision to move patient Selection of lifting equipment Lift Patient

15. 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.

16. 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.

17. 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

18. 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

19. 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

20. 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

21. 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

22. Sample – Making Coffee Internal or External? Segments/ Description Priority Customer Customer Segmentation Worksheet

23. Exercise # 2 Internal or External? Segments/ Description Priority Customer Customer Segmentation Worksheet

24. 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

25. 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

26. 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

27. Exercise # 3 : Brainstorming Communicating with Customers

28. 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

29. 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

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

31. 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

32. 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

33. Exercise # 4 : Affinity Diagrams

34. 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

35. 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...

36. System Theory Inputs Outputs Throughput Process

37. 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 ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________

38. 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

39. Exercise # 5 : Identifying Big “Y”s

40. 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

41. 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

42. 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

43. 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

44. Suppliers: Inputs: Outputs: Customers: 4. Create a SIPOC Chart End Boundary ____________ Start Boundary ____________ Process Use the SIPOC Chart to Develop Measures

45. Suppliers: Inputs: Outputs: Customers: Exercise # 6 : SIPOC Chart Start Boundary ____________ End Boundary ____________ Process

46. 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.

47. 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).

48. Thank You