POM3- KANO Analysis

8/14/2019 POM3- KANO Analysis

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Value to Customer through KANO Analysis

Jagadish Barik

1Introduction

Objectives

•Understand the Voice of the Customer (VOC) and how to

determine value

Source: Lean Thinking, by Jim Womack

Lean Principles - Definitions

Value:

•A capability provided to a customer at the right time at an

appropriate price, as defined in each case by the voice of

the customer.

Value Stream:

• The specific activities required to design, order, andprovide a specific product or service, from concept to

launch, and order to delivery into the hands of the

customer.

Value is in the Eye of the Customer!

What is Value?

Important Considerations•Who defines value?

•Who is the customer?

•How do we know what the customer wants?

•How do we translate product characteristics through ourinternal processes?

• Effectiveness

– The degree to which you meet and/or exceed

customer needs and requirements.• Efficiency

– The amount of resources consumed in achieving

effectiveness.

Effectiveness and Efficiency:

Voice of the Customer (VOC)

Lean based on the principle of increasing Profit through

Cost reduction

Must balance Cost with Delivery and Quality to fully meet

customer expectations

Voice of

Custom

er Deliver

Quality

Can We Afford to Sacrifice Any of These Measures?

Value Perspectives

How does this happen in Transactional Processes?

Spectrum of VOC Tools

Complaints/Warranty

Point of Sale/Service Point

of Use

Quick MarketIntelligence

CustomerAdvocateBoards

Focus Groups Surveys

Use all existing customer input/information available to you

Tangible, butlagging

indicator

LeadingIndicator

Costly fromCOPQ

standpoint

Costly fromexpense

standpoint

Get approval before using expensivemethods to listen to the customer’s

Reactive Proactive

Typical Reactive Systems

Defining and Understanding Value

• Customer complaints (phone or

written)

• Technical support calls

• Claims, credits, contestedpayments

• Product return information

• Problem or service hot lines

• Customer service calls

• Sales reporting

• Warranty claims

• Web page activity

Reactive systems generally gather data on current andformer:

•customer issues or problems

•customers’ unmet needs

•customers’ interest in particular products or services

Defining and Understanding Value

Proactive Systems

•Understanding demand

•Direct customer observation

•Interviews

•Focus groups

•Surveys

•Comment cards

•Data gathering during sales visits or calls

•Market research, market monitoring

•Benchmarking

•Quality Function Deployment (QFD)

2Kano Analysis

- 13 -

Why use Kano Analysis?

•Identify and categorise the full range of your customer´s

•Gain better understanding of the customer defined Critical

To Satisfaction requirements (CTSs)

•Focus your improvement efforts on the correct features or

characteristics

•Prioritise requirements that need to be fulfilled for limited

resources, market constraints and maximised profits.

Note: Improvement Pay-Offs are often NOT directly

proportional to Rankings from standard Surveys.

Kano helps to extract what the customer is willing to pay

When to Use Kano Analysis

•When asking customers about their preferences, they

might tell you what they want and what features they

would like to have included in the product or service they

may want to buy.

•However customers may not always want to pay moneyfor having some extra features.

•Kano Analysis should be used to find a good balance of

attractive features, performance and minimum customer

requirements that need to be met before starting ordeploying any design activities.

What is Kano Analysis?

•Kano Analysis is a method named after the Japanese TQM

consultant Noriaki Kano. It helps to describe the

dependency of customer satisfaction and needs fulfilment

•Often used in conjunction with Quality FunctionDeployment (QFD) to screen and categorise product

features or characteristics into “Must-Be”, “One-

Dimensional” and “Delighter” using sophisticated survey

methods

•Provides guidance for defining product/process/service

strategies based on market dynamics and multi-generation

planning

Kano’s Model

Kano’s ModelSatisfaction As A Function Of NeedFulfilment

y axis is Customer Satisfaction

x axis is the degree towhich the desired serviceor product is fulfilled

(Broken Process)(Product Failure)

DissatisfiedFeeling

Satisfied

Feeling

C u s t o m e r S a t i s f a c t i o n

Fulfilment FulfilledCondition

UnfulfilledCondition

(Perfect Process)(Product Performs)

Kano’s Model

Kano’s ModelThree Dimensions Of CustomerNeeds

(BrokenProcess)(Product

Failure)

DissatisfiedFeeling

SatisfiedFeeling

Fulfilment FulfilledCondition

(Perfect Process)(ProductPerforms)

Delighters

One-Dimensional

Must-Be

The Kano ModelMust-Be’s

DissatisfiedFeeling

SatisfiedFeeling

FulfilmentFulfilledCondition

Must-Be(Expected

Needs)

• Requirements that are so obvious

to the customer that they are

usually not stated as

requirements

• When requirements are met they

are usually not noticed. Whennot met, dissatisfaction is

present.

• Examples:

- Wheels included on new car

- Standard employee benefits

- Good safety

- Not getting a busy signal for a

customer service number

Synonymous Terminology

• Take it for Granted Quality• Expected Quality

• Basic Quality

• Standard Performance

• Dissatisfiers

The Kano ModelOne-Dimensional

One-Dimensional(Normal Needs)

• One Dimensional• Normal Needs

• Linear Quality

• Competitive Quality

• Satisfiers

• Requirements which

customers openly state they

• When requirements are metthey are satisfied

• Examples:

- Gas mileage

- Price, performance, delivery

- More choice in benefits

- On-time arrivals on airlines

DissatisfiedFeeling

SatisfiedFeeling

The Kano ModelDelighters

Delighters

(Latent Needs) • Requirements whichcustomers cannot articulate.

• When requirements are met

they are DELIGHTED.

• Similar to “enhancers” or“attractive qualities”.

• Examples:

- Headlight Washers

- Home “New” Car Delivery

- More choice in benefits

- Gourmet food in airline

coach class

• Delighters• Latent Needs

• Enhancers

• Leadership Quality

DissatisfiedFeeling

SatisfiedFeeling

Example 1: Kano Diagram for Car

Satisfaction

Product/ServiceFully Functional

Product/ServiceDysfunctional

Dissatisfaction

Must BeBrakesWindshield Engine Cooling

System

One-Dimensional Gas MileageWarranty Period Turning Radius

Delighters

Retractable Car AntennaRear Window Wiper Electronic Car Locks

Satisfaction

Product/ServiceFully Functional

Product/ServiceDysfunctional

Dissatisfaction

Must BeNon-Smoking room

King bed Clean bathroom

One-Dimensional Free Breakfast Room RateLocation

ConvenienceTime to Check-out

Delighters

They welcome me by nameChoice of pillowsPersonalized amenities

Example 2: Kano Diagram for Hotel

Market Dynamics and the KanoModel

L e a d e r s

h i p P e

r f o r m

a n c e

p e t i t i v e

P e r f o

r m a n c e

S t a n

d a r d P e

r f o r m

a n c eExecution Excellenc

Customer Satisfaction

I N N O

V A T I V

O M M O

D I T Y

C O M M

O D I T Y

“Delighters” moveto “Must

featuresover time!

New Delighters must be discovered!

L e a d e r s

h i p P e r f

o r m a

p e t i t i v e

P e r f o

r m a n c e

S t a n d a r

r f o r m

a n c eExecution Excellenc

Customer Satisfaction

I N N O

V A T I V

C O M M

O D I T Y

C O M M

O D I T Y

New“Delighter” featuresmust be

discovered!

Market Dynamics and the KanoModel

POM3- KANO Analysis

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