Critical to Customer Requirements (CTCR) - Six Sigma, … … · · 2011-01-20Critical to Customer Requirements (CTCR) ... –Performance ... those needs is constantly changing

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Improving Your Business Results

Critical to Customer

Requirements

(CTCR)



Objectives

• After completing this unit, you will be

able to:

– Explain the framework for establishing

critical to customer requirements.



Overview

• Various business drivers determine the

direction in which the business grows.

• The voice of the customer is a critical

issue to achieve success.

• Obtaining the voice of the business and

the voice of the customer are necessary

steps in defining critical success factors.



Y = f(X)Y: Output (things important to the business and the

customer)

f: Function (how to treat and manage interrelationships)

X: Variables that must be controlled to consistently predict Y

Outputs are a Function of Inputs



What Drives Your Business?

• What are the X’s that impact your Y’s?

Y’s

• Business

Results

• Employee

Satisfaction

• Customer

Satisfaction

X1

Mission

X2

Vision

X3

Strategic

Goals

X4

Priority Activities and

Critical Business Processes

X7

Evaluation

& Review

X5

Principles

X6

Indicators

X8

Communication

Plan

=Major

Improvement

Opportunities



What About the Customer?

• If you are not aligned with the customer

you are toast!



What Effects the Customer Experience?—Your Principles

What aligns you with your customer?

Customer

Focus



Customer Requirements

• Product and service quality

• Expense/cost

• Delivery

• Integrity

• Safety

• Corporate responsibility



Gathering Requirements

• Ask the customer:

– What do you currently like about our

product and/or service?

– What problems do you have with our

product and/or service?

– What would you like to have that you are

not getting?

– What are you getting that you don’t use?



Customer

Wants

Customer

Needs

Turning Expectations into Requirements

Customer

Expectations

Customer

SatisfactionAgreed upon

requirements



Iceberg of Customer Complaints

Formal Complaints

Cancellations

Public Complaints

Silent dissatisfaction

Informal complaints

Customers vote

with their feetNon-returns

Processes

Problem

Root Cause

Non-Referrals

―Sea of Trouble‖

Customer perception of

service.



Changing Expectations to Requirements

Requirements (CTCR)

Measurable Characteristics

Effectiveness and Efficiency Measures



How do you Identify your Customers?

• The SIPOC model is the foundation for

identifying your customers.

IS P O C

Measures

Suppliers Inputs Process Outputs Customers

Requirements Requirements

Measures



I wanted it yesterday !

The Customer

• External

– External to the organization

• Direct customer

• Stakeholders

• Internal

– Next process is the customer

• A chain of suppliers and customers



External Customers

Direct Customers -

Stakeholders -

Those who receive and use our products or services

Those who are affected by our work, or who have authority over us, but who may not actually use our products or services themselves, e.g., regulatory agencies

External Customers



Internal Customers Groups or individuals whose ability to perform a job is impacted by the quality of products or services we provide them.

Internal Customers



Capture Customer/Stakeholder Requirements

• Types of customer/stakeholder

requirements:

– Basic

• Unspoken but expected.

– Performance

• Spoken by the customer/stakeholder.

– Excitement

• Pleasant surprises that are generally unspoken

or difficult to verbalize.

(continued)



Capture Customer/Stakeholder Requirements:

Example

Buying a Car

• Basic

– Steering wheel works, gas gauge works, horn

works

• Performance

– Good acceleration, good traction in snow, long

time between tune-ups

• Excitement

– Appearance, styling, “feel” behind the wheel

(continued)



Customer Satisfaction

Deg

ree

of

Sati

sfa

cti

on

Clients’ satisfaction is expected to be LINEAR.

(continued)Degree of Achievement

Capture Customer/Stakeholder Requirements



Capture Customer/Stakeholder Requirements -cont.

• Kano Model

Basic

Performance

ExcitementCustomer

Satisfaction

Degree

of

Achievement

What are your clients’ basic, performanceand excitement needs?

Customer

Dissatisfaction




Basic Needs– gets you into the market

Customer Assumption

Things they do not think about

Expected qualities

Expected functions

Things that “go without saying”

Where to get them

Your experience

Customer complaint log

Internal brainstorming

Industry standards

Product/Service brainstorming

Function trees




Performance-keeps you in the market

Voice-of-Customer

Spoken wants/needs

Formal customer requirements

More-the-better or faster-the-better

wants

Things asked for or looked for when

evaluating

Where to get them

Market research

Focus groups

Surveys/customer clinics

Contract or statement of work

Customer interviewing, sales calls

Existing information




EXCITEMENT-makes you the market leader

Customer delights

“Oh-wow’s” and “gee whiz’s”

Leap improvements

Innovation

Thoughtful engineering

Where to get them

Observe products/service in use, watch

the customers at work (or play) and

notice:

•Customer frustration (not likely to

complain)

•Customer modifications (after market)

•Unusual/unintended product uses

•Time consuming parts of usage

Involve outsiders, lateral benchmarking

Technological forecasting

Demographic trend analysis



Capturing Internal Customer and Direct

Customer/Stakeholder Requirements

• Interviews

• Focus groups

• Surveys

• Review of customer/stakeholder

complaints



Capturing Indirect Customer/Stakeholders’ Requirements

• Summarizing current laws and

regulations.

• Consulting with internal/external

experts.

(continued)



Requirements Identification Example

Hotel Room

Smoking vs. non-smoking room

High-speed internet access

Pillow-top bed

Multiple shower heads

Hairdryer

Television/Cable

Video gamesB

as

ic/P

erf

orm

an

ce

/Ex

cit

em

en

t

(continued)



Requirements Identification Example -cont.

Final thought…

• Customer expectations and how competitors meet

those needs is constantly changing.

• Features that create a distinguished product and

stimulate excitement today, become desired

performance features tomorrow.e.g.

– Intermittent wipers, auto dimming mirrors, baby

stroller cup holders

• Today’s performance features become basic needs

and expected tomorrow.



Capture Customer/Stakeholder Requirements Exercise

Purpose: Practice identifying CTCR.

Agenda: For your process:

– Indicate how you think your customer will respond to the four

given questions.

• What do you currently like about our product and/or

service?

• What problems do you have with our product and/or

service?

• What would you like to have that you are not getting?

• What are you getting that you don’t use?

– Create a list of 3 items that you believe your customer considers

critical and identify their probable requirements.

– Identify at least one customer need in each category (basic,

performance, excitement).

Limit: Complete examples: 30 minutes

Discussion: 15 minutes



Summary

• Business Process Management focuses

on delighting customers/stakeholders by

meeting or exceeding their needs.

• Many processes fail because the

customer requirements are not correctly

captured.

Documents

Critical to Customer Requirements (CTCR) - Six Sigma, … … · · 2011-01-20Critical to Customer Requirements (CTCR) ... –Performance ... those needs is constantly changing