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ABB Basic Quality Tools Series
Critical to Quality Voice of the Customer and Voice of the Business
ABB Group 9AKK105151D0115
15 July 2010, Slide 1 Critical to Quality - Content What is it for? Understand the connection between customer requirements and quality criteria Be able to identify measurable criteria that are important to the quality of your products and services in the eyes of the customer
Where could I use it?
To understand what my process customer needs (next process step) To understand what the external customer ultimately wants from the product or service we supply Consider what impact your part of the process has on the customer requirements How do I use it? Understand who our customer is and what they are asking for Convert the VOC into possible metrics Prioritise these requirements against the process deliverables and what is important for the business (VOB) Use metrics to manage our process to ensure our product or service meets customer expectations
Risks and how to avoid them
Misunderstand what the customer really wants Meet all customer requirements but at the expense of the business requirements (VOB)
Examples
ABB Group 9AKK105151D0115
15 July 2010, Slide 2 Critical to Quality - What is it for? Uses of this tool: Often used in a response to customer complaints or where there is a strong need to protect our brand against rival products and services, CTQ (also known as Critical to Customer) is the tool we use to extract and understand what the customer really wants from the information we are receiving We listen to the VOC and convert this to the CTQ (there are usually several) in order to develop new metrics for our processes which are relevant to meeting the customer requirement We are likely to need to use a prioritisation tool to help clarify exactly what we should focus on We can apply the same rigour to understanding what is important to the business (VOB) we aim to have processes which deliver what both the customer wants and the business wants
Expected Benefits: Greater clarity on what we have to deliver to meet the customer requirements and expectations helps develop the operational definition for the product or service Focus on the critical areas of our process to achieve this Converts informal or verbal feedback, often negative, into meaningful metrics that can be monitored and acted on with process control
ABB Group 9AKK105151D0115
15 July 2010, Slide 3 Critical to Quality - Where could I use it? Background: Uses: This helps us understand what the customer What do we mean by Critical To Quality? really wants How does the customer view my process? Any measurable product or service How does the customer base his characteristic that is important to the perception of the value of the product and customer from the customers point of view service I provided? What are the measurable characteristics CTQ (or CTC Critical To Customer) is the which are critical for the customer? Output Characteristic with what does good How well does my process meet the look like limits specified. customers expectation of value in their eyes? The Voice of the Business (VOB) is derived from two primary drivers: This helps us step up and see the bigger picture What profit contribution is to be delivered? and allows us to focus on what is critical in our What is the customer experience to be part of the process to meet the requirements delivered? By establishing a new metric, we can also determine targets and acceptable tolerance levels
Customers View
Daves My Sues Order Deliver Process Process Process
My View ABB Group 9AKK105151D0115 15 July 2010, Slide 4 Critical to Quality - How do I use it? Procedure and Guidance Notes: What is the customer actually telling you about your product or Watch out for negative wording complaints Voice of the service? are about what the customer does not want, Customer Sourced from complaints, direct feedback, focus groups, surveys... rather than what they do want.
Can the VOC be converted into a specific need? Can we analyse a Identifying a specific need is often a good way complaint and translate that into a requirement of what the customer to work around negative phrases it helps Specific Need expects? identify what it is that the customer really wants
Analyse the VOC, often using the specific need, to identify the key The output characteristic is essential to Output characteristic (or characteristics) which is / are important to fulfil the understand as without this we can not progress Characteristic customers expectations
Determine what we need to measure in order to monitor performance Identifying the correct KPI will give us a against the output characteristic baseline on which to monitor performance and KPI Think about how we can collect the right data for this on an ongoing will ensure that our behaviours and actions are basis focused on the customer
Once the KPI is identified we can determine the target The target must reflect what the customer wants, not what we can deliver Target
From the target, we can agree tolerances around this with the Tolerances must be agreed with the customer. customer i.e. what is acceptable variation from the agreed target? If our process is not accurate or precise enough Tolerances We may look at our process capability (Voice of the Process) at this to meet this then we have an immediate need to point to see how it compares to the VOC improve the process
We may have identified several requirements from the VOC, in which At this point we would consider what the case we need to assess them and decide which we need to focus on customer must have, needs to have and would Prioritisation Use the Matrix Diagram Tool for this be nice to have. We also have to consider the VOB
ABB Group 9AKK105151D0115
15 July 2010, Slide 5 Critical to Quality- Risks and how to avoid them Risks : Steps to avoid them : We sometimes overlook or ignore the end result what Understanding the customer perspective, from order the customer is prepared to pay for as we can be too placed to goods or service received, will help us to see focused on a specific part of the total process the bigger picture and allow us to focus on what is important what do we need to do to give the customer what they must have, need to have and hopefully what they would be delighted to have. VOC to CTQ and the prioritisation of the outputs of these will give us this.
By applying the same focus on the Voice of the
Alternately we can be too customer focused and forget Business we can understand what is critical to the that we are in the business of creating value for our business and make decisions based on this. business and shareholders
ABB Group 9AKK105151D0115
15 July 2010, Slide 6 Example : CTC with Targets and Tolerances Voice of Customer (VOC) Why am I always guessing when I will receive my order from your company?
Critical to Customer (CTC)
Customer wants delivery on the agreed day
Output KPI Specification/
Target Characteristic Tolerance Limits Variation between Consistent customer requested delivery against 0 + 1 / - 4 days date and actual date, plan in days
ABB Group 9AKK105151D0115
15 July 2010, Slide 7 Example of VOB at the high level
Revenue Orders EBIT (Earnings Before Interest and Taxes) OCF (Operating Cash Flow)
These are all business
measures that indicate the health of a business. Useful for stockholders But, none are useful for local process goals, so other related metrics are needed
ABB Group 9AKK105151D0115
15 July 2010, Slide 8 Objectives Link to Measures Example: ABB Drives New Berlin Wisconsin USA Safety Revenue Quality Orders Warranty EBIT RM Inventory OCF FG Inventory Global Efficiency Objectives OTD (Board of Directors EC - Division) Growth People Safety LV Drive Quality
