NG BB 13 Voice of Customer
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This document discusses gathering the voice of the customer (VOC) in process improvement projects. It defines VOC as the expression of customer needs and desires. There are four key steps to gathering VOC: 1) identify all customers, 2) determine customer requirements, 3) validate requirements, and 4) prioritize requirements. VOC is important because customers define what quality means for a process. Both VOC and voice of the business inputs are important to understand in process improvement.
![UNCLASSIFIED / FOUO
Ask The Right Questions
Ask, ―A satisfying [product/output] is one which has
what?‖ to find features – often only nice-to-haves
Ask ―A satisfying [product/output] is one which is
what?‖ to find functions – getting closer to required
customer outcomes
Ask ―A satisfying [product/output] is one which
results in what?‖ to find customer required outcomes
33
UNCLASSIFIED / FOUO](https://image.slidesharecdn.com/6906873/85/NG-BB-13-Voice-of-Customer-33-320.jpg)
NG BB 13 Voice of Customer
- 1. UNCLASSIFIED / FOUO UNCLASSIFIED / FOUO National Guard Black Belt Training Module 13 Voice of the Customer (VOC) UNCLASSIFIED / FOUO UNCLASSIFIED / FOUO
- 2. UNCLASSIFIED / FOUO CPI Roadmap – Define 8-STEP PROCESS 6. See 1.Validate 2. Identify 3. Set 4. Determine 5. Develop 7. Confirm 8. Standardize Counter- the Performance Improvement Root Counter- Results Successful Measures Problem Gaps Targets Cause Measures & Process Processes Through Define Measure Analyze Improve Control ACTIVITIES TOOLS • Identify Problem •Project Charter • Validate Problem Statement •Project Selection Tools • Establish Strategic Alignment •Value Stream Map • Gather Voice of the Customer & Business •Various Financial Analysis • Create Goal Statement •Effective Meeting Skills • Validate Business Case •Stakeholder Analysis • Determine Project Scope •Communication Plan • Select and Launch Team •SIPOC Map • Develop Project Timeline •High-Level Process Map • Create Communication Plan •Project Management Tools • Prepare High-Level Process Map / SIPOC •VOC and Kano Analysis • Complete Define Tollgate •RACI and Quad Charts •Strategic Alignment 2 Note: Activities and tools vary by project. Lists provided here are not necessarily all-inclusive. UNCLASSIFIED / FOUO
- 3. UNCLASSIFIED / FOUO Learning Objectives Know the source and type of process/service requirements Know why Voice of the Customer is important Apply the four steps for gathering Voice of the Customer 3 UNCLASSIFIED / FOUO
- 4. UNCLASSIFIED / FOUO Process Output Requirements Where do process output requirements come from? Customers (Voice of the Customer – VOC) Business (Voice of the Business – VOB) Stakeholders Regulations Suppliers Others Process/Service Supplier Customer External Product/ A B C Service Those who receive/use the product/service outside your Supplier Consumer organization Internal Stakeholders “The Next Process is Your Those who may be affected Bystander by production use of the Those who have some “stake” in Customer” the product/service process product/service (e.g. success or failure pollution) Management Dealers Shareholder Regulatory Agency 4 UNCLASSIFIED / FOUO
- 5. UNCLASSIFIED / FOUO VOC vs. VOB Voice of the customer involves understanding both upstream and downstream process requirements Often referred to as VOC and VOB Performance Needs (VOC): Define how the process must perform downstream (Examples: Cycle time, defect free, low cost) These primarily come from our Customers Do not be confused by ‘features’ asked for by our Customers. Features are often, though not always, just solutions to Performance Needs. Validate the need for the feature or, better yet, gather the base need. Avoid solutions until the Improve phase. Business Requirements (VOB): Define limitations involved with performing the process upstream of the output (Examples: Capital expenditure limits, space limitations, supplier capability) These primarily come from the business and suppliers Both are important – Performance needs define how the revised process must perform within the framework of the business requirements 5 Introduction to Voice of the Customer (VOC) UNCLASSIFIED / FOUO
- 6. UNCLASSIFIED / FOUO VOC vs. VOB Voice of the Business (VOB) is often best obtained from the Process Owner Tends to be very specific. Example: Lead time of 2 hrs, labor efficiency of 85% of standard Very little need to validate this information Voice of the Customer (VOC) is obtained from the downstream customer, the direct recipient of the process/service. This can be internal (Process Partner) or external. When obtained from an internal Process Partner, it tends to be very specific, but might need to be validated with information from the ultimate external customer (as external requirements flow backwards through the broader process steps) When obtained from an ultimate external customer, the needs must often be translated into something meaningful for the process/service developer 6 UNCLASSIFIED / FOUO
- 7. UNCLASSIFIED / FOUO A Customer Is... Any person or organization that receives a product or service (Output) from our work activities (Process) Supplier Process Customer 7 UNCLASSIFIED / FOUO
- 8. UNCLASSIFIED / FOUO What Is “Voice of the Customer”? ―Voice of the Customer‖ (VOC) is the expression of customer needs and desires May be specific – ―I need delivery on Tuesday‖ May be ambiguous – ―Deliver faster‖ Can be compared to internal data (―Voice of the Business‖) to assess our current process performance or process capability 8 UNCLASSIFIED / FOUO
- 9. UNCLASSIFIED / FOUO Customers Define “Quality” ... Flexibility Who are your & Options customers? Timeliness Accuracy What do the customers related Customer to your process care about? Ease Aesthetics of Use Cost 9 UNCLASSIFIED / FOUO
- 10. UNCLASSIFIED / FOUO Primary Performance Need Categories Product or Service Features, Attributes, Dimensions, Characteristics Relating to the Function of the Product or Quality Service, Reliability, Availability, Taste, Effectiveness - Also Freedom from Defects, Rework or Scrap (Derived Primarily from the Customer - VOC) Process Cost Efficiency, Costs to Consumer (Initial Plus Life Cost Cycle), Repair Costs, etc. (Derived Primarily from the Business - VOB) Lead Times, Delivery Times, Turnaround Times, Setup Times, Speed Cycle Times, Delays (Derived equally from the Customer or the Business – VOC/VOB) 10 UNCLASSIFIED / FOUO
- 11. UNCLASSIFIED / FOUO The Kano Model Kano model helps us categorize and prioritize performance features of a product or service into three types Dissatisfiers (Must haves): fulfills a basic customer requirement (assumes they will be present) BASIC NEEDS Satisfiers (More is better): fulfills a performance requirement (the more you provide the more satisfied the customer) PERFORMANCE NEEDS Delighters: features that provide a ―wow‖ factor (really delight the customer) EXCITEMENT NEEDS 11 UNCLASSIFIED / FOUO
- 12. UNCLASSIFIED / FOUO The Kano Model Excitement Need Delighted Customer Satisfaction Performance Need Dissatisfied Basic Need Missing Present Feature 12 UNCLASSIFIED / FOUO
- 13. UNCLASSIFIED / FOUO Steps to Gathering VOC 1. Identify and Segment Customers 2. Gather VOC 3. Analyze VOC 4. Determine Primary Y 13 UNCLASSIFIED / FOUO
- 14. UNCLASSIFIED / FOUO Step 1. Who Is the Customer? What is a customer? Defined as: ―Any person or organization that receives a product or service (Output) from our work activities (Process)‖ Types of ―customers‖: End-User – Personally uses (consumes) the product. Product does not go on in the same form Broker – Transfers product or product given to another in same form Fixer – Corrects or repairs product, often after end-user receipt Customers can often be logically aggregated into groups or segments 14 UNCLASSIFIED / FOUO
- 15. UNCLASSIFIED / FOUO Internal vs. External External Customers Those persons or organizations which purchase your products or services. Internal Customers Whomever is a user of your process output is an internal customer. Regulatory Agencies Internal and external organizations which develop requirements for the safety and protection of the customer 15 UNCLASSIFIED / FOUO
- 16. UNCLASSIFIED / FOUO Customer Identification Internal External Who are the Customers? Primary (Directly receive output) Secondary (Indirectly receive output) Indirect (Set regulatory requirements) 16 UNCLASSIFIED / FOUO
- 17. UNCLASSIFIED / FOUO Identify Your Customer Segments Transactional Frequency House Other Size of Customer Cost Senate DoE Transactional Demand Volume DoD FDA Descriptive Geographic Demographic Geographic Product feature Industry Attitudinal Cost # of customers Value Service Service Month Price Service 17 17 UNCLASSIFIED / FOUO
- 18. UNCLASSIFIED / FOUO Customer Segmentation Customer segmentation is vital for analyzing VOC data Are all customers of equal importance? If customers are not segmented, it might 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 The Greatest Importance Can Come From a Small Portion of Your Customer Base Customers (count) Total Importance 18 UNCLASSIFIED / FOUO
- 19. UNCLASSIFIED / FOUO Step 2. Collecting VOC Data Getting ―unbiased‖ VOC data is… Direct Methods Never easy or fast • Focus groups Key to CPI methodology • Interviews Crucial to interpreting your existing VOC data • Be a customer Applying VOC to projects: Indirect Methods • Surveys Projects will each obtain VOC as part of their • Customer observation Define and Measure phases • Market research CPI will test our assumptions about customer • Customer complaints needs and behavior The perception of who our customer is might change as we understand more about our customer base and processes The goal is to obtain the right information to establish good design requirements - so that process performance will satisfy your customers 19 UNCLASSIFIED / FOUO
- 20. UNCLASSIFIED / FOUO Collecting VOC Data Typical Existing VOC Data Sources Customer satisfaction survey responses Call center logs Customer interface personnel Interagency memos and agreements Other VOC Data Sources Industry surveys / research Focus groups Compare to other states Interviews / specific surveys Trade shows / conventions Pilot testing of product / service 20 UNCLASSIFIED / FOUO
- 21. UNCLASSIFIED / FOUO Information Already Available Customers are already providing much information about products and services: Complaints Web Page Hits Compliments Problem or Service Hot Contract Cancellations Lines Comment Cards Media Customer Defections/ Others in Your Acquisitions Organization How do you get customer feedback? 21 UNCLASSIFIED / FOUO
- 22. UNCLASSIFIED / FOUO Other Sources of Available Data Additional sources of relevant customer/industry information are likely available Some possible information you might have: Market research reports Completed customer surveys or evaluations Industry reports (Benchmarking) Available literature Competitor assessments 22 UNCLASSIFIED / FOUO
- 23. UNCLASSIFIED / FOUO Customer Needs Example Example: Defining customer wants and needs for a Loan Process Primary Secondary • Willing to answer questions Friendly Staff • Treats me nicely • Knows loan procedure Knowledgeable • Knows market Staff • Understands my situation • Money when I need it Speed • Application is fast to fill out • Doesn‘t make mistakes Accuracy • Gives me the right rate 23 Introduction to Voice of the Customer (VOC) UNCLASSIFIED / FOUO
- 24. UNCLASSIFIED / FOUO Interviews Purpose Learn about a specific customer‘s point of view on service issues, product/service attributes, and performance indicators/measures Interviews are useful at several points during the process of gathering customer needs At the beginning: to learn what is important to customers In the middle: to clarify points or to better understand why a particular issue is important to customers At the end: to clarify findings, to get ideas and suggestions, or to test ideas with customers 24 UNCLASSIFIED / FOUO
- 25. UNCLASSIFIED / FOUO Types of Interviews Types of Interviews Characteristics of Information Needed • Unique perspectives Individual • Senior-level participation • Input from large-volume customer • Information from customers with similar product and Group service needs • Mid- to lower-level participation • Information from many people from a single segment • Input from customers who are widely dispersed geographically Telephone/Mail • Information on basic or simple issues • Quick turnaround of information collection 25 UNCLASSIFIED / FOUO
- 26. UNCLASSIFIED / FOUO Focus Groups Purpose Organize information from the collective point of view of a group of customers that represents a segment Uses To clarify and define customer needs To gain insights into the prioritization of needs To test concepts and get feedback Sometimes as a next step after customer interviews or a preliminary step in a survey process Typically composed of 7 to 13 participants who share characteristics that relate to the focus group topic Participants will be asked to thoroughly discuss very few topics 26 UNCLASSIFIED / FOUO
- 27. UNCLASSIFIED / FOUO Focus Group Process Plan the focus group session Determine why you are conducting the study Determine who the participants should be Write the research questions—keep the list short Draft the structure and flow of the session Select focus group location and schedule groups Develop a plan and estimate resources needed Test the questions Finalize the questions and the flow of the session Lead the focus group Analyze the focus group findings 27 UNCLASSIFIED / FOUO
- 28. UNCLASSIFIED / FOUO Focus Groups Summary Strengths Accommodate face-to-face free flowing dialogue between small groups of customers They are typically video recorded to spread the information more broadly within the company Concerns Moderately expensive Short sessions might not allow for clarification or ‗deep dives‘ Number of participants is limited The ‗Loudest Voice‘ can bias interpretations 28 UNCLASSIFIED / FOUO
- 29. UNCLASSIFIED / FOUO Surveys Purpose Measure the importance of performance against an attribute or customer characteristic Uses To efficiently gather a considerable amount of information from a large population To measure ‗as is‘ conditions and drivers To measure change and causality Dissimilar populations may require different surveys Budget time to include: Develop the survey Perform data analysis Integrate results 29 Introduction to Voice of the Customer (VOC) UNCLASSIFIED / FOUO
- 30. UNCLASSIFIED / FOUO Exercise: VOC Class Survey 1. Using the Kirkpatrick Evaluation model, what type of learning assessment would you prefer? a. Level One b. Level Two c. Level Three d. Level Four 2. On a scale of 1-3, please rate these CPI tools: a. TOC b. QFD c. DOE d. C&E 3. Is the room temperature and classroom set-up acceptable? 4. What is your estimation of the appropriateness of the frequency and duration of periodic cessations for students physical and mental accommodations? 5. Don‘t you agree that this NG CPI black belt class is the best classes you‘ve ever taken? Thank you. 30 UNCLASSIFIED / FOUO
- 31. UNCLASSIFIED / FOUO VOC Survey Checklist Explain the purpose of the survey and how the results will be used. Include clear instructions. Keep the survey short. Allow adequate time for completion. Include a mix of both open-ended and close-ended questions. - Close-ended responses are easier to quantify and record. - Open-ended questions allow respondents more freedom of expression. Avoid questions that are too broad. Ask for feedback on specific items or areas of particular interest. Avoid slang and jargon. Avoid complex and ambiguous phrasing. Do not use double-negatives. Avoid leading questions. Don‘t ask for feedback on more than one item in the same question. Ask separate questions for each item. Balance positive and negative questions. If you ask what they like best, then also ask what they liked least. Define the measurement scale used and make sure the measurement scale matches the question. Pre-test the survey to see if it elicits the type of feedback you really want. Collect appropriate demographic information, as needed, to sort and analyze survey data. Always thank the respondents for completing the survey 31 UNCLASSIFIED / FOUO
- 32. UNCLASSIFIED / FOUO Use a Combination of Techniques Telephone Interviews to Focus Groups to Obtain Survey to Verify Identify Baseline Issues Deeper Understanding and Quantify and Opinions Increasing Level of Knowledge about our Customer • How much certainty do you need? • How much certainty can you afford? • How much certainty can you risk? 32 UNCLASSIFIED / FOUO
- 33. UNCLASSIFIED / FOUO Ask The Right Questions Ask, ―A satisfying [product/output] is one which has what?‖ to find features – often only nice-to-haves Ask ―A satisfying [product/output] is one which is what?‖ to find functions – getting closer to required customer outcomes Ask ―A satisfying [product/output] is one which results in what?‖ to find customer required outcomes 33 UNCLASSIFIED / FOUO
- 34. UNCLASSIFIED / FOUO Step 3: Analyzing VOC Voice of After Clarifying, Customer the Customer the Key Issue Is... Requirements ―I hate filling out this The form takes too The form takes less form!‖ long to fill out than five minutes to complete 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 Do not have alternatives and do not bias the design toward a particular approach or technology Are complete and unambiguous Describe the "what," not the "how" 34 UNCLASSIFIED / FOUO
- 35. UNCLASSIFIED / FOUO Translate VOC to Requirements Voice of Customer Input Key Customer Issue Customer Requirement Actual Customer Statements The Real Customer Concerns, The Specific, Precise and and Comments Values or Expectations Measurable Characteristic • ―This mower should be easy to • Wants the mower to start • Mower starts within two pulls on start‖ quickly and painlessly the cord • ―The cord shouldn‘t be too hard • Mower starts with an effortless to pull‖ pull on the cord • ―I want to talk to the right • Wants to talk to the right • No additional menu items on person and don‘t want to wait person quickly voice system on hold too long‖ • Customer reaches correct person the first time within 30 seconds • ―This software package doesn‘t • The software does what the • Every design feature needed is do squat‖ vendor said it would do built into the package • The software is fully operational on the customer‘s existing system 35 UNCLASSIFIED / FOUO
- 36. UNCLASSIFIED / FOUO Organizing VOC Input 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 36 UNCLASSIFIED / FOUO
- 37. UNCLASSIFIED / FOUO Affinity Diagrams The first step in getting value from customer data is organizing Theme 1 it in a way that will reveal themes Need 1 Need 2 Theme 3 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. Theme 2 Need 7 Generate customer need statements on cards or sticky Need 3 Need 4 Need 8 notes (in the customer‘s own language if at all possible) Group the cards to find the ―affinity‖ Need 5 Label the groups of cards 37 UNCLASSIFIED / FOUO
- 38. UNCLASSIFIED / FOUO Tree Diagrams Moves team from high-level customer needs to greater detail in order to define requirements A tool for breaking broad process steps or product features into greater detail Helps organize needs by level of detail Tree Diagram Affinity Diagrams 38 UNCLASSIFIED / FOUO
- 39. UNCLASSIFIED / FOUO Tree Diagrams Product/Service Tertiary Need Customer Requirement Secondary Need Customer Requirement Primary Need Customer Requirement Customer Requirement The goal is to determine customer requirements based on Voice of the Customer input 39 UNCLASSIFIED / FOUO
- 40. UNCLASSIFIED / FOUO Tree Diagrams – Key Steps Choose need/process/product to be detailed Ask: ―What are the components or sub-sets represented by this need?‖ ―Is this part of a larger category of need/requirement?‖ Add detail and organize components – building branches and/or trunk of the tree by category and level of detail State the requirements in measurable terms 40 UNCLASSIFIED / FOUO
- 41. UNCLASSIFIED / FOUO Tree Diagram Example: Anthony’s Pizza Whole wheat Crust Unbleached flour No cheese Cheese Low-fat mozzarella Customer wants Toppings Meats ―healthy choices‖ Sauce Low-fat white cheddar Vegetables Additives Other ingredients Spices Oil 41 UNCLASSIFIED / FOUO
- 42. UNCLASSIFIED / FOUO Exercise: Tree Diagram You work for AAFES Garage You have collected data from your Pleasant Oil customer base Change Experience Based on your customer inputs: Construct a Tree Diagram Identify Customer Requirements Customer Inputs • ―No oil filter leaks‖ • ―Use quality oils and filters‖ • ―I don‘t want to wait around so long‖ • ―Your friendly employees are great‖ • ―I want to pay by Master Card ‖ ® • ―Check all my fluids‖ • ―Good price – be competitive‖ 42 UNCLASSIFIED / FOUO
- 43. UNCLASSIFIED / FOUO Step 4: Determine Primary Y Critical-to-satisfaction (CTS) customer requirements include Quality, Cost, Speed, Safety Which is the most important to improve? How will it be measured? What Does the Kano CTS Rank Flight Passenger Need Want? Flight takes off safely Basic Safety 9 Flight takes off on time Perf Delivery 9 Ticket price is competitive Perf Cost 7 Bags are on the right plane Perf Quality 5 Fast electronic check-in Perf Delivery 3 Food service on board Wow Quality 1 43 UNCLASSIFIED / FOUO
- 44. UNCLASSIFIED / FOUO VOC / VOB Template Critical Customer Voice of the Key Customer Issue(s) Requirement Customer / What does the customer want from us? What does the customer want from us? We should summarize key issues and We need to identify the issue(s) that translate them into specific and measurable prevent us from satisfying our requirements customers. CriticalBusiness Voice of the Key Process Issue(s) Requirement Business What does the business want/need from us? What does the business want/need from We should summarize key issues and us? We need to identify the issue(s) translate them into specific and measurable that prevent us from meeting strategic requirements goals/missions. 44 Required Deliverable UNCLASSIFIED / FOUO
- 45. UNCLASSIFIED / FOUO VOC Exercise Using all of the information developed during this module, interview your customers (Regional Program Managers) to determine and prioritize the VOC for the GGA Budget process 45 UNCLASSIFIED / FOUO
- 46. UNCLASSIFIED / FOUO Takeaways Now you should be able to: Describe where process output requirements come from Describe Voice of the Business (VOB) Describe Voice of the Customer (VOC) Describe why VOC is important Describe each of the four steps for gathering VOC Use the four steps for gathering and analyzing VOC on a process 46 UNCLASSIFIED / FOUO
- 47. UNCLASSIFIED / FOUO What other comments or questions do you have? 47 UNCLASSIFIED / FOUO