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Title: Capturing the Voice of Customer: The Role of Quality Function Deployment, Lean Six Sigma, and Design for Six Sigma in Achieving Excellence through Baldridge Award


1
  • Capturing the Voice of Customer The Role of
    Quality Function Deployment, Lean Six Sigma, and
    Design for Six Sigma in Achieving Excellence
    through Baldridge Award

Amar Sahay, Ph.D.
www.realleansixsigmaquality.com
2
Baldridge Quality Award an overview
  • Award is given to organizations that have
    demonstrated outstanding quality in their
    products, services, and processes.
  • Categories
  • manufacturing,
  • service,
  • small business,
  • education and health care.

3
Baldridge Quality Award Criteria
  • Submit an application that details the approach,
    deployment, and the results of quality activities
    under the following seven major categories
  • Leadership,
  • Strategic Planning,
  • Customer Focus,
  • Information and Analysis,
  • Human Resource (workforce) Focus,
  • Process Management (operations focus), and
    Business results.

4
Focus of this presentation
  • This presentation focuses on one of the major
    categories of the Baldridge Quality Award the
    customer focus.

5

Presentation Customer Focus
Source 20112012 Baldridge Criteria for
Performance Excellence
6
More than any other program, the
Baldridge Quality Award is responsible for making
quality a national priority and disseminating
best practices across the United States.
Report by Building on Baldridge American quality
for the 21st Century, by the private Council on
Competitiveness
7
Meeting Customer Requirements
  • We will show how the requirements in the
    customer focus category of the Baldridge Award
    criteria can be met by using the proven tools and
    technologies
  • Six Sigma,
  • Lean Sigma,
  • Design for Six Sigma (DFSS), and
  • the Quality Function Deployment (QFD)

8
Addressing Customer Issues and Achieving
Excellence 
  • The proven tools in meeting and exceeding
    customer expectations
  • Six Sigma
  • Lean Six Sigma
  • Design for Six Sigma (DFSS), and
  • Quality Function Deployment (QFD)

These are customer-driven quality approach that
aim at meeting or exceeding customer
expectations.
9
Addressing Customer Issues
  • The success of companies depend on
  • designing, developing and launching new
  • products/service of superior quality,
  • getting to the market quickly (reduced cycle
    time),
  • bringing innovation in products,
  • and most important of all,
  • understanding the customers needs and
  • requirements.

10
How Six Sigma and Related Tools have helped
Companies?
  • Six Sigma, Lean, Design for Six Sigma, and QFD
    are major tools and technologies that have helped
    companies achieve
  • excellence in designing and developing
  • products and services,
  • meeting and exceeding customer needs and
  • requirements, and
  • improving their revenues and profitability by
  • increasing their market share.

11
What is Six Sigma?(1 of 4)
Six Sigma can be described as a business
improvement approach that seeks to find and
eliminate causes of defects and errors in
manufacturing and service processes by focusing
on outputs that are critical to customers and
essential for a clear financial return for the
organization. Six Sigma was pioneered by
Motorola in the mid-1980s and popularized by the
success of General Electric.
12
What is Six Sigma?(2 of 4)
  • Six Sigma is a customer focused approach to
    create near perfect processes, products, and
    services all aligned to delivering what the
    customer wants.
  • It is a project based approach where majority of
    projects are selected for measurable bottom line
    or customer impact majority of projects are
    completed within two to six months.
  • Six sigma projects use well defined set of
    statistical tools and process improvement
    techniques by well trained people in an
    organization.

13
What is Six Sigma?(3 of 4)
  • Six Sigma can be viewed as
  • a set of powerful tools for improving products
    and processes
  • an approach for improving both the process-and
    people related aspects of business performance
  • Six Sigma has turned the companys focus from
    inside to outside, changed the way we think and
    train our future leaders and moved us toward
    becoming truly customer-focused
    organization.Annual Report 2000, GE

14
Six Sigma(4 of 4)
  • Six Sigma is a business strategy that employs
    well-structured continuous improvement
    methodology and statistical tools to reduce
    defects and process variability.
  • Six Sigma has evolved from a focus on process
    improvement using statistical tools to a
    comprehensive framework for managing a business
  • Six Sigma has been employed in numerous companies
    to reduce operating cost, eliminate waste,
    increase reliability, incorporate innovation in
    products and services, reduce cycle time, and
    increase productivity.

15
Six Sigma and Variation Reduction
  • We quickly learned if we could control
    variation, we could get all the parts and process
    to work and get to an end result of 3.4 defects
    per million opportunities, or a Six Sigma level.
    Our people coined the term and it stuck. It was
    shorthand for people to understand that if you
    can control the variation, you can achieve
    remarkable results.
  • --Interview with Robert W. Galvin, Chairman
    Emeritus of Motorola, Inc.

16
Objective of Six Sigma
  • The objective of a Six Sigma program is to reduce
    the variation in the process to the extent that
    the likelihood of producing a defect is virtually
    non-existent. This means improving quality, and
    meeting or exceeding customers expectations.
  • The improved quality and reliability in products
    and services leads to higher perceived value, and
    increased market share thereby increasing
    revenues and profitability.

17
What does sigma mean?
  • The term sigma (denoted by the Greek letter,s) is
    a metric based on the statistical measure called
    standard deviation and is a measure of
    variability in a process. A metric is simply a
    measurement of some quality characteristic for
    example, percentage of defects.
  • The term six sigma statistically equates to 3.4
    defects per million opportunities. Thus, a Six
    Sigma process is capable of producing 3.4 defects
    per million opportunities (DPMO).

18
Improvement in Quality from 3 to 6 Sigma Levels

19
Statistical Basis of Six Sigma
  • In a Six Sigma process, a shift in the process
    mean of 1.5-sigma on either side of the mean
    results into 3.4 nonconforming products per
    million.

20
Metrics used in Industry
Source Enterprise Strategies, Technologies
Enable Six Sigma, Aberdeen Group, Sep. 2006
21
Six Sigma in Industries
  • Industry research and current trend shows that
    Six Sigma and related methodologies are
    considered as the most sought after emerging
    technologies and programs by industries today.
  • A current industry survey of 600 companies shows
    that approximately 41 are implementing Six
    Sigma, and vast majorities of them (approximately
    87) are implementing Lean Six Sigma and related
    technologies World Class Manufacturing Report,
    2006. The survey also shows that 72 of the
    companies acknowledge that Six Sigma and related
    technologies have increased their profitability
    Quality Digest 36.

22
Six Sigma Success
  • A survey of 2577 quality professionals by Quality
    Digest on Six Sigma
  • In the two years we have been tracking Six
    Sigma usage and perceptions, the predominant
    finding of survey responses is the overwhelming
    agreement on this methodology as a means to
    drastically reduce waste and improve
    productivity. when properly implemented and
    supported by management, the process yields huge
    results.
  • Very few of those who utilize Six Sigma have
    anything negative to say about it.
  • The down side reported was the difficulty of
    implementing it within small companies.

23
Quality Programs in Use
(Source The Lean Sigma Benchmark Report,
Aberdeen Group, September 2006)
24
Relative Emphasis on Lean/Six Sigma
(Source The Lean Sigma Benchmark Report,
Aberdeen Group, September 2006)
25
Factors Driving Quality and Six Sigma Program
(Source The Lean Sigma Benchmark
Report, Aberdeen Group, September 2006)
26
Six Sigma Model
Six Sigma Methodology
Improved Business Performance
Improve Quality, Productivity, and
Perception Reduce Costs, Increase
Market Share, Increase Profitability Exceed
Customer Expectation
27
Key Concepts of Six Sigma
  • Think in terms of customer requirements, critical
    to quality (CTQ) characteristics, key business
    processes, costs of poor quality, and overall
    strategic objectives.
  • Ensure that the identified metrics focus on
    business results and are tied to customer
    requirements, and CTQs.
  • Focus on corporate sponsors, project and process
    owners, and internal and external customers.
  • Identify and prioritize business impact projects
    according to expected savings and improved
    throughput.
  • Help to overcome resistance to change obtain
    the required resources.

28
Six Sigma Applications
  • Manufacturing reduce waste, improve product
    consistency, reduce variation, improve quality,
    solve equipment problems, create capacity,
    improve productivity
  • Human resource reduce cycle time for hiring
    processes, eliminate unneeded steps from the
    process, improve productivity
  • Sales improve forecast reliability, pricing
    strategies, pricing variation, market share
  • Anyone better understand customer needs and
    requirements tailor service offerings to meet or
    exceed customer expectations

29
Second Generation of Six Sigma
  • Six Sigma is part of the corporate business plan
    that is key to achieving business objectives,
    with top leadership support and involvement
  • Six Sigma must address the voice of the customer
    (VOC)

30
Definition of Quality
The quality of a product or service is the
customers perception of the degree to which the
product or service meets his or her expectations.
Six Sigma is a customer-driven quality approach
that aims at meeting or exceeding customer
expectations.
  • Transcendent Quality is something that is
    intuitively understood but
  • nearly impossible
    to communicate, such as beauty or
  • love.
  • Product-based Quality is found in the components
    and attributes of a
  • product.
  • User-based If the product or service meets or
    exceeds customers
  • expectations, it has
    good quality.
  • Manufacturing-based If the product conforms
    to design

  • specifications, it has good quality.
  • Value-based If the product is perceived as
    providing good value for
  • the price, it has
    good quality.

31
Defining Quality
Perfection
Consistency
Fast delivery
Providing a good, usable product
Eliminating waste Variation reduction
Doing it right the first time
Delighting or pleasing customers Meeting or
exceeding customer expectations
Total customer service and satisfaction
Compliance with policies and procedures
32
Dimensions of Product Quality
  • Based on the definitions of quality, Garvin
    developed the following eight dimensions that
    describe product quality
  • Performance
  • Features
  • Reliability
  • Conformance to standards
  • Durability
  • Serviceability
  • Aesthetics
  • Perceived quality
  • The recognition of these dimensions by management
    and the selection of the dimensions along which
    the business will compete is critical to business
    success

33
Dimensions of Product Quality
  • Performance Will the product do the job?
  • Features/Added features Does it have features
    beyond the basic performance characteristics?
  • Reliability Is it reliable? Will it last a long
    time?
  • Conformance Does the product conform to the
    specifications? Is the product made exactly as
    the design specified?
  • Serviceability Can it be fixed easily and cost
    effectively?
  • Durability Can the product tolerate stress
    without failure?
  • Aesthetics Does it have sensory characteristics
    such as taste, feel, sound, look, and smell?
  • Perceived quality what is the customer opinion
    about the product or service? How customers
    perceive the quality of the product or service?

34
Customer-Driven Quality
  • Meeting and exceeding customer expectations
  • Customers
  • Consumers
  • External customers
  • Internal customers

35
Principles of Quality
  • Focus on customers
  • Participation and teamwork
  • Process focus supported by continuous improvement

36
Customer Focus
  • Customer is principal judge of quality
  • Organizations must first understand customers
    needs and expectations in order to meet and
    exceed them
  • Organizations must build relationships with
    customers

37
Customer Focus in Six Sigma
To meet or exceed customer expectations,
organizations must fully understand all product
and service attributes that contribute to
customer value and lead to satisfaction and
loyalty called critical to quality (CTQ)
characteristics. CTQs represent the important
drivers of Six Sigma improvement efforts.
38
Competitive Advantage
  • Six Sigma driven by customer wants and needs
  • Makes significant contribution to business
    success
  • Matches organizations unique resources with
    opportunities
  • Is durable and lasting
  • Provides basis for further improvement
  • Provides direction and motivation

Six Sigma efforts are focused on building strong
competitive advantage
39
Six Sigma Quality and Profitability
Improved quality of design
Improved quality of conformance
Higher perceived value
Higher prices
Lower manufacturing and service costs
Increased market share
Increased revenues
Higher profitability
40
Six Sigma and Business Results
Considerable evidence exists that Six Sigma
initiatives positively impact bottom-line results
from companies such as GE, Allied Signal, 3M,
Xerox, Raytheon, Citibank, and many others.
41
Lean Six Sigma
  • Lean is an approach that seeks to improve flow in
    the value stream and eliminate waste. It is about
    doing things quickly.
  • Six Sigma uses a powerful framework (DMAIC) and
    simple to advanced statistical tools to uncover
    root causes of the problem to understand and
    reduce variation. It is about doing things right
    (defect free)

42
Lean and Six Sigma
  • Lean is an approach based on the removal of
    waste from service and manufacturing processes.
    Many companies have reported significant
    improvement through the removal of waste or
    non-value added activities.
  • Six Sigma improves quality through defect
    removal and process optimization. The improved
    quality leads to higher perceived value and
    increased market share thereby, increasing
    revenue and achieving higher profitability. Many
    companies have reported significant savings by
    reducing the cost of poor quality.

43
Difference Between Lean and Six Sigma (1 of 2)
44
Difference Between Lean and Six Sigma (2 of 2)
Source Lean Six Sigma some basic concepts, NHS
Institute for Innovation and Improvement
45
Integrating Lean and Six Sigma
  • Companies have reported that bringing the two
    concepts- Lean and Six Sigma together delivers
    faster results.
  • While the objective of Lean is to create flow and
    eliminate waste from the process, Six Sigma
    improves process capability and reduces variation
    thereby improving quality and reducing cost. If a
    company just applies Six Sigma, it cannot
    maximize the potential of the organization. Lean
    is really an enabler for Six Sigma.
  • The Power of Six Sigma, Chowdhury, S., Prentice
    Hall, London.

46
Integrating Lean and Six Sigma
  • More and more companies are realizing that it is
    possible to achieve dramatic improvements in
    cost, quality, and time by using the above
    techniques.
  • Several companies including Toyota, General
    Electric, Motorola, and many others have
    accomplished impressive results using one or the
    other technique. However, using only one of the
    above techniques- Lean, Six Sigma, or Design for
    Six Sigma has limitations.

47
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48
Design for Six Sigma (DFSS)
49
Design for Six Sigma (DFSS) (1)
  • DFSS is a systematic methodology to design new
    products or processes so that quality is built
    into every phase of product design. It is also
    used for improving existing products through
    redesign.
  • The roots of DFSS are in systems engineering. It
    combines systems engineering methodology with
    statistical methods to achieve built-in quality
    objectives.
  • DFSS optimizes the critical to quality (CTQ)
    characteristics to achieve the best system
    performance. (CTQs are the selected few
    measurable quality characteristics that are key
    to a specific product, process, or service that
    must be controlled to meet or exceed customer
    expectation).

50
Design for Six Sigma (DFSS) (2)
  • The DFSS methodology has been identified by a
    five-step process DMADV that stands for Define,
    Measure, Analyze, Design, and Verify. These are
    explained briefly.
  • Define determine the project need, identify the
    project goals and objectives, determine
    customers needs and requirements, and include
    the voice of customers (VOC)
  • Measure determine the characteristics critical
    to quality, prioritize customer needs and
    requirements, and assess customers needs and CTQ
    metrics
  • Analyze evaluate the process options to meet
    customers need and CTQs
  • Design design product and process to meet the
    customer requirements, include customer
    requirements in the development process
  • Verify check the design to ensure that the
    customers requirements are met

51
Design for Six Sigma (DFSS) (3)
  • Unlike Six Sigma process, DFSS is relatively new
    and not standardized therefore, there are
    inconsistencies in the methodology, tools, and
    models companies employ.

52
Design for Six Sigma (DFSS) (4)
  • DFSS uses Robust Design (product is designed so
    that small variations in production or assembly
    do not adversely affect the product), Design of
    Experiment (DOE), Design for Manufacturability,
    Simulation and several other tools to optimize
    product design.
  • DFSS balances the cost and quality.
  • DFSS reduces the development cycle time in the
    long run.
  • In DFSS, both engineering methods and statistics
    are used to optimize the design requirements.
  • Like Six Sigma, the DFSS also uses a collection
    of tools. These tools must be understood in
    context to the engineering design for achieving
    DFSS objectives.

53
DFSS Process
  • The process of DFSS can be divided into four
    categories described below. These are very
    similar to the IDOV process described above.
  • Concept Development and Concept Engineering (CE)

2. Design Development
3. Design Optimization
4. Design Verification
54
DFSS Process
  • Concept Development and Concept Engineering (CE)
  • Concept development involves developing product
    concepts and functionality based on the critical
    to quality characteristics (CTQs), voice of
    customer (VOC), technological capabilities, and
    other economic considerations.
  • This stage is about bringing innovative ideas to
    the product that do not currently exist. This is
    done through listening to the voice of customers
    that helps determine the critical quality
    characteristics.

55
DFSS Process
  • Tools available to aid in the product design and
    development process.
  • Quality Function Deployment and House of Quality
  • Concurrent Engineering
  • CAD/CAM
  • Robust Design
  • Detailed Design and Analysis (Tolerance Design,
    Design for Manufacturability, Standardization and
    Simplification)
  • Failure Mode and Effects Analysis (FMEA)
  • Reliability Testing

56
DFSS Process
  • Quality Function Deployment (QFD) is an approach
    used to meet the customers requirements in the
    product design and development phase.
  • It helps to integrate the voice of customers and
    critical quality characteristics in the design of
    the products so that the products meet or exceed
    customer expectations.
  • QFD helps eliminate the traditional and wasteful
    design/redesign efforts by identifying and
    incorporating customer requirements at the
    earliest stage of design. Other benefits of QFD
    include
  • closer interaction between marketing, design,
    manufacturing, purchasing, and suppliers
  • reduced product development time,
  • faster market entry, and
  • customer focus.
  • An example of QFD is shown on the next slide

57
QFD Concept
58
(No Transcript)
59
Establishing Relationship between Customer
Requirements and Technical Descriptors
60
(No Transcript)
61
(No Transcript)
62
Six Sigma or Design for Six Sigma?
  • Unlike Six Sigma, the Design for Six Sigma (DFSS)
    is not standardized and is not deployed well in
    industry.
  • The goal of DFSS is to address and incorporate
    quality issues early in the design/redesign
    process using robust design methodologies.
  • Companies who have successfully employed Six
    Sigma program have found that once they achieve
    5-sigma quality levels (233 defects per million
    opportunities), they must design or redesign
    their products, processes and services by means
    of DFSS to surpass this quality level.
  • The cost to correct the potential design problems
    to reduce the defect level to achieve higher
    quality level (above 4-sigma) is usually greater
    than the projected cost savings of the further
    improvement effort. It is therefore important
    that the quality must be built in the design
    phase, and the quality issues must be addressed
    early in the design process.
  • To achieve Six Sigma quality level the companies
    must determine where the Six Sigma activity
    occurs in the life cycle of the product. In other
    words, the companies must determine when to apply
    the Design for Six Sigma or DFSS approach.

63
Six Sigma, Lean or Design for Six Sigma?
  • There is a need for an integrated approach to
    achieve the overall objectives.
  • It is important for the companies to identify and
    initiate appropriate projects based on Six Sigma,
    Lean, or Design for Six Sigma depending on the
    objectives and priorities.
  • Sometimes a combination of these methodologies is
    needed as an integrated approach to achieve the
    overall objectives of improving quality, reducing
    defect and becoming a Six Sigma company, reducing
    cost, eliminating waste, providing speed and
    reliability of delivery, incorporating
    flexibility and innovation in products and
    services, and meeting or exceeding customers
    expectation.

64
Baldridge Customer Requirements
How do you listen to customers to obtain
actionable information? How do you listen to
potential customers, and customers of competitors
to obtain actionable information and to obtain
feedback on your products, customer support, and
transactions, as appropriate? How do your
measurements capture actionable information for
use in exceeding your customers expectations and
securing your customers engagement? How do you
determine customer dissatisfaction? How do your
measurements capture actionable information for
use in meeting your customers requirements and
exceeding their expectations in the future?
65
Baldridge Customer Requirements
Listening to the voice of the customer might
include gathering and integrating various types
of customer data, such as survey data, focus
group findings, blog comments and other social
media data, warranty data, marketing and sales
information, and complaint data that affect
customers purchasing and engagement decisions -
all the above DFSS, QFD, Six Sigma) How do you
identify and innovate product offerings to meet
the requirements and exceed the expectations of
your customer groups and market segments
(identified in your Organizational Profile)? How
do you identify and innovate product offerings to
enter new markets, to attract new customers, and
to provide opportunities for expanding
relationships with existing customers, as
appropriate? (all the above DFSS, QFD, Six
Sigma) How do you consider customers of
competitors and other potential customers and
markets in this segmentation? (all the above
QFD)  
66
Baldridge Customer Requirements
Customer Data Use How do you use customer,
market, and product offering information to
improve marketing, build a more customer-focused
culture, and identify opportunities for
innovation? ((all the above QFD and DFSS) How
do you market, build, and manage relationships
with customers to achieve the following?
acquire customers and build market share, retain
customers, meet their requirements, and exceed
their expectations in each stage of the customer
life cycle increase their engagement with you
(all the above Six Sigma)
67
Most of the criteria laid out in Baldridge
Customer Focus category can be met by Six Sigma
and related tools.Six Sigma, Lean, Design for
Six Sigma, and QFD are powerful tools in meeting
and exceeding customer requirements and achieving
excellence.
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