BPMS 04 ACFC

CustomerFocusedSixSigmaAttheCustomer–FortheCustomer(ACFC)BusinessProcessManagement4-2ServiceQualityCostDeliveryDistributorInternalOEMUserCustomerExpectationsWhatarethemajorcustomerexpectations?CriticalIssuesSpanUnits&ScaleProcessOutputMeasureCTCIssuesWhataretheOperationalDefinitionsofCTCIssues?CustomerSpanScorecardstoManageResultsIndicatorsofProcessPerformanceCoreandEnablingProcessesCritical-to-CustomerOutputsCustomerFocusedObjectivesCSIPO•Whatmetricsdocustomersusetomeasureperformance?•Howwillyoumeasurecustomersatisfactionattheprocesslevel?MeasurethewayacustomermeasuresDetermineprocesscapabilityasacustomerdoesFindtheprocessmeasurestosatisfycustomersThinkingasaCustomerOperationalFocusInternalYxnxmClusterClusterSixsigmaTransitionCustomerFocusCustomerYxnxmClusterClusterWhatCustomersExpectExceedingWhatisExpectedWhereAreWe?WhereAreWe?Competition?UnhappyCustomersDelightedCustomersWherewemustbeCustomerSatisfactionScaleStatusQuoCustomerSatisfactionScaleCloseGapCloseDooronCompetitorY=F(X)CapturingthemeasurementonaCustomerunitbasisUnderstandingProcessOutputastheCustomerseesitLearningfromVarianceinperformanceonCustomerYDefiningtheprocessvariablesthatcontrolCustomerSatisfactionCustomerSatisfactionModelOutside-In:(1)Unit&Scale(2)ExpectationMetricsCapturingYonaCustomerUnitBasisY=F(x)Capturethecustomer’stransactionalscale.Examples:daysearly/latevs.request,minutestorespondUnit&ScaleCapturethecustomer’stransactionalunit.Examples:manufacturing–OnTime,quotations-ResponseTimeOutside-In:ThewholeviewCustomerSpecs:WhattheywantyoutobeY=F(x)UnderstandingtheOutputastheCustomerCustomerProcessYourProcessCABCustomerViewHowdidtheperformanceofmysupplieraffectmytotalprocessperformance?YourViewTwoViewsofPerformanceHowdidweconformtothecustomer’srequirement?CAPTUREWHATTHECUSTOMERSEES-THEENTIREDISTRIBUTIONOFYVALUESExample:AstheCustomerSeesItCustomerView0255075100125Min=17Max=118ProducerView025507510012553THEENTIREDISTRIBUTIONOFYVALUESSEENBYCUSTOMERMonth1Month2Month3Average17426158793257118424849586286584676861042959456947675666552543534-18KeyVarianceMeasure-Span•Spanisthedifferencebetweenthebestandworstperformanceexperiencedbythecustomer•Inotherwords,itisthespanofthemaximumandtheminimumvaluesofcustomermetric,asactuallyobservedbythecustomere.g.,materialfulfillmenttime.ProductShippedProductProducedOrderScheduledCustomerRequestDeliveryVerifiedProductArrivesInvoice&PaymentSpanmeasurestheperformanceofaCustomerMetric(Y)intermsofthetotalvariationseenbycustomers.Usuallythisisanoutputofacoreprocesses.4-19SpanExamples4-20OnTimeInFull•OnTimeInFull(OTIF)isameasureofdeliveryperformance•Thecustomerexpectstheirdeliverytobewithinarangeofthetargetreceiptdate–Example:Requireddate+/-1day•SpanMeasure:–Measurethedifferencefromtargetdatetoactualreceiptdateforallshipments–Spanisthedifferenceinearliestandlatestdeliveryforthespecifiedtimerange4-21ClosingofBooks•Financeorganizationsaretypicallymeasuredonthetimetoclosethebookseachmonth•TheBoardexpectstheclosetobecompletedwithin2daysaftertheendofthemonth•SpanMeasure:–Measurethedifferenceinhoursfromthe2ndofthemonthtotheactualcompletiontime–Spanisthedifferenceinearliestandlatestcompletiontimefortheyear4-22HiringCycleTime•Companieswanttoreducetheamountoftimebetweentheidentifiedneedforaresourceandthehiringofaqualifiedresource•Thebusinessmayexpecta30-daytimetocompletethistask•SpanMeasure:–Measurethedifferencefromtherequestdatetothehiredate–Spanisthedifferenceinshortestandlongesttimetohireforaspecifiedtimerange4-23BulkShipmentofMaterials•Manymaterialsareprovidedinbulkwherethesuppliershipmentsarenotalwaysverifiedforcontentamount–Example:Bulkshipmentofplasticresin•Thecustomerexpectsauditedshipmentstobeon-targetwiththeinvoicedamountofmaterial–Example:+/-1%oftotalweightofproductsupplied•SpanMeasure:–Measurethedifferencefrominvoicedamounttoactualamountreceivedforallauditedshipments–SpanisthedifferenceinthemostunderweightandthemostoverweightbatchesreceivedforshipmentsreceivedinamonthUnderstandingprocessoutputastheCustomerseesitLearningfromvarianceinperformanceonCustomerYDefiningtheProcessVariablesthatcontrolCustomerSatisfactionYF(x)CapturingthemeasurementonaCustomerunitbasisY=LearningfromvarianceinperformanceonCustomerYFWhereareWe?AppendixWorkout:CustomerMetricAlignmentReviewyourcriticalcustomerissues-CTQsForthoseissues,howdocustomersmeasureyourprocessoutput(unit,scale,performanceandvariance)?Howdoyoumeasuretheprocessoutput,andisthereadifference?Pleasereviseyouroperationaldefinitions,ifnecessary,tomakesurethattheyreflectcustomerfocusedmeasures.4-26CTQSamsungMeasureCustomerMeasureX,RSamsungObjectMaximizeshareholders’profitSDIstockpriceincreaserateRival’sstockpriceincreaserate＞100%(Shareholder)120%90%(±10%)120%↑FastF/backtomanagementperformanceWorkL/TinrelevantdepartmentUnit:day(Management)Order↔ReportUnit:timeX=On-time＋3daysR=2daysOn-time±12HR↓MarketresponsivenessProducedevelopmentL/T3mths(Buyer)30days5mths(±1mth)30days↓SamsungExample-CTQMeasuresAppendix–MeasurementVariationActualDelivery-TuesdayMeasuredDelivery-ThursdayMaxRa