Who is our Customer and their Voice

What is Voice of the customer?

Is a process used to capture the requirements/feedback from the customer to
provide the customers with the best in class service/product quality.
The voice of the customer can be captured in a variety of ways;

Complaint Logs
 Who is our Customer and their Voice

What is Voice of the customer?

Is a process used to capture the requirements/feedback from the customer to
provide the customers with the best in class service/product quality.
The voice of the customer can be captured in a variety of ways;

Direct discussion

“Six Sigma allows you to find the critical quality issues... keeping in mind what’s critical to the customer”
Jack Welch CEO,General Electric
Who is our Customer and their Voice

VOC benefits..

Management Systems
Audits
Identify Improvements Opportunities
Surveys for your organisation.
Voice of the
Customer
Focus Groups
Project Funding

Data Warehouse

Complaints
 Exercise
'Be Your Own Customer' Exercise….

The idea behind 'Be Your Own Customer' is simple: you never really understand
your customer until you have to walk in his/her shoes.

• Sign up for your own service (e.g. open a new account)

• Purchase and use your own product. (e.g. buy a new mobile phone)

In teams ;

¾ Analyse the quality of your product or service.

¾ Analyse the competitiveness of your product or service.
¾ Identify opportunities for improvements based on your requirements.

This process is all about being proactive and constantly innovative to capture
the changing requirements of the customers with time.
 Who is our Customer and their Voice

SIPOC
Suppliers Inputs Process Outputs Customers Requirements

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ˆ ˆ ˆ ˆ ˆ
ˆ ˆ ˆ ˆ ˆ
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Step 1: Step 2: Step 3: Step 4: Step 5:

Once customers are identified and segmented, if appropriate, customer needs

must be solicited and quantified.
Effective Six Sigma Solutions
Effective Six Sigma Solutions

How Quality gives you effective solutions ?

Income Expense
Good Quality •More customers •Lower production cost
•Repeat Business •Lower inspection cost
•Competitive advantages •Lower working capital

Poor Quality •Lose of business •Scrap and rework cost

•Penalties for late delivery or •Warranty cost
service •Sorting cost
•Partial or late payments due •Express Shipping cost
customer dissatisfaction
Effective Six Sigma Solutions

How Can we Measure Quality?

People Machines/ Materials Methods/
Technologies Process
Value/Cost •Sales per employee •Added Value per hour •Material cost •Job setup costs
•Revenues per •Equipment cost •Rework cost •Activity/base cost
employee •Repair cost •Scrap cost •Engineering costs
•Training cost •Operating costs •Inventory cost •Inspection costs
•Overtime cost •Waste disposal
•Recruiting cost

Time •Time to close action •Process cycle time •On-time shipments •Contract review time
Items •Machine life time •Back orders •Inspection time
(minutes,
•Time to resolve •Maintenance time •Material shortages •Time to close
hours, days) complains •Repair time •Rework time complaints
•Time to process •Setup time •Processing time •Response time to
request per part requests
•Time to enter customer
•Time spent on value in system •Cost of urgent •Value adding
added tasks shipments employees hours

Quality of •Employee Turnover •Machine capability •Rejected/Scrap •Engineering changes

•Employee •Setup time rate •Number of closed
work
Output/productivity •Unscheduled down •Number of non actions items
Results conformities
•Training Hours per time •Number of complaint
(good/Bad) employee •Number of rejected part •Customer returns resolve
•Number of errors per hour. •Supplier Quality
•Number of requests •Computer uptime
handle
 Effective Six Sigma Solutions

Harvesting the Fruit of Six Sigma

Sweet Fruit
Design for Manufacturability, Design for Six Sigma
55σσWall,
Wall,Improve
ImproveDesigns
Designs
Bulk of Fruit
Process Characterization
and Optimization

--------------------------------------- 44σσWall,
Wall,Improve
ImproveProcesses
Processes
Low Hanging Fruit
Seven Basic Tools

--------------------------------------- 33σσWall,
Wall,Beat
BeatUp
UpSuppliers
Suppliers
Ground Fruit
We don't know what we don't know Logic and Intuition
We can't act on what we don't know
We won't know until we search
We won't search for what we don't question
We don't question what we don't measure
Hence, We just don't know
 Effective Six Sigma Solutions

Question
If you are in an orchard with a million
peaches, and you are drooling to get one
into your mouth, which one do you take?

Answer
A good one that is easy to get.

The low hanging Fruit……..

 Effective Six Sigma Solutions

The Six Sigma process for gathering the low hanging fruit…...

Purpose: To determine Next steps Purpose: Plan improvement with anticipated results
Outcome: Decision whether to hold Outcome: System description
Current Level Baseline data
Performance Improvement plan
Improvement cycle Anticipated results
Tools: None
Tools: Flow Chart Creativity Tools
Check Sheet Cause & Effect
Run Chart Control Chart
ACT PLAN Histogram Project Mang’t
Pareto Team Skills

REVIEW DO
Purpose: Review Purpose: To carry out the plan

Outcome: Review and measure Outcome: Completed improvement action

improvement
Tools: none Tools: none

A good Real Time Strategist is always looking out for low hanging fruit.

Some times companies can spend to much time doing complex things
for little return
 Effective Six Sigma Solutions

Here are a few real life examples of small organizations using the Six Sigma Low hanging
fruit process….
A food processor used the plan-do-review-act (PDRA) process, utilizing the following
tools;
PLAN A Flow charts

Control charts Pareto analyses Brainstorming

Effective Six Sigma Solutions

DO-REVIEW

Reduce shipping errors.

ACT
The company saved $14,000 in annual shipping costs and got happier
customers.
Effective Six Sigma Solutions

Example….

A state-run training facility with 300 employees.

The organization was paying $1 million a year in overtime to cover unforeseen
employee absences.

PLAN BY USING…

Control charts Employee involvement

 Effective Six Sigma Solutions

The agency identified a state-mandated policy that was causing the problem.

DO-REVIEW
They asked the state to permit them to suspend the policy for a short trial period.
They also set up a peer review board to decide on all employee requested
absences.
The problem went away.

ACT
The state extended the policy suspension to other training facilities in the state.
A million dollars is not a bad return on learning and applying a few simple tools.
Effective Six Sigma Solutions

Any Volunteers to share their low hanging fruit ?

Q&A

Questions?
Making Six Sigma a repetitive
solution
Making Six Sigma a repetitive solution
Making Six Sigma a repetitive solution
Making Six Sigma a repetitive solution

Preparation – is this a financially viable proposition?

• Map ‘As-is’
• Identify process improvement opportunities
• Establish key measures
• Develop Process transformation roadmap
• Define 6σ infrastructure

Alignment – stabilise processes and deliver financial benefits

• Train Management team, BB’s & GB’s to & get buy-in
• Develop Project pipeline
• Complete 2 waves of projects
• Develop ‘Should-Be’ processes
• Measurement & Tracking systems established
• Pilot customer engagement projects
• Identify errors

Streamlining – develop processes for new products & services

• Implement ‘Should-Be’ processes
• Implement succession plan
• Full customer engagement – closed loop scorecard
• Engage suppliers
• Quarterly Exec reviews

Continuous Improvement – business run by Enterprise Process Management

• Migrate BB’s into significant functional roles
• Implement Enterprise Process Management
• Deliver additional benefit from process improvement and process (re)design
Making Six Sigma a repetitive solution

Process Team Vision

To be the catalyst for business transformation, driving innovation and

leadership, resulting in significant financial and knowledge capital benefit to
Xchanging, its employees and its customers.

ƒ Applies Six Sigma process improvement methodology

ƒ Rapid deployment and delivery of results
ƒ Makes processes transparent, flexible and scaleable
 Making Six Sigma a repetitive solution

Approach Methodologies
Industry Map
Placing Claims Settlement

Core Processes

DE
Process

OV
Policy Balance of
CRM & Credit Premium

SI
Checking Accounts
Xcellence

PR
Control Processing

GN
& Preparation Processing

IM
Primary
Processes

Resolve
Check Prepare Sign Issue
Queries

Driven by Six Sigma

Sub Processes 50 Process Steps
per Process Map
PROCESS MANAGEMENT

Infrastructure Measurement
σ DPMO %
Process Head / MBB Process Defects Per Million Yield
Capability Opportunities

6 3.4 99.99966%

BB BB BB BB BB BB 5 233 99.9770%

4 6,210 99.37%

3 66,807 93.3%
GB GB GB 2 308,000 69.2%
Making Six Sigma a repetitive solution

Organisation
ƒ Process Team Succession Planning
ƒ Resource Enterprises
ƒ Build Enterprise self-sufficiency (BB & MBB’s)
ƒ Develop BB & MBB Appraisal Process

Knowledge Capital
ƒ Present at Six Sigma conferences Codification (Manual)
ƒ Attend conferences, seminars & training ƒ Document Process Methodology
ƒ Develop case studies ƒ Develop Facilitation material
ƒ Conduct Research ƒ Develop White Papers on Six Sigma and
ƒ Publish articles Process Improvement
ƒ Use Process to help sell

Training
Tools
ƒ Six Sigma Process Simulation
ƒ Introduce in Sales & Marketing
ƒ Enterprise Process Management
ƒ Use QFD in Sales & Marketing
ƒ Change Management Tools
ƒ Extend the use of Scorecards & Dashboards
ƒ Minitab statistical software
throughout the Enterprises
ƒ Wider use of iGrafx Mapping & simulation
software
Making Six Sigma a repetitive solution

Synergy is achieved through harnessing the skills, resources and knowledge

of Process across all Xchanging Enterprise Partnerships, applying best
practice and a standard methodology

• Development of Common • Developing, Sharing & Implementing

Tools & Techniques Best Practice

• Consistent Approach • Common Language & Method

• Clear Communication • Standard Processes

• Black Belts Leading Change

• Accelerating Results
• Intellectual Property
• Process does deliver Exponential
• Reinvestment of Knowledge & Results
Lessons Learnt
• Accelerated People Development
 Making Six Sigma a repetitive solution
• Current state
Process teams independently develop and then share intellectual capital and solutions that are adapted and applied in other Enterprise
Partnerships
Delivering Operations dashboards across insurance enterprises
• Process Validation
Process ideas and options are validated against existing processes in other Enterprises in advance of implementing change
Validating XPS procurement options against insurance business models
• Process Piloting
Processes in one Enterprise are used to pilot process solutions for another Enterprise
Piloting accounting and invoicing against ins-sure processes
• Process Implementation
The process, capability and resources from one Enterprise are leveraged to deliver service in another Enterprise
Using XHRS Call Centre services to provide an insurance Call Centre solution

Procurement
Business
Model
Dashboards

Insurance
Process

Call Centre

Implemented Opportunity
Making Six Sigma a repetitive solution

S=CxA
Sustainability Competency Acceptance
• Expertise • Management Commitment
• Training • Shaping Vision
• Methods • Mobilising Commitment
• Software • Monitoring Progress
• Making Change Last
Making Six Sigma a repetitive solution

Sustainability Sample Actions Who When

Ins-sure
Results vs Plan

120% Build process infrastructure

47.3 End
–Assign core processes & owners XPS
March
110% –Map & measure as-is processes
XCS Demonstrate Mgmt sponsorship by End
XPS 100%
55.8 –Monthly project reviews by MT Togethr April
17.0 Togethr 39.5
90%
–Ea sponsor at least 1 project/qtr
Define & document project close-out End
XCS
80% procedures to improve sustain March
0% 20% 40% 60% 80% 100% Mgmt responsiveness (reviews, pipeline) End
Insure
Execute communication plan April

Com petency Expertise Acceptance Mgm t Sponsorship

10.0
10.0
8.0
8.0
6.0
6.0
4.0
2.0 4.0
Making Change Last Shaping Vision
Software 0.0 Training 2.0
0.0

Tog ethr
In su re
XCS Mobilising
Methods XPS Monitoring Progress
Com m itm ent
Reducing defects to satisfy
customer
Reducing of defects to satisfy customers

Who are your customers?

or

CUSTOMER
The recipient of the OUTPUT of the PROCESS, whether
external or internal to the business