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How to determine critical customer requirements

7/10/2021

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For any business, customers is the final authority that determine the final value of any product or services with their decisions to buy or not. This decision are based on complex system of critical customer requirements. 
If you know how to decode those critical customer requirements you can make decision on business process with so much confidence.
Say, as an example, I am planing to fly from Austin to Chicago with 2 bags. I will search for airline with criteria as low price and one that allow 2 bags. After searching, i figure out Southwest Airlines allow me to carry 2 bags at fair price which is close to nearby airlines. I decide that i will fly with Southwest airlines and buy the ticket. So of all the airlines, Southwest is winner !
Why Southwest in above example because of customer value. At same price i am getting more value. You can describe customer value in four areas: Cost, Quality, Features and Availability (CQFA).
​
Picture
To prosper, a business process must do very well in at least one of those four area. Southwest win over feature as 2 Bag while prices are still same.
If a business can be best in class in one of those quadrants, they can thrive. But always, remember, level of the bar in each quadrant is rapidly changing, so always determine what is critical to your customer on continuous basis.
I mean this technique is simple but u now, know what add value to customer. It’s CQFA.
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    My name is Bharat. I have 10+ years experience working with Fortune 500 companies. 

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  • Home
  • Six Sigma Wiki
    • History of Six Sigma : The Guru’s
    • Lean vs Six Sigma
    • What is Six Sigma ? Objectives Fundamental Beliefs Benefits
    • Six Sigma Project Overview >
      • Six Sigma Process Performance Metrics
      • Project Execution : Selection , Flowchart , Management , Evaluation
      • Voice of the Customer (VOC) >
        • CTX (Critical to X) Quality
        • Kano Model
        • Different type of Quality Cost
      • Risk Analysis SWOT (Strength, Weakness, Opportunity, Threat)
    • Six Sigma Team Management : Types, Roles, Size, Stages & Life cycle >
      • Six Sigma Organizational Infrastructure Team Leadership >
        • Six Sigma Roles and owners process
        • 3 levels of business management process
        • Six Sigma Training: Black vs Green Belt
        • Overview of DMAIC : Key points
      • Six Sigma Team Tool: Facilitation & Groupthink
      • Nominal Group Techniques Multivoting Force Field Analysis Brainstorming
      • Diagrams : Affinity Tree PDPC Matrix Interrelationship Prioritization matrices Activity network diagram
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Six Sigma: Define Phase : Outcomes & 6 Element >
      • Six Sigma Define: 1Define Problem & 2 Identify Customer
      • Six Sigma : Define : 3 : Identify CTQs ( VOC Kano Model )
      • Six Sigma : Define : 4 : Map Process 5 Refine Project Scope
      • Six Sigma : Define : 6 Update Project Charter ( PERT CPM Gantt Bar WBS)
    • Six Sigma: Measure Phase : Outcomes & 5 Element >
      • Six Sigma: Measure : 1 Identify Measurement and Variation
      • Six Sigma: Measure : 2 Determine Data Type
      • Six Sigma: Measure : 3 Develop Data Collection Plan
      • Six Sigma: Measure : 4 Measurement System Analysis & Data Collection
      • Six Sigma: Measure : 5 Perform Capability Analysis
    • Six Sigma: Analyze Phase : Outcomes & 4 Element >
      • Six Sigma Analyze : 1 Measuring and modeling the relationship between Variables
      • Six Sigma Analyze : 2 Hypothesis Testing
      • Six Sigma Analyze : 3 Failure mode and effects analysis (FMEA)
      • Six Sigma Analyze : 4 Analysis of Variance (ANOVA)
    • Six Sigma: Improve Phase : Overview & 6 Element >
      • Six Sigma: Improve Phase : 1 About Design of experiments (DOE)
      • Six Sigma: Improve Phase : 2 DOE Process variables & Analysis
      • Six Sigma: Improve Phase : 3 Design Selection Guideline
      • Six Sigma: Improve Phase : 4 : Lean 5S
      • Six Sigma: Improve Phase : 5 Poke Yoke
      • Six Sigma: Improve Phase : 6 Standard Work & Kaizen
    • Six Sigma: Control Phase : Overview & 3 Element >
      • Six Sigma: Control Phase : 1. Statistical Process Control
      • Six Sigma: Control Phase : 2. Control Chart
      • Six Sigma: Control Phase : 3. Other: Pre-control Technique, TPM & Visual Management
  • Lean Wiki
    • History of Lean & Guru’s >
      • Birth of Lean
    • About Lean, Value, Waste, Muda, Mura & Muri >
      • Overview Lean Tools, Techniques & House of Lean
      • Lean Excellence, Tools & Framework
      • Lean Framework 6 points, metric & Stability
    • Lean Team Setup : Structure, Meeting & Project >
      • Self Directed Work Teams (SDWT) , ACHIEVE TEAM SYNERGY , SQDCM, Teamwork Principles, Team Structure & Team Leader
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Lean Process Mapping: Generic & Type >
      • SIPOC: Suppliers, Input, Process, Output & Customers
      • Lean Process Management , Excellence , Identification , Design & Mapping
      • Lean Process Mapping Symbols
      • How to Create a Simple Process Flow Diagram
      • Lean Value Stream Mapping, current, future & 3 type of work
      • Value Stream Mapping (VSM): About & 17 steps
      • Other Types of Process Maps & Pitfalls: Resources: iDef0, Document Map, Work Diagrams, Rendered Process Map
    • Lean Process Optimization , Andon System , Error Proofing ( Poka Yoke ) & Defect vs Errors >
      • Lean 5S System
      • Kanban : Benefits, Shapes of Inventory, Type, Operation & Sizing
      • Cellular Manufacturing: About, Benefits & 4 Dimensions of Cells
      • Heijunka, A 3 Thinking, Hoshin planning, Jidoka, Poka‐yoke , Kanban, Takt , Kaizen
      • Lean Kaizen (continuous improvement), Systems Thinking & Process Variability
      • Lean Visual Management & Visual Control
      • Lean Waste Detail: Eight Types of Waste
      • Line Balancing, Cycle Time, Takt Time, Assembly / Workload Balance & Man – Machine – Setup – Time
      • Single Piece Flow, Continuous Flow & Standardized Work
      • SMED Single Minute Exchange of Dies
      • Total Productive Maintenance (TPM): Preventive Maintenance Corrective Maintenance Inbuilt Maintenance
  • Blog
  • Contact