Six Sigma

Customer Focus

Customer Focus
Focusing on the customer is essential to the success of any business. We all recognize this idea.
But do we really internalize this idea? Do we really believe that such a focus has the potential to
drive business growth and improve the quality of our day-to-day work as well as improve the
chance that our business, and hence our jobs, will flourish?

Business growth depends on how well we meet customer expectations in terms of quality, price,
and delivery. In turn, our ability to satisfy these needs with certainty is controlled by process
capability and the amount of variation in our processes (and these processes could be any kind of
process, ranging from administrative to manufacturing). Variation has a direct impact on our
business results in terms of cost, cycle time, and the amount of defects that affect customer
satisfaction.

It is vital that every employee in the company understand the values and philosophy of Six
Sigma. Six Sigma encompasses several things -- it is a metric, it is a problem solving
methodology and set of tools -- but most important it is a total business philosophy that our
company has embraced in order to achieve the growth aspirations of our businesses. It is
important that we reflect on how the values and philosophy of Six Sigma is different from the
beliefs, values, and priorities we currently emphasize in our organizations. This is vital because
those things that are truly valued in an organization, those things that get the attention, are the
things that drive everyone's behavior.

A key activity in Six Sigma is understanding (in quantifiable terms) customer needs and
translating these needs into the measurable outcomes of our processes (what we call a "need-
do" pair). In turn, we need to focus on understanding and measuring the inputs to the process
and looking at the root causes of variation in our processes.

In summary, if we value customer satisfaction as a prerequisite of business survival and growth,

and if we accept that to a customer uncertainty and variation from what they expect is a quality
problem, then we must focus on the root issues that make our internal processes inconsistent
and variable. The only way to ensure that this focus happens is to make sure we place a value
and emphasis on it and this takes measurements, since, as the old cliche goes, "what gets
measured, gets done". If we don't measure, or don't know how to measure inconsistency,
variation, defects, etc. then how will we achieve customer satisfaction?
Exploring Our Values

P
Priority Description of what is valued

Key Questions
Describe and
• What is Six Sigma and how does it relate to our business?
rank what you
• How does Six Sigma help us focus on customer satisfaction and competitive
capability?
think is really
• How does Six Sigma improve product, technology, and organizational capability?
valued at
• What type of results can be expected through the adoption of Six Sigma?
Your company
• What are the global success criteria for implementing and deploying Six Sigma?

• What are the initial steps for setting Six Sigma in motion?

Recognize
Customer Focus 4

Exploring Our Values

P
Priority Description of what is valued

Describe and
rank what you
think is really
valued at
Your company
Recognize

Customer Focus 4
Exploring Our Values

On a piece of paper, quickly write down the things that you perceive are most valued,
emphasized, and get the most management attention -- the things you think our company stands
for. Next, quickly rank them in terms of what you perceive are the priorities of the organization.
We will use these as input to a group discussion.

Comparing Value Systems

What We Really Value What Six Sigma Values

• Improving business
performance by improving
Quality and consistently
meeting Customer
Expectations
• Measurement
• Measuring inputs, not just
outputs
• Reducing defects, by
improving process and
product, to help achieve
business objectives

Recognize
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Customer Focus 5

Comparing Value Systems

As we go forward in this course we will discuss further the philosophy of Six Sigma, but it is
important to highlight a few important values of Six Sigma and to compare and contrast these
with what we as a group feel is currently emphasized in our company.

• Quality and consistently meeting customer expectations. Although it may seem obvious, it is
important to emphasize and re-emphasize that Six Sigma's main focus is to improve quality --
our ability to consistently meet customer expectations. In improving our quality, we will also
improve other elements of performance such as cost and delivery.
• Measurement. Six Sigma values measurement and the quantification of quality and our
processes with data. In short, if you can't measure something with data, you really don't know
anything about it and you have little chance of improving it.
• Measuring inputs. Again, it may seem obvious that we should focus on measuring the inputs
of a process, but often don't emphasize these measures or even measure them at all.
Instead, we often spend more energy measuring the outputs which does not help us in
understanding the root issues of problems in quality.
Behavior and Values

• Cutting
Reducing defectsto the processes
by improving Coreand product design. The identification and
reduction of defects is the main engine of quality improvement. The focus of our efforts
should be to improve the processes that produce products and services as well as improving
the design of our products and services so they can be made and delivered more
consistently.

Behavior
emphasizeis-- is aavital
function ofsuccessful
Values
An overall message of Six Sigma is that what we value -- what we measure, follow up, and
determinant of how a company will be in improving its
performance.

Behavior and Values

Behavior Values

Recognize
Cutting to the Core
Customer Focus 6

Behavior is a function of Values

Behavior Values

Recognize
Customer Focus 6

Behavior and Values

Cutting to the core: What we value drives our day-to-day behavior.

A stating point for any organization on the path to Six Sigma is to reflect on whether it is truly
focused on quality and the customer.
 Establishing Customer Focus

Quality
Establishing Customer Focus
Performance to the standard expected by the
customer.
Definition of Quality (ISO 8402)
Totality of characteristics of an entity that bear on its
ability to satisfy stated Quality
and implied needs.
Entity (or Item): That whichPerformance
can be individually
todescribed and
the standard expected by the
considered: process, product, and organization, a system or a
customer.
person or any combination thereof.

Customer Definition of Quality (ISO 8402)

Totality of characteristics of an entity that bear on its
Anyone internal of external to satisfy
ability to the organization
stated andwho implied needs.
comes in contact withEntity the (or
product or output of my
Item): That which can be individually described and
work. considered: process, product, and organization, a system or a
person or any combination thereof.
Anyone whose success or satisfaction depends on my

Recognize
Customer
actions.
Anyone internal of external to the organization who
1_01_01_006

comes
Source: “Total Quality Leadership: A path in contact with
to Excellence.” the product
Allied Signal or output
Inc., Morristown N.J. of my
Customer Focus
work. 7

Anyone whose success or satisfaction depends on my

Recognize
actions.
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Source: “Total Quality Leadership: A path to Excellence.” Allied Signal Inc., Morristown N.J.

Customer Focus 7

Establishing Customer Focus

What is customer satisfaction?

customer, n [O Fr. coustumier, L.L. custumarius, custom.]

1. A person who buys, especially one who buys regularly.
2. A person with whom one has to deal.
satisfaction, n [O Fr., from L. satisfaction (-onis), from satisfactus,
pp. of satisfacere, to satisfy.]
1. To gratify fully the wants or desires of; to supply to the full extent.
2. To free from doubt, suspense, or uncertainty; to give full assurance to.
3. To comply with (rules or standards).

Embedded within these definitions are two key ideas. First, the notion that the customer is a
person, not an organization, corporation, etc. Second, the idea that satisfaction is the extent of
certainty a person (customer) has that the standard will be met.

Naturally, this would imply that as certainty increases the likelihood of satisfaction would likewise
increase. Later we will explore in greater detail the concept of certainty and probability -- but it is
vital to make special note of this idea.
 Critical to Satisfaction

What Makes a Good Coffee Service?

Critical to Satisfaction
Supplier Perspective Customer Perspective
(Hotel) (Conference Attendees)
What Makes a Good Coffee Service?
 Good Hot Coffee  Good Hot Coffee
 Fast Line, Especially for
 Clean China Refills
Supplier Perspective Customer Perspective
 Clean Linen 
(Hotel) Close to High-Capacity
(Conference Attendees)
Restrooms
 Attractive Display Good Hot Coffee  Close to Telephones  Good Hot Coffee
 Extras - Snacks  Clean China  Room to Chat  Fast Line, Especially for
Refills
 Clean Linen  Close to High-Capacity
. . . So why do such differences Restrooms

Recognize
 Attractive Display
in perspective exist ?  Close to Telephones
 Extras - Snacks  Room to Chat
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Barry Bebb & Associates - World Class by Design Conference

November 1993 - Buffalo, New York

Customer Focus 8

. . . So why do such differences

Recognize
in perspective exist ?
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Barry Bebb & Associates - World Class by Design Conference

November 1993 - Buffalo, New York

Customer Focus 8

Critical to Satisfaction

It is vital that we understand and are able to quantify what is critical to the customer's satisfaction.
We must do this to ensure that we are working on the right things from the customer's
perspective.

We need to ask ourselves how easy it is for our customers to do business with us. We need to
ask whether we are making assumptions about what customers need. Lastly, we need to ask how
often we ask our customers (internal and external) what they need and whether this is properly
communicated throughout our organization.
 Variation Is the Enemy

Uncertainty
Variation Is the Enemy
Unknown
Uncertainty

Variation Disbelief
Unknown
Risk
Variation Disbelief

Recognize
Defect Rate
Risk
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Customer Focus 9

Recognize
Defect Rate
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Customer Focus 9

Variation Is the Enemy

As you will recall, the following assertion was made:

"As certainty increases the likelihood of satisfaction would likewise increase."

Variation is the enemy of certainty and therefore, is also the enemy of customer satisfaction.
Variation drives the unknown, it adds to customer (and employee) disbelief and lack of
confidence in the ability of processes to deliver customer satisfaction. Variation increases risk --
the risk that a result will not meet expectations. Lastly, variation is a driver of defects.
 Consequences of Variation

Certainty + Uncertainty
Consequences of = 100%
Variation

Known + Unknown = 100%

Certainty + Uncertainty = 100%
Belief + Disbelief = 100%
Known + Unknown = 100%
Confidence + Risk = 100%
Belief + Disbelief = 100%

Recognize
Yield + Defect Rate = 100%
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Confidence + Risk = 100%

Customer Focus 10

Recognize
Yield + Defect Rate = 100%
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Customer Focus 10

Consequences of Variation

The greater the variation, the less certainty, belief, confidence, and yield. In short, the more
variation in our business processes (and hence in our business itself) then the less we know.
 How Do We Measure Variation and
Quality?

How Do We Measure Variation and

Quality?

σ
• Measure of variation
and quality
• Measure of capability

σ
of our processes
• Measure of variation
and quality
• Measure of capability

Recognize
of our processes
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Customer Focus 11

Recognize
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Customer Focus 11

How Do We Measure Variation and Quality?

Unless we can measure something, we cannot improve our performance. "Sigma" is a unit of
measure that gives us a way of measuring variation and the capability of our processes to meet
customer expectations consistently. We will discuss Sigma in more detail as the course
progresses.

• What is a Sigma? It is a Greek letter that represents a measure of variation. It could be

inches, volts, pounds. How do you measure variation, such as product variation? This is
where we can use Sigma. In the same way that we describe something as six inches long or
weighing 3 pounds, when we say that something is 6 Sigma, we are saying that there is an
extremely small amount of variation.
• The term "Sigma" is used to designate the distribution or spread about the mean (average) of
any process or procedure in manufacturing, engineering, services, or transactions.
• For a business, engineering or manufacturing process, the sigma value is a metric that
indicates how well that process is performing, the higher the Sigma value, the better. Sigma
measures the capability of the process to perform defect-free-work. A defect is anything that
results in customer dissatisfaction.
• To calculate Sigma, we will use a common measurement index: "Defects Per Million
Opportunities" (DPMO), where an opportunity can be virtually anything -- the dimensions of a
component, a line of code, a blank line on an administrative form, etc.
• The Sigma value indicates how often defects are likely to occur. The higher the Sigma value,
the less likely a process will produce defects. As Sigma increases, costs go down, cycle time
goes down, and customer satisfaction goes up.
 What Do We Measure Now?

What numbers get the most attention in your area?

What
What Do
quality We Measure
measurements Now?
do we have?
How do we use these measures?

What numbers get the most attention in your area?

Do we have aWhat quality measurements do we have?

customer focus?
How do we use these measures?
Do we have a quality focus?

Recognize
Do we have an input focus?
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Customer Focus
Do we have a customer focus? 12
Do we have a quality focus?

Recognize
Do we have an input focus?
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Customer Focus 12

What Do We Measure Now?

 Maximizing the Customer Supplier
Relationship

Maximizing
Deriving the
value from the Customer
Need Supplier
- Do interaction
Relationship
Customer Supplier

Deriving value from the Need - Do interaction

Need Do
Customer Supplier

Need Do
Customers and Suppliers Exchange Value

Recognize
Through Need-Do Interaction
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Customer Focus 13
Customers and Suppliers Exchange Value

Recognize
Through Need-Do Interaction
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Customer Focus 13

Maximizing the Customer Supplier Relationship

The customer/supplier relationship is focused on a need-do pair relationship. Maximum value,

both to the customer and to the supplier, is achieved when needs and dos have maximum
overlap.

If we do things that customers don't need, then we are not adding value; an organization exists
only to supply value to customers.
 Maximizing the Interaction

Maximizing the Interaction

Delivery
Cycle Time

Price Need
Do Cost Delivery
Cycle Time
Quality
Defects Price Need
Do Cost

Supplier strives for performance on Cycle Time, Cost and Defects to meet

Recognize
Quality
Customers’ increasing expectations on Delivery, Price and Quality.
Defects
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Customer Focus 14

Supplier strives for performance on Cycle Time, Cost and Defects to meet

Recognize
Customers’ increasing expectations on Delivery, Price and Quality.
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Customer Focus 14

Maximizing the Interaction

Specifically, value is generated for the customer via quality, price, and delivery. But in meeting
these customer needs, there is also a benefit for the supplier in terms of fewer defects, lower
costs, and reduced cycle time. We emphasize once again that the reduction of defects is a major
driver of cycle time reduction (that is, reducing all the time we take to fix problems) as well as a
major driver of reducing total cost (by reducing all the resources tied up in inspecting and
reworking defects).
 Linking Customer Needs
and What We Do

Linking
Customer Customer Needs
Supplier
and What We Do
Need Do

Customer Supplier
Critical to Satisfaction Critical to Quality

Need Do
CTS CTQ

Critical to Satisfaction Critical to Quality

How the customer The result our

Recognize
measures quality processes must
CTS consistently produce CTQ
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Customer Focus 15
How the customer The result our

Recognize
measures quality processes must
consistently produce
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Customer Focus 15

Linking Customer Needs and What We Do

The idea of the "need-do" interaction runs throughout Six Sigma. Later, we will discuss such
terms and concepts as "Critical to Satisfaction" or CTSs and "Critical to Quality" or CTQs. The
main message is that all of this leads back to the idea that we must understand the customers
needs and translate this into what we must do internally.

Of extreme importance is the idea that unless we satisfy customer needs through processes that
are consistent, we may satisfy the customer on quality, but disappoint the customer in another
vital area, namely price, since, as we shall see, achieving quality with inconsistent processes is
very costly.
 The Overall Perspective...

High Quality
Customer
Requirements
The Overall Perspective...
Superior
Reliability

High Quality
Customer
Process RobustRequirements
Predictable Consistent Customer Business
Capabilities Designs Factory Performance Satisfaction Results

Superior
Reliability
On-Time
Delivery

Process Robust Predictable Consistent Customer Business

Material Capabilities Designs Factory Performance Satisfaction Results
Capabilities
Lower Costs

Recognize
On-Time
Delivery
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…Customer Satisfaction is a Business Issue

Material
Customer Focus 16
Capabilities
Lower Costs

Recognize
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…Customer Satisfaction is a Business Issue

Customer Focus 16

The Overall Perspective…

The overall perspective is that customer satisfaction is a business issue.

• By focusing on well-defined customer requirements and by utilizing known processes and
material capabilities, we can create designs that are insensitive (robust) to variations.
• Robust designs remove uncertainty and lead to predictable performance with all the resultant
business benefits.
• The end result and driving force of all our efforts in Six Sigma will be to improve customer
satisfaction and therefore business results.
 The Focus of Six Sigma

The Focus of Six Sigma

Y= f (X)

• Y ■ X1 . . . X N Y= f (X)
• Dependent ■ Independent
• Output ■ Input-Process
• Effect ■ Cause
• Symptom • Y ■ Problem ■ X1 . . . XN

Recognize
• Monitor • Dependent
■ Control ■ Independent

If we are so good at X, why• doOutput Input-Process

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we constantly test and ■

inspect Y?
Customer Focus
• Effect ■ Cause 17

• Symptom ■ Problem

Recognize
• Monitor ■ Control
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If we are so good at X, why do we constantly test and inspect Y?

Customer Focus 17

The Focus of Six Sigma

If consistency of our internal processes is a key to satisfying customers, then it raises the
question: what should we measure?

Six Sigma emphasizes the measurement of inputs. Let's emphasize this point. Sigma is not only
a way of measuring the output or result of a process (the "Y"), but also to measure the
consistency of the inputs (the "X's"). If we truly want to achieve consistency of what we "do," if we
want to satisfy customers, then we must measure and understand the X's.

The phrase Y equals a function of x comes up again and again in Six Sigma so it is important to
take note of this concept.

Lessons Learned
• What we currently value in our organization as compared to the things a Six Sigma
organization values.
• Behavior is a function of values.
• The definition of "customer satisfaction" and how customer satisfaction is negatively affected
by variation and uncertainty.
• The need to quantify customer needs as well as our performance in meeting these needs.
• Variation is the enemy of customer satisfaction.
• Sigma is a measure of process variation and quality.
• The importance of translating what is Critical to Satisfaction (the customer's need) to what is
Critical to Quality (what we need to do).
• Improving our ability to consistently meet customer needs leads to bottom-line business
results.
• In order to improve our internal processes, we need to focus on the inputs to processes, the
"X's."