Hi guys. Welcome to define phase voice of the customer voice of the business. I'm Catherine MacGyver, and today I want to go over the importance of the voice of the customer voice of the business in process improvement.
So we've been talking a lot about customers and voice of the customers throughout the course up until now, so we know that it it's popped up in several modules and even things like very early on when we're talking about the ideological component of Lean and six Sigma
s O. If you remember back, you have simply collaboration. You have data driven measures and you have customer feedback or customers satisfaction.
So, voice of the customers very integral within the Lean and Six Sigma. It's what drives the value of process improvement. So
getting started, what is a customer? Your customers can be to find one of three ways. So the person who is the buying your product or service this is your end user. This is the most obvious customer. If you make a pizza, the person who carries your pizza
is your customer. Um, the next one is going to be the next group in your value stream. So when we talk about value streams, we talk about thes sections of work that needs to be done within your organization. So sales is a value stream. Operations is a value stream
billing and revenue is a value stream. Eso when you move through from value stream to value stream that is a form of an internal customer.
If you were interested in more and the idea of value streams, you're going to want to take green and black belt. That's where we'll really delve into value streams as compared. Thio process maps and processes. So the last way that we can define our customer is the next person in the process.
This is our clearest. So for our purposes, that's what we're going to go with. So
you are clearest internal customer. So we have our external customer. These are in users. These air, the people that you see, the money transaction and then our internal customers are the people that you hand your outputs over to, which become inputs for them in their processes.
So why does it matter? Why do we care? So if you remember, way, way, way back in the beginning. We said that customers defined value and organizations produce value customers to find value. They tell us what they want they this is
we talk about marketing research. We talk about industrial intelligence.
Customers are the ones who tell us that we as an organization, are doing well or not. If we're meeting their needs, if we're meeting their requirements, if they value what we contribute to, um, them
either from a GDP economic standpoint or from a social responsibility standpoint, there are lots of aspects of what customers consider valuable.
But fundamentally, at the end of the day, happy customers equal happy cos. And I know that I've said this a couple of times, but I really want to dive down into this. So when we talk about happy customers, we talk about repeat customers. We talk about people who are willing to pay a premium, whether or not it is if there is an equivalent alternative.
We talked about people who are willing to give us word of mouth, so these are all things that are good for our organization.
for example, you really like this yellow belt course, So you tell your co worker that you took a really great yellow belt course. They now take a really great yellow belt course, and me is the instructor. Am happy. So these air the ways that happy customers equate a happy cos again. There's a huge revenue component to it.
You start talking about things like
recurring revenue if you have come back customers. But that's what all organizations strive for.
So when we talk about customers defining value, I actually have a couple of examples here that I want to talk through with you, so that you see what this actually looks like when we're talking about gathering our voice of the customer. So my first examples are Little Caesars pizza
and the garlic, not pizza. So these are both pizza companies. But when we're talking about defining value, Little Caesars has this idea of hot and ready. I can walk in the front door, handle my money, they hand me a pizza, and I walk away. This is going to be at Max. A five minute transaction.
Questions about whether or not the pizza ingredients are as high of quality.
But for me, as a time savvy customer, Little Caesars makes sense now. Conversely,
the garlic knot. This gives me a lot of customization. We can be very particular about. What you want to say is quality, depending on how picky you are about your pizza. But the garlic knot is not a fast affair. I mean, I can put anything I want on my pizza and be very specific about all the little details.
But I'm not going to get this in a faster than 45 minutes away.
So for me, as a customer who orders from the garlic, not my value in this is options or customization.
So these are both organizations that have listened to their customer and market to their customer. So now let's do the middle section blockbusters and Netflix. So we all. Hopefully, we all remember, Blockbuster, if we don't. For those of you who don't where there were VHS and DVDs around you would go and you rent, um,
and then that you would take them back in two days.
So Blockbuster doesn't exist anymore because they didn't listen to their customer. So Netflix, even prior to streaming as we understand it today, Netflix heard customers when they said, I don't wanna have to go to block. I don't wanna have to go out and select my video.
And then I don't want to have to take it back to days lighters. Netflix started
nailing the DVDs to their customers. You can keep it as long as you want. You mail it back, we give you your next one. So Netflix responded to the customer needs and the customer value, and Netflix is still here. And Blockbuster is not, um
the last one that I want to talk about is actually healthcare. So health care is a very interesting organization because Oren interesting industry, because you're seeing it respond to your customers needs right now. So health care originally was more of a municipality. It was a public service.
You had a city hospital and then that started changing in the sixties and seventies, and health care became more of a service industry where the recipients had a choice. There are multiple hospitals. There are multiple options. You can choose where you want to go based off of what is important to you.
So what a say that it's a developing industry right now, what you are seeing is things like some hospitals have gotten chefs and private rooms and the Seuss or massage therapist, these airways that they're creating value or trying to articulate customer value.
You will see other hospitals that don't really do hospitalizations. You come in, you do your thing. You leave these outpatient treatment
So health care is still trying to tease out the voice of the customer as they continue to evolve as an organization.
So, conversely, is the opposite side of it. We have voice of the business. Sometimes it's called voice of the process, but this is these air constraints that are given to us by our business. So these are our minimum and our maximum prices. I cannot sell this pizza for less than $4
Little Caesars pizza or $5 hard and ready. I cannot sell this pizza for less than $4 because then I am taking a loss. We talk a little bit about production requirements. I have to sell at least 100 pizzas and a shift to keep my doors open and then regulatory requirements. So healthcare is highly regulated.
Banking and finance is manufacturing. You have some of the OSHA components.
These are things that the customer has no saying But we have to do because of some aspect of our business, either financial or production or again that regulatory piece.
So with that, we're gonna do it really quick. Test your knowledge. What are the three aspects of a lean six Sigma culture of continuous improvement leadership support team members for teams and ideas for improvement,
data driven metrics, customer satisfaction and employees collaboration
employees, collaboration, data driven metrics and leadership support.
So the answer you're looking for is be data driven metrics, customer satisfaction and employees collaboration. And I mentioned it earlier in this module, and we talked about it early early on when we talked about the the philosophy of Lena and Six Sigma.
All right, guys. So when we're talking about whistle customer voice of the business, this is important because it ultimately dictates our organizational health. Happy customers happy cos you're gonna use to say in this when we talk about voice of the customer, there are lots of different ways that we can gather this
when we get into our data collection plan. In the measure phase, I'll go through a couple of different ways.
But if you remember the ideological foundation for lean and six Sigma. You want to integrate voice of the customer into all of your process improvement outcomes Because this is one of the things that creates the competitive advantage for a lean six Sigma organization. All right, guys.
Thank you. And I will see you in our next module.