BPMS 04 ACFC

1、At the Customer For the Customer (ACFC)Business Process ManagementServiceQualityCostDeliveryDistributorInternalOEM UserCustomer ExpectationsWhat are the major customer expectations? Critical IssuesSpan Units & ScaleProcess Output MeasureCTC IssuesWhat are the Operational Definitions of CTC Issues?Cu

2、stomer SpanScorecards to Manage Results Indicators of Process Performance Core and Enabling ProcessesCritical-to-Customer OutputsCustomer Focused ObjectivesCSIPOWhat metrics do customers use to measure performance?How will you measure customer satisfaction at the process level?2Measure the way a cus

3、tomer measuresDetermine process capability as a customer doesFind the process measures to satisfy customersThinking as a Customer OperationalFocusProjectsInternal YxnxmProjectsClusterClusterSix sigma TransitionCustomerFocusProjectsCustomer YxnxmProjectsClusterCluster3What Customers ExpectExceeding W

4、hat is ExpectedWhere Are We?Where Are We?Competition ? UnhappyCustomersDelightedCustomersWhere we must beCustomer Satisfaction ScaleStatus QuoCustomer Satisfaction ScaleCloseGapClose Door on Competitor 4Y=F(X)Capturing the measurement on a Customer unit basisUnderstanding Process Output as the Custo

5、mer sees itLearning from Variance in performance on Customer Y Defining the process variables that control Customer SatisfactionCustomer Satisfaction Model5Outside-In: (1) Unit & Scale (2) Expectation Metrics Capturing Y on a Customer Unit BasisY=F(x)6Capture the customers transactional scale.Exampl

6、es: days early / late vs. request, minutes to respondUnit & ScaleCapture the customers transactional unit.Examples: manufacturing On Time, quotations - Response Time7Performance Metrics % late or early deliveries Weekly % fill rate to schedule % Products Released on-time # quotations made per day Gr

7、oss sales $ per weekVariation MetricsDays early or late per product type vs. requested day. $ value of inventory on shelf per product unit per day Actual cycle time vs. planned cycle time Quotation response time in minutes Contribution margin/m2 per product per weekExpectation Metrics8Outside-In: Th

8、e whole viewCustomer Specs: What they want you to be Y=F(x)Understanding the Output as the Customer9Customer ProcessYour ProcessCABCustomer ViewHow did the performance of my supplier affect my total process performance?Your ViewTwo Views of PerformanceHow did we conform to the customers requirement?

9、10CAPTURE WHAT THE CUSTOMER SEES - THE ENTIRE DISTRIBUTION OF Y VALUESExample: As the Customer Sees ItCustomer ViewMin = 17Max = 118Producer View53THE ENTIRE DISTRIBUTION OF Y VALUES SEEN BY CUSTOMERMonth 1Month 2Month 3Average174261587932571184248495862865846768610429594569476756665525435311Frequen

10、cysCustomer MetricWhat is the Customers View ?Understanding the Output12FrequencysCustomer MetricLSLUSL2sProcess capability = 1sMean = Target. but not Capableof Meeting Customer SpecsUnderstanding the Output - continued13Customer MetricFrequencysUnderstanding the Output - continuedWhat is the Custom

11、ers View ?14Customer MetricFrequencyLSLUSL8sProcess capability = 4sMean is Outside Spec Limits soWe need to Move the Mean to the TargetsUnderstanding the Output - continued15sCustomer MetricFrequencyUSLMean2sProcess Capability = 2sMean is within the Spec Limits, soHow do we Improve Capability?Unders

12、tanding the Output - continued16 Define what the customer requires in each transaction Shows how well you perform in the customers eyes Identifies to the type of problem to be solvedCHECKLIST FOR CUSTOMER SPECS1) Quantify Process Capability with respect to Customer Specs2) Decide what short term con

13、tainment actions are needed3) Determine if there is an AVERAGE and/or VARIANCE issueCustomer Specifications17Key Variance Measure - SpanSpan is the difference between the best and worst performance experienced by the customerIn other words, it is the span of the maximum and the minimum values of cus

14、tomer metric, as actually observed by the customere.g., material fulfillment time.Product ShippedProduct ProducedOrder ScheduledCustomer RequestDelivery VerifiedProduct ArrivesInvoice & PaymentSpan measures the performance of a Customer Metric (Y) in terms of the total variation seen by customers. U

15、sually this is an output of a core processes.18Span Examples19On Time In FullOn Time In Full (OTIF) is a measure of delivery performanceThe customer expects their delivery to be within a range of the target receipt dateExample: Required date +/- 1 daySpan Measure:Measure the difference from target d

16、ate to actual receipt date for all shipmentsSpan is the difference in earliest and latest delivery for the specified time range20Closing of BooksFinance organizations are typically measured on the time to close the books each monthThe Board expects the close to be completed within 2 days after the e

17、nd of the monthSpan Measure:Measure the difference in hours from the 2nd of the month to the actual completion timeSpan is the difference in earliest and latest completion time for the year21Hiring Cycle TimeCompanies want to reduce the amount of time between the identified need for a resource and t

18、he hiring of a qualified resourceThe business may expect a 30-day time to complete this taskSpan Measure:Measure the difference from the request date to the hire dateSpan is the difference in shortest and longest time to hire for a specified time range22Bulk Shipment of MaterialsMany materials are p

19、rovided in bulk where the supplier shipments are not always verified for content amountExample: Bulk shipment of plastic resinThe customer expects audited shipments to be on-target with the invoiced amount of materialExample: +/- 1% of total weight of product suppliedSpan Measure:Measure the differe

20、nce from invoiced amount to actual amount received for all audited shipmentsSpan is the difference in the most underweight and the most overweight batches received for shipments received in a month23Understanding process output as the Customer sees itLearning from variance in performance on Customer

21、 Y Defining the Process Variables that control Customer SatisfactionYF(x)Capturing the measurement on a Customer unit basisY=Learning from variance in performance on Customer Y FWhere are We?Appendix24Workout: Customer Metric AlignmentReview your critical customer issues - CTQsFor those issues, how

22、do customers measure your process output (unit, scale, performance and variance)?How do you measure the process output, and is there a difference?Please revise your operational definitions, if necessary, to make sure that they reflect customer focused measures.25CTQSamsungMeasureCustomerMeasure X, R

23、SamsungObjectMaximize shareholders profitSDI stock price increase rateRivals stock price increase rate100%(Shareholder)120%90%(10%)120%Fast F/back to management performanceWork L/T in relevant departmentUnit: day(Management)OrderReportUnit: timeX= On-time3 days R= 2 daysOn-time 12HRMarket responsive

24、nessProduce development L/T3 mths(Buyer)30 days5mths (1mth)30 days Samsung Example - CTQ Measures26Appendix Measurement Variation27Actual Delivery - TuesdayMeasured Delivery - ThursdayMax Range of Measurement Error 3 daysCustomer Request = TuesdayActual Delivery - TuesdayMeasured Delivery - Thursday

25、Max Range of Measurement ErrorDelivered on-time- Customer is happyMeasured as being late- Action taken to correct- 1 Day+ 1 Day (Customer Specs)On-TimeCYCLE TIME Vs RequestMeasurement Validation28- 1 Day+ 1 Day (Customer Specs)On-TimeCYCLE TIME vs. RequestActual Delivery - TuesdayMeasured Delivery - ThursdayMax Range of Measurement Error 3 daysCustomer Request = ThursdayActual Delivery - TuesdayMeasured Delivery - ThursdayMax Range of Measurement ErrorDelivered early- Customer is unhappyMeasured as on-time- Great Job!Measurement Validation29- 1 Day+ 1 Day (Customer Specs)On-TimeCYCLE T