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Meeting Customer Demand in Challenging Times: TEAL Consulting Limited

TEAL Consulting Limited - Meeting Customer Demand in Challenging Times July 2010 a a service Understanding Internal factors Errors, delays and inefficiencies - plus causes and implications CUSTOMER DEMAND Type, Volume, Variation, service vs. Failure, NonService Requests, Feedback & Complaints Service Outputs & Outcomes n what value and benefit do customers get from the service - what is the impact on related services provided by the organisation?

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73 views21 pages

Meeting Customer Demand in Challenging Times: TEAL Consulting Limited

TEAL Consulting Limited - Meeting Customer Demand in Challenging Times July 2010 a a service Understanding Internal factors Errors, delays and inefficiencies - plus causes and implications CUSTOMER DEMAND Type, Volume, Variation, service vs. Failure, NonService Requests, Feedback & Complaints Service Outputs & Outcomes n what value and benefit do customers get from the service - what is the impact on related services provided by the organisation?

Uploaded by

initiative1972
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 21

and Learning

TEAL Consulting
Limited

Meeting Customer Demand


in Challenging Times
July 2010
a

Service Understanding
Internal Factors
Errors, delays and inefficiencies plus causes
and implications

Customer
Demand
Type, Volume,
Variation, Service
vs. Failure, NonService Requests,
Feedback &
Complaints

Service Outputs
& Outcomes

Service Delivery Chain


Step 1

Step 3

Step 2

Step n

What value and


benefit do
customers get from
the service what is
the impact on
related services
provided by the
organisation?

External/Environmental Factors
What external constraints are imposed on the
service which affect its performance and ability to
improve (e.g. economic factors, lack of customer
knowledge, unrealistic customer expectations of
the service)

Slide 2

TEAL Consulting Limited 2010

Outcomes vs Outputs
It's important to understand the difference
Processes deliver OUTPUTS
Recruit Staff - new appointed people

OUTCOME - a level of performance or

achievement
The staff may be:
at the right time or too late for the line manager
capable or incapable of performing their role
too many or too few

Slide 3

TEAL Consulting Limited 2010

Customer Focused Process


SERVICE
PURPOSE

Desired Outcomes, Success Criteria, KPIs and Targets

CUSTOMER
DEMAND

Service Requests, Avoidable Contact, Complaints.

SERVICE
EFFECTIVENESS

Customer Outcomes, Customer


Satisfaction/Dissatisfaction

SERVICE
EFFICIENCY

Slide 4

Resources Needed to
Satisfy All Demand

TEAL Consulting Limited 2010

What are we trying to achieve


Quality

People are the


glue that hold
organisations
together

Our focus is variation reduction

+ People

Cost

Our focus is
empowerment

Time

Our focus is a reduction


in the amount of
calendar time consumed

Our focus is waste reduction

Slide 5

TEAL Consulting Limited 2010

Cost of Poor Quality COPQ


Cost of
Non-Conformance
Prevention
Costs

Appraisal
Costs
Internal Failure
Costs
External Failure
Costs

Cost of
Conforman
ce

Slide 6

TEAL Consulting Limited 2010

Understanding Customer
Requirements
Gather meaningful Data on what the

Customer requires
Voice of the Customer (VOC)

Analyse and Translate VOC into

meaningful terms
Critical to Quality standards (CTQ)

Slide 7

TEAL Consulting Limited 2010

Starting with What is a


Customer ?
A Customer is a recipient of the Output of a

Process

The Customer can be Internal or External


External Customers are not limited to end-

users of the Product or Service

External Customers can also include

Regulators, Monitors of Law and the Public or


Community (Stakeholders)
The definition of Quality here means satisfying
Customer Needs

Slide 8

TEAL Consulting Limited 2010

Kano Model of Customer


Expectations
Service
Pressure

Satisfaction
Delighters

Satisfaction
Region

More is Better

Need not
Fulfilled

Need
Fulfilled

Dissatisfaction
Region

Must Haves

Dissatisfaction
More is Better needs are generally explicit,
Must Haves and Delighters are usually unspoken
Slide 9

TEAL Consulting Limited 2010

VOC to CTQ : CTQ Tree


Speed of Delivery

Elapsed Time from Order to Arrival

Taste

CUSTOMER:
Good room service"

Food Quality

Presentation
Temperature
Service Charge

Cost

Compared with eating in restaurant

VOC

Critical Customer Requirement


General

CTQ
Specific

Hard to measure

Easy to measure

Vague terms

Measurable items

Slide 10

TEAL Consulting Limited 2010

Defining Customer CTQs


Convert customer data into Specific

Requirements
Define a Requirement not a Solution
Document all the information
Ensure the Requirement is Measurable
Define the Measure
Establish meaningful Specification Limits
The acid test is whether the CTQ can be
Measured
Slide 11

TEAL Consulting Limited 2010

% Vol

Runners, Repeaters &


Strangers

100%
95%

Repeaters
Partially flow
Shared processes
Some management

80%

Strangers
One offs
Universal processes
Significant management

Runners
Rapid flow
Dedicated processes
Self managed

%
Service
range
20%
Slide 12

TEAL Consulting Limited 2010

Rolled Throughput Yield


Problems in processes have a cumulative effect...

Consider the following 3-step process:

Input 100
documents

Output 90
documents

Yield = 90%
Is this the whole story?
Slide 13

TEAL Consulting Limited 2010

Rework - Hidden Processing

Input 100
Documents

98

RFT = 94%

93

RFT = 91%

C
RFT = 92%

Output 90
Documents

REWORK
2

SCRAP
What is the true yield (Rolled Throughput Yield) ?
Slide 14

TEAL Consulting Limited 2010

Rolled Throughput Yield

Input 100
documents

98

RFT = 94%

93

RFT = 91%

C
RFT = 92%

Output 90
documents

Rolled Throughput Yield


= RFTA x RFTB x RFTC
= 0.94 x 0.91 x 0.92
= 79%

A true reflection of
process performance
Slide 15

TEAL Consulting Limited 2010

Overall Process Effectiveness

Source : Lean Toolbox for Service Systems


John Bicheno

Slide 16

TEAL Consulting Limited 2010

Exercise
Objective

To identify the Customers of your Processes


To consider what improvement could be made in your
service effectiveness and efficiency
How

List 1 of your service processes


Identify all the Customers of this Process Internal and
External
Consider what measures exist for your processes
Output

An understanding of what measures currently exist


An initial assessment of the effectiveness and efficiency of
your Processes
Slide 17

TEAL Consulting Limited 2010

Reminder - Customer Value


Value is Generated for Customers via
Quality
Cost of Service
Delivery

In meeting Customer Needs there is benefit

for the organisation in terms of

Right first time lower number of repeat calls


Lower Costs Less time wasted
Satisfied customers e.g. rate payers

Reduction of Non Value Adding time is a

major driver

Minimising amounts of staff time wasted.


Slide 18

TEAL Consulting Limited 2010

External Perspective
Waiting
time

Length of
delivery
delay

They dont
care about
my
business; it
isnt worth
the wait

Perceived
service
quality

B
Customer
traffic

Waiting
time

Time
Slide 19

TEAL Consulting Limited 2010

Internal Perspective
Customer Satisfaction
Level of
customer
satisfaction

Sales

Length of
delivery
delay

We cant
afford these
employees
Size of
service and
delivery
department
Slide 20

TEAL Consulting Limited 2010

And Finally
Understanding what outcome the service is

intended to deliver - is the start

Understanding how this impacts on quality of

service delivery is critical

The effectiveness of the service has a direct

impact on your costs

So jumping to be more efficient before

addressing effectiveness is a short term fix


which will come back later
Slide 21

TEAL Consulting Limited 2010

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