Laatuseniorit tuotelaatu part two
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1
Competitive products and delighted customersPart one and part two
March 2, 2014
Juhani AnttilaInternational Academy for Quality (IAQ)Helsinki, [email protected] ,ww.QualityIntegration.biz
These pages are licensed
under the Creative Commons 3.0 License http://creativecommons.org/licenses/by/3.0
(Mention the origin)
2
xxxx/20.6.2012/jan
Main parts and themes of the presentation:
Part one
1. Extended product concept
2. Product characteristics and quality
3. Needs and expectations and customer satisfaction
Part two
1. Striving for customer satisfaction
2. Technological challenges
3. Product and corporate brands
Aiming at competitive products and delightedcustomers in the time of recession
3
2318/1.10.2013/jan
Quality perception
Indifference
Dissatisfaction
High
High
SatisfactionLow
Low
The opposite of satisfaction is not dissatisfaction. It is indifference.The opposite of dissatisfaction is not satisfaction. It is indifference.
Indifference means unimportance, apathy, or lack of care, concern or interest. You can’t see any difference.
4
2070/4.6.2000/jan
Measuring customer satisfaction, A typical case
(Ref. R Kordupleski)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Poor Satisfactory Good Excellent
Overall satisfaction
5
2068/4.6.1999/jan
Only excellence in customer satisfaction is enough
Customers’overall satisfaction
20 excellent
60 good
15 satisfactory
5 poor
Total 100 customers
Lost customers
1
20
10
5
36 customers
(Ref. R Kordupleski)
6
Experienced dissatisfaction erode the goodwillreserve
Satisfaction / Dissatisfaction
Experienced dissatisfaction
Goodwill Badwill
Expectationsexceeded
4285/17.1.2014/jan
7
How can I understand whether a customer is satisfied or not?
1199/17.7.2001/jan
• When asked, the reply is ”Yes”
• Says he is even not asked
• Tells this to his friends
• Buys more of what he is satisfied
• Buys something else, too
Situation consists of a complex mixture of rational, non-rational (emotional)and irrational human phenomena:
– satisfaction, dissatisfaction, indifference
– confidence, trust
– goodwill / badwill balance
– to buy or not to buy
81181/15.11.2008/jan
Buyer’s choice- negation principle
1. Buyers like choose a product without any risks.They do that on the basis of their own subjective sentiments and emotions.They don’t use logical advantage comparisons. (Later they may explain their choice byrational arguments)
2. They don’t have any wide preference scale, e.g. covering 9 to 10 product characteristics.
3. One can recognize at most 10 characteristics.
(Ref.: S. Rinne, 1989)
A product to be chosen must not include any of the major negations recognizedby the buyer, and it should have at least one clearly good feature.
9
Custom life cycle
3716/20.1.2014/jan
10
Focus on Customer
Complyingstated
requirements
Satisfyingcustomer
needs
(Ref.: B. Gale: Managing Customer Value)
Excellentperformance of
goods and services
Excellent customer
value
Effective-ness
1612/23.1.2014/jan
Stated requirements
Implied needs Market needs Customer value
Focus of management
Operational performance management- reactive and rational approach
Strategic performance management- proactive and creative approach
11
Fishbowl techniques
2090/16.2.2001/jan
1. Know the need for a customer visitation
(Ref.: Shiba)
5. Analyze what you observed
3. Observe and seewhat is going on
2.
4.
12
4025/20.4.2014/jan
Recognized professional approaches:
Kano modelA theory of customer satisfaction and product development that identifies productqualities based on how they affect the customer's perception of the product (NoriakiKano 1980)
QFD (Quality Function deployment) A method to transform user demands into design quality, to deploy the functions
forming quality, and to deploy methods for achieving the design quality intosubsystems and component parts, and ultimately to specific elements of themanufacturing process (Yoji Akao 1966)
Kansei engineeringA method that aims the development or improvement of products and services bytranslating customer's psychological feelings and needs into product's designparameters (Mitsuo Nagamachi in the early 1970’s)
Lean startup approachCreative innovations through “minimum viable products”, and “validated learning”through hypothesis testing for success: (1) Value hypothesis and (2) Growth hypothesis(Eric Ries 2011)
Linking product characteristics with customerpreference and satisfaction
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0320/11.1.2008/jan
Perceived satisfaction
Satisfyingfactors Must-be
factors
Attractivefactors
Degree ofcontents
+-
(Ref.: Prof. N. Kano)
Customer’s satisfaction
Perceived disssatisfaction
Indifference
140901/14.5.2008/jan
Customer satisfaction classification(for product development / improvement)
Product functional per a productcharacteristic
1. I enjoy it that way, or I like it that way2. It is a basic necessity,or I expect it that way3. I am neutral4. I dislike it, but I can live with it that way5. I dislike it (that way), and can’t accept it
1. I enjoy it that way, or I like it that way2. It is a basic necessity,or I expect it that way3. I am neutral4. I dislike it, but I can live with it that way5. I dislike it (that way), and can’t accept it
Product dysfunctional per a productcharacteristic
(Ref.: Prof. Kano)
Searching for usersSearching for users’’ perception of the different product features: perception of the different product features:
150902/14.5.2008/jan
Evaluation table (Kano methodology)
Productcharacteristic
Functional 1. like
2. must-be
3. neutral
4. live with
5. dislike
Dysfunctional
1. like 2. must-be 3. neutral 4. live with 5. dislike
Customer A: Attractive O: One-dimensional perception M: must-be Q: Questionable result dimension: R: reverse I: Indifferent
QRRRR
AIIIR
AIIIR
AIIIR
OMMMQ
160903/14.5.2008/jan
Tabulation of survey results (Kano methodology)
Productcharacteristic
Functional
1. like
Dysfunctional1.
like2.
must-be3.
neutral4.
live with5.
dislike
O2. must-be
3. neutral
4. live with
5. dislike
Productcharacteristic# 1functional
Productcharacteristic# 1dysfunctional
1. I like it that way.2. It must be that way.3. I am neutral.4. I can live with it that way.5. I dislike it that way.
1. I like it that way.2. It must be that way.3. I am neutral.4. I can live with it that way.5. I dislike it that way.
Pr.Ch. A M O R Q I I total grade
1.
2.
3.
4.
(1) Questionnaire
(2) Kano Evaluation Table
(3) Tabulation of Surveys
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0307/11.8.2005/jan
Customer-focused product and process development
VOE: Voice of Engineer,Engineering view-points andexpressions to the product
Product and process development
VOC: Voice of Customer,User’s view-points andexpressions tothe product
Marketingarguments
Competitorcomparison
Priorities
Matching
(Ref.: QFD)
Customers may be internal or external recipients of the products. Customer-focus isrequired in the both cases and relating to all business processes. Developing products tothe needs and expectations of external customers is particularly responsibility of theproduct development process.
18
0599/15.12.2008/jan
From customer’s needs to product specificationsand process plans (QFD methodology)
Processindicators
Processspecification
Prod
uct
spec
ifica
tion
Customer’sactivity
Process control planning
Productcharacteristics
Productspecification
Cus
tom
er’s
nee
dsProduct developmentProduct developmentshould be extended toshould be extended tothe design of the otherthe design of the otherproduct relatedproduct relatedprocesses (production,processes (production,pricing, selling,pricing, selling,delivering, etc.)delivering, etc.)
All this developmentAll this developmenttakes place in thetakes place in theproduct developmentproduct developmentprocesses.processes.
19
4286/20.2.2013/jan
Kansei engineering process:
Kansei / affective engineering
KE = KanseiengineeringKansei = Needs andwants (psychologicalfeelings and needs inmind)SD = Semanticdifferentials
(Ref.: Mitsuo Nagamachi)
20
4027/20.2.2014/jan
Different business situations:
Products from a single organization:- Gaps in the organization‘s business processes impact on the customer‘s perception. Thephenomenon is described by the ServQual model that was developed in the mid-1980s byZeithaml, Parasuraman & Berry. We have modified the model for the extended product andprocess concepts.
- QFD methodology may also be extended to the business process design.- “Service design” methodology focus on service process and structure realization.
Products from business networks and ecosystems:- Product (and in particular service) is not produced only by one organization’s processes
but by many organizations’ processes operating in a business network or an ecosystem.Different networks and ecosystems compete with each other. However, one organization hasthe commercial relationship with the customer.
Products from a networked community:- A customer is an independent and collaborating member of a network. He or she and also
all the other network members produce something to and get something from the othernetwork members. A network product is a cumulative result from network member’s valuecreating interactions with all other members. Network members also get value from the wholenetwork through the general recognition or privileges of the network.
Linking customer’s perception with business processesand structures
21 0319/15.1.2013/jan
”Gaps” within business activities
Currentneeds
PERCEIVED PRODUCT(goods and services)
Communication,market input
Communication,market output
Former information
Other information
Product andprocess
development
Product and process specification
Product needs and expectations
GextG1
G6
G2
G4
CUSTOMER
(Ref. Parasuranam et al.)
Product producing, delivering and receiving processes
SUPPLIERG3
Challenges for business excellence Strategic business plansGint
Customer’s aims and operations
Gmgt
Operations
G5
22
Quality of a network network based on multiple win / win
Quality of a network “v”, Qvm:“Degree to which a set of inherentcharacteristics of the network fulfilsneeds and expectations of the involvednetwork members”:- Number of members (m) in the network- Each member gets something useful(Si) from the other network members butalso loses something (Ai) of its own.
4331/15.3.2014/jan
Networkmember i
Networkmember j
S
A A
S
i
j
Metcalfe’s Law: A network increases in value as the square of the numbers of its users.
A network “v”
23
Quality in business and society (“Quality diffusion”)
0245/28.4.2014/jan
Quality awareness in society
StructureManagement ResourcesOrganization culture
Overall organizational performance (Quality management)
People Materials, knowledgeProcesses
Operational performance
Quality in products
(Ref. Dr. Seghezzi EOQ ’88 Moskova)
Culture InfrastructureCivilization
Goods Services
Quality in performance of people, organizations and societies
Organizations
24
Linking product quality with the supplier’s businesssuccess, Customer satisfaction index (CSI)
CustomersatisfactionIndex, CSI
Perceivedquality
Perceivedvalue
Expectations
Complaints
Loyalty
Drivers
CONSEQUENCES: Business success
(+)
(+)
(+)
(+)
(+)
(+)
(-)
(+)
(+/-)
(Ref. A. Westlund 1996)0503/23.2.2013/jan
Results
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4026/2.10.2014/jan
New technologies have essential impacts onproduct characteristics and the effectivenessand efficiency of the related processes. Thesetechnologies include: Information technology Biotechnology Nano- and microtechnology Optical technology Energy technology Social technology Wellbeing technology Etc.
Technological challenges
We have been involved with the followingexamples of the ICT (information andCommunication technology):
Radio frequency identification (RFID) Robotics Ubiquitous information technology,
Internet internet of things (IoT), andmachine-to-machine applications
Open source information and services Mobile payment technology Cloud services Mashup products. “Big data” analyzing and crowd-
sourcing activity
In addition to the impact on quality of products, the new technologies also have challenginginfluence that also are strongly related with customer perception e.g. on environmental, social,safety and security performance, including: Environmental protection Information security Health risks
26
• Brand value: The overall value statement to the user
• Brand authority: Excellence aspects
• Brand personality: Rational brand characteristics Emotional brand characteristics
• Brand benefits: Concrete value features in use
• Brand service: Service provision to the user
Product brand and its consistency with corporate brandin market communication
2448/15.12.2008/jan
Corporate brandCorporate brand
Product brandProduct brand
ConsistencyConsistency
27
Attractiveness and consistencyof the corporate and product brands
3549/20.2.2013/jan
Apple Apple
Lumia 920Lumia 920 Galaxy S III 4 G
Samsung Samsung
iPhone 5iPhone 5
NokiaNokia