Marketing Sales Six Sigma by kdh40920

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									                    Six Sigma Marketing


                        Burke McCarthy
                       Blackbeltmktg.com
                          585-490-0009
                      bbm@frontiernet.net




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A Brief History of Product Development
      The Good
    • Segmented market / Focused on quality attributes
    • Researched Customer Requirements
         • Appearance benefit mitigated performance expectations   Ford Mustang
    • First 2 years net profits (in 1964 dollars) $1.1 B

      The Bad
    • Insufficient Demand, Mid-Level market saturation
         • launched in recession
    • Great sales & promotion cannot overcome wrong product
                                                                   Ford Edsel

      The Ugly
    • Sank within one nautical mile of launch in 1628 *
    • King demanded a second gun deck


                                                                        The VASA
                                                                   •Source: Dottie E. Mayol
                                                                   •University of Miami
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Benchmark: World's Most Innovative Companies

                                       Margin Growth Stock Returns
  2006 Rank           Company           1995-2005%    1995-2005%
      1                  Apple              7.1          24.6
      2                 Google             NA**          NA**
      3                   3M                3.4          11.2
      4                 Toyota             10.7          11.8
      5                Microsoft           2.01          8.5
      6             General Electric        5.7          13.4
      7             Procter & Gamble        4.4          12.6
      8                  Nokia             0.03          4.6            Source:
      9                Starbucks            2.2          27.6        BusinessWeek
                                                                       4-24-2006
      10                  IBM              -0.7          14.4
      11                 Virgin            NA**          NA**
      12               Samsung            -4.5***        22.7

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  Observable Behaviors
            •   Improve speed and accuracy of business processes
            •   Identify attractive market opportunities
            •   Launch advantaged products ahead of competitors
            •   Achieve sustained organic revenue growth
            •   Develop better methods to obtain measurable data




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Learning Objectives:
       1. Overview: Premise, Concepts, Definitions, Examples
       2. Assess marketing capabilities / Skills Gaps
       3. Tools, methods & Best Practices
                Achieve Sharp product definition early in process
                marketing & engineering collaboration
            •   customer perceived value vs. competitive offerings
                Proactive risk assessment to optimize probability of success
                developing models to facilitate decision making




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What’s Six Sigma Marketing ?
      Managing marketing processes to create, deliver &
      communicate superior customer perceived value
            • Measures inform decisions & prioritize actions
                    Market Opportunity & Capabilities Assessments
            • Marketing Process segmented into phases & gates
                    Strategic Planning, Commercialization, Product Mgmt & Sales
                    Tasks assigned to develop Gate deliverables (decision models)
                    Six sigma tools, methods, best practices integrated into process
            • More Business Plans Achieve Entitlement
                    Optimal Project Selection
                    Functional Excellence / Accelerated Product Development
                    Sustained Profitable Organic Revenue Growth



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Product Development Marketing – Process -                                                  Function

Business Strategy,
Goals, Core
Competencies
                                  Inbound Marketing              Outbound Marketing

                                     Product Commercialization
      Strategic Portfolio Renewal             SSFM    Commercialization
                                                                          Product Management & Sales
               SPR                             U D
                                               C A         O
                                                           P       V
                                                                   L               SSFM    Product Line Mgt.


                 I D    E   A
                                              DFSS                                  L D O
                                                                                    C M A                V
                                                                                                         D
                                               C D
                                               C           O       V           Post Launch Sales,
                                                                             Support & Discontinuance
                                         Source: Six Sigma for Marketing Process ISBN 0-13-199008


                       Best Practice: Cross functional collaboration at critical front end

                                  Profitable Revenue Growth




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Marketing – Process -                           Function

                                            Marketing
             a set of processes for creating, communicating, and delivering value to
             customers and… managing customer relationships in ways that benefit
                the organization and ..stakeholders." - American Marketing Association

                                                 Process…
                    “A series of actions, changes, or functions bringing about a result: the
                       process of digestion; the process of obtaining a driver's license.

                                                  Function
                                  Something closely related to another thing
                                     and dependent on it for its existence,
                                  value, or significance: Growth is a function
                                                   of nutrition.




blackbeltmktg.com       Abbr. f Mathematics        “ Y is a function of x” American Heritage Dictionary
                                                                        Source:
“Faster organic growth (Y)” is a function of
  “Two of our initiatives- Six Sigma (X1) & 3M Acceleration (x2)



                                                       Y=f     (X1 +x2)




                                                    Dow Jones
                                                    S&P 500



    “solid and consistent growth driven by top line growth and continuous
    improvements in operational efficiency.” WJ McNerney, CEO
                                                      Source: 2003 Annual Report
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Key Measures: Pipeline of Growth Ideas
                         Marketing Process are proactively managed
                         for innovation and profitable revenue growth
                                  40%   $ 4.00    0%   $ -                                   2009
     Product Portfolio             $20.00 3.85
                                  35%   $        25%   $ 2.75
                                                                                      Product Portfolio
                                  25%   $ 3.03   25%   $ 3.03   15%   $1.82
     Product B 40 %               20%   $ 2.66
                                   $15.00        45%   $ 5.99   35%   $4.66
                                                                         Product D     Product D 25 %
     Product A 60 %
                          $ MM




                                                                         Product C
                                   $10.00
                                   D                                                   Product C 40 %
                                                                         Product B
                                    $5.00                                Product A     Product B 15 %
                                 $ 1.82
                                 $ 4.66                                                Product A 20 %
                                     $-
                                             2006 2007 2008 2009
    Current State                                                                       Desired State

    Product Development
     Marketing Playbook

                                                                                 Position Depth Charts
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Measures: Current Marketing Capabilities

             60 % of product failures caused by marketing issues

        Inadequate Market Analysis                                                              24%

         Product Problems or Defects                                                     16%

   Lack of Effective Marketing Effort                                              14%

       Higher Costs than Anticipated                                   10%

Competitive Strength or Introduction                                9%

        Poor Timing of Introduction                              8%

     Technical or Production Problems                      6%

                    All Other Causes                                            13%

                                        Source: Winning at New Products, Robert Cooper



                 46% of all resources spent on product development and commercialization are spent on
                   products that are canceled or fail to yield adequate return. Source: 2004 PMDA Survey

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Marketing Capability Assessment
   Clearly specify capabilities marketing personnel require to add
  value to the business strategy
    • Assess current levels of marketing capability against these standards
    • Focus training & development / Sharpen recruiting & selection efforts
    Hay/McBer Definition of Competency
    Measurable Characteristics that predicts effective-superior performance
    • Knowledge: e.g. basic marketing principles
    • Skill: e.g. interpreting marketing data
    • Self-Concept: e.g. leader
    • Trait: e.g. being a good listener
    • Motive: e.g. achievement



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Marketing Capability Assessment Tool
                                                   Behavioral                          Functional/Technical
                                                                                   ν   Marketing Research
                                             ν   Market Awareness
                    1. Gaining Market
                    1. Gaining Market        ν   Competitor Awareness
                                                                                   ν   Competitor Analysis
                       Insight
                        Insight              ν   Business Awareness
                                                                                   ν   Market Segmentation
                                                                                   ν   Consumer Insight

                                             ν   Seeking Information               ν   New Product Development
                    2. Creating
                    2. Creating              ν   Thinking Conceptually             ν   Strategic Pricing
                       Strategic Focus
                       Strategic Focus       ν   Thinking Strategically            ν   Product Positioning
                                             ν   Striving To Achieve               ν   Market Forecasting

                                                 Self Confidence
                    3. Championing
                    3. Championing
                                             ν
                                                                                   ν   Product Packaging and
                                             ν   Impact and Influence
                       Ideas and Building
                        Ideas and Building   ν   Organizational Awareness
                                                                                       Labeling

                       Excitement
                        Excitement           ν   Partnering with Other Functions
                                                                                   ν   Marketing Communications


                                             ν   Change Leadership                 ν   Selecting and Managing
                    4. Demonstrating
                    4. Demonstrating         ν   Team Leadership                       Marketing Channels
                       Market Leadership
                       Market Leadership     ν   Developing Others                 ν   Managing Distribution Logistics
                                             ν   Teamwork and Cooperation          ν   Achieving the Plan




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Marketing Capabilities Assessment
                    Required Skills   Inventory*            Action Plan
         Strategic Planning                 1                  Develop
         Brand Mgmt                         2
         Market Research                    2
         Direct Marketing                   4                   Recruit
         Product Development                3                  Develop
         Channel Mgmt                       3                  Develop
         Strategic Pricing                  2
         Customer Relationship              4                 Outsource
         Database Mgmt.                     4                   Recruit
         Online Mktg.                       2
         Media / PR                         2                 Outsource
                                        * 1=Superior
                                      3+ = Skills Gap   Source: Harvard Business Review;
                                       5= Inadequate    November 2004 Gail McGovern et al.
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Why is data so critically important ?
                               Intuition can lead us astray;
                                                 Data can get us back on track
                                    Captains sailing west to colonial America
                                    assumed direct route was fastest route.




          Captains who used data altered course & arrived weeks earlier.
 See: “How We Know What Isn’t So, the fallibility of human reason in everyday life”
                                                              Gilovich ISBN 0-02-911706-2.
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Fact Based Decision Making

   Wisdom (optimization of knowledge to improve decision making)


          Knowledge (assimilation of info               to develop prognosis)



                       Information (interpretation of data)


                                            Data –
                                   (independent facts)

    “Not knowing the difference between opinion & fact makes it difficult to make good decisions…”
                                                        Marilyn vos Savant Columnist & Author


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Fact Based Decision Models

         •   separate opinions from facts
         •   Reduces uncertainty and risk
         •   identify competitive gaps or opportunities to exploit
         •   ensure actions will achieve desired results
         •   Ensure customers will value proposed improvements
         •   Augment probability of achieving business plan objectives
         •   Improve cross functional communication & understanding




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Key Measures: Business Results & Drivers
                           e
                        Tim Series Plot of Sales                                        Scatterplot of Sales vs Radio Days
        45000                                                             45000



        40000                                                             40000



        35000                                                             35000
Sales




                                                                  Sales
        30000                                                             30000



        25000                                                             25000



        20000                                                             20000
                2   4        6       8       10    12   14   16                   5.0        7.5          10.0          12.5   15.0
                                     Index                                                             Radio Days




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Obstacles to Innovation
                46% of all resources spent on product development and commercialization are spent on
                products that are canceled or fail to yield adequate return. Source: 2004 PMDA Survey


                                                             Hypothesis
                                              1. Too many low risk / low return projects activated
                                              2. No Criteria in place to end a project
     Return $




                                              3. Marketing resources overwhelmed
                                              4. People in marketing functions not properly trained
                                              5. No Funds for Launch




                      Low                         Moderate           High
                                      Risk
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Common Pitfalls
      Portfolio Management
            • Too many projects, lacking focus and alignment
            • No strategic project selection criteria

      Product Commercialization
            • Marketing involvement is haphazard: best efforts basis
            • Quality of marketing inputs inconsistent (timing, tools, data)

       Product Line Management & Sales
            • Over-reliance on intuition in decision making
            • Pressure to act fast



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Processes Interdependency

                                                                            SPR
   Strategic Portfolio Management
                                                                             I D        E       A
        Market Research, VOC Gathering, Segmentation, Strategic Fit,
        Market Opportunity & Capabilities Assessment

                                                                             SSFM   Commercialization

   Product Commercialization
                                                                              U D
                                                                              C A        O
                                                                                         P        V
                                                                                                  L
        Market Research, Segmentation, Targeting, Positioning,
        VOC Gathering, Market Requirements, Channel Strategy, Planning
        Business Plan Development, Forecasting, Pricing,
                                                                              SSFM   Product Line Mgt.


   Product Line Management & Sales                                             L D O V
                                                                               C M A D
        Promote awareness, consideration, trial, usage, recommendation & referral
        Develop measures to inform subsequent actions
        Acquire Customers, Manage Relationships, Provide Service / Support
        Identify, Qualify, Contact / Visit, Propose, Close
        Plan Trades shows, PR, advertorials, seeding, lead generation & follow-up


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What can be done to Improve Marketing Inputs ?
1. Understand & integrate critical success factors, proven tools
   and best practices into marketing processes.
2. Use program management within phases to assign tools and
   tasks for development of decision models for gate reviews.
3. Define deliverables, requirements and level of rigor to apply
   based on assessed levels of project risk.
4. Assess capabilities and skill levels of those responsible for
   marketing functions tod evelop & implement training plans.
             Team members can easily understand what to do and when to do it.
             “How to do it” requires a training plan




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Critical Success Factor: Product Definition
  Key to success is getting early sharp, fact-based product
  definition before development begins

         100



         80
                                                                              Early, Sharp
                                                                               Products
                                                                               Definition
         60

                                                                          85.4% Succeeded
                                                     Moderate
                                                                           Mkt Share: 37.3%
         40                                          Defintion
                                                                          Rated Profit: 7.6/10
                           Poor Definition
                          26.2% Succedded        62.2% Succeeded
                                                 Mkt Share: 36.5%
         20               Mkt Share: 22.9%      Rated Profit: 6.1/10
                         Rated profit: 3.1/10


          0
               Source: Cooper and Kleinschmidt, New Products: The key Factors in Success
               (Chicago: American Marketing Association)
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Critical Success Factors: Differentiation
  Superior, differentiated products have five times the success
  rate and market share as “me too” products

         100

                                                                              Truly
         80                                                                 Superior
                                                                            Products


         60                                                             98% Succeeded
                                                                        Mkt Share: 53.5%
                                                    Products           Rated Profit: 8.4/10
                                                 with Moderate
         40
                                                  Advantage

                         Me-Too Products
                                                58% Succeeded
                         18.4% Succeeded
         20                                     Mkt Share: 32.4%
                                               Rated Profit: 5.8/10
                         Mkt Share: 11.6%
                        Rated Profit: 2.6/10
          0
               Source: Cooper and Kleinschmidt, New Products: The key Factors in Success
                                                    (Chicago: American Marketing Association)
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Critical Success Factors: Cross Functional Collaboration

          Recognition of demand is a frequent factor in successful innovation..
           • concentrate on...analyzing.. demand & needs”…& establish “more
             effective communication among specialists in sales, marketing,
             production, R&D .”     Donald Marquis: MIT
            • “R&D… must be coupled with the market“
                                          Edwin Mansfield: Wharton




  “Investment in a disciplined method of gathering, understanding & documenting customer
needs before defining product concepts is the best way to control down stream re-design costs”

                                                “Design for Six Sigma” C. M. “ Skip” Creveling




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Best Practices


    There are two ways to win at new products.
    1. do the right projects -namely, astute project selection and
       portfolio management.”

    2. do projects right - build in voice of the customer, do the
       necessary up-front homework, use cross-functional teams….

                           “Winning at New Products”
                                            Robert G. Cooper




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   Proven Tools, Methods & Best Practices

                    Applied across Marketing & Sales Process

      Strategic Portfolio Planning


           I D E A

                                      Commercialization


                                     U A P L

                                                          Post-Launch Mgmt. & Sales


                                                          L M A D
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  Marketing & Sales Process Environments
            Strategic Portfolio



                                  Identify      Markets, Segments & Opportunities
                 Planning



                                  Define        Portfolio Requirements & Alternative Architectures
                                  Evaluate      Alternative Product Portfolio Architectures
                                  Activate      Prioritized Commercialization Projects
            Commercialization




                                  Understand    Specific Customer Needs for Commercialization Project
               Product




                                  Analyze       Market Data for Commercialization Project
                                  Plan          For Launch
                                  Launch        Product into Market                     Focus
          Management &




                                  Launch        According to Plan
           Product Line




                                  Manage        Product Line
              Sales




                                  Adapt         Products to Market Environment
                                  Discontinue   Products


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   Unique, Shared &Common Tools
                                                                         Commercialization
        Portfolio Renewal                                                   Process
             Process

                                               Shared
                                             Strategic &
                          Strategic           Tactical          Tactical

                                             Common

                                 Shared                      Shared
                               Strategic &                  Tactical &
                               Operational                 Operational


 Learn and apply Common
 and Shared tools first.                                                 Post-Launch Product
 Then learn those unique to           Operational                         Line Management
 each process.
                                                                               Process

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                 Strategic Portfolio
                                         Identify                            Define                      Evaluate                       Activate
                                     Identify
                                      Market & Opportunity            Portfolio Requirements         Portfolio Architectures     Commercialization Projects
 Critical Parameter Identification




                                      Tool Alignment to IDEA           VOC Gathering Methods         Pugh Concept Evaluation &      FMEA for the Selected
                                      Phases & Gates                   Customer Interviewing         Selection Process              Portfolio
                                      Project Management               Market & Segment Data         Economic & Strategic           Commercialization
       and Data Acquisition




                                      Innovation Strategy              (KJ) Analysis                 Portfolio Balancing            Project Ranking &
                                                                       KJ Analysis & Translation     Methods                        Prioritization
                                      Market & Segmentation
                                      Analysis                         Customer Reqts. Priority      Preliminary Business Case      Dynamic Rank Ordering
                                                                       Survey & NUD Reqt.            Analysis & Valuation           Project Planning & Timing
                                      Competitive Benchmarking         Screening                     Real-Win-Worth Analysis        of Activation of Product
                                      Market Behavioral                Product Portfolio                                            Pipe-line
                                      Dynamics Mapping                                               Project Management
                                                                       Architecting Methods          Methods
                                      Customer Use Process             Descriptive & Inferential
                                      Maps                             Statistics
                                      Value Chain Diagrams             Sample Size Determination
                                                                       & t-Tests
                                      Key Events Timelines
                                                                       Statistical Survey Design &
                                      SWOT Analysis                    Analysis
                                      Estimated Market                 Multivariate Statistical
                                      Perceived Quality Profiles       Methods for Market
                                      Porter’s Five Forces             Segmentation Data
                                      Analysis                         Analysis
                                      Idea Capture & Data Base         Product Portfolio
                                      Development                      Requirements
                                                                       Documentation & Transfer
                                      Project Management
                                                                       Project Management
                                      Methods
                                                                       Methods


                                                                   Strategic Deliverables
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               Product Commercialization
                                       Understand                        Analyze                          Plan                      Launch
                                     Identify
                                     Market Understanding              Market Analysis              Market Planning              Product Launch
 Critical Parameter Identification




                                      Tool Alignment to Phases       Value Based Price            Product Promotional Plan     Launch Plan: Statistical
                                      & Gates                        Modeling                                                  Process Control Metrics
                                                                                                  Advertising Plan
                                                                                                                               & Control Plan
                                      Project Mgt. Plans, FMEA       Key Events Timeline
       and Data Acquisition




                                                                                                  Channel & Distribution
                                      & Monte Carlo Model                                                                      Launch Capabilities
                                                                     MPQP                         Mapping & Analysis
                                                                                                                               Assessment
                                      Marketing Critical
                                                                     Evaluation of Alternatives   Product Support Plan
                                      Parameter Management                                                                     Final Business Case
                                                                     Market Behavioral            Marketing Function/Tasks
                                      Customer Selection Matrix                                                                RWW Summary of Market
                                                                     Dynamics Map                 FMEAs
                                                                                                                               Potential, Competitive
                                      VOC Gathering & KJ
                                                                     Competitive Analysis         Customer Survey Design &     Position, Expected
                                      Analysis
                                                                                                  Analysis                     Financial Return
                                                                     Brand Application &
                                      Customer Requirements
                                                                     Leveraging for Product       Marketing Data Analysis:     Sales Probabilities of
                                      Ranking
                                                                     Positioning                  Descriptive & Inferential    Success Analysis
                                      Concept Generation                                          Statistics, ANOVA,
                                                                     Design of Experiments                                     Updated FMEAs for
                                                                                                  Regression
                                      Tools of Value Mgmt.                                                                     Launch
                                                                     Conjoint Analysis
                                                                                                  Price Sensitivity Analysis
                                      Value Chain Mapping
                                                                     Monte Carlo Simulations on
                                                                                                  Launch Plan
                                      Initial Pricing, & Sales       Price & Sales Forecast
                                                                                                  Development
                                      Forecasting                    Models
                                                                                                  Business Case Refined
                                      Business Plan                  Project Mgt. Plans,FMEA &
                                      Development                    Monte Carlo Model            Project Mgt. Plans, FMEA
                                                                                                  & Monte Carlo Model
                                      Real Win Worth Analysis
                                      Pugh Process
                                                                                                                                    Focus


                                                                  Tactical Deliverables
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Product Line Management / Sales
                                           Launch                        Manage                          Adapt                  Discontinue
                                      Controlled Launch             Product Sales & Support     to Competitive Environment       Product Efficiently
 Critical Parameter Identification




                                     Tool Alignment to LMAD          CPM                           CPM                          Marketing
                                     Phases                                                                                     Discontinuance Plan
                                                                     Updated Key Events            Competitive Analysis
                                     Critical Parameter              Timeline, MPQP, SWOT,                                      Business Plan
       and Data Acquisition




                                                                                                   Sales Process Mapping
                                     Management                      Porters 5 Forces
                                                                                                                                CPM
                                                                                                   Sales & Marketing FMEA
                                     Product Management              Channel & Distribution
                                                                                                                                Customer Survey Design &
                                     Score Cards                                                   Customer Survey Design &
                                                                     Mapping Sales Process                                      Analysis
                                                                                                   Analysis
                                     Launch Control Plan
                                                                     Mapping Competitive                                        Channel, Distribution &
                                                                                                   Marketing Process
                                     SPC                             Analysis                                                   Customer Support Mapping
                                                                                                   Mapping
                                     Capability Studies              Product Positioning                                        Descriptive & Inferential
                                                                                                   Channel, Distribution &
                                     Critical Parameter                                                                         Statistics, ANOVA,
                                                                     Advertising Plan              Customer Support Mapping
                                     Identification in Post                                                                     Regression
                                                                     Price & Sales Forecast        Descriptive & Inferential
                                     Launch Mktg.                                                                               Price Sensitivity Analysis
                                                                     Monte Carlo Simulations       Statistics, ANOVA,
                                     (Promotion, Advertising,
                                                                                                   Regression                   RWW Summary of Market
                                     Price, Sales, Channels,         Customer Value Chain
                                                                                                                                Potential, Competitive
                                     Distribution, Customer          Analysis                      Price Sensitivity Analysis
                                                                                                                                Position, Expected
                                     Support & MARCOM                Customer Survey Design &      RWW Analysis                 Financial Return
                                     environments)                   Analysis
                                                                                                   Capability Studies           SPC & Cp Assessment
                                     Sales Concept                   Business Case Analysis
                                     Generation &                                                  SPC Charting                 Data Feedback structures
                                     Development Methods             RWW Analysis                                               for Advanced Product
                                                                     Capability Studies                                         Planning & Portfolio
                                                                                                                                Renewal Teams
                                                                     SPC Charting



                                                                Operational Deliverables
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Key Six Sigma Concepts

   Critical to Quality (CTQ)   Attributes most important to customers


   Defect                      Failure to meet customer requirements


   Process Capability          What processes is capable of delivering

                               Development of products & services by
   Design For Six Sigma        assigning tasks within phases to develop
                               decision models for managerial gate review


   Variation                   What customer experiences outside of
                               process aims


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       The Voice of the Customer
            Process with Customer defined performance tolerances (parameters)
             +/- 6 Standard Deviations from mean response designated as
                 Specification Limits




                            LSL
                             LSL                             USL
                                                              USL




                                     Voice of The Customer

                                   Performance Tolerances

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The Voice of the Process
             A process operating within statistical control parameters can
             have it’s natural tolerances fitted to it.


              +/- 3 Standard Deviations from mean response designated as
                  Control Limits



                                  LCL
                                   LCL                 UCL
                                                        UCL




                                     Voice of The Process

                                    Natural Tolerances


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Six Sigma
                      = sum of distances between control
                    & specification limits (+ or – 3 standard deviations)
                                  Performance (VOC) Tolerances
                                        Natural Tolerances
                           LSL      LCL               UCL        USL
                                              y



                                          USL − LSL
         -3σ                      C =               =2                      + 3σ
                                             6σ
                                   p



       Latitude                                                           Latitude


                                             6σ
                Waste                        12σ                       Waste

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   Linking the Process
                                                                                                                            Slow down to speed up - Rigor applied
                                                                                                                            “in-process” can prevent project slippage

                                                                                                                                                                                                                                                                                                                                                                                                                              Phases & Gates
                                                                                                                                                                                                                                                                                                                                                                                                                                   SSFM    Product Line Mgt.



                                             Tools & Tasks                                                                                                                                                         Data & Deliverables
                                                                                                                                                                                     DFSS
                                                                                                                                                                                     Tool:
                                                                                                                                                                                             Quality
                                                                                                                                                                                             of Tool
                                                                                                                                                                                              Use
                                                                                                                                                                                                         Data
                                                                                                                                                                                                       Integrity
                                                                                                                                                                                                                   Results
                                                                                                                                                                                                                     vs.
                                                                                                                                                                                                                    Reqts
                                                                                                                                                                                                                             Avg.
                                                                                                                                                                                                                             Score
                                                                                                                                                                                                                                     Data Summary
                                                                                                                                                                                                                                      incl. Type &
                                                                                                                                                                                                                                         Units
                                                                                                                                                                                                                                                             Task Requirement
                                                                                                                                                                                                                                                                                                                                                                                                                                    L D O
                                                                                                                                                                                                                                                                                                                                                                                                                                    C M A                V
                                                                                                                                                                                                                                                                                                                                                                                                                                                         D
     Gather the Voice of the                 Generate Product
     Customer (VOC)                          RequirementsDocument                                        Develop Reliability                              Phase I Gate Review
     Ralph           10 days                 George      1 day                                           Requirements,Initial
     Wed 8/22/01 Tue 9/4/01                  Thu 9/20/01 Thu 9/20/01                                     George        48 days                            VP of Div.   1 day
                                                                                                         Fri 9/21/01   Tue 11/27/01                       Mon 2/25/02 Mon 2/25/02

          Refine & Rank the VOC                                                                                                                                                                                                                      Phase     Avg.      % Task         Task       Red   Yellow   Green   Deliverable Requirements




                                                                                                                                                                                                                                                                                                                                                                                                                             Fact based decision
          using KJ Analysis                                            Define the Functions that                                                                                                                                                     Task:      Tool    Fulfillment   Result vs.
                                                                                                                                                                                                                                                               Score                  Del. Reqts
          Ralph           3 days                                       Fulfillthe System
          Wed 9/5/01 Fri 9/7/01                                        Ed              2 days                                              Analyze, Characterize,
                                                                       Fri 9/21/01     Mon 9/24/01                                         Model& Predict Nominal
                                                                                                                                           Ed          72 days
                  Create Product or System                                                                                                 Thu 11/15/01Fri 2/22/02
                  Level House of Quality




                                                                                                                                                                                                                                                                                                                                                                                                                             making is enabled at
                  Ralph        5 days                                       Generate System
                  Thu 9/13/01 Wed 9/19/01                                   Concept Evaluation
                                                                                                                                                                                                                                                                                                                                    Gate       Grand    Summary     Summary     Red   Yellow   Green   Gatekeeper Comments
                                                                            Ralph           2 days                       Select Superior System                                                                                                                                                                                 Deliverables    Avg.    of Tasks’   of Tasks
                                                                                                                         Concept                                                                                                                                                                                                                Tool   Completion    Results
                                                                            Wed 9/26/01 Thu 9/27/01                                                                                                                                                                                                                                            Score                 vs. Del.
                                                                                                                         Ralph        3 days                                                                                                                                                                                                                          Reqt.

                                                                                                                         Mon 11/12/0 Wed 11/14/0
     CompetitivePosition/




                                                                                                                                                                                                                                                                                                                                                                                                                             Gate Reviews.
     BenchmarkingAnalysis                                                           Generate System
     Ed              8 days                                                         Concepts that Fulfill the
     Mon 9/3/01 Wed 9/12/01                                                         Ralph         25 days
                                                                                    Fri 9/28/01   Thu 11/1/01




                                                                                                     EvaluateSystem
                                                                                                     Concepts
                                                                                                     Ralph         6 days




                                                                                                                                                                                    Data (Tool Outputs) is compiled onto
                                                                                                     Fri 11/2/01   Fri 11/9/01




                                                                                                                                                                                    Managerial Scorecards.
   Tools are Assigned to Fulfill Tasks


 Key issues identified & risk / rewards of going forward or terminating a given
 project are quantified to better inform the decision making process.

blackbeltmktg.com
 Managing Risk – Making Decisions:
   Product Portfolio Architecture not well
   defined or balanced…

   new product & service development
   projects not strategically aligned to
   business growth goals / organizational
   capabilities. More attractive market
   opportunities (targets) may be                        SS for Mktg-enhanced
   overlooked                                             Commercialization   Commercialization
                                                 Portfolio      Projects         SSfM Commercialization
   Market Attack Plan based on intuition not           P2D2                            U A    P   L

   research. No segmentation, Brand                     I D   E   A                    DFSS
   positioning, product features & benefits to                                          C D   O V

   each target not clearly defined …                                               SS for Mktg-           SSfM Product Line Mgt.
                                                                                  enhanced PLM             L M A D

   Commercialization Teams develop                                         Post-Launch                    SSfS
                                                                                                           L M A             D
   products & services that regions cannot                                 Product Line Mgt.
   effectively launch, support & discontinue.
   Sales reps waste time touting attributes
   that don’t resonate with prospects.            …Results: Chaotic launches, business case
                                                  shortfalls, High Cost-Of-Poor-Brand
                                                  Management, Loss of market share.


blackbeltmktg.com
Six Sigma discipline during Innovation
          Develop complete data sets
          Tasks done completely with balanced set of tools
          Deliverables defined & constrained by VOC based
          requirements
          Gate Keepers who know exactly what to do in their role
          as consumers of data (risk assessment & decision
          making in light of clear, stable requirements)

            Gate Keepers must develop risk management &
                       decision making skills



blackbeltmktg.com
Six Sigma for Innovation & Growth Success Factors
         Gate Keeping
         Gate Keeping     Managing Risks & Making Critical Decisions
          (Stage-Gate
           (Stage-Gate             - Clear Requirements
            Process)
             Process)

                Score Card System            •Gate Keepers - Deliverables
                 Score Card System           •Project Mgr – Task completion
                  (Accountability)
                   (Accountability)          •Work Team – Tool Usage



                          Project Mgmt.
                           Project Mgmt.           •Monte Carlo Simulation
                          (Critical Path)          •Risk Mitigation & Management
                           (Critical Path)


                                                                        Ensuring tasks are
                                      “Task/Tool” Alignment
                                       “Task/Tool” Alignment            completed with the right
                                                                        data driven tool


                                                 Data Integrity
                                                  Data Integrity
    Strengthening Accountability with scorecards & tools
blackbeltmktg.com
  Achieving Predictable Process Outcomes
       Map and Measure Marketing & Sales Process
            Identify, grow and retain profitable customers
            Generate leads, contact, qualify, present, propose, close
            Promote awareness, consideration, trial, usage, referral.

       Use “in-process” parameters to assign responsibility
       and manage all customer value creating activities.
            Use tools / tactics offering highest probability of increasing
            revenues.




blackbeltmktg.com
Sales Process / Customer Relationships
    Less                          Predictable Outcomes                                 More



     What kind of customer relationships                                            Dominant
         suit your business strategy ?
     Is your process capable & aligned ?                                      Consultative involvement in
                                                          Focused              business. Demonstrated
                                                                               Ability to Achieve Results

                                                   Qualify leads, decision    Once they have a customer,
                                                    make, ability to buy        They don’t lose them.

                                 Replicable            Make fewer more
                                                      relevant calls/ sell
                                                   solutions to meet needs
                                                   of high gain customers /
                           Map Process / Identify
                                                          businesses
                           what effective reps do,
        Ad Hoc             integrate into process
                           track compliance with
    Reps get leads/         in-process measures
 Schedule sales calls/                                                                  Quality
                                 Quantity
Leave brochures / follow
  up e-mail or phone        Transactions        Collaboration       Relationships      Mutual Benefit
blackbeltmktg.com
Sales Proposal Development Process
      Should be part of larger Sales System
            • Focus on Process (how things get done) > Results (what’s done).


           Build Rapport
           & Relationships

                    2. Audit Operations
                       & Organization
                                                          Source: “Quality Selling Through Quality Proposals”
                             3. Seek & Confirm                            ISBN 0-89426-224-6
                               Needs & Wants

                                     4. Initiate & Present
                                    Solutions & Strategies:
                                         The Proposal

                                                   5. Close Sale


            Time
blackbeltmktg.com
 Sales Proposals
      document negotiated agreements to describe how
      seller’s offering will meet buyer’s requirements.

      They also provide framework to
            •   establish trust based relationships & credibility with customers
            •   identify, understand & solve business problems
            •   exploit revenue growth opportunities of mutual benefit
            •   accurately represent service and product capabilities of seller
            •   specify what actions will be taken, by when and by whom.




blackbeltmktg.com
When to Use Sales Proposals
          Sale is complex offering & value proposition not easily
          communicated
                    Financial & non-financial benefits not readily apparent
          When multiple people at multiple levels involved in
          purchasing process & decision
                    or when a team sales approach is used
          When proposal seeks to solve complicated business
          problem impacting other functional areas.


               Sales
                                                      Buyers
               Team


blackbeltmktg.com
  What Functions are Critical To Customer Quality ?
    Enabling Processes          Process Step                                        Customer
                                                         Outputs (“y’”)
                                                                                  Requirements

  CRM / Lead Generation /        Build Rapport          Customer agreement to       Prompt, Courteous
  Sales Training / Interview    & Relationships         advance Sales Process         well prepared
    Guide Development                                                                  salesperson
                                                         Structured report on
                               2. Audit Operations                                Follow up visit within
      Develop Audit                                      current state / needs
   Questionnaire/ DMAIIC          & Organization       analysis/ customer goals   X Days after meeting


    Business / Profitability    3. Seek & Confirm          Letter to Customer
                                                                                  Follow up meeting with
   Analysis / “ go or no go”      Needs & Wants           describing findings &
                                                                                    staff within X Days
                                                        plans to achieve desired
          decision
                                                          state / “Trial Close”
                                                                                     Presentation of
  Capabilities Assessment /    4. Initiate & Present                             Proposal within X Days/
   Pre-Flight check across          Solutions &               Follow Up         Consistent Appearance /
    functions finance, mfg.         Strategies:                                  format flow & Content /
    marketing, distribution        The Proposal                                       No surprises !

                                                            Signed Contract,
                                                                                     Dinner / Golf /
  Sales Process Management         5. Close Sale          Purchase Order, etc.           both
                                    Y = f (x)
blackbeltmktg.com
       Define: Won / Lost Analysis
       Product / Family:_____________________

Markets/     Won        Lost         To/From    Why   When   Special
Segments                             Whom                    Situations




blackbeltmktg.com
Critical Parameter Management

        UCL




        LCL                                        Re-center the process…


    Under statistical control   Out of statistical control




blackbeltmktg.com
Critical Parameter Management:
       VOC                                                      Customer
      Needs                                                    Satisfaction
                               Verification &
        Product                                              Product
         Reqts.
                              Corrective Action
                                                           Failure CFR
                                  Process                   Cp & Cpk
               Sales
                                                   Visit, Proposal &
              Process                                                     Tied to
                                                    Follow up CFR
               Reqts.                                                     internal
                                                       Cp & Cpk
                  Service                                                 metrics
                                                   Time to
                  Reqts.
                                                Respond CFR
                                                  Cp & Cpk
                      Delivery
                                            Time to receive
  Flow down of         Reqts.
                                             once ordered        Roll-up of Cp &
  the reqts to be
                                               Cp & Cpk          Cpk through the
  fulfilled through
                            Billing                              measurement of
  the measurement                          Accuracy
                            Reqts.                               CFRs & CTF
  of CFRs & CTF                            Cp & Cpk              specs
  specs

blackbeltmktg.com
Growth Strategies & Risk Assessment
                                                                      Risk Assessment
                                                               Low          Moderate      High
                                               Products
                              Existing                           New



                               1 Market                  3 Product
                   Existing




                               Penetration               Development
                                                                                 Unexploited
         Markets




                                                                                 market
                                                                                 opportunities


                                2 Market
                      New




                                Extension               4 Diversification




                                         Source: Business Tools Database

     Tools, task & rigor should increase in proportion with project risk level
blackbeltmktg.com
   Integrated Product Development Process Overview

         Define Business Strategy: Profit Reqt.s
                          Strategy
         Identify Markets & Market Segments: Value Reqt.s
                                      Segments
         Gather Long-term VOC & SOT Trends: Big picture of market & tech.
                                               Trends
         Develop Product Line Strategy: Family Plan Reqts.
                               Strategy
         Dev./Deploy Technology Strategy: Tech. & Platform Reqt.s
                                    Strategy
         Gather “Product Specific” VOC & SOT: New, Unique & Difficult Needs
                                                     SOT
         Conduct KJ Analysis: Structure, Rank & Verify the VOC Needs
                     Analysis
         Build System House of Quality: Translate VOC into N-U-D Product Reqt.s
                                 Quality
         Document System Requirements: Complete, specific Product Reqt.s
                            Requirements
         Define the System Functions: Functions to be developed to fulfill Prod. Reqts
                            Functions
         Generate Candidate System Architectures: Concept Generation
                                           Architectures
         Select the Superior System Concept: Base-line Design Architecture
                                          Concept

blackbeltmktg.com
How Many Customers Need to be Interviewed ?
               Percentage of New Discovery




                                                           90 %



                                                    75 %




                                             15 %


                                              8       12    20


                                             Number of Customer Visits   Source: Griffin & Hauser


blackbeltmktg.com
Example: Process, Tools, Methods for Product Definition
                        At Current Sales Volume Each Product Earns same Net Profit                                                                                                            Idea + Market
                                                                                                                  Customer Selection Matrix
     Idea                                                           Product Product
                                                                                                                                                                       Substitute
                                                                                                         Names for
                        Percentage of Selling Price Accounted for by A         B
 ACTIVATED              Variable Costs                                80%     20%
                                                                                                Market
                                                                                               Segment
                                                                                                          selected
                                                                                                            cells
                                                                                                                               Our   Competitor’s Shared
                                                                                                                             Customer Customer    Customer
                                                                                                                                                              Lapsed Technology
                                                                                                                                                             Customers Customers               Customer Interview
                                                                                                                                                                                                    Guide
                                                                                                                                                                                                                                                                                              Image…                                                                                              Image:
                                                                                                         1. ____________                                                                                                                                                                                                                                                                            Image:
from Strategic          Fixed (sunk) Costs                            10%     70%
                                                                                                         2. ____________
                                                                                                         3. ____________
                                                                                                         4. ____________
                                                                                                                                                                                            Topic #1: ….
                                                                                                                                                                                                                                                                                                                                                                                                      Image:
                                                                                                                                                                                                                                                                                                                                                                                                        Image:
                                                                                                                                                                                                                                                                                                                                                                                                          Image:
                        Net Profit Margin                             10%     10%                        1. ____________


   Portfolio            Contribution Margin                           20%     80%
                                                                                                         2. ____________
                                                                                                         3. ____________
                                                                                                         4. ____________
                                                                                                                                                                                            Topic #2: ….

                                                                                                         1.   ____________
                                                                                                         2.   ____________
                                                                                                         3.   ____________                                                                  Topic #3: ….
                                                                                                         4.   ____________

                        Break-even sales change ( %) for a                                               1.
                                                                                                         2.
                                                                                                              ____________
                                                                                                              ____________
                                                                                                                                                                                            Topic #4: ….
                                                                                                         3.   ____________                                                                                                                                                                                                                                                                        Verbal Statement:
                        5 % price reduction / advantage             33.30% 6.7%                          4.   ____________
                                                                                                                                                                                                                                                                                          & Voice…                                                                                                 Verbal Statement:
                                                                                                         1.   ____________                                                                                                                                                                                                                                                                           Verbal Statement:
                        5 % price increase / premium                -20%   -5.9%                         2.
                                                                                                         3.
                                                                                                              ____________
                                                                                                              ____________
                                                                                                                                                                                            Topic #5: ….                                                                                                                                                                                              Verbal Statement:
                                                                                                                                                                                                                                                                                                                                                                                                        Verbal or Written
                                                                                                         4.   ____________
                                                                                                                                                                                                                                                                                                                                                                                                        Statement:
                                                                                                                                                                                            Topic #6: ….



                       Revenue Projections                                                 Customer Selection Matrix
                       Assess Market                                                                                                                                                                                                                                Create Customer
               1.                                                                                                                                                                              3.
                        Opportunity                                                   2.    Plan Customer Visits                                                                                                                                                    Interview Guides
                                                                                                         Conduct Interviews
                                                                                                                                                                                                                                                                                                                                                              G a g e na m e :
                                                                                                                                                                                                                                                                                                                                                              D a te o f s tu d y :
                                                                                                                                                                                                              G a g e R & R ( A N O V A ) fo r T h ic k n e s s                                                                                               R e p o r te d by :


     Topic Statement    Conclusion Statement
                                                                                                                                                                                                                                                                                                                                                              T o le r a n c e :
                                                                                                                                                                                                                                                                                                                                                              M is c :

                                                                                                                                                                                                                                                C o m p o n en t s o f V a riat io n                                                                                                          B y P a rt
                                                                                                                                                                                                                               100                                                                                                                    8 .3
                                                                                                                                                                                                                                                                                                                  % C o n t rib u t io n
                                                                                                                                                                                                                                                                                                                  % S tudy V a r                      8 .2




                                                                                                                                                                                                              Percent
                                                                                                                                                                                                                                                                                                                  % T o le ra n c e
                                                                                                                                                                                                                                50                                                                                                                    8 .1

                                                                                                                                                                                                                                                                                                                                                      8 .0

                                                                                                                                                                                                                                 0                                                                                                                    7 .9
                                                                                                                                                                                                                                          G a ge R & R        R epeat   R e p ro d   P a rt -t o -P a rt                                             P a rt         1        2       3        4       5       6   7   8   9    10

                                                                                                                                                                                                                                                   R C h a rt b y O p e ra to r                                                                                                          B y O p e rat o r
                                                                                                                                                                                                                                                         F r ed          J oe                  M a ry                                                 8 .3
                                                                                                                                                                                                                               0 .2




                                                                                                                                                                                                                Sample Range
                                                                                                                                                                                                                                                                                                           U C L = 0 .1 4 5 9                         8 .2




                                                                                                                                                                                    -Marketing
                                                                                                                                                                                                                               0 .1                                                                                                                   8 .1
                                                                                                                                                                                                                                                                                                           R = 0 .0 5 6 6 7                           8 .0
                                                                                                                                                                                                                               0 .0                                                                        LC L=0                                     7 .9
                                                                                                                                                                                                                                      0                                                                                                    O p e r a to r F re d                                  Joe                         M a ry

                                                                                                                                                                                                                                                 X b ar C h a rt b y O p era t or                                                                                       O p e rat o r*P art I n t e ra c t ion
                                                                                                                                                                                                                                                         F r ed          J oe                  M a ry                                                 8 .2                                                                             O p e ra to r
                                                                                                                                                                                                                               8 .2                                                                                                                                                                                                           F re d




                                                                                                                                                                                                                Sample Mean
                                                                                                                                                                                                                                                                                                                                                                                                                                              Joe




                                                                                                                                                                                                                                                                                                                                           Average
                                                                                                                                                                                                                               8 .1                                                                        U C L = 8 .1 0 2                           8 .1                                                                                    M a ry
                                                                                                                                                                                                                                                                                                           M e a n= 8 .0 4 4
                                                                                                                                                                                                                               8 .0                                                                        L C L = 7 .9 8 6                           8 .0

                                                                                                                                                                                                                               7 .9                                                                                                                   7 .9
                                                                                                                                                                                                                                      0                                                                                                              P a rt     1        2       3        4       5       6       7   8   9    10




                                                                                                                                                                                    -Technical
                                                                                                                                                                                    -MPQP
                                Team Signatures
                                                                                                                                                                                        Competitive Assessment
                KJ Analysis                                             Customer Ranking Survey

4.     Process Voice of                                       5.           Verify Customer                                                                                              Analyze Capabilities/
       Customer Data                                                       Requirements                                                                                  6.             Assess Risk & Return
blackbeltmktg.com
Example: Process, Tools, Methods for Product Definition                                                                                                                                                                                                                                                                                                                                                                      V
                                                                                                                                                                                                                                                                                                                                                                                                                                       V
                                                                                                                                                                                                                                                                                                                                                                                                                                                 V
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               S
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                                                                                                                                                                                                                                                                                                                                                                                                                                                         S                   S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              V

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                                                                                                                                                                                                                                                                                                                                   V
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                                                                                                                                                                                                                                                                                                                                                                                                                                                     S


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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      New, Unique or Difficult Reqts.:           Product Requirements Document:
                                                                                                                                                                                                                                                                                                                                       W                                V                                                                                                                                                                                                                                                            V

                                                                                                                                                                                                                                                   W                                                                                         S                      S
                                                                                                                                                                                                                                                                                                                                                                        S
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Consistent Image Density across
                                                                                                                                                                                                                            V                      V
                                                                                                                                                                                                                                                       W
                                                                                                                                                                                                                                                                  W                                                                          V

                                                                                                                                                                                                                                                                                                                                                 HOWs: Measurable Technical Requirements
                                                                                                                                                                                                                                                                                                                                                                                                            S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              S
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              V                                                V

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Customer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          variable lighting conditions           1.0 Image Quality
                                                                                                                                                                                                                            Image Quality                                                                                          General Features                                                                                                                                                               Ease of Use                                                                                                                       Similar to 35
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Assessment
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Color Saturation
                                                                                                                                                                                            Customer Importance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Q   Konica



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 2.0 Winding




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Viewfinding indicator graphics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    X   Our Camera Co.


                                                                                                                                                                                                                                                                                                         Impact force resistance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    A
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Fuji

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Image Contrast




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           High appearance rating
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Store Brands
                                                                                                                     OTU Camera Example




                                                                                                                                                                                                                                                                                                                                                                                                                Flash re-charge time




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Carrying mechanism
                                                                                                                                                                                                                                                                                                                                             Maximize part re-use

                                                                                                                                                                                                                                                                                                                                                                    External dimensions




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     min. of 27 pictures
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Surface roughness
                                                                                                                                                                                                                                                                                  Snap load resistance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Low Grain




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Viewfinder Area
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Body contouring




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Camera weight
                                                                                                                                                                                                                                                                                                                                                                                                                                                         Winding force
                                                                                                                                                                                                                                Color Saturation




                                                                                                                                                                                                                                                                                                                                                                                              Flash power




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Label clarity
                                                                                                                                                                                                                                                                                                                                                                                                                                       Flash force




                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Snap force
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 3.0 Exposure




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    35 mm film
                                                                                                                                                                                                                                                                      Low Grain
                                                                                                                                                                                                                                                       Contrast
                                                                                                                                                                                                                  Density




                                                                                                                                                                                                                                                                                                                                       UMC




                                                                                                                    Direction of Improvement                                                                      K              K                     K              J            K                        I                          K         I                      K                     K                    J                   K                   K                  K                 K                       K                     I               K                       K                          J                 K                    K               K                     I
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    0   1       2       3    4   5
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Low Winding Forces
                                                                                                                                                                                           16.0
                                                                                                                                                                   Clear Pictures                                 F              F                     F              F                                                                                                                       F                                                                                                                                                                                                                                                         F                                                                                    AQY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Ergonomic Winding Interfaces           4.0 Flash
                                                                                                                               Good Image Quality




                                                               V
                                                           V
                                                               W
                                                                                                                                                               Low Graininess


                                                                                                                                                               Pictures can't be
                                                                                                                                                               "washed out"
                                                                                                                                                                                           11.0


                                                                                                                                                                                           5.0                    F              F                     F
                                                                                                                                                                                                                                                                      F


                                                                                                                                                                                                                                                                      H                                                                                                                       F
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Camera Weight                                                        …NUDs
                                       V
                                           S
                                               S
                                                   S
                                                       S       V
                                                                                                                                                               Can't mis-fire when I
                                                                                                                                                               put it away in my
                                                                                                                                                               pocket or purse
                                                                                                                                                                                           4.0                                                                                     F                        H                                                                                                                          H                                      F                                                                                                                                                                                                                                                               X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            AQ Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Low Unit Mfg. Cost                     5.0 View Finder
                                   W
                                                                                                                               Unique Features




                                                   S       S
                                                                                                                                                               Has to be durable if
                                                                   WHATs for One-Time-Use Camera (VOC Input Data)




                                                                                                                                                                                           12.0                                                                                                             F                                                                                                                                                                 H                                         H                                                                                        G                                                                                                      A                X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Y Q
                                               V                                                                                                               I drop it
                                                       V       S
                                           W
                                               W
                                                                                                                                                               Low purchase price          15.0                                                                                                                                        F         F                                            H                    H                                                                                                                                                                                             G                                      F                                     H                             Q XY                 A    •   Attractive external cover form & fit   6.0 Covers
                   V                               W       S                                                                                                   Must fit in my shirt        2.0                                                                                                                                                                          F                                                              G                                                                                F                                     H                                                                    G                                                          G                         A           XQ Y
               V
                   V
                       V
                           V                               W
                                                               S
                                                                                                                                                               pocket
                                                                                                                                                               Want to take
                                                                                                                                                               pictures in any light
                                                                                                                                                                                           6.0                                                                                                                                                                                                F                                                                                                                                                               G                       G                                                                 H                                                                      A             Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            X Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Larger View Finder Area
                                                               W
                       V               W
                                       W       V
                                                           V
                                                               V
                                                                                                                                                                Has to be really
                                                                                                                                                               easy to use

                                                                                                                                                                   Easy to wind
                                                                                                                                                                                           14.0

                                                                                                                                                                                           1.0
                                                                                                                                                                                                                                                                                   H                                                                                                                               F                   F                   F

                                                                                                                                                                                                                                                                                                                                                                                                                                                           F
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              F                 H                       F

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        F
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              F

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              G
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              F                       F                          H                 H                                                          G

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              G
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            AX
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Q Y

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            A Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              XQ
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Clearer Alignment functions            7.0 Film Counter
                                                                                                                          Easy to use




                                                   S                                                                                                            Large view finder
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Mis-fire design architecture
                       W
                           S
                               S
                                       W
                                               W

                                               W
                                                   W
                                                       V                                                                                                       that helps me get
                                                                                                                                                               pictures centered
                                                                                                                                                               easily

                                                                                                                                                                Has to be light &
                                                                                                                                                               easy to carry
                                                                                                                                                                                           10.0


                                                                                                                                                                                           13.0                                                                                                             H
                                                                                                                                                                                                                                                                                                                                       G



                                                                                                                                                                                                                                                                                                                                       G
                                                                                                                                                                                                                                                                                                                                                                        F



                                                                                                                                                                                                                                                                                                                                                                        F                                                                                                                       H
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        G



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        F
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              F                       H




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 F                 F
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              F



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              F
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            A



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            A
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             X



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    XY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Y Q

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 8.0 Lens                       …ECOs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Easy, Common & Old Reqts.:
                                                                                                                          Regular 35 mm Camera performanc




                                                                                                                                                               Prefer 35 mm format         8.0                    H              H                     H              H                                                                F                                                                                                                                                                                                                                                                                                                F                                                                                        A
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Q
                                           W           S       V
                                                   W
                                                                                                                                                               Has to be close to
                                                                                                                                                               my 35mm in picture
                                                                                                                                                               quality
                                                                                                                                                                                           9.0                    F              F                     F              F                                                                F                                                                                                                                                                                                                                                                                                                F                                                                                   A XY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Q                                                 9.0 Film
                                                                                                                                                               Has to take a
                                                                                                                                                               minimum of 27
                                                                                                                                                                                           3.0                                                                                                                                         H                                                                                                                                                                                                                                                                                                                H               F                                           A                            X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Q    •   35mm film negative size
                                                                                                                                                                I don't want it to
                                                                                                                                                               look cheap
                                                                                                                                                                                           7.0                                                                                                              G                          H         G                      H                                                                                                                       F                       F                     F               F                       F                          G                 F                                                          F                         A           X       QY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Flash System                           10.0 Durability/Reliability
                                                                                                                                                  How Much
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   Camera Ergonomics & Labels
                                                                                                                    Organizational Difficulty

                                                                                                                          Q                                 Konica                     5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              •   re-usable parts                        11.0 Ergonomics
                                                                                                Assessment




                                                                                                                          Y                                 Fuji
                                                                                                 Technical




                                                                                                                                                                                       4
                                                                                                                          A                                 Store Brands

                                                                                                                          X                                 Our Camera Co.             3

                                                                                                                                                                                       2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              •   Impact Force Resistance
                                                                                                                                                                                       1

                                                                                                                                                                                       0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   “snap” load                            12.0 Safety & Regulatory
                                                                                                                                                                                                                                                                                  78.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     27.
                                                                                                                                                                                                                  29

                                                                                                                                                                                                                                29

                                                                                                                                                                                                                                                       29

                                                                                                                                                                                                                                                                      36



                                                                                                                                                                                                                                                                                                         16

                                                                                                                                                                                                                                                                                                                                       34

                                                                                                                                                                                                                                                                                                                                             14

                                                                                                                                                                                                                                                                                                                                                                    24

                                                                                                                                                                                                                                                                                                                                                                                          28

                                                                                                                                                                                                                                                                                                                                                                                                            17

                                                                                                                                                                                                                                                                                                                                                                                                                                       14

                                                                                                                                                                                                                                                                                                                                                                                                                                                     13

                                                                                                                                                                                                                                                                                                                                                                                                                                                                             19

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              14

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      37

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            19

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            29

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              22

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               19

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               22

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    57



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           33




                                                                                                                      Weighted Importance

                                                                                                                      Relative Importance

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      •   27 picture Film count                  13.0 Cost
                                                                   House of Quality
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Document Product                                                                         Generate Multiple
                      Define Customer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          9.            Product Concepts
7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   8.               Requirements
                   Technical Requirements
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Corporate Growth Strategy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Pricing Model                                                 NPV, ECV, ROI Analysis
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    & Growth Reqts. Budget
     NUD #1                                D                                                                                                                  +                                                                                          +                                                                                                                                                  -                                                                                                                                                  s                                                                                                                                                        +
     NUD #2                                A                                                                                                                       -                                                                                        -                                                                                                                                               -                                                                                                                                                     -                                                                                                                                                     +
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Market-Perceived                                                    Sales Forecast
     NUD #3                                T                                                                                                                   s                                                                                         +                                                                                                                                                  -                                                                                                                                                  s                                                                                                                                                        s
     NUD #4                                U                                                                                                                  +                                                                                             -                                                                                                                                               s                                                                                                                                                  s                                                                                                                                                        +                                                Quality Profile
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Market Opportunity
        *                                  M                                                                                                                  +                                TRIX+                                                     s                                                                                                                                                                                                                                                                                                        -                                                                                                                                                     +
                                                                                                                                                                                             MA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Matrix
        *                                                                                                                                                          -                      +H
                                                                                                                                                                                          G        -                                                                                                                                                                                                                                                                                                                                                          +                                                                                                                                                          -
                                                                                                                                                                                      : PU
        *                                                                                                                                                      s                  Too
                                                                                                                                                                                     l
                                                                                                                                                                                          s        -                                                                                                                                                                                                                                                                                                                                                          +                                                                                                                                                         +                                              Customer Value Map                       Business Case
        *                                                                                                                                                      s                                                                                         +                                                                                                                                                  +                                                                                                                                                 +                                                                                                                                                         +
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Won / Lost Analysis
        *                                                                                                                                                      s                                                                                         +                                                                                                                                                  -                                                                                                                                                  s                                                                                                                                                        s
     NUD #n                                                                                                                                                   +                                                                                          s                                                                                                                                                  s                                                                                                                                                 +                                                                                                                                                         +                                            Porter 5 Forces Analysis
     Sum (+)                                                                                                                                                  4                                                                                          5                                                                                                                                                  2                                                                                                                                                 4                                                                                                                                                                                                                                                       Gate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        7                                                                                                                      Key Events
     Sum (-)                                                                                                                                                  2                                                                                          2                                                                                                                                                  6                                                                                                                                                 2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Review
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        1                                                                                                                      Time Line
     Sum (s)                                                                                                                                                  4                                                                                          3                                                                                                                                                  2                                                                                                                                                 4                                                                                                                                                         2                                                     Real-Win-Worth
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Analysis
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             SWOT
                                                                                                                                                            Pugh Matrix                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Key Market Behavioral         Analysis                    Gate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Dynamics & Trends
                                         Select Superior                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Review
10.                                    Product Concept(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  11.                           Update Business Plan
blackbeltmktg.com
 Dimensions of Quality
    Hyundai / Kia
             • 4 % Share of Us Auto Market
             • Only country growing share in US besides Japan 31.9 %
                    All others lost between 2002 – 2005
            Dimensions of Quality
             •   Focus on Safety
             •   Improve Reliability
             •   Provide Longer Warranties
             •   Develop Different Personalities (Positioning)
                    Hyundai “refined & confident”
                    Kia is “exciting & enabling”
             • Strengthen Dealers
             • Stress Value


blackbeltmktg.com
  Example: Market Perceived Gap Analysis
                                 Poultry Industry Pre-Frank Perdue market entry
                      Purchase Criteria   Weight      Perdue Senior Competition       Ratio
                         Yellow Bird         5%           7              7               1
                         Meat-to-Bone       10 %          6              6               1
        Attributes




                        No Pinfeathers      15 %          5              5               1
                            Fresh           15 %          7              7               1
                          Availability      55 %          8              8               1
                         Brand Image         0%           6              6               1
                     Customer Satisfaction Scores =      7.15           7.15

                                                      Market Perceived Quality Ratio = 1.0

                                                       Market Quality to Price Ratio Pre- Frank Perdue
                                                               Quality 10 % / Price 90 %


                                                                      Source: Managing Customer Value; B. Gale


blackbeltmktg.com
  Example: Market Perceived Gap Analysis
                                 Poultry Industry Post Frank Perdue market entry
                Purchase Criteria Weight       Frank Perdue Competition       Ratio P/C       Ratio
                                      1            2             3              4= 2*3           5 = 1*4
                  Yellow Bird        10 %         8.1           7.2              1.13              .113
   Attributes




                 Meat-to-Bone        20 %          9            7.3              1.23              .247
                No Pinfeathers       20 %         9.2           6.5              1.42              .283
                    Fresh            15 %          8             8               1.00              .150
                  Availability       10 %          8             8               1.00              .100
                 Brand Image         25 %         9.3           6.5              1.47              .367

                Customer Satisfaction Scores      8.8           7.1
                                                             Market Perceived Quality Ratio = 1.26
                                                         Market Quality to Price Ratio Post- Perdue
                                                                Quality 70 % / Price 30 %


                                                                          Source: Managing Customer Value; B. Gale

blackbeltmktg.com
Side By Side Comparison

                Purchase
                 Criteria        Weight Perdue Sr Competition   Weight   Frank   Competition
                 Yellow Bird       5%       7         7         10 %       8.1        7.2

                Meat-to-Bone      10 %      6         6         20 %       9          7.3
   Attributes




                No Pinfeathers    15 %      5         5         20 %       9.2        6.5
                    Fresh         15 %      7         7         15 %       8           8

                 Availability     55 %      8         8         10 %       8           8

                 Brand Image       0%       6         6         25 %       9.3        6.5



                    Pre- Frank Perdue Entry                     Post- Frank Perdue Entry
                Market Quality to Price Ratio                   Market Quality to Price Ratio
                Quality 10 % / Price 90 %                       Quality 70 % / Price 30 %

                                  Build Value : Communicate Value
blackbeltmktg.com
Being First in All Dimensions not required
       Toro discovered widespread hostility among lawnmower users whose
       engines were too difficult to get started..
       Toro designed & developed“ start on the first pull “ ignition systems
       and invested in major ad campaign to communicate this value.
       Market share increased dramatically …as of 2002…
             • residential sales were up 9.8 percent to about $474 million.
             • Profits in residential segment increased about $10 million
             • Share value increased more than 40 percent.

        "They've done an excellent job controlling costs and launching new products," .
            Source: The Business Journal Minneapolis St. Paul




blackbeltmktg.com
Dimensions of Product Quality
    1.     Performance - primary functional characteristic of product
    2.     Features - secondary characteristics of a product or service
    3.     Reliability - frequency with which a product or service fails
    4.     Conformance / Consistency – ability to fulfill specifications or
           compliance with standards
    5.     Durability - product resilience & life
    6.     Serviceability - speed, courtesy, and competence of repair
    7.     Aesthetics – form, fit and finish
    8.     Perceived Quality - reputation

                                                    Source: Managing Quality: D. Garvin



blackbeltmktg.com
Dimensions of Service Quality
    1. Reliability – Consistency of Performance
    2. Responsiveness – Timeliness of Service
    3. Competence – Possession of Required Skills and Knowledge
    4. Access – Approachability and Ease of Contact
    5. Courtesy – Politeness, Respect, Consideration, and Friendliness
    6. Communication – Listening to Customers, Keeping Informed
    7. Credibility – Trustworthiness, Believability, Honesty
    8. Security – Freedom from Danger, Risk, or Doubt
    9. Understanding the Customer – Efforts to Understand Needs
    10. Tangibles – Physical Evidence of Service
                                                           Source: BERRY ET AL.,”QUALITY COUNTS
                                                           IN SERVICES, TOO.” BUSINESS HORIZONS,
                                                           MAY-JUNE 1985, PP.45-46


blackbeltmktg.com
  Determine Key Market Characteristic
         Calculate Market Quality to Price Ratio to quantify % of market
         participants compete on Quality and % compete on Price
               1.     Classify each Competitor as Price or Quality
               2.     Sum Market Shares for each category
                                                                                      Quality    55
               3.     Divide to determine Market Quality to Price Ratio
                                                                                      Price      45

       Importance of Quality versus price in purchase decision: Market QPR = 1.22

                                  Quality Competitors                              Price Competitors


                                        Your Co.        Competitor A   Competitor B       Competitor C

       Market Share                         25 %             35 %          30 %                 10 %
       Price   (relative to us)            100 %             90 %          107 %                80 %
       Direct Cost (relative to us)        100 %             95 %          105 %                70 %
       Technology (+, =, -)                  =                 +             +                   -

blackbeltmktg.com
  MP Quality Gap Analysis For _______________________________
                                    Drip Analyzer
  Customer Segment__________________________
                     Price Conscious High Volume Users              Professional Markets
                                                          Business___________________


                        Weight            Performance Ratings: Scale 1-10                  Weighted Ratings*           GAP
                                       Your  Competitor A   Competitor B   Competitor C     Your    Quality   Share    Company vs
      Attributes                     Company                                              Company   Leader    Leader    Q. Leader




                          Step 1:
                     Identify Product,
                   Segment & Business.




                        Must Total
                          100 %




blackbeltmktg.com
MP Quality Gap Analysis For _______________________________
                               Drip Analyzer
                     Price Conscious High Volume
Customer Segment__________________________ Users                     Professional Markets
                                                           Business___________________


                          Weight            Performance Ratings: Scale 1-10                Weighted Ratings*            GAP
                                        Your  Competitor A   Competitor B   Competitor C     Your    Quality   Share    Company vs
       Attributes                     Company                                              Company   Leader    Leader    Q. Leader


  Product / Service
    Performance

  Proprietary Features

      Reliability

     Conformance /
      Consistency

      Durability
                                                       Step 2:
                                          List Key Product Quality Attributes
    Serviceability

    Appearance /
     Aesthetics
   Brand Reputation


         Others

                         Must Total
                           100 %




blackbeltmktg.com
   MP Quality Gap Analysis for_______________________________
                                  Drip Analyzer                     Professional Markets
                                                          Business___________________
                       Price Conscious High Volume
   Customer Segment__________________________ Users

                          Weight             Performance Ratings: Scale 1-10                Weighted Ratings*            GAP
                                        Your  Competitor A    Competitor B   Competitor C     Your    Quality   Share    Company vs
      Attributes                      Company                                               Company   Leader    Leader    Q. Leader


  Product / Service
    Performance
                          30 %           9
  Proprietary Features    15 %           6

     Reliability           20 %         8
     Conformance /                                                            Step 3:
      Consistency          5%           4                    Identify Criteria weights & total them.
     Durability           10 %          5
    Serviceability        10 %          3
    Appearance /
                                        7                                 Step 4:
     Aesthetics            5%                          Rate your company performance on each criteria
   Brand Reputation        5%           2                                 (1-10)

        Others              0%
                         Must Total
                           100 %




blackbeltmktg.com
                            _______________________________
MP Quality Gap Analysis For Drip Analyzer
                   Price Conscious High Volume
Customer Segment__________________________ Users                     Professional Markets
                                                           Business___________________


                          Weight             Performance Ratings: Scale 1-10                Weighted Ratings*           GAP
                                        Your  Competitor A   Competitor B   Competitor C     Your    Quality   Share    Company vs
       Attributes                     Company                                              Company   Leader    Leader    Q. Leader


  Product / Service
    Performance
                          30 %           9         5             6              8
  Proprietary Features    15 %           6         7             4              7
      Reliability          20 %         8          10            7              5
     Conformance /
      Consistency          5%           4           8            6              7
      Durability          10 %          5          6             5               8
    Serviceability        10 %          3          8             2                9
    Appearance /
                           5%           7                        6               4
     Aesthetics                                    9
   Brand Reputation        5%           2          5             4               3
         Others             0%                                                                      Step 5:
                         Must Total                                                          Give key competitor(s)
                           100 %                                                           performance ratings (1 -10).



blackbeltmktg.com
   MP Quality Gap Analysis For _______________________________
                                 Drip Analyzer
   Customer Segment__________________________ Users
                      Price Conscious High Volume
                                                                    Professional Markets
                                                          Business___________________


                          Weight             Performance Ratings: Scale 1-10                Weighted Rating              GAP
                                        Your  Competitor A   Competitor B   Competitor C      Your    Quality   Share    Company vs
      Attributes                      Company                                               Company   Leader    Leader    Q. Leader


  Product / Service
    Performance
                          30 % X         9         5             6              8          = 2.7

  Proprietary Features    15 %           6         7             4              7             .9
     Reliability           20 %         8          10            7               5           1.6
     Conformance /
      Consistency           5%          4           8            6              7            .2
     Durability            10 %         5          6             5               8           .5
    Serviceability         10 %         3          8             2                9          .3
    Appearance /
                            5%          7                        6               4          .35
     Aesthetics                                    9
   Brand Reputation         5%          2          5             4               3          .01
        Others              0%
                         Must Total
                                                                     Step 6: Determine your weighted ratings
                           100 %
                                                                     by multiplying your performance rating
                                                                     by weight percentage.

blackbeltmktg.com
   MP Quality Gap Analysis For _______________________________
                                   Drip Analyzer                    Professional Markets
                                                          Business___________________
                       Price Conscious High Volume
   Customer Segment__________________________ Users

                          Weight             Performance Ratings: Scale 1-10               Weighted Rating              GAP
                                        Your  Competitor A   Competitor B   Competitor C     Your    Quality   Share    Company vs
      Attributes                      Company                                              Company   Leader    Leader    Q. Leader


  Product / Service
    Performance
                          30 % X         9         5             6              8           2.7 = 2.7

  Proprietary Features    15 %           6         7             4              7            .9      1.05

     Reliability           20 % X 8                10            7               5          1.6 = 2.0
     Conformance /
      Consistency           5%          4           8            6              7           .2         .4
     Durability            10 %         5          6             5               8          .5         .8
    Serviceability         10 %         3          8             2                9         .3        .9
    Appearance /
     Aesthetics             5%          7          9             6               4         .35       .45
   Brand Reputation         5%          2          5             4               3         .01       .25

        Others              0%
                         Must Total
                           100 %                             Step 7: Determine Quality Leader by selecting
                                                             highest rated value for each attribute and
                                                             multiply by importance weight.

blackbeltmktg.com
   MP Quality Gap Analysis For _______________________________
                                   Drip Analyzer                    Professional Markets
                                                          Business___________________
                       Price Conscious High Volume
   Customer Segment__________________________ Users

                             Weight            Performance Ratings: Scale 1-10                Weighted Rating               GAP
                                        Your  Competitor A      Competitor B   Competitor C     Your     Quality   Share    Company vs
      Attributes                      Company                                                 Company    Leader    Leader    Q. Leader


  Product / Service                                                                                        2.7 = 1.5
    Performance
                             30 %         9 X        5              6              8           2.7

  Proprietary Features       15 %        6          7               4              7            .9       1.05

     Reliability              20 %       8          10              7               5          1.6  2.0
                                                                                         Step 8: Identify market share
     Conformance /
      Consistency             5%         4           8              6              7         .2      .4
                                                                                         leader & calculate their
                                                                                         weighted ratings.
     Durability              10 %        5          6               5               8          .5          .8
    Serviceability           10 %       3            8              2                9         .3         .9
    Appearance /
     Aesthetics               5%         7           9              6               4         .35        .45
   Brand Reputation           5%         2           5              4               3         .01        .25

        Others                0%
                                               Competitive Position Analysis
                                    Your Co.       Competitor A          Competitor B          Competitor C

                     Market Share     25 %               35 %                   30 %                    10 %
blackbeltmktg.com
   MP Quality Gap Analysis For _______________________________
                                    Drip Analyzer                   Professional Markets
                                                          Business___________________
                       Price Conscious High Volume
   Customer Segment__________________________ Users

                         Weight          Performance Ratings: Scale 1-10               Weighted Rating              GAP
                                    Your  Competitor A   Competitor B   Competitor C     Your    Quality   Share    Company vs
      Attributes                  Company                                              Company   Leader    Leader    Q. Leader


  Product / Service
    Performance
                         30 %        9         5             6              8           2.7 - 2.7           1.5     =     0

  Proprietary Features   15 %        6         7             4              7            .9      1.05       1.05        -.15

     Reliability         20 %       8          10            7               5          1.6       2.0       2.0           -.4
     Conformance /
      Consistency        5%         4           8            6               7          .2         .4       .4            -.2
     Durability          10 %       5          6             5               8          .5         .8      .6           -.3
    Serviceability       10 %       3          8             2                9         .3        .9        .8          -.6
    Appearance /
     Aesthetics          5%         7          9             6               4         .35       .45       .45          -.05
   Brand Reputation       5%        2          5             4               3         .01       .25       .25          -.24

        Others            0%

                                        Step 9: Determine product quality gaps by calculating
                                        the difference between your company’s weighted rating
                                        and rating of quality leader.

blackbeltmktg.com
                                    Drip Analyzer
   MP Quality Gap analysis For _______________________________       Professional Markets
                                                           Business___________________
                       Price Conscious High Volume
   Customer Segment__________________________ Users
                         Weight          Performance Ratings: Scale 1-10                Weighted Rating             GAP
                                    Your  Competitor A   Competitor B   Competitor C     Your    Quality   Share    Company vs
      Attributes                  Company                                              Company   Leader    Leader    Q. Leader


  Product / Service
                         30 %        9         5             6              8           2.7       2.7      1.5            0
    Performance

  Proprietary Features   15 %        6         7             4              7            .9      1.05       1.05      -.15

     Reliability         20 %       8          10            7               5          1.6       2.0       2.0         -.4
     Conformance /
      Consistency        5%         4           8            6               7          .2         .4       .4          -.2
     Durability          10 %       5          6             5               8          .5         .8      .6          -.3
    Serviceability       10 %       3          8             2                9         .3        .9        .8         -.6
    Appearance /
     Aesthetics          5%         7          9             6               4         .35       .45       .45        -.05
   Brand Reputation      5%         2           5            4               3         .01       .25       .25        -.24

        Others            0%

                                                                           Conclusions?
                                                                              Gaps?
                                                                           Advantages?

blackbeltmktg.com
QFD Begins with Customer Needs Statements
      Clear Pictures
      Low Graininess
      Pictures can’t be “washed out”
      Prefer 35mm format
      Want to take pictures in any light condition
      Has to be really easy to use
      Easy to wind
      Large view finder that helps me get the picture centered easily
      Must fit in my shirt pocket
      Camera must be light & easy to carry
      Low purchase price
      Has to be reasonably close to my regular 35 mm camera in picture quality
      Has to be durable … if I drop it
      Can’t mis-fire when I put it away in my pocket or purse
      I don’t want it to look cheap
      Has to take minimum of 27 pictures


blackbeltmktg.com
Conduct KJ Analysis to Structure and
Rank Customer Requirements (What’s)
                                                Create affinity diagrams of ranked
 The ranked VOC is the initial                  needs based on what is new,
      definition of Criticality!                unique and/or difficult …

      Good Image Quality:                           Unique Features:
      •Clear Pictures                   1.          •Can’t mis-fire when I put it away in my
      •Low Graininess                               pocket or purse
      •Pictures can’t be “washed out”               •Has to be durable … if I drop it
                                                    •Low purchase price
                                                                                         2.
                                                    •Must fit in my shirt pocket
                                                    •Want to take pictures in any light
                                                    condition



                                              Regular 35 mm Camera Performance:
      Easy to Use:
      •Has to be really easy to use      3.   •Prefer 35mm format
                                              •Has to be reasonably close to my
      •Easy to wind
      •Large view finder that helps me get
                                              regular 35 mm camera in picture    4.
                                              quality
      the picture centered easily
                                              •Has to take minimum of 27 pictures
      •Camera must be light & easy to carry
                                              •I don’t want it to look cheap



blackbeltmktg.com
Customer Requirements
                                                                                                                                                                                                                  HOWs: Measurable Technical
                                                                                                                                                                                                                                                                  Customer
                                                                                                                                                                                                                        Requirements




                                                                                                                                                                                     Customer Importance
                                                                                                                                                                                                                                                                 Assessment
  Good Image Quality:
  • Clear Pictures                                                                                                    OTU Camera Example



  • Low Graininess
  • Pictures can’t be “washed out”                                                                                   Direction of Improvement




                                                                                                                               Good Image Quality
                                                                                                                                                             Clear Pictures


  Unique Features:                                                                                                                                           Low Graininess



  • Can’t mis-fire when I put it away in my                                                                                                                  Pictures can't be
                                                                                                                                                             "washed out"

    pocket or purse                                                                                                                                          Can't mis-fire when I
                                                                                                                                                             put it away in my
                                                                                                                                                             pocket or purse
  • Has to be durable …if I drop it




                                                                                                                               Unique Features
                                                                                                                                                             Has to be durable if




                                                                    WHATs for One-Time-Use Camera (VOC Input Data)
                                                                                                                                                             I drop it

  • Low purchase price                                                                                                                                       Low purchase price

  • Must fit in my shirt pocket                    Enter Customer                                                                                            Must fit in my shirt
                                                                                                                                                             pocket
                                                                                                                                                             Want to take
  • Want to take pictures in any light condition                                                                                                             pictures in any light

                                                   Requirements                                                                                               Has to be really
                                                                                                                                                             easy to use

                                                                                                                                                             Easy to wind
  Easy to Use:




                                                                                                                          Easy to use
                                                                                                                                                              Large view finder
                                                                                                                                                             that helps me get
  • Has to be really easy to use                                                                                                                             pictures centered
                                                                                                                                                             easily

  • Easy to wind                                                                                                                                              Has to be light &
                                                                                                                                                             easy to carry




                                                                                                                          Regular 35 mm Camera performance
  • Large view finder that helps me get the                                                                                                                  Prefer 35 mm format


    picture centered easily                                                                                                                                  Has to be close to
                                                                                                                                                             my 35mm in picture
                                                                                                                                                             quality

  • Camera must be light & easy to carry                                                                                                                     Has to take a
                                                                                                                                                             minimum of 27
                                                                                                                                                              I don't want it to
                                                                                                                                                             look cheap
  Regular 35 mm Camera Performance:
  • Prefer 35mm format                                                                                                                        How Much



  • Has to be reasonably close to my 35mm                                                                            Organizational Difficulty


    camera in picture quality                                                                Assessment
                                                                                             Technical




  • Has to take minimum of 27 pictures
  • I don’t want it to look cheap


                                                                                                                                                                                                           0.0
                                                                                                                                                                                                                 0.0
                                                                                                                                                                                                                       0.0
                                                                                                                                                                                                                             0.0
                                                                                                                                                                                                                                   0.0
                                                                                                                                                                                                                                         0.0
                                                                                                                                                                                                                                               0.0
                                                                                                                                                                                                                                                     0.0
                                                                                                                                                                                                                                                           0.0
                                                                                                                      Weighted Importance

                                                                                                                       Relative Importance



blackbeltmktg.com
Customer Importance Values
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Customer’s ranking of     16   16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Importance…using the      15   12
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ordinal weighting scale   14   10

                                                                                                                                                      Image Quality
                                                                                                                                                                                                                                                            HOWs: Measurable Technical Requirements

                                                                                                                                                                                                                                                   General Features                                                                                                                                    Ease of Use                                                                                                                   Similar to 35
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Customer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Assessment
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              method.                   13   9
                                                                                                                      Customer Importance




                                                                                                                                                                                                                                                                                                                                                                                                                                                               Viewfinding indicator graphics

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        High appearance rating
                                                                                                                                                                                                                         Impact force resistance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        12
                                                     OTU Camera Example

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Carrying mechanism
                                                                                                                                                                                                                                                                                                                     Flash re-charge time
                                                                                                                                                                                                                                                          Maximize part re-use

                                                                                                                                                                                                                                                                                 External dimensions




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  min. of 27 pictures
                                                                                                                                                                                                                                                                                                                                                                                       Surface roughness
                                                                                                                                                                                                  Snap load resistance




                                                                                                                                                                                                                                                                                                                                                                                                                                             Viewfinder Area
                                                                                                                                                                                                                                                                                                                                                                                                           Body contouring




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Camera weight
                                                                                                                                                                                                                                                                                                                                                          Winding force
                                                                                                                                                        Color Saturation




                                                                                                                                                                                                                                                                                                       Flash power




                                                                                                                                                                                                                                                                                                                                                                                                                             Label clarity
                                                                                                                                                                                                                                                                                                                                            Flash force




                                                                                                                                                                                                                                                                                                                                                                          Snap force




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     35 mm film
                                                                                                                                                                                      Low Grain




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             7
                                                                                                                                                                           Contrast
                                                                                                                                            Density




                                                                                                                                                                                                                                                    UMC




                                                    Direction of Improvement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Alternative weighting
                                                                                             Clear Pictures          16.0
                                                               Good Image Quality




                                                                                             Low Graininess


                                                                                             Pictures can't be
                                                                                                                     11.0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        10   6
                                                                                                                     5.0
                                                                                             "washed out"

                                                                                             Can't mis-fire when I
                                                                                             put it away in my
                                                                                             pocket or purse
                                                                                                                     4.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              can use 100 pts.          9    6
                                                               Unique Features




                                                                                             Has to be durable if    12.0
   WHATs for One-Time-Use Camera (VOC Input Data)




                                                                                             I drop it

                                                                                             Low purchase price

                                                                                             Must fit in my shirt
                                                                                             pocket
                                                                                             Want to take
                                                                                                                     15.0

                                                                                                                     2.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              dispersed as the          8    5
                                                                                                                     6.0


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Customers see fit…
                                                                                             pictures in any light



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             4
                                                                                             Has to be really        14.0
                                                                                             easy to use

                                                                                             Easy to wind            1.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        7
                                                          Easy to use




                                                                                              Large view finder
                                                                                             that helps me get       10.0
                                                                                             pictures centered
                                                                                             easily

                                                                                             Has to be light &
                                                                                             easy to carry
                                                                                                                     13.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        6    4
                                                          Regular 35 mm Camera performance




                                                                                             Prefer 35 mm format     8.0

                                                                                             Has to be close to
                                                                                             my 35mm in picture
                                                                                             quality
                                                                                                                     9.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        5    4
                                                                                             Has to take a           3.0
                                                                                             minimum of 27
                                                                                              I don't want it to
                                                                                             look cheap
                                                                                                                     7.0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        4    3
                                                                               How Much



                                                    Organizational Difficulty

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        3    3
                             Assessment
                             Technical




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        2    2
                                                                                                                                            0.0

                                                                                                                                                        0.0

                                                                                                                                                                           0.0

                                                                                                                                                                                      0.0

                                                                                                                                                                                                  0.0

                                                                                                                                                                                                                         0.0

                                                                                                                                                                                                                                                    0.0

                                                                                                                                                                                                                                                          0.0

                                                                                                                                                                                                                                                                                 0.0

                                                                                                                                                                                                                                                                                                       0.0

                                                                                                                                                                                                                                                                                                                     0.0

                                                                                                                                                                                                                                                                                                                                            0.0

                                                                                                                                                                                                                                                                                                                                                          0.0

                                                                                                                                                                                                                                                                                                                                                                          0.0

                                                                                                                                                                                                                                                                                                                                                                                       0.0

                                                                                                                                                                                                                                                                                                                                                                                                           0.0

                                                                                                                                                                                                                                                                                                                                                                                                                             0.0

                                                                                                                                                                                                                                                                                                                                                                                                                                             0.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                               0.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                0.0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                0.0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0.0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  0.0

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        0.0




                                                     Weighted Importance

                                                      Relative Importance



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        1    1

blackbeltmktg.com
  Current & Competitive Satisfaction Performance

                                          Technical
                                          Correlation Matrix


                             Technical Requirements




                                                                                 Current Satisfaction Performance




                                                                                                                                                                              Performance Improvement Ratio
                                                                                                                    Competitive Satisfaction Performance
                                                        Importance to Customer




                                                                                                                                                                                                                                         Normalized Weight
                                                                                                                                                           Performance Goal




                                                                                                                                                                                                                            Raw Weight
                                                                                                                                                                                                              Sales Point
                              Relationships between
               Customer      Customer Requirements
              Requirements              &
                             Technical Requirements




                                   Technical
                                    Matrix



blackbeltmktg.com
Translating the Customer Requirements
Into Measurable Technical Requirements
         Customer                   Technical
        Requirement                Requirement
                                   Density, Color
        Clear Pictures
                               saturation, Contrast, …                                                                                                                                                                                                                                                         HOWs: Measurable Technical Requirements                                                                                                                                                                                                                                                                                               Customer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Assessment
                                                                                                                                                                                                         Image Quality                                                                                General Features                                                                                                                                   Ease of Use                                                                                                                    Similar to 35




                                                                                                                                                                         Customer Importance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Viewfinding indicator graphics
        Low Graininess               Grain size




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           High appearance rating
                                                                                                                                                                                                                                                                            Impact force resistance
                                                                                                           OTU Camera Example




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Carrying mechanism
                                                                                                                                                                                                                                                                                                                                                                        Flash re-charge time
                                                                                                                                                                                                                                                                                                             Maximize part re-use
                                                                                                                                                                                                                                                                                                                                    External dimensions




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     min. of 27 pictures
                                                                                                                                                                                                                                                                                                                                                                                                                                          Surface roughness
                                                                                                                                                                                                                                                     Snap load resistance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Viewfinder Area
                                                                                                                                                                                                                                                                                                                                                                                                                                                              Body contouring




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Camera weight
                                                                                                                                                                                                                                                                                                                                                                                                             Winding force
                                                                                                                                                                                                           Color Saturation




                                                                                                                                                                                                                                                                                                                                                          Flash power




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Label clarity
                                                                                                                                                                                                                                                                                                                                                                                               Flash force



                                                                                                                                                                                                                                                                                                                                                                                                                             Snap force




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        35 mm film
                                                                                                                                                                                                                                         Low Grain
                                                                                                                                                                                                                              Contrast
                                                                                                                                                                                               Density




                                                                                                                                                                                                                                                                                                       UMC
       Pictures can’t be                                                                                  Direction of Improvement


                                  Contrast balance                                                                                               Clear Pictures




                                                                                                                    Good Image Quality
         “washed out”                                                                                                                            Low Graininess


                                                                                                                                                 Pictures can't be
                                                                                                                                                 "washed out"

                                                                                                                                                 Can't mis-fire when
                                                                                                                                                 put it away in my


     Prefer 35mm format            Negative size
                                                                                                                                                 pocket or purse




                                                                                                                    Unique Features
                                                                                                                                                 Has to be durable if




                                                         WHATs for One-Time-Use Camera (VOC Input Data)
                                                                                                                                                 I drop it

                                                                                                                                                 Low purchase price

                                                                                                                                                 Must fit in my shirt
                                                                                                                                                 pocket

    Want to take pictures in     Flash system light                                                                                              Want to take
                                                                                                                                                 pictures in any light
                                                                                                                                                  Has to be really
                                                                                                                                                 easy to use


      any light condition            intensity                                                                                                   Easy to wind




                                                                                                               Easy to use
                                                                                                                                                  Large view finder
                                                                                                                                                 that helps me get
                                                                                                                                                 pictures centered
                                                                                                                                                 easily


                                    Ergonomics                                                                                                    Has to be light &
                                                                                                                                                 easy to carry

    Has to be really easy to



                                                                                                               Regular 35 mm Camera performanc
                                                                                                                                                 Prefer 35 mm format


                                 assessment, Label                                                                                               Has to be close to


             use                                                                                                                                 my 35mm in picture
                                                                                                                                                 quality


                                    assessment                                                                                                   Has to take a
                                                                                                                                                 minimum of 27
                                                                                                                                                  I don't want it to
                                                                                                                                                 look cheap




                               Winding force, Winding                                                                            How Much



         Easy to wind
                               ergonomic assessment                                                       Organizational Difficulty
                                                                                Assessment
                                                                                Technical




              …                          …                                                                                                                                                     0.0
                                                                                                                                                                                                           0.0

                                                                                                                                                                                                                              0.0


                                                                                                                                                                                                                                                     0.0
                                                                                                                                                                                                                                                                            0.0
                                                                                                                                                                                                                                                                                                       0.0




                                                                                                                                                                                                                                                                                                                                                                                               0.0
                                                                                                                                                                                                                                                                                                                                                                                                             0.0




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                0.0
                                                                                                           Weighted Importance

                                                                                                            Relative Importance




blackbeltmktg.com
The Roof of the HOQ: Used to Quantify the strength of
Interactions between Technical Requirements

                                                                                                                                                                                                                                                                                                                           V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Correlations between Technical
                                                                                                                                                                                                                                                                                                                            V
                                                                                                                                                                                                                                                                                                                             V
                                                                                                                                                                                                                                                                                                                                                      V

                                                                                                                                                                                                                                                                                                                                                      W
                                                                                                                                                                                                                                                                                                                                                       S
                                                                                                                                                                                                                                                                                                                                                       S
                                                                                                                                                                                                                                                                                                                                                        S
                                                                                                                                                                                                                                                                                                                                                          V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Requirements:
                                                                                                                                                                                                                                                                                                                                                   S S
                                                                                                                                                                                                                                                                                                                                                    S
                                                                                                                                                                                                                                                                                                                                                       V
                                                                                                                                                                                                                                                                                                                                                  S
                                                                                                                                                                                                          V
                                                                                                                                                                                                                     V
                                                                                                                                                                                                                                       V
                                                                                                                                                                                                                                                W                              V
                                                                                                                                                                                                                                                                                              V
                                                                                                                                                                                                                                                                                               V
                                                                                                                                                                                                                                                                                                                   V

                                                                                                                                                                                                                                                                                                                                                  V
                                                                                                                                                                                                                                                                                                                                                                 V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 V
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        = strong positive (+ 9 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 V
                                                                                                                                                                                                                                                     S                                                                                                                                                                                                                                                                            V
                                                                                                                                                                   W                                                                              S S                                                                                                                                                                                                                                                                              V
                                                                                                                                                                       W                                                                                                                                                                                                                                                  S
                                                                                                                                                V V W                                                                                             V                                                          S                                                                                                                                                                                         V

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        = weak positive (+ 3 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                      V

                                                                                                                                                                                                                                                        HOWs: Measurable Technical Requirements                                                                                                                                                                                                                                                                                                   Customer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Assessment
                                                                                                                                            Image Quality                                                                                      General Features                                                                                                                                  Ease of Use                                                                                                                     Similar to 35
                                                                                                                Customer Importance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Q Konica
                                                                                                                                                                                                                                                                                                                                                                                                                                                           Viewfinding indicator graphics




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             X Our Camera Co.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Y Fuji
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             A Store Brands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    High appearance rating
                                                                                                                                                                                                                     Impact force resistance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      X = weak negative (- 3 )
                                                   OTU Camera Example
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Carrying mechanism
                                                                                                                                                                                                                                                                                                                 Flash re-charge time
                                                                                                                                                                                                                                                      Maximize part re-use
                                                                                                                                                                                                                                                                             External dimensions




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              min. of 27 pictures
                                                                                                                                                                                                                                                                                                                                                                                   Surface roughness
                                                                                                                                                                                              Snap load resistance




                                                                                                                                                                                                                                                                                                                                                                                                                                         Viewfinder Area
                                                                                                                                                                                                                                                                                                                                                                                                       Body contouring




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Camera weight
                                                                                                                                                                                                                                                                                                                                                      Winding force
                                                                                                                                                Color Saturation




                                                                                                                                                                                                                                                                                                   Flash power




                                                                                                                                                                                                                                                                                                                                                                                                                         Label clarity
                                                                                                                                                                                                                                                                                                                                        Flash force



                                                                                                                                                                                                                                                                                                                                                                      Snap force




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 35 mm film
                                                                                                                                                                                  Low Grain
                                                                                                                                                                       Contrast
                                                                                                                                      Density




                                                                                                                                                                                                                                                UMC




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             0   1   2   3   4   5

                                                                                                                                      K          K                     K          J K I K I K K J K K K K K I K                                                                                                                                                                                                                                                                              J K K K I


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     X = strong negative (- 9)
                                                  Direction of Improvement                                                                                                                                                                                                                                                                                                                                                                                       K

                                                                                                               16.0 F F                                                F          F                                                                                                                F                                                                                                                                                                                                                              F                                                                           X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             AQ
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     X
                                                            Good Image Quality




                                                                                         Clear Pictures

                                                                                         Low Graininess        11.0                                                               F                                                                                                                                                                                                                                                                                                                                               F                                                                      A QXY

                                                                                         Pictures can't be     5.0
                                                                                         "washed out"                                 F          F                     F          H                                                                                                                F                                                                                                                                                                                                                              H                                                                        X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         A QY

                                                                                         Can't mis-fire when
                                                                                         put it away in my     4.0                                                                            F H                                                                                                                                       H                              F                                                                                                                                                                                                                                  X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         AQ Y
                                                                                         pocket or purse
                                                            Unique Features




                                                                                         Has to be durable i
 WHATs for One-Time-Use Camera (VOC Input Data)




                                                                                                               12.0                                                                                                     F                                                                                                                                              H                                 H                                                                                   G                                                                                                   A        X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Y Q
                                                                                         I drop it

                                                                                         Low purchase price 15.0                                                                                                                                F F                                                H H                                                                                                                                                                                       G                                    F                                   H                              QXY         A

                                                                                         Must fit in my shirt 2.0
                                                                                         pocket                                                                                                                                                                                F                                                        G                                                                F                                 H                                                                  G                                                       G                          A       XQ Y
                                                                                         Want to take          6.0
                                                                                         pictures in any light                                                                                                                                                                                     F                                                                                                                                       G                     G                                                                H                                                                  A       Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             X Y
                                                                                          Has to be really
                                                                                         easy to use

                                                                                         Easy to wind
                                                                                                               14.0

                                                                                                               1.0
                                                                                                                                                                                              H                                                                                                                    F F F F H F F F

                                                                                                                                                                                                                                                                                                                                                       F                                                 F G
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 F                           H H                                                                      G

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      G
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             AX
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             QY

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             AY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -9 or X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           X
                                                       Easy to use




                                                                                          Large view finder
                                                                                         that helps me get     10.0
                                                                                         pictures centered                                                                                                                                      G                              F                                                                                                                         G                                 F                     H                                                                                                    F                              A
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     X       YQ
                                                                                         easily

                                                                                          Has to be light &    13.0
                                                                                         easy to carry                                                                                                                  H G                                                    F                                                                                                     H F                                                                                                     F F                                                                      F                             Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 A XY
                                                       Regular 35 mm Camera performanc




                                                                                         Prefer 35 mm forma 8.0                       H          H                     H          H                                                             F                                                                                                                                                                                                                                                                                 F                                                                              Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 A

                                                                                         Has to be close to
                                                                                         my 35mm in picture 9.0                       F          F                     F          F                                                             F                                                                                                                                                                                                                                                                                 F                                                                          AXY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Q
                                                                                         quality

                                                                                         Has to take a         3.0
                                                                                         minimum of 27                                                                                                                                          H                                                                                                                                                                                                                                                                                 H F                                                        A                   Q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Y
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 X

                                                                                          I don't want it to   7.0
                                                                                         look cheap                                                                                                                     G H G H                                                                                                                                                      F F F F                                                                     F                           G F                                                                      F                          A X QY



                                                                        How Much



                                                  Organizational Difficulty
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Grain Size               Negative
                         Assessment
                         Technical




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Size
                                                                                                                                                                                              78.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              27.
                                                                                                                                      29
                                                                                                                                                29

                                                                                                                                                                   29
                                                                                                                                                                                  36


                                                                                                                                                                                                                     16
                                                                                                                                                                                                                                                34
                                                                                                                                                                                                                                                      14
                                                                                                                                                                                                                                                                             24
                                                                                                                                                                                                                                                                                                   28
                                                                                                                                                                                                                                                                                                                 17
                                                                                                                                                                                                                                                                                                                                        14
                                                                                                                                                                                                                                                                                                                                                      13
                                                                                                                                                                                                                                                                                                                                                                      19
                                                                                                                                                                                                                                                                                                                                                                                   14
                                                                                                                                                                                                                                                                                                                                                                                                       37
                                                                                                                                                                                                                                                                                                                                                                                                                         19
                                                                                                                                                                                                                                                                                                                                                                                                                                         29
                                                                                                                                                                                                                                                                                                                                                                                                                                                           22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            19
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 57


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    33




                                                   Weighted Importance




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     Pugh Matrix Example
                  Criteria / Concept            1   2    3   4   5   6   7    8    9   10   11   12   13   14
Ease of achieving 105-125 DbA                        S   -       +   -   +   +     -    -    -    -    S    +
Ease of achieving 2000-5000Hz                        S   S   N   +   S   S    +    S    -    -    -    S    +
Resistance to corrosion, erosion & water             -   -   O   S   -   -    S    -   +     -    -    -    S
Resistance to vibration, shock & acceleration   D   S    -   T   S   -   S    -    -   S     -    -    -    -
Resistance to temperature                       A   S    -       S   -   -    -   S    S     -    -   S    S
Rsponse time                                    T    S   -       +   -   -    -    -   S     -    -    -    -
Complexity: number of stages                    U    -   +   E   S   +   +    -    -    -   +     +    -    -
Power consumption                               M    -   -   V   +   -   -   +     -    -    -    -    S    +
Ease of maintenance                                  S   +   A   +   +   +    -    -   S    +     +    S    -
Weight                                               -   -   L   +   -   -    -    S    -    -    -    -   +
Size                                                 -   -   U   S   -   -    -    -    -    -    -    -    -
Number of parts                                      S   S   A   +   S   S    -    -   +     -    -   S     -
Life in service                                      S   -   T   +   -   S    -    -    -    -    -    -    -
Manufacturing cost                                   -   S   E   -   +   +    -    -   S     -    -    -    -
Ease of installation                                 S   S   D   S   S   +    -    S    -    -    -    S    -
Shelf life                                           S   S       S   S        -    S   S    S     S    S    S
          Σ+                                         0   2       8   3   5   3     0   2    2     2   0     4
          Σ-                                         6   9       1   9   7   12   11   8    13   13   8     9
          ΣS                                        10   5       7   4   4   1     5   6    1     1   8     3


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The Opportunity
                                                                                         Revenue Trajectories
           Resources Required



                                                                                     $$$
                                                                    Typical                       Planned
                                                                   Reactive
                                                                    Design
                                    SSFM / DFSS
                                      Proactive
                                       Design                                                 Unanticipated
                                                                                                Shortfall
                                                  Launch Launch                                  Time



                                Issues identified & managed proactively
                                Products launch to plan & function as intended
                                Differentiated “ first to market” products earn high margin profits
                                to fund innovation and exploit other growth opportunities

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Six Sigma Marketing Transitions
    From                           To
   Low Marketing Involvement      Highly effective marketing involvement
                                  common vision and agreement

   Over -reliance on opinions,    Gathering & processing data into facts &
   assumptions & intuition        information to make decisions

   Catching up with Competitors   Getting ahead using disciplined
                                  approach and analysis to define &
                                  anticipate customer Requirements
   Performance fixed after        Launch to plan so marketing activities
   product launches               achieve expected results / revenues

   Powerful personalities         Tools and data enable objective
   dominating decision making     evaluation of alternatives


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Why Six Sigma Marketing ?
   60 % of product failures caused by marketing issues                                            Tools, Methods,
                                                                                                   Best Practices


                                                                                                       Market
        Inadequate Market Analysis                                                               24% Opportunity
                                                                                                     Assessment
         Product Problems or Defects                                                     16%
                                                                                               GOSPA Alignment
   Lack of Effective Marketing Effort                                              14%         Marketing Planning
       Higher Costs than Anticipated                                   10%
                                                                                                 SWOT Analysis
Competitive Strength or Introduction                                9%                          Market Perceived
                                                                                               Quality Assessment
        Poor Timing of Introduction                              8%
                                                                                               Key Events timeline
     Technical or Production Problems                      6%

                    All Other Causes                                            13%

                                        Source: Winning at New Products, Robert Cooper




               Quality upstream impacts everything downstream
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GOSPA Tree
        Every Goal must have at least 1 Objective (ideally 2-4)

        Strategies must link to an Objective and a Plan
                          G1                                      G2        G3


                          O1                                 O2        O3        O4


                     S1        S2                       S3        S4        S5        S6


                P1        P2        P3             P4        P5        P6        P7        P8


           A1        A2        A3        A4   A5        A6        A7        A8        A9




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Example
  Goal:         Become leading provider of enterprise solutions for contract lifecycle
                management
  Objective:    Win four deals valued at a minimum of $500k each within 12 months

  Strategy:     Develop consultative sales methodology targeting large facilities management
                imaging companies.
  Plans:        Define solution for enterprise contract management (9/02)

                Define value proposition and customer benefits for solution (10/02)

                Prepare customer presentation (11/02)
  Actions:      For September:

                    Identify solution selling team      Tools enable task execution

                    Perform research on competitive solutions

                    Meet with prospects to understand un-met (unarticulated) business needs

                    Schedule workshop to define solution and high-level architecture


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 Competitive Position Analysis
    Competitive Position:        Your Company                  A           B           C
          Market Share
                                                                                                                A                B
   Price (relative to us)              100
   Direct Cost (relative to us)        100
Technology: ahead, equal, behind                                                                              Weight on Quality Vs. Price
                                                                                                              Quality
                                                                                                              Price
                 Importance of Quality versus price in purchase decision                                                      100


     1- Enter the market share of your company and that of your leading competitors
A    2- Enter the price of your leading competitors products relative to yours. Consider the figure to
     represent some percentage compared to yours (e.g. Competitor A’s price is 110% of ours.)
     3- Enter the direct cost of the leading competitors products as a percentage relative to yours.(Keep in
     mind that since you cannot obtain direct manufacturing costs of competitors products that you may have to estimate using internal
     analysis data from research or marketing.)
     4-Where is your competitors technology position relative to yours (ahead, equal, or behind).


B    Once you have completed the 4 steps you can then look at this information as a general story that
     describes the market place and helps you deduce what kind of market you are operating in.
     (Quality oriented or price sensitive). You can estimate the weight the market gives to each
     sensitivity and record them as percentages totaling 100%.


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Six Sigma Marketing Benefits
          Alignment of Goals, Objectives, Strategies, Plans and Actions
          Specific, Measurable, Achievable, Relevant, Timebound Objectives
          Customer perceived value measured and monitored
          Statistical techniques used to analyze data & communicate facts.
          Models developed to facilitate & improve decision making
          Risk assessed & managed proactively
          Team members know what to do, how & when to do in the process
          Your products & services are valued over competitive offerings
          Competitors react to your initiatives
          Value propositions clearly articulated to targets
          Sales Plans achieve predictable outcomes

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