Part of series of Six Sigma Tool reviews I created for a department needing refresher training

1. Quality Quick Session#1 Big Y, Little Y, and a whole bunch of X’s Presented by Jim Deaton 8-14-07

5. CTQ – Measurable & Actionable CTQ Measurable Actionable If we can measure it, then we can build strategies to meet customer needs Something we can express in numbers Something we can take action on

6. CTQ Examples Poor CTQ example When responding to a request for information or documents from a 3rd party intermediary (i.e.. Agency, Attorney or Buyer), verify that the account is currently placed with the requesting intermediary before providing any account information. Why? The above example reads more like a procedure that we have to follow rather than VOC. Better CTQ for this example: Account information can only be shared with those allowed by law. Poor CTQ example Incoming calls from customers must be answered in a timely fashion. Why? CTQ’s must not only be actionable but also measurable as well. Better CTQ for this example: Calls from customers must be answered within 20 seconds.

7. Translating VOC We need to translate our VOC in to something meaningful that that can be measured Translation CTQ VOC “ It takes you so long to approve the loan and get me the cash” Timely Application Processing CTQ’s are the output of this translation

8. Example: Monthly Customer View Score Tabulation Sheet Function Critical to Quality (CTQ) Weighting Count Score Customer Service Calls unanswered No unanswered calls Count X 2 56 112 Delay in answering Greater than 30 seconds Count 144 144 Question not answered, call back required No call backs Count 23 23 Shipping Late shipments No late shipments Count X 2 56 112 Incorrect item/quantity No incorrect items Count X 2 4 8 Incorrect address No incorrect addresses Count X 2 6 12 Shipper error No errors Count X 2 20 40 Production/QC Product defects reported No defects Count X 2 112 224 Planning/Inventory Backorders <2 days No backorders Count X 2 61 122 Backorders >2 days No backorders Count X 4 18 72 Monthly Customer View Score 869

9. COPIS Customer Process Supplier Output Input Customer – Whoever receives the output of your process Output – The material or data that results from the operation of a process Process - The activities you must perform to satisfy your customer’s requirements Inputs – The material or data that a process does something with Supplier – Whoever provides the input to your process

10. COPIS C O P I S Customer Outputs (Use nouns) Process (Use Verbs) Suppliers Inputs (Use nouns) Requirements Requirements Measures Measures CTQ1 CTQ2 CTQ3 CTQ4 Etc. X1 X2 X3 X4 Etc. High Level Step 3 High Level Step 4 ETC. ETC. High Level Step 2 High Level Step 1

11. Big Y, Process Y, Project Y and a Bunch of X’s Business Big Y’s Project Y Process Y’s Y Y Y Y Key output metrics that are aligned with strategic goals/objectives of the business. Big Y’s provide a direct measure of business performance. Key output metrics that summarize process performance Key project metric defined from the customer’s perspective Any parameters that influence the Y X 1 X 2 X 3 Management PROCESS

12. Exercise: Translating VOC 15 min Take an example from your department of a common VOC. Develop your CTQ and identify Big Y, a Little Y and the X’s connected to the little Y. X1,….Xz Little Y Big Y CTQ VOC