pom3- kano analysis
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Value to Customer through KANO Analysis
Jagadish Barik
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1Introduction
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Objectives
•Understand the Voice of the Customer (VOC) and how to
determine value
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Source: Lean Thinking, by Jim Womack
Lean Principles - Definitions
Value:
•A capability provided to a customer at the right time at an
appropriate price, as defined in each case by the voice of
the customer.
Value Stream:
• The specific activities required to design, order, andprovide a specific product or service, from concept to
launch, and order to delivery into the hands of the
customer.
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Value is in the Eye of the Customer!
What is Value?
Important Considerations•Who defines value?
•Who is the customer?
•How do we know what the customer wants?
•How do we translate product characteristics through ourinternal processes?
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• Effectiveness
– The degree to which you meet and/or exceed
customer needs and requirements.• Efficiency
– The amount of resources consumed in achieving
effectiveness.
Effectiveness and Efficiency:
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Voice of the Customer (VOC)
Lean based on the principle of increasing Profit through
Cost reduction
Must balance Cost with Delivery and Quality to fully meet
customer expectations
Voice of
Custom
er Deliver
y
Quality
Cost
Can We Afford to Sacrifice Any of These Measures?
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Value Perspectives
How does this happen in Transactional Processes?
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Spectrum of VOC Tools
Complaints/Warranty
Point of Sale/Service Point
of Use
Quick MarketIntelligence
CustomerAdvocateBoards
Focus Groups Surveys
Use all existing customer input/information available to you
Tangible, butlagging
indicator
LeadingIndicator
Costly fromCOPQ
standpoint
Costly fromexpense
standpoint
Get approval before using expensivemethods to listen to the customer’s
voice
Reactive Proactive
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Typical Reactive Systems
Defining and Understanding Value
• Customer complaints (phone or
written)
• Technical support calls
• Claims, credits, contestedpayments
• Product return information
• Problem or service hot lines
• Customer service calls
• Sales reporting
• Warranty claims
• Web page activity
Reactive systems generally gather data on current andformer:
•customer issues or problems
•customers’ unmet needs
•customers’ interest in particular products or services
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Defining and Understanding Value
Proactive Systems
•Understanding demand
•Direct customer observation
•Interviews
•Focus groups
•Surveys
•Comment cards
•Data gathering during sales visits or calls
•Market research, market monitoring
•Benchmarking
•Quality Function Deployment (QFD)
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2Kano Analysis
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Why use Kano Analysis?
•Identify and categorise the full range of your customer´s
needs
•Gain better understanding of the customer defined Critical
To Satisfaction requirements (CTSs)
•Focus your improvement efforts on the correct features or
characteristics
•Prioritise requirements that need to be fulfilled for limited
resources, market constraints and maximised profits.
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Note: Improvement Pay-Offs are often NOT directly
proportional to Rankings from standard Surveys.
Kano helps to extract what the customer is willing to pay
for.
When to Use Kano Analysis
•When asking customers about their preferences, they
might tell you what they want and what features they
would like to have included in the product or service they
may want to buy.
•However customers may not always want to pay moneyfor having some extra features.
•Kano Analysis should be used to find a good balance of
attractive features, performance and minimum customer
requirements that need to be met before starting ordeploying any design activities.
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What is Kano Analysis?
•Kano Analysis is a method named after the Japanese TQM
consultant Noriaki Kano. It helps to describe the
dependency of customer satisfaction and needs fulfilment
•Often used in conjunction with Quality FunctionDeployment (QFD) to screen and categorise product
features or characteristics into “Must-Be”, “One-
Dimensional” and “Delighter” using sophisticated survey
methods
•Provides guidance for defining product/process/service
strategies based on market dynamics and multi-generation
planning
Kano’s Model
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Kano’s ModelSatisfaction As A Function Of NeedFulfilment
y axis is Customer Satisfaction
x axis is the degree towhich the desired serviceor product is fulfilled
(Broken Process)(Product Failure)
DissatisfiedFeeling
Satisfied
Feeling
C u s t o m e r S a t i s f a c t i o n
Fulfilment FulfilledCondition
UnfulfilledCondition
(Perfect Process)(Product Performs)
Kano’s Model
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Kano’s ModelThree Dimensions Of CustomerNeeds
(BrokenProcess)(Product
Failure)
DissatisfiedFeeling
SatisfiedFeeling
C u s t o m e r S a t i s f a c t i o n
Fulfilment FulfilledCondition
UnfulfilledCondition
(Perfect Process)(ProductPerforms)
Delighters
One-Dimensional
Must-Be
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The Kano ModelMust-Be’s
DissatisfiedFeeling
SatisfiedFeeling
C u s t o m e r S a t i s f a c t i o n
FulfilmentFulfilledCondition
UnfulfilledCondition
Must-Be(Expected
Needs)
• Requirements that are so obvious
to the customer that they are
usually not stated as
requirements
• When requirements are met they
are usually not noticed. Whennot met, dissatisfaction is
present.
• Examples:
- Wheels included on new car
- Standard employee benefits
- Good safety
- Not getting a busy signal for a
customer service number
Synonymous Terminology
• Take it for Granted Quality• Expected Quality
• Basic Quality
• Standard Performance
• Dissatisfiers
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The Kano ModelOne-Dimensional
One-Dimensional(Normal Needs)
Synonymous Terminology
• One Dimensional• Normal Needs
• Linear Quality
• Competitive Quality
• Satisfiers
• Requirements which
customers openly state they
want.
• When requirements are metthey are satisfied
• Examples:
- Gas mileage
- Price, performance, delivery
- More choice in benefits
- On-time arrivals on airlines
DissatisfiedFeeling
SatisfiedFeeling
C u s t o m e r S a t i s f a c t i o n
FulfilmentFulfilledCondition
UnfulfilledCondition
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The Kano ModelDelighters
Delighters
(Latent Needs) • Requirements whichcustomers cannot articulate.
• When requirements are met
they are DELIGHTED.
• Similar to “enhancers” or“attractive qualities”.
• Examples:
- Headlight Washers
- Home “New” Car Delivery
- More choice in benefits
- Gourmet food in airline
coach class
Synonymous Terminology
• Delighters• Latent Needs
• Enhancers
• Leadership Quality
DissatisfiedFeeling
SatisfiedFeeling
C u s t o m e r S a t i s f a c t i o n
FulfilmentFulfilledCondition
UnfulfilledCondition
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Example 1: Kano Diagram for Car
Satisfaction
Product/ServiceFully Functional
Product/ServiceDysfunctional
Dissatisfaction
Must BeBrakesWindshield Engine Cooling
System
One-Dimensional Gas MileageWarranty Period Turning Radius
Delighters
Retractable Car AntennaRear Window Wiper Electronic Car Locks
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Satisfaction
Product/ServiceFully Functional
Product/ServiceDysfunctional
Dissatisfaction
Must BeNon-Smoking room
King bed Clean bathroom
One-Dimensional Free Breakfast Room RateLocation
ConvenienceTime to Check-out
Delighters
They welcome me by nameChoice of pillowsPersonalized amenities
Example 2: Kano Diagram for Hotel
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Market Dynamics and the KanoModel
L e a d e r s
h i p P e
r f o r m
a n c e
C o m
p e t i t i v e
P e r f o
r m a n c e
S t a n
d a r d P e
r f o r m
a n c eExecution Excellenc
Customer Satisfaction
I N N O
V A T I V
E
C
O M M O
D I T Y
C O M M
O D I T Y
“Delighters” moveto “Must
Be”
featuresover time!
New Delighters must be discovered!
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L e a d e r s
h i p P e r f
o r m a
n c e
C o m
p e t i t i v e
P e r f o
r m a n c e
S t a n d a r
d P e
r f o r m
a n c eExecution Excellenc
Customer Satisfaction
I N N O
V A T I V
E
C O M M
O D I T Y
C O M M
O D I T Y
New“Delighter” featuresmust be
discovered!
Market Dynamics and the KanoModel