How do you use CTQ to define customer value?

El Critical to Quality o CTQ, es una joya invaluable en la búsqueda de la excelencia en productos o servicios. Reconocer y aplicar el CTQ no solo garantiza la satisfacción y fidelización del cliente, sino que también allana el camino hacia la perfección en lo que ofrece la empresa.

VoC by the way can be positive, negative and neutral. Everything matters while analysing. All SLA agreements executed during contract signing or change management post analysing complaints are part of CTQs. For example, lead time to process a booking request within 72 hrs excluding waiting time from customer is a CTQ. Maintaining a quality of 95% and higher for all delivery of products is an example of CTQ.

The Big Y metric drill down you build from a CTQ is great to spin off multiple BB and GB projects. It helps these project leads to understand how they drive improvement to the Big Y and CTQ. This is a great change management tool to drive visibility and acceptance by Leadership as well as getting GB and BB project leads onboard.

As an industrial engineer turned product manager, I leverage CTQ metrics to define customer value. CTQ helps me identify attributes critical to delivering value for target customers, ensuring alignment with their needs. I may conduct market research, interviews, and testing to uncover essential needs and pain points. I then map these to CTQ metrics that quantify critical requirements. For instance, if interviews show users need high-speed processing, I define speed/processing time as a CTQ metric. I can track our performance on this over time, guiding decisions and improvements to deliver more value. The CTQ framework provides a quantitative, user-centric way to connect product capabilities to real customer value.

Here is an example of how CTQ can be used to define customer value. Let's say you are a company that sells smartphones. You might identify the following CTQs: Battery life: Customers want their smartphones to have long battery life. Camera quality: Customers want their smartphones to have good camera quality. Screen size: Customers want their smartphones to have a large screen. Price: Customers want their smartphones to be affordable. You would then monitor and measure the performance of your smartphones against the CTQs. If you find that your smartphones are not meeting the performance targets, you would need to take steps to improve the performance of your products. .

Prioritize the CTQs: Not all CTQs are created equal. Some CTQs are more important to customers than others. You can prioritize the CTQs by using a tool like the Kano model or QFD. Set performance targets: Once you have identified and prioritized the CTQs, you need to set performance targets for each CTQ. These targets should be based on the needs and expectations of your customers. Monitor and measure: It is important to monitor and measure the performance of your product or service against the CTQs. This will help you to identify any areas where you need to improve.