Select the CTQs

Given that you have truly captured the customer’s view, it should be relatively easy to define the problem. In practice this step is one of the most difficult and critical for project success. There are many stakeholders that will resist shining a spotlight on an area of their responsibility. Set aside any paradigms you may have and really focus on the customer. The largest barriers will come from your own rationalizations of what is needed, possible, obvious or affordable.

Define Performance Standards

It is very likely that both the customer and the business look at high level metrics to gauge how the business is performing. The numbers reported at the corporate level and circulated quarterly or yearly give an aggregate view. Most of the individual tansactional detail is lost in the consolidation. Customer make decisions at a transactional level and the process is influenced at the transactional level. You must gather the data on potential factors (Xs) at the transactional level to be able to do any analysis.

Validate the Measurement System

It is common that the existing measurement system can give unreliable or misleading data. This step is usually underrated during the project planning, but is one of the most important for subsequent analysis. When you present your team’s conclusions at the end of the Analyze phase, your results may run contrary to company folklore. Your project will usually be attacked for the integrity of the original data rather than the depth or sophistication of the analysis. It is important that you satisfy the stakeholders that your data is reliable and represents a good cross section of sales regions, seasons, product mix, customer type, business units, etc. Get them to agree to the data collection plan and subsequent analysis before proceeding to the Analyze phase.