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Sustainable Competitive Advantage through Customer Value Management Consulting
 
 

Lean & Six Sigma Consulting: Listen to the Voice of the Customer

The leading experts of both the Lean Manufacturing and the Six Sigma movements all agree that initiatives in either arena should be driven by the Voice of the Customer (VOC).  Our consultants have developed the customer value metrics and the empirical linkages to make that concept a reality.  In so doing, the tools of Lean and Six Sigma are transformed from tactical, cost-cutting tools into powerful strategic weapons.

MVS has collaborated with the Maryland World-Class Manufacturing Consortium for the last five years to make the Voice of the Customer a driving force in the Lean initiatives of its member companies.   In addition to driving Lean Manufacturing initiatives, MVS customer value metrics have extended corporate Lean initiatives from the manufacturing plant through distribution channels to the end user.  This extension ensures that value at the point of production translates into value at the point of consumption.  The metrics of customer value bring an external perspective to Lean initiatives that make them far more strategic, capable of increasing revenues while also reducing waste. 

Market Value Solutions has also provided consulting within the Caterpillar Inc. network of heavy equipment dealers to bring the Voice of the Customer into their Six Sigma program.  The traditional Six Sigma Project Charter begins with an internal perspective on problems and opportunities, with the customer perspective incorporated only after the project had been commissioned.  Moreover, most Six Sigma Consulting projects address problems to be fixed, rather than addressing strengths to be leveraged.  MVS has developed a systematic, sequential set of metrics that use the Voice of the Customer to identify key value streams for targeted process improvements using the tools of Six Sigma.  This means that Six Sigma project charters can now be value-based and market-driven for sustainable competitive advantage.

 

The Market Value Model  

Customer Value Model

Getting the right VOC to drive Lean and Six Sigma initiatives means beginning with focused models of customer value.  A focus on specific product/markets is the only way to provide the precise definition of value that Lean initiatives require.  These models identify the Critical to Quality (CTQ) factors, and their relative importance, that are essential to targeted Six Sigma initiatives.
     

The Competitive Radar Screen

  Customer Value Metrix for Lean Manufacturing & Six Sigma

In order to determine whether Lean or Six Sigma projects will be intended to widen a value gap (based on value leadership) or close a value gap (based on challenging for leadership), the organization needs to know its competitive value proposition, and the competitor(s) it will be targeting.

     

CTQ Performance Ratings

  Value Stream Mapping
After identifying the competitive target (Competitor 1, in this case), the organization calculates the value gaps on each Quality Driver (CTQ Factor) in order to focus Lean/Six Sigma initiatives on the most important Value Stream.
     

Value Performance Criteria

 
After the top CTQ is identified, a drill-down gap analysis identifies the most important performance criteria within the Critical to Quality Driver.
     

Linking Processes to Performance Criteria

 
The next step links business inputs (processes) to business outputs (Value Performance Criteria for the most important CTQ factor) in order to identify key business processes for focused value stream mapping.
     

Setting Project Priorities

 

The final step establishes priorities for Lean and Six Sigma projects.

 

Lean Manufacturing and Six Sigma must extend from the manufacturing plant through the distribution channels.
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Lean Manufacturing/Six Sigma Workshops - Contact us to learn more about our lean manufacturing and six sigma consulting services.