Step 1&2 – These steps require a significant
amount of research innovation involving
marketing, engineering, operations, and
sales functions, and should involve
customers, suppliers, and employees
throughout the value chain. The data and
information that result from this effort
provide the key input for designing the final
customer benefit package.
Step 3 – Clearly, firms have a large variety
of possible choices in configuring a CBP.
For example, when buying a new vehicle,
an automobile dealer might include such
options as leasing, free oil changes and
maintenance, a performance driving school,
free auto washes, services pickup and
delivery, loaner cars and so on.
CBP design and configuration choices
revolve around a solid understanding of
customer needs and target markets, and the
value that customers place on such
attributes as the following:
Time - Many grocery stores or restaurants
now offer self-service checkout to reduce
customer waiting time, and manufacturers
such as Buffet is an example of self-service
dining.
Place - UPS has “UPS Stores” (Cebu)
strategically located for customer
convenience that also provide packaging
services; many companies offer daycare
centers on-site to provide convenience to
their employees.
Information - Bank of the Philippine Islands
engages in the provision of commercial
banking services. BPI's services include
consumer banking and lending, asset
management, payments, insurance,
securities brokerage and distribution,
foreign exchange, leasing, and corporate
and investment banking.
Entertainment – In Sm city, while you are
shopping or whatever you are doing inside
the mall you can see and hear that
sometimes there’s someone singing for the
shoppers to entertain them.
Exchange—Retail stores such as Best Buy
allow customers to travel to the store and
buy the goods, purchase goods on their
Web sites and have them delivered, or
purchase goods on their Web sites and
have them ready to be picked up at the
store.
Form - For manufactured goods, form is
associated with the physical characteristics
of the good, and addresses the important
customer need of aesthetics. An interior
designer might use different methods, such
as sketches, photographs, physical
samples, or even computer-simulated
renderings, to show how a kitchen might be
transformed.
Step 4 – This is where the designs of goods
and services differ, as suggested by the
alternative paths. If a proposal survives the
concept stage—and many do not—each
good or service in the CBP, as well as the
process that creates it, must be designed in
more detail.
Step 5 - The final bundle of goods and
services (the CBP) is advertised, marketed
and —the customer benefit package—is
advertised, marketed, and offered to
customers. For manufactured goods, this
includes making the item in the factory and
shipping it to warehouses or wholesale and
retail stores; for services, it might include
hiring and training employees or staying
open an extra hour in the evening. For
many services, it means building sites such
as branch banks or hotels or retail stores.
Step 6 - The marketplace is a graveyard of
missed opportunities: poorly designed
goods and services and failed execution
resulting from ineffective operations. The
final step in designing and delivering a
customer benefit package is to constantly
evaluate how well the goods and services
are selling and what customers’ reactions to Tolerance design and Taguchi loss
them are. function
Tolerance is an acceptable limit of
Many successful organizations gather deviation in a parameter’s dimension or
and integrate the Voice of the Customer value and this must be determined for all
(VOC) into the design and manufacture system components. In other words
of their products. They actively design Tolerance design maintain the balance
quality and customer perceived value between quality and design cost. This
into their products and services. These approach can be applied to both goods
companies are utilizing a structured and services.
process to define their customer’s wants Design for Reliability
and needs and transforming them into
specific product designs and process Reliability provides the probability that
plans to produce products that satisfy an item will perform its intended function
the customer’s needs. for a designated period of time without
failure under specified conditions. In
The process or tool they are using is other words, reliability looks at how long
called Quality Function Deployment the product will work as designed, which
(QFD). is a very different objective than that of
Quality Function Deployment (QFD) is a traditional quality control.
process and set of tools used to
effectively define customer requirements
and convert them into detailed
engineering specifications and plans to
produce the products that fulfill those
requirements.
The House of Quality
The House of Quality (HOQ) is defined
as a product planning matrix that is built
to show how customer requirements
relate directly to the ways and methods
companies can use to achieve those
requirements.
Building a house of quality begins by
identifying the (VOC) and technical
features of the design and listing them in
the appropriate places in the diagram.
to customers. services, it
For might
manufacture include hiring
d goods, this and training
includes employees or
making the staying open
item in the an extra hour
factory in the
and shipping evening.
it to For many
warehouses services, it
or wholesale means
and retail building sites
stores. For such as
branch banks
or hotels or stores. For
retai services, it
to customers. might
For include hiring
manufacture and training
d goods, this employees or
includes staying open
making the an extra hour
item in the in the
factory evening.
and shipping For many
it to services, it
warehouses means
or wholesale building sites
and retail such as
branch banks
or hotels or
retail
stores