Creating a SIPOC Chart
February 12, 2025
Not long ago, purchase function was seen to be a desk job, monotonous paper work, dull and passive and more of an administrative function. The purchase managements were the fall guys whose only aim was to keep feeding shop floor and avoiding stock out situation. Today the situation has changed totally. Procurement function is considered […]
In the last couple of years, with the advent of the ongoing global economic crisis, many investors have been looking for newer markets to invest to derive higher returns or maintain their current returns on investment. Concomitant with this trend, marketers are looking beyond the developed Western countries that are saturated for newer growth opportunities. […]
Why Data is the New Oil Data is the New Oil, proclaimed, India’s Richest Person and the one of the World’s leading Businessperson, Mukesh Ambani. He was referring to the fights over data in the digital age being similar to the battles over Oil in the Industrial Age. As Oil was the Lubricant that made […]
Facebook is a company which has been growing at a breakneck speed. Within a decade, the company has already started dominating the advertising industry. However, now, Facebook has decided that it needs to diversify from the advertising industry. Following the example set by Chinese companies, Facebook also believes that communication and payments go hand in […]
Procurement Logistics, Manufacturing Logistics and Finished Goods Logistics functions are managed by different independent departments in a company. Though the duties of the departments involve common activities like transportation etc., however, the processes and nature of logistics functions are specific to each function besides the requirements and sensitivities of delivery times, schedules, etc. With the […]
The Voice of Customer may sound like a simple exercise. However it would be safe to say that reading at the literature makes it look deceptively simple. Anyone who has an experience with market research will understand the issues involved. For a Six Sigma project to be successful, the Voice Of Customer must be accurate. Therefore, a few common problems faced while conducting the exercise have been noted below:
Contradictory Data: We begin with the assumption that customers placed in similar segments will have similar needs. However, as Voice of Customer explains that this may not be the case. Customers belonging to the same demographic and psychographic segments sometimes have remarkably different needs. This leads us to the conclusion that the initial segmentation of customers had been done on wrong basis.
The Voice Of Customer is a tool which helps understand if the basis used for the segmentation is correct. If customers are consistently giving contradictory feedback, then this issue can be raised with the marketing department. It would be useless to pursue the Six Sigma project and build an efficient process if the output from the process does not meet the needs of the customers.
Continuos VOC: Most organizations look at VOC as a one off exercise. However, nothing could be farther from the truth. The needs of the customers are continuously evolving and so are technological advancements that better enable us to fulfil those needs. Also customers become accustomed to the product features. Hence what provides customer delight today, will tomorrow be an expected feature of the product.
The challenge of successfully creating a process based on the Voice of Customer is to create a responsive process. A process that can listen to the evolving needs of the customers and change accordingly to provide maximum satisfaction. This feedback based control is often used in internal processes of an organization but seldom used in customer facing processes.
Capturing and Organizing: To solve the problem of continuous VOC, many organizations have implemented Customer Relationship Management systems. However, implementing these systems from a technical perspective is not enough. They need to be imbibed in the culture of the organization.
For instance, many customers penalize the agent who is at the receiving end of negative feedback. This builds in them a tendency to hide negative feedback. Organizations must reward their agents that point out the gaping holes in their VOC process. This is a cultural challenge and once again requires co-ordination between marketing and operations department to create a customer centric culture in the organization.
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