Chapter Twenty-Four: Value – Identifying Aspects of Customer Loyalty

ConPriDigm AvatarQuality IS…value – a subjective aspect.

Why is value the key ingredient for customer loyalty?

 

 

Conceptual Pattern for Value

Value is the extent to which a good or service is perceived by its customer to meet his or her needs or wants. It is a quality that renders something useful. Value is based on the worth or importance of something to somebody.  Perceived importance or usefulness translates to essential and distinguishing attributes. Value is a motivating force that compels action for its satisfaction. Value is something tangible or intangible that results in a grade or standard that identifies the essential nature of something. Value results in something that is a requirement or is wanted or is necessary but cannot be lacking. (Pattern Engine – Value N=12 © 2014)

If value is understood the meaning of Quality will follow.

First Principle: The purpose of value is to create loyal customers.

Second Principle: The subjective concept of quality is closely tied with the utility or value of the objective physical properties of the thing itself.  The subjective concept of quality has to do with what we think, feel or sense as a result of the objective reality. When we consider quality from the subjective viewpoint, comparatively serious difficulties arise.  To begin with there are various aspects of the concept of value. We may differentiate between the following four kinds of value; use, cost, esteem and exchange.1

Third Principle: Value is always increased by decreasing costs and by increasing performance if the customer needs, wants and is willing to pay for more performance.2

Fourth Principle: There are nine potential reasons for poor value from the suppliers and or customers perspective; lack of information, wrong beliefs, risk of personal loss, reluctance to seek advice, shortage of time, negative attitudes, changing technology, strict adherence to requirements and poor human relations.3

Fifth Principle: In the context of function “value” means the lowest cost that would provide a function with the qualities and specifications with which the customer wants to operate. 2

Sixth Principle: The analysis of value is the organized creative approach that has for its purpose the efficient identification of unnecessary cost, that is, cost that provides neither quality nor use nor life nor appearance nor customer features. 2

Key Conceptual Patterns

SUBJECTIVENESS

Subjectiveness is a judgment based on individual personal impressions and feelings and opinions rather than external facts or evidence. It pertains to, or is derived from, one’s own consciousness, in distinction from observation. Subjectiveness is a cognitive state resulting in a personal judgment or vague idea. Subjectiveness leads to awareness and immediate knowledge or perception of the presence of any object, state, or sensation but is not founded on proof or certainty.  Subjectiveness is held with confidence but not substantiated by positive knowledge. It results in a lasting effect in which confidence is placed about understanding something. (Pattern Engine – Subjectiveness N=12 © 2014)

OBJECTIVENESS

Judgment based on facts and the observation of phenomena and not influenced by emotions or personal prejudices and free of bias. It is a partiality about a piece of information that is reached by attentive watching. Objectiveness is a statement of verified information that can be shown to be true, to exist, or to have happened about events that have occurred. Objectiveness is about circumstances that exist or performance of what is prescribed.  It is not an unfair preference preventing consideration and does not leave the mind indifferent. (Pattern Engine – Objectiveness N=12 © 2014)

Next Post: Customers – The Raw Product of Profitability

 1 Walter Shewhart, Economic Control of Manufactured Product, 1931.

2  Lawrence D. Miles, Techniques of Value Analysis and Engineering, 2nd Edition, 1972.

3 Anil Kumar Mukhopadhtyaya, Value Engineering Mastermind, 2009.

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Chapter Seventeen: Targets – Centered Variation that Meets Customer Expectations

ConPriDigm AvatarQuality IS…a target of centralized variation.

Why are process targets typically unrealistic when the process is not naturally centered and variation is not predictable within limits?

 

 

Conceptual Pattern for Target

A target is an attainable reference point toward which effort and action is directed. It is an orienting indicator that achieves a state by a series of actions. A target is a desirable achievement providing information for comparing measurements and advancing a principle involving earnest and conscientious activity intended to achieve a purpose. (Pattern Engine – Target N=12 © 2014)

If targets are understood then the meaning of Quality will follow.

First Principle: The purpose of a target is to institute a measure of central tendency.

Second Principle: A target communicates the Voice of the Process, Voice of the Customer and the Voice of the Raw Materials.

Third Principle: Without an estimate of conformance, a process target cannot be effective.

Fourth Principle: A target cannot be determined without knowing the variation that is present at the process level, the customer level and the raw material level.

Fifth Principle: Performance assessment of targets must include error present in measurement.

Sixth Principle: A target can’t be arbitrary and must be built on sound research and knowledge.

Key Conceptual Patterns

PERFORMANCE

Performance is accomplishment of a given task measured against preset known standards while using knowledge, as opposed to just possessing it, in a manner that is efficient and fulfills an intended purpose. It is a psychological result and level of quality resulting in the skillful avoidance of waste. Performance is a result of perception, learning and reasoning that germinates from the combination of data, information, experience, and individual interpretation. It results in awareness or understanding of a circumstance or fact, gained through association. Performance is that which is accepted as the norm or by which actual attainments are judged. Performance is a universally or widely accepted, agreed upon, or established means of determining what something should be as a basis for comparison, a reference point against other things can be evaluated. Performance involves utilizing the minimum use of resources, time, and effort while achieving a desired result. (Pattern Engine – Performance N=12 © 2014)

ERROR

Error is inadvertent incorrectness that varies between the true value of a mathematical quantity and a calculated or measured value or deviates from a model, norm, specification, or standard that is not due to a lack of knowledge. It is a nonconforming and inevitable change in rate or magnitude. Error is the output or result of a process that deviates from a norm or standard. Error is a change in the observed value from what is usual, accepted, expected or planned. Error affects the values of a data set when compared with a measure of central tendency such as the mean, median, or mode and may impact fact, truth standards or rules. (Pattern Engine – Error N=12 © 2014)

Next Post: Waste- Knowledge Without Know -How

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