Role of Derivatives in Causing the Global Financial Crisis
The previous articles in the module have discussed how the global financial crisis has been caused due to a combination of factors starting with the collapse of the housing market in the US and then due to the integration of the global economy rapidly spread to other parts of the world. An aspect that was […]
Strategy in Emerging Markets
Enter Low and Middle End Segments of the Market It has been found that many multinationals find their sweet spot in emerging markets when they cater to the lower and the middle end of the market segments. In other words contrary to popular perception, multinationals find that selling to these segments is much better than […]
Avoiding Three Traps that can Destroy Family Owned Businesses
Family owned businesses have been the norm from the time of the industrial revolution and in fact, they were the mainstay of the business world in the early decades of the 20th century. With the advent of technology and the services sector, the rise of the professionally managed organizations was evident. In this context, many […]
How Emerging Markets Transformed Themselves Over the Last Few Decades
From Backwaters to Powerhouses At the start of the 1970s a widely held belief in the United States and in Europe was about how there were no markets outside of their regions. The implication was that the Third World countries were not worthy of foreign investment as they were steeped in backwardness, immersed in poverty, […]
Kar Lo Duniya Mutti Mein: The Game Changing Case of Reliance Jio
The Game Changing and Disruptive Entry of Reliance Jio The entry of Reliance Jio into the Indian Telecom sector has been if not anything, disruptive and game changing. Starting with the sheer scale of its operations wherein it leveraged its existing network of stores and outlets to sell new connections to the consumers, to its […]
In the equation - Y = f(X), Y is the dependent variable and it is dependent on the variable X. In other words, when there is a change in value of X then value of Y will automatically change. The following are the characteristics of both types of variables:
| Y | X |
| Dependent variable | Independent variable |
| Output of the process | Input to the process |
| Effect | Cause |
| Symptom | Problem |
| It is monitored | It is controlled |
It is important to know that the variable or the factor that we want to improve is a Y or an X. If the variable under control is a Y then we should identify the Xs or the independent variables that affect Y and we should focus on improving the Xs and thereby improving the Y. There could be more one X that influences the Y and we should try to brainstorm along with the team to identify as many Xs as possible and then perform Pareto analysis or other prioritization tools to identify the critical Xs that impact our Y.
Customer is the person (whether internal or external to the organization) who uses the output that the organization produces. A customer could be
Customer requirements can be defined as the needs of the customer and his expectations from the output that the organization is producing and delivering. When the organization is able to meet all the customer requirements then it will lead to Customer Satisfaction. On the contrary, if the organization is unable to meet the customer requirements then the customers will be dissatisfied and over the period of time they will turn away from the organization’s product. Customer requirements are also called Voice of the customer - “VOC”.
While performing the above the following questions should be asked:
CTQ stands for ‘Critical to Quality’. In other words it represents the critical requirements of the output. CTQ’s could be derived from Customer requirements, Risks, Economics and Regulations. For eg a CTQ could be on-time delivery or accuracy etc. It is very critical to identify and define CTQs appropriately because it depicts the quality parameters that relate to wants and needs of the customer.
Once we have collected the voice of the customer (VOC) we then will have to arrive at Critical to Quality (CTQ) elements so that the customer requirements can be incorporated into our process and the output can be produced as desired by the customer.
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The Cost of Poorly Performing Processes – Need for Six Sigma
February 12, 2025
