The World without Bankruptcy Laws
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
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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