CTQ Tree

Diagram the factors which drive quality in a process Work smarter. Achieve more.

Definition:
Processes Events
A tool in which a hierarchy of
Order & Processing
Order & Order Change Request CTQ (Critical to Quality)
Order Cancelled
Processing Order Picked variables is depicted as a tree.
Pickup Requested
Also called a Driver Tree.
Customer Possession

Requirement Pickup & Possession Exception

Possession Documentation Received Level:
Mid-level
Arrived at Origin
Accurate Departed from Origin
Exception at Origin Category:
Tracking Clearance Exception
Cleared Customers Understanding Customer
Information Shipment Arrived at Intermediate Point
Movement Departed from Intermediate Point Requirements
Exception at Intermediate Point
& Processing Arrived at Destination
Departed from Destination
Exception at Destination
Hold for Customer Pickup
On FedEx Vehicle for Delivery

Delivered
Delivery Exception
Delivery Signature Captured

CTQ trees are used to build understanding of a customer requirement by breaking down a
general requirement into component factors that are measurable. These measurable factors
are known as CTQs, where CTQ stands for Critical to Quality.

At first glance, CTQ trees may seem similar to fishbone (cause and effect) diagrams. But
the intent of the two tools is very different. Fishbone diagrams are used to brainstorm and
organize potential causes of a problem — that is, the emphasis is on discovering underlying
causes. By contrast, CTQ trees are used to relate customer requirements to measurable
variables — that is, the emphasis is on discovering characteristics or events that can be
measured.

EXAMPLE
Customers require accurate tracking information. But what factors drive our success in deliv-
ering against that requirement?

A QAT working on tracking issues created the CTQ tree shown above. To break “accurate
tracking information” down into its component factors, the team first listed the four major
processes in which tracking plays a part — Order & Processing, Pickup & Possession,
Shipment Movement & Processing, and Delivery. Then they listed the events that must be
performed in each of these four phases of the delivery process. Since these events are mea-
surable, each represents a factor that is “Critical to Quality” — a CTQ we can measure to
ensure that a customer requirement has been met.

33
 USES
• To transform abstract customer requirements into concrete events and variables we can
measure and act on.

• Early in an ABLE project, discovering factors that can be used to measure performance
against a customer requirement.

• Improving the ongoing management of a business process by maintaining a tree of all the
CTQs for that process (this establishes a common logic for understanding the process
measurements among the management team).

• As part of VOC translation.

HOW TO
1 For the process targeted for improvement, identify the customer.
2 Identify a requirement of the customer. Begin the tree by listing this single requirement in
a box at the left or top of the tree. Note that the requirement can be highly abstract.

3 Choose a method for breaking down the customer requirement into its component parts.
Diagram these components as branches extending from the first box.

4 For each of these components, list any factors, variables, events or characteristics that
may be measurable. Add these to the appropriate branch of the tree.

Visit the QDM website for a CTQ tree template.

HINTS
• Remember that customers can be internal as well as external. CTQ trees can help
streamline internal processes as well as those focused on external customers.

• For many processes, it can be difficult to go directly from the customer requirement to
CTQ factors that can be measured. It’s often easier to break the requirement into an
intermediate level first. For example, in developing the chart on the previous page, the
QAT first broke the accurate tracking requirement down into the four key steps of the
delivery process — and only then divided those four steps into events that could serve
as measurable CTQ factors.

• Have you solicited customer feedback but don’t know how to act on it? Developing an
affinity diagram can help you group the customer feedback into categories which can
then be explored using a CTQ tree. This can help you begin to see how customer con-
cerns tie back to operational characteristics that you can measure and improve.

033118

34