Customer requirement:
Customer requirements are necessary/ mandatory activities defining the goal of the NPI project. When the project is finished the completed project is measured against the customer requirements to ensure the success and failure of the project.
This is what constitutes the scope of the project and everything else is considered to be outside the scope of the project. Customer requirement/ scope of the project should be well documented and progressively elaborated. Project failure or delay in completion are

• Project scope creep
• Ill defined scope not documented to the component level.
• Project scope defined, without the consent of all the stakeholders and team members.

Example:
Customer requirement is fuel efficiency.
At the higher level this sounds sufficient, but at lower level, this means more minute details. This could give way to change in gears, means of lubrication, electric engine etc. If these details are not properly laid out with correct assessment, it could lead to failed or delayed project.





Customer Expectation:
This means an expectation, which is different than a requirement. If not properly, it could lead to disputes between customer and client. Customer while requiring smooth shifting expects to enhance the life of gears.
Here the requirement is " Smooth shifting", if the manufacturing produces smooth shifting, without increasing the life, he will not be at fault. If the manufacturer meets the requirement of increasing the life of gears, it still good.
Unless the customer specified the expectation, its not mandatory on the manufacturer to meet it.

However at the high level, its mandatory to meet the customer expectations on the overall performance of the product or service generated.