QUALITY FUNCTION DEPLOYMENTMEHMET SALIH GOCERI

FATIH UNIVERISTY

Industrial Engineering

PhD Student

APRIL 4th, 2012

A BRIEF HISTORY OF QFD Due to tremendous growth after World War II,

competition between corporations in Japan in the 1960s increased.

As corporations were professional in product production, therefore it was natural that engineers did the design for products. However, the products that came out could not fully satisfy customers’ needs.

A BRIEF HISTORY OF QFD The high economic growth after World War II led to changes with

customers’ needs.

Besides frequent model changes were required, suppliers had to offer a wide range of product options for customers to choose.

Customer dissatisfaction reduced sales whilst wide ranges of product

options increased cost. Both reduced profit and weakened competitiveness.

In the 1960s, the concept of quality management (QM) advanced

from statistical quality control (SQC) to quality assurance, and quality assurance shifted from only assuring production quality to assuring quality from design to Production.

Then, Quality Function Deployment (QFD) is a technique introduced in Japan by Yoji Akao in 1966 and initially used extensively by Toyota

In Japanese: it’s called “Hinshitsu Kino Tenkai”. According to Akao (1990), QFD "is a method for

developing a design quality aimed at satisfying the consumer and then translating the consumer's demand into design targets and major quality assurance points to be used throughout the production phase".

It is a structured procedure used to translate the expressed or perceived needs of customers first into specific product or service design characteristics and features, and then into process and operational characteristics.

QUALITY FUNCTION DEPLOYMENT

QUALITY FUNCTION DEPLOYMENT In other words,

A systematic method for transferring customer wants/needs/expectations into product and process characteristics

QUALITY FUNCTION DEPLOYMENT

• Provides a common basis for

– Integrated Product Development

– Simultaneous Engineering

– Concurrent Engineering

SO, WHAT DOES EXACTLY QFD DO?

1. QFD deploys “The Voice of the Customer” throughout the organization.

2. QFD uses planning matrices -- each called “The House of Quality”.

ADVANTAGE OF QUALITY FUNCTION DEPLOYMENT

Major advantages of QFD, the method can be partially or wholly applied, difficult calculation is not a must, and, itpromotes teamwork and innovation.

STRENGTHS AND BENEFITS OF QUALITY FUNCTION DEPLOYMENT

•QFD seeks out both "spoken" and "unspoken" customer requirements and maximizes "positive" quality (such as ease of use, fun, luxury) that creates value.

•Instead of conventional design processes that focus more on engineering capabilities and less on customer needs, QFD focuses all product development activities on customer needs.

•QFD makes invisible requirements and strategic advantages visible. This allows a company to prioritize and deliver on them.

STRENGTHS AND BENEFITS OF QUALITY FUNCTION DEPLOYMENT

•Reduced time to market.

•Reduction in design changes.

•Decreased design and manufacturing costs.

•Improved quality.

•Increased customer satisfaction.

USAGE OF THE QUALITY FUNCTION DEPLOYMENT METHOD APPLICATIONS

• To prioritize customer demands and customer needs, spoken and unspoken• Translating these needs into actions and designs such as technical characteristics and specifications• To build and deliver a quality product or service, by focusing various business functions toward achieving a common goal of customer satisfaction

QFD has been applied in many industries: aerospace, manufacturing, software, communication, IT, chemical and pharmaceutical, transportation, defense, government, R&D, food, and service industry.

LIMITATIONS AND DISADVANTAGES OF QUALITY FUNCTION DEPLOYMENT

•As with other Japanese management techniques, some problems can occur when we apply QFD within the western business environment and culture.•Customer perceptions are found by market surveys. If the survey is performed in a poor way, then the whole analysis may result in doing harm to the firm.•The needs and wants of customers can change quickly. A comprehensive system and methodical thinking can make adapting to changed market needs more complex.

ASSUMPTIONS OF QUALITY FUNCTION DEPLOYMENT.

 • The market survey results are accurate.

• Customer needs can be documented and captured, and they remain stable during the whole process.

FOUR IMPORTANT POINTS TO UNDERSTAND BEFORE IMPLEMENTATION OF QFD

1. No matter how well the design team thinks it understands the problem, it should employ the QFD method for all design areas. In the process the team will learn what it doesn’t know about the problem.

 

2. The customer’s requirements must be translated into measurable design targets. You can’t design a car door that is “easy to open” when you don’t know the meaning of the word “easy”..

FOUR IMPORTANT POINTS TO UNDERSTAND BEFORE IMPLEMENTATION OF QFD

3. The QFD method can be applied to the entire problem and/or any sub-problem.

 

4. It is important to worry about what needs to be designed and, only after this is fully understood, to worry about how the design will look and work.

WHAT QFD CAN DO IS…

Our cognitive capabilities generally lead us to try to assimilate the customer’s functional requirements (what is to be designed) in terms of form (how it will look).

These images then become our favored designs and we get locked into them. The QFD procedure helps us to overcome this cognitive limitation

THE QUALITY FUNCTION DEPLOYMENT (QFD) TECHNIQUE

1. Identifying the customer(s)

2. Determining customer requirements

3. Prioritizing the requirements

4. Competition benchmarking

5. Translating the customer requirements into measurable engineering requirements

6. Setting engineering targets for design

THE OBJECTIVES OF QFD

1. Determine the voice of the customer.

2. Examine the company’s response to this voice.

BENEFITS OF QFD

Customer Driven Reduces Implementation Time Promotes Teamwork Provides Documentation

CUSTOMER DRIVEN

Creates Focus On Customer Requirements

Uses Competitive Information Effectively

REDUCES IMPLEMENTATION TIME

Decreases Midstream Design Change

Limits Post Introduction Problems

Avoids Future Development/changes

PROMOTES TEAMWORK

Creates Communication for production and product…

PROVIDES DOCUMENTATION

Documents Rationale For Design

Is Easy To Assimilate

Adapts To Changes (Living Document)

VOICE OF THE CUSTOMER Driving Force Behind QFD

Customer Dictates Attributes Of Product Customer Satisfaction

Meeting Or Exceeding Customer Expectations

Customer Expectations Can Be Vague & General In Nature

Customer Expectations Must Be Taken Literally, Not Translated Into What The Organization Desires

COLLECTING CUSTOMER INFORMATION What Does Customer Really Want ?

What Are Customer’s Expectations ?

Are Customer’s Expectations Used To Drive Design Process ?

What Can Design Team Do To Achieve Customer Satisfaction?

QFD CAN BE USED TO:

Reduce product development time by 50%

Cut start-up & engineering costs by 30%

Reduce time to market Reduce # of design changes

CONTINUED

Lower rework

Reduce facility’s maintenance/operation costs

Improve quality

FOR EXAMPLE… Toyota Minivans (1977 Base)

1979 - 20% Reduction In Start-Up Costs 1982 - 38% 1984 - 61%

THE OVERALL GOAL

Increase customer satisfaction

=• Increase business success

BEFORE AND AFTER QFD

BEFORE QFD

AFTER QFD

DESIGNPLANNING REDESIGN MANUFACTURING

PLANNING DESIGN REDESIGN MANUFACTURING

BENEFITSDevelopment time$$Customer satisfaction

QUALITY FUNCTION DEPLOYMENT

• QFD work divides into four partsmarket analysis to establish needs

and expectationsexamination of competitors abilitiesidentification of key factors for

successtranslation of key factors into product

and process characteristics

QUALITY FUNCTION DEPLOYMENT

• Product planning– wishes of customer transferred to

product– evaluation of competitor products– identification of important properties

• Product design– choose best design to fulfill targets– identify critical parts and components

QUALITY FUNCTION DEPLOYMENT Process design

critical parameters identified process control/improvement methods set

Production design design instructions for production define measurements, frequency and tools

to be used

THE HOUSE OF QUALITY

TWO MYTHS ABOUT HOQS

“The House of Quality is the QFD.”

“The House of Quality is the starting point for QFD studies and is always applicable.”

LET’S BUILD THE HOQ…

HOUSE OF QUALITY

How Much

CustomerRequirements

WHAT

Relationship matrix

ProductCharacteristics

HOW

MarketingCompetitiveassessment

CorrelationMatrix

Engineering Competitive Assessment

Step 1: Prepare customer requirements list

Step 2: Prioritize customer requirements list

Step 3: Translate Requirements to quantifiable measures

BUILDING THE HOQ…

CONTINUED…

Step 4: Determine “How” Measurement

Step 5: Prepare correlation matrix Step 6: Determine What and How

relationships

CONTINUED…

Step 7: Determine design characteristics importance

Step 8: Evaluate current competitors Step 9: Identify benchmarks

SO, BUILDING A HOUSE OF QUALITY

List Customer Requirements (What’s)

List Technical Descriptors (How’s) Develop Relationship (What’s &

How’s) Develop Interrelationship (How’s) Competitive Assessments Prioritize Customer Requirements Prioritize Technical Descriptors

THE WHAT'S & HOW'S

What side Customer requirements/needs

How side How to meet those needs

Voice of the Customer

Voice of the Designer

x = Design Trade-offs

Benchmarking

Reverse Engineering

QFD Matrix

Absolute Weight and Percent

Prioritized Technical Descriptors

Degree of Technical Difficulty

Relative Weight and Percent

Target Value

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Relationship betweenCustomer Requirements

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WHATs vs. HOWs

StrongMediumWeak

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Strong PositivePositiveNegativeStrong Negative

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Interrelationship betweenTechnical Descriptors

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Relationship MatrixC

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Interrelationship between TechnicalDescriptors (correlation matrix)

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QFD ProcessW

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QFD SUMMARY Orderly Way Of Obtaining Information & Presenting It Shorter Product Development Cycle Considerably Reduced Start-Up Costs Fewer Engineering Changes Reduced Chance Of Oversights During Design

Process Environment Of Teamwork Consensus Decisions Preserves Everything In Writing

IN TURKEY First companies Eczacıbaşı Vitra and

Eczacıbaşı Artema, used this technique and also Middle East Technique University Industrial Engineering Department used this method with Assistant Professor Gülser Köksal. She redesigned the course description of Total Quality Management and applied QFD method in accordance with students’ demands, wants and needs.

QUALITY FUNCTION DEPLOYMENT

THANK YOU FOR LISTENING

ANY QUESTION?

The company is trying to find out costumer expectations. First, they have asked 5 people who are in different educational level. 3 people were in high educated level , 2 people are in general education level.

They have explained what they expect a shipping company.

AN EXAMPLE OF QFD

The company’s workers wrote the expectation down as below in accordance with people’s opinions.

AN EXAMPLE OF QFD

AN EXAMPLE OF QFD

400 people were asked to evalute the expectation by giving them a number from 1-10 in order to find out importancy. 10 is the perfect and 1 is the worst.

Then, average of expectations is calculated as below.

AN EXAMPLE OF QFD

COMPARISION WITH OTHER COMPANIES As we define our company X, we define the most

important rival as Y.

400 people are asked in a survey again to define X and Y companies' position. People gave an evaluation number for the service provided from each companies. Numbers are from 1 to 5 for both companies. 1 is the worst and 5 is the best. For example, X company price is 3.85 and Y company 3.49. These are average of 400 people price opinion. So, X company is better than Y company in terms of price according to people. So, all other comparisons are calculated after survey as below.

GOAL AND IMPROVEMENT After the comparison, X company

define where they want to be. For example. They define their position (goal) 4 for price, delivery on shortime 5 so on. In order to achieve this, they need to improve themselves. The improvement level is calculated as follows:

Goal/Current position=Improvement Level

For deliver IL=5/3,88=1,29

GOAL AND IMPROVEMENT In the matrix, we also need a sales point factor

because after all these expectations, we want to know that which one of them is going to increase our sales. All these calculations are made in order to increase sales. We asked the manager(executives) which one of these customers’ expectations are going to increase the sales of company. We want them to give 1 which is not going to affect sales or 2 which is going to affect sales 100 percent. We calculated average of all sales point for each expectations.

GOAL AND IMPROVEMENT After all these calculations, we also want

to know the importance level of each expectation in order to find the best ways to increase our quality and sales. IMPL is calculated as follows:

IMPL=I*IL*SP For price = 7 x 1,04 x 1,4 = 10,19 We calculate IMPL for each expectation.

GOAL AND IMPROVEMENT Afterwards, we want to find out their

percentage in order to compare the in a scale.(Standardization)

TECHNICAL PART, HOWS After we define customer expectations

we try to find out how to respond them(satisfying customer) . For example, in order to decrease price, how(what) are you doing, for delivering on time what are you doing….We found a lot of answer in order to fulfill customer expectations. However, we pick the most important ones.

TECHNICAL PART, HOWS For example, in order to determine best

price for customer(acceptable price strategy),

we help customer to pay in cash or credit cart,

obtaining maintenance material with low cost,

Controlling workers’ expenses, Organized planning(full capacity planning)

TECHNICAL PART, HOWS We answer all what's with detailed

how's.

For example, delivery in short time, using air delivery option, (planes),

Getting address information correctly. (zip code vs)

RELATIONSHIP BETWEEN WHATS AND HOWS

Strong Relation 9

Normal Relation 3

Weak Relation 1

TECHNICAL IMPORTANCE We multiply relations with importance

So, TI of easiness of payment= 10*9=90

We calculate all of them….

Then, bring them percentage scale by standardize them

RELATIONSHIP BETWEEN WHATS AND HOWS

RELATION MATRIX In the matrix of relation + shows

positive relation, - shows negative relation.

For example usage of planes has positive relation with mobile service and physical motivation and wage discipline has negative relation.

RELATION MATRIX

CONCLUSION If we looked the result we can find a lot

of information. For example, customers look for delivery time first.(most important thing)

12 of 16 technical characteristic has relation with delivery in short time, any improvement on this area will increase customer satisfactions. So, X company needs to focus on delivery in short time.

CONCLUSION And then service quality and shipping

guaranty(no damage).Then price comes and so on.

If we compare X company with Y company in these aspects, we will see where X company stands in customer’s eyes.

CONCLUSION

Price strategy of X and Y is really close but both of them needs to improve themselves.

X = 3,88, Y = 3,59)

If We look at safety of delivery X is better which is really important for customer so X should keep this distance with Y.

X = 4,12, Y = 3,78)