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  • Operations Management-II Dr. S.Venkataramanaiah Assistant Professor OM & QT Area IIM Indore, Pigdamber, Rau Indore- 453 331 Email : [email_address]
  • Quality Function Deployment (QFD)
  • Recap Quality = Time + Cost Quality of output = F(work place, operator time, skills, processes)
  • President’s Call
    • Dr. A. P. J. Abdul Kalam (7 July 2005)
    • To transform India in to a developed Nation
    • Innovative products coupled with cost effective and quality manufacturing
    • Competitiveness alone can make the country a developed nation with three keys to success
      • Cost effectiveness
      • Quality products and
      • Availability and Timely delivery
    Three keys to success Cost Delvy Qulty Compt
  • Competitive Dimensions
    • Cost
    • Product Quality and Reliability
    • Delivery Speed
    • Delivery Reliability
    • Coping with Changes in Demand
    • New Product Introduction Speed
    • Other Product-Specific Criteria
  • Quality Dimensions
    • Performance - primary characteristics of product/ service
    • Features - added touches, bells etc
    • Reliability - performance consistency, failure free
    • Durability -useful life
    • Aesthetics - sensory characteristics
    • Serviceability - ease of repair
    • Response -interface, speed, courtesy, competence
    • Reputation - (perceived qlty)-past performance and intangibles
  • Costs of Quality External Failure Internal Failure Prevention Appraisal Total Cost Quality Improvement Total Cost
  • Failure Costs
    • Cost of Internal Failure
      • Rework
      • Scrap
      • Repair
    • Cost of External Failure
      • Warranty
      • Product Liability
      • Image
    Conformance Costs
    • Cost of Appraisal
      • Inspection
      • Testing
    • Cost of Prevention
      • Process Control
      • Worker Training
      • Maintenance
    Costs of Quality
  • Seven Tools of Quality
  • The Deming Wheel (or P-D-C-A Cycle) Variant of PDCA? Six Sigma 2. Do Test the plan 3. Check Is the plan working? 4. Act Implement the plan
    • Plan
    • Identify the improvement and make a plan
  • Alternative definitions of Quality
  • Objective
    • To understand issues related to
    • QFD and its application (when and how to use)
  • Introduction
    • “ The final user is the only person who puts his money in the supply chain. We’re all passing his tokens up and down the chain….” ,
      • Jeffrey Trimmer, Director of operations, Chrysler.
    • Producers make features and customers buy benefits. Products are the ‘vehicle’ to deliver benefits to customers - Nokia
  • Quality Control
    • Methods of QC- Inspection Vs Design (control Vs prevention)
    • Inspection-defects controlled
    • Design- defects prevented
  • Designing for the Customer Ideal Customer Product House of Quality Quality Function Deployment Value Analysis/ Value Engineering
  • Idea Generation Stage
    • Provides basis for entry into market
    • Sources of ideas
      • Market need (60-80%);
      • Engineering & operations (20%);
      • Technology;
      • Competitors; inventions; employees
    • Follows from marketing strategy
      • Identifies, defines, & selects best market opportunities
  • House of Quality HoQ Sequence Indicates How to Deploy Resources to Achieve Customer Requirements
  • Customer Requirements Stage
    • Identifies & positions key product benefits
      • Stated in core benefits proposition (CBP)
      • Example: Long lasting with more power
    • Identifies detailed list of product/ service attributes desired by customer
      • Focus groups or 1-on-1 interviews
    House of Quality Customer Requirements Product Characteristics
  • Functional Specification Stage
    • Defines product in terms of how the product would meet desired attributes
    • Identifies product’s engineering characteristics
      • Example: printer noise (dB)
    • Prioritizes engineering characteristics
    • Product rating against competitors
    House of Quality Customer Requirements Product Characteristics
    • Determines how product will be made
    • Gives product’s physical specifications
      • Example: Dimensions, material etc.
    • Defined by engineering drawing
    • Done often on computer
      • Computer-Aided Design (CAD)
    Product Specification Stage House of Quality Product Characteristics Component Specifications
  • QFD-The four houses of quality Links customer needs to design attributes Links design attributes to actions firms can take Links actions to implement- ation decisions Links implement- ation to process plans
  • Quality Function Deployment House of Quality Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering or other goals. 7. Technical assessment & target values 1. Customer requirements 4. Relationship matrix 3. Product characteristics 2. Importance 6. Benchmarks 5. Tradeoffs
  • QFD-Introduction
    • Product/service design process using cross-functional teams and is a link between
      • Customers, Designers, Manufacturers, Competitors and others
    • Translates customer preferences into specific product / service characteristics
    • Involves creating 4 tabular ‘Matrices’ or ‘Houses’
      • Breakdown product / service design into increasing levels of detail
    • QFD provides an insight into the whole design and manufacturing operation and helps in addressing many problems at early stages (design).
  • QFD-Introduction
    • Determines what will satisfy the customer
    • Translates those customer desires into the target design
    • Identify customer wants
    • Identify how the good/service will satisfy customer wants
    • Relate customer wants to product hows
    • Identify relationships between the firm’s hows
    • Develop importance ratings
    • Evaluate competing products
  • Why QFD?
    • SPC/SQC examines the historical outputs of a process or product and the same is used to set the limits for stable process
    • The reasons for unstable process will be investigated using CE diagram and actions are made on the inputs
    • CE diagram tries to identify causes for –ve quality ( effect ) whereas QFD tries to identify design elements ( causes ) which could assure customer satisfaction ( effects ).
    • Customers don’t tell everything
  • Why QFD?
    • For new products/services no historical data available
    • Elaborate analysis using CE diagrams grew complicated with large scale projects
    • CE relations can be examined at several levels in the product/process design and improvement
    • Critical to improve functions or missing functions can be identified by strength of correlation between functions and needs
    • Helps in identifying stated and unstated needs (normal and exciting requirements)
  • Why QFD?
    • In a study of phases of product development processes in over 200 companies by Dr. Robert Cooper of McMasters University (Toronto) identified 13 phases of product development,how frequently these phases were engaged in, and how well companies performed the tasks associated with the phases.
    • One of the weakest links in the process was that of the detailed market study, which was performed by the subject companies on only 25.4% of their products, and for which they rated the quality of their study at 5.74 on a scale of 10.
  • Kano’s Quality Model What customers can share and satisfaction depends on the extent of presence Ex. Fast delivery Basic requirements generally customers mention only when failed to perform Ex. Hot coffee Difficult to discover, beyond customer’s expectations and their absence does not dis-satisfy Ex. Free gift etc
  • Designing for the Customer: QFD
    • Voice of the customer (VOC)- customer needs are referred to as VOC, this is additional to market research since MR is not complete.
    • VOC- Voice of customer, service division, engineer or designer
    • Interfunctional teams consisting of
      • Marketing
      • Design Engineering
      • Manufacturing
      • Finance and others
    • House of Quality (HoQ)
    • You’ve been assigned temporarily to a QFD team.
    • The goal of the team is to develop a new camera design.
    • Build a House of Quality.
    HoQ- Example © 1984-1994 T/Maker Co.
  • HoQ- Example  High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values
  • HoQ- Example  High relationship   Medium relationship  Low Relationship Target Values Light weight Easy to use Reliable What the customer desires (‘wall’) Aluminum Parts Auto Focus Auto Exposure Customer Requirements Customer Importance
  • HoQ- Example  High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure 3 1 2 Average customer importance rating
  • HoQ- Example  High relationship   Medium relationship  Low Relationship Customer Requirements Customer Importance Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      3 2 1 Relationship between customer attributes & engineering characteristics (‘ rooms’ )
  • HoQ- Example  High relationship   Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      3 2 1 5 1 1 Target values for engineering characteristics (‘ basement’ ); key output 
  • HoQ- Example  High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      3 2 1 5 1 1 
  • QFD-House of Quality
  • QFD- House of Quality Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering or other goals. Toyota Car Door Example Customer Requirements Importance to Cust. Easy to close Stays open on a hill Easy to open Doesn’t leak in rain No road noise Importance weighting Engineering Characteristics Energy needed to close door Check force on level ground Energy needed to open door Water resistance 63 63 45 27 4 27 7 5 3 3 2 X X X X X Correlation: Strong positive Positive Negative Strong negative X * Competitive evaluation X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4 5 X AB X AB XAB A X B X A B Relationships: Strong = 9 Medium = 3 Small = 1 Target values Reduce energy level to 7.5 ft/lb Reduce force to 9 lb. Reduce energy to 7.5 ft/lb. Maintain current level Technical evaluation (5 is best) 5 4 3 2 1 B A X BA X B A X B X A BXA BA X Door seal resistance Accoust. Trans. Window Maintain current level Maintain current level
  • QFD- Service example
  • QFD-Example of a Restaurant Correlation: ++: Strong Positive +: Positive + -: Negative -- --: Strong Negative + + + + Competitive Evaluation X- Own Company A - Competitor A B - Competitor B (5 is best) 1 2 3 4 5 Steaming hot 7 ++ ++ A B X Enough space to sit & eat 4 - ++ ++ X A B Less time during peak hours 6 - -- ++ + X B A Easy to carry home 2 ++ A X B Quick order processing 2 - -- + + X A B 7 6 9 4 6 4 5 4 X A,B A,B X 3 A X B X,B X,A,B 2 B X A A 1 Importance Scale: Strong: 9 Medium: 3 Small: 1 Temperature of cooked item Time taken to cook the food Order processing time Thickness of packing material Number of service counters in peak time Target Values Technical Evaluation (5 is best) Importance Weighting Maintain current Level Reduce it by 10% of the current level Reduce time to 2 minutes Maintain current level Increase the counters by one Maintain current level Number of tables available Technical Characteristics Customer Requirements
  • QFD-Example of an umbrella
  • Conclusions
    • QFD is a defect prevention/design tool and developed by Yoji Akao
    • Helps in capturing the VOC
    • Requires cross-functional teams
    • QFD shares many tools and techniques of SPC, TQM, Six Sigma, marketing and other tools
    • QFD institute is authorised to conduct training programmes (GB, BB, MBB, Grandmaster BB) similar to Six Sigma certificates