1. 12/19/14 OM II-QFD- S Venkat 1
Operations Management-II
Dr. S.Venkataramanaiah
Assistant Professor
OM & QT Area
IIM Indore, Pigdamber, Rau
Indore- 453 331
Email: svenkat@iimidr.ac.in
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Recap
Quality = Time + Cost
Quality of output = F(work place, operator
time, skills, processes)
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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
Cost
DelvyQulty
Compt
Three keys to success
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Competitive Dimensions
Cost
Product Quality and Reliability
Delivery Speed
Delivery Reliability
Coping with Changes in Demand
New Product Introduction Speed
Other Product-Specific Criteria
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Quality DimensionsQuality Dimensions
1. Performance- primary characteristics of product/
service
2. Features- added touches, bells etc
3. Reliability- performance consistency, failure free
4. Durability-useful life
5. Aesthetics- sensory characteristics
6. Serviceability- ease of repair
7. Response-interface, speed, courtesy, competence
8. Reputation- (perceived qlty)-past performance
and intangibles
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Costs of Quality
External Failure
Internal Failure
Prevention
Appraisal
Total
Cost
Quality Improvement
Total CostTotal Cost
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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
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The Deming Wheel
(or P-D-C-A Cycle)
2. Do
Test the
plan
3. Check
Is the plan
working?
4. Act
Implement
the plan
1.Plan
Identify the
improvement
and make
a plan
Variant of
PDCA?
Six Sigma
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Alternative definitions of
Quality
Conformance
to specs
Fulfill
customer needs
Fitness for
Use
Minimize
loss to society
Quantifiable attributes of quality
Qualitative and Intangible attributes of Quality
Customer
Firm
Conformance
to specs
Fulfill
customer needs
Fitness for
Use
Minimize
loss to society
Quantifiable attributes of quality
Qualitative and Intangible attributes of Quality
Customer
Firm
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Objective
To understand issues related to
QFD and its application (when and
how to use)
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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
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Quality Control
Methods of QC- Inspection Vs Design (control Vs
prevention)
Inspection-defects controlled
Design- defects prevented
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Designing for the Customer
Quality Function
Deployment
Value Analysis/
Value Engineering
Ideal
Customer
Product
House of Quality
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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
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House of Quality
HoQ Sequence Indicates How to Deploy
Resources to Achieve Customer Requirements
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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
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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 QualityHouse of Quality
Customer
Requirements
Product
Characteristics
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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 QualityHouse of Quality
Product
Characteristics
Component
Specifications
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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
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Quality Function Deployment
7. Technical assessment &
target values
1. Customer
requirements
4. Relationship
matrix
3. Product
characteristics
2. Importance
6. Benchmarks
5. Tradeoffs
House of Quality
Customer
requirements
information forms
the basis for this
matrix, used to
translate them into
operating or
engineering or
other goals.
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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).
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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
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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
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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)
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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.
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Kano’s Quality ModelWhat 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
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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)
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HoQ- Example
High relationship Medium relationship Low Relationship
Customer
Requirements
Customer
Importance
Target Values
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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
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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
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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’)
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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
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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
38. QFD- House of Quality
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
Energyneeded
toclosedoor
Checkforceon
levelground
Energyneeded
toopendoor
Waterresistance
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 Reduceenergy
levelto7.5ft/lb
Reduceforce
to9lb.
Reduceenergy
to7.5ft/lb.
Maintain
currentlevel
Technical evaluation
(5 is best)
5
4
3
2
1
B
A
X
BA
X B
A
X
B
X
A
BXA
BA
X
Doorseal
resistance
Accoust.Trans.
Window
Maintain
currentlevel
Maintain
currentlevel
38
Customer
requirements
information forms
the basis for this
matrix, used to
translate them into
operating or
engineering or other
goals.
Customer
requirements
information forms
the basis for this
matrix, used to
translate them into
operating or
engineering or other
goals.
Toyota Car Door ExampleToyota Car Door Example
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Importance
Relative
1 2 3 4 5Customer Expectations
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Comparison with Volvo Dealer
Weighted score
Improvement difficulty rank
O O
O Weak
Medium
* Strong
9
9
9
Training
Attitude
Capacity
Informatiion
Equipment
8
7
7
6 6
5 5
5
5
4
4
3 3
3
3
2
2 2
2
+
_
+
Customer Perceptions
o
+
+
+
o
o
o
o
+
o
o
o
o
o
o Village Volvo
+ Volvo Dealer
Service Elements
Relationships
127 82 63 102 65
1
* *
QFD- Service example
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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: 1Temperatureof
cookeditem
Timetakentocookthe
food
Orderprocessingtime
Thicknessofpacking
material
Numberofservice
countersinpeaktime
Target Values
Technical Evaluation
(5 is best)
Importance Weighting
MaintaincurrentLevel
Reduceitby10%ofthe
currentlevel
Reducetimeto2minutes
Maintaincurrentlevel
Increasethecountersby
one
Maintaincurrentlevel
Numberoftables
available
Technical
Characteristics
Customer
Requirements
42. 12/19/14 OM II-QFD- S Venkat 42
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
Editor's Notes
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One notion which might be discussed at this stage is the attempts by manufacturers to add information to an existing good rather than develop a new good.
One notion which might be discussed at this stage is the attempts by manufacturers to add information to an existing good rather than develop a new good.
Here begins the attempt to link the product directly with the customer.
You might specify a product and ask students to identify first the attributes of interest to the customer, and second the “benefits” to the customer.
At this point we have to start adding precision to our specifications. If we want a product to be “easy to use,” what exactly does that mean? To use by whom? With what level of preparation? Etc.
At this point, we have to develop the information necessary to actually produce the product - and, to know that it has been produced appropriately.