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12/19/14 OM II-QFD- S Venkat 1
Operations Management-II
Dr. S.Venkataramanaiah
Assistant Professor
OM & QT Area
IIM Indore...
12/19/14 OM II-QFD- S Venkat 2
Quality Function Deployment
(QFD)
12/19/14 OM II-QFD- S Venkat 3
Recap
Quality = Time + Cost
Quality of output = F(work place, operator
time, skills, proces...
12/19/14 OM II-QFD- S Venkat 4
President’s Call
Dr. A. P. J. Abdul Kalam (7 July 2005)
To transform India in to a develope...
12/19/14 OM II-QFD- S Venkat 5
Competitive Dimensions
 Cost
 Product Quality and Reliability
 Delivery Speed
 Delivery...
12/19/14 OM II-QFD- S Venkat 6
Quality DimensionsQuality Dimensions
1. Performance- primary characteristics of product/
se...
12/19/14 OM II-QFD- S Venkat 7
Costs of Quality
External Failure
Internal Failure
Prevention
Appraisal
Total
Cost
Quality ...
12/19/14 OM II-QFD- S Venkat 8
Failure Costs
 Cost of Internal Failure
 Rework
 Scrap
 Repair
 Cost of External Failu...
12/19/14 OM II-QFD- S Venkat 9
Seven Tools of Quality
12/19/14 OM II-QFD- S Venkat 10
The Deming Wheel
(or P-D-C-A Cycle)
2. Do
Test the
plan
3. Check
Is the plan
working?
4. A...
12/19/14 OM II-QFD- S Venkat 11
Alternative definitions of
Quality
Conformance
to specs
Fulfill
customer needs
Fitness for...
12/19/14 OM II-QFD- S Venkat 12
Objective
To understand issues related to
 QFD and its application (when and
how to use)
12/19/14 OM II-QFD- S Venkat 13
Introduction
 “The final user is the only person who puts
his money in the supply chain. ...
12/19/14 OM II-QFD- S Venkat 14
Quality Control
 Methods of QC- Inspection Vs Design (control Vs
prevention)
 Inspection...
12/19/14 OM II-QFD- S Venkat 15
Designing for the Customer
Quality Function
Deployment
Value Analysis/
Value Engineering
I...
12/19/14 OM II-QFD- S Venkat 16
Idea Generation Stage
 Provides basis for entry into market
 Sources of ideas
 Market n...
12/19/14 OM II-QFD- S Venkat 17
House of Quality
HoQ Sequence Indicates How to Deploy
Resources to Achieve Customer Requir...
12/19/14 OM II-QFD- S Venkat 18
Customer Requirements
Stage
 Identifies & positions key product benefits
 Stated in core...
12/19/14 OM II-QFD- S Venkat 19
Functional Specification Stage
 Defines product in terms of how the product would
meet de...
12/19/14 OM II-QFD- S Venkat 20
 Determines how product will be made
 Gives product’s physical specifications
 Example:...
12/19/14 OM II-QFD- S Venkat 21
QFD-The four houses of quality
- -
- -
- - - -
Links
customer
needs to
design
attributes
L...
12/19/14 OM II-QFD- S Venkat 22
Quality Function Deployment
7. Technical assessment &
target values
1. Customer
requiremen...
12/19/14 OM II-QFD- S Venkat 23
QFD-Introduction
 Product/service design process using cross-functional
teams and is a li...
12/19/14 OM II-QFD- S Venkat 24
QFD-Introduction
 Determines what will satisfy the customer
 Translates those customer d...
12/19/14 OM II-QFD- S Venkat 25
Why QFD?
 SPC/SQC examines the historical outputs of a
process or product and the same is...
12/19/14 OM II-QFD- S Venkat 26
Why QFD?
 For new products/services no historical data available
 Elaborate analysis usi...
12/19/14 OM II-QFD- S Venkat 27
Why QFD?
 In a study of phases of product development processes in
over 200 companies by ...
12/19/14 OM II-QFD- S Venkat 28
Kano’s Quality ModelWhat customers can
share and satisfaction
depends on the extent
of pre...
12/19/14 OM II-QFD- S Venkat 29
Designing for the Customer:
QFD
 Voice of the customer (VOC)- customer needs are
referred...
12/19/14 OM II-QFD- S Venkat 30
You’ve been assigned
temporarily to a QFD team.
The goal of the team is to
develop a new...
12/19/14 OM II-QFD- S Venkat 31
HoQ- Example
High relationship Medium relationship Low Relationship
Customer
Requirements...
12/19/14 OM II-QFD- S Venkat 32
HoQ- Example
High relationship  Medium relationship Low Relationship
Target Values
Light ...
12/19/14 OM II-QFD- S Venkat 33
HoQ-
Example
High relationship Medium relationship Low Relationship
Customer
Requirements...
12/19/14 OM II-QFD- S Venkat 34
HoQ- Example
High relationship  Medium relationship Low Relationship
Customer
Requirement...
12/19/14 OM II-QFD- S Venkat 35
HoQ- Example
High relationship  Medium relationship Low Relationship
Customer
Requirement...
12/19/14 OM II-QFD- S Venkat 36
HoQ- Example
High relationship Medium relationship Low Relationship
Customer
Requirements...
12/19/14 OM II-QFD- S Venkat 37
QFD-House of Quality
QFD- House of Quality
Customer
Requirements
Importance to
Cust.
Easy to close
Stays open on a hill
Easy to open
Doesn’t le...
12/19/14 OM II-QFD- S Venkat 39
Importance
Relative
1 2 3 4 5Customer Expectations
Reliability
Responsiveness
Assurance
Em...
12/19/14 OM II-QFD- S Venkat 40
QFD-Example of a Restaurant
Correlation:
++: Strong Positive
+: Positive
+ -: Negative
-- ...
12/19/14 OM II-QFD- S Venkat 41
QFD-Example of an umbrella
12/19/14 OM II-QFD- S Venkat 42
Conclusions
 QFD is a defect prevention/design tool and
developed by Yoji Akao
 Helps in...
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  1. 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
  2. 2. 12/19/14 OM II-QFD- S Venkat 2 Quality Function Deployment (QFD)
  3. 3. 12/19/14 OM II-QFD- S Venkat 3 Recap Quality = Time + Cost Quality of output = F(work place, operator time, skills, processes)
  4. 4. 12/19/14 OM II-QFD- S Venkat 4 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
  5. 5. 12/19/14 OM II-QFD- S Venkat 5 Competitive Dimensions  Cost  Product Quality and Reliability  Delivery Speed  Delivery Reliability  Coping with Changes in Demand  New Product Introduction Speed  Other Product-Specific Criteria
  6. 6. 12/19/14 OM II-QFD- S Venkat 6 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
  7. 7. 12/19/14 OM II-QFD- S Venkat 7 Costs of Quality External Failure Internal Failure Prevention Appraisal Total Cost Quality Improvement Total CostTotal Cost
  8. 8. 12/19/14 OM II-QFD- S Venkat 8 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
  9. 9. 12/19/14 OM II-QFD- S Venkat 9 Seven Tools of Quality
  10. 10. 12/19/14 OM II-QFD- S Venkat 10 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
  11. 11. 12/19/14 OM II-QFD- S Venkat 11 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
  12. 12. 12/19/14 OM II-QFD- S Venkat 12 Objective To understand issues related to  QFD and its application (when and how to use)
  13. 13. 12/19/14 OM II-QFD- S Venkat 13 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
  14. 14. 12/19/14 OM II-QFD- S Venkat 14 Quality Control  Methods of QC- Inspection Vs Design (control Vs prevention)  Inspection-defects controlled  Design- defects prevented
  15. 15. 12/19/14 OM II-QFD- S Venkat 15 Designing for the Customer Quality Function Deployment Value Analysis/ Value Engineering Ideal Customer Product House of Quality
  16. 16. 12/19/14 OM II-QFD- S Venkat 16 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
  17. 17. 12/19/14 OM II-QFD- S Venkat 17 House of Quality HoQ Sequence Indicates How to Deploy Resources to Achieve Customer Requirements
  18. 18. 12/19/14 OM II-QFD- S Venkat 18 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
  19. 19. 12/19/14 OM II-QFD- S Venkat 19 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
  20. 20. 12/19/14 OM II-QFD- S Venkat 20  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
  21. 21. 12/19/14 OM II-QFD- S Venkat 21 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
  22. 22. 12/19/14 OM II-QFD- S Venkat 22 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.
  23. 23. 12/19/14 OM II-QFD- S Venkat 23 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).
  24. 24. 12/19/14 OM II-QFD- S Venkat 24 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
  25. 25. 12/19/14 OM II-QFD- S Venkat 25 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
  26. 26. 12/19/14 OM II-QFD- S Venkat 26 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)
  27. 27. 12/19/14 OM II-QFD- S Venkat 27 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.
  28. 28. 12/19/14 OM II-QFD- S Venkat 28 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
  29. 29. 12/19/14 OM II-QFD- S Venkat 29 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)
  30. 30. 12/19/14 OM II-QFD- S Venkat 30 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. © 1984-1994 T/Maker Co. HoQ- Example
  31. 31. 12/19/14 OM II-QFD- S Venkat 31 HoQ- Example High relationship Medium relationship Low Relationship Customer Requirements Customer Importance Target Values
  32. 32. 12/19/14 OM II-QFD- S Venkat 32 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
  33. 33. 12/19/14 OM II-QFD- S Venkat 33 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
  34. 34. 12/19/14 OM II-QFD- S Venkat 34 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’)
  35. 35. 12/19/14 OM II-QFD- S Venkat 35 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
  36. 36. 12/19/14 OM II-QFD- S Venkat 36 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
  37. 37. 12/19/14 OM II-QFD- S Venkat 37 QFD-House of Quality
  38. 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
  39. 39. 12/19/14 OM II-QFD- S Venkat 39 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
  40. 40. 12/19/14 OM II-QFD- S Venkat 40 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
  41. 41. 12/19/14 OM II-QFD- S Venkat 41 QFD-Example of an umbrella
  42. 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

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