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Because it is the customers who must buy the product and who must be
satisfied with it, the product must be developed with their needs and wants as
the principal inputs to the new product development project. When that is not
the case, the new product is often disappointing.Ronald G. Day
MAJOR TOPICS
. What Is Quality Function Deployment?
. Introducing Quality Function Deployments House
of Quality
. Developing the Set of Customer Needs (WHATs):
House of Quality Matrix Number 1
. Planning the Improvement Strategy: House of
Quality Matrix Number 2
. Selecting the Technical Requirements (HOWs):
House of Quality Matrix Number 3
. Evaluating Interrelationships between WHATs and
HOWs: House of Quality Matrix Number 4
. Evaluating the Direction of Correlation between
HOWs: House of Quality Matrix Number 5
. Selecting the Design Targets (Values) of the HOWs:
House of Quality Matrix Number 6
A fundamental element of total quality is customerdefined quality. A key element is customer involvement. Customer involvement is the fuel that powers
Quality Function Deployment.
310
.
.
The Matrices are difficult to use and too time consuming for our new lean organizations.
The math used to establish priorities lacks the precision
necessary for a Six Sigma company.
Questions regarding the validity of the math.
Difficulty in obtaining a clear understanding of customer wants.
Value Engineering
Value Engineering as a process was developed at General
Electric during World War II. It is a method of raising the value
of products or services through the analysis and examination of
not what the product or service is, but rather what it does, that
is, its functions. In value engineering, value is said to have two
components: function and cost, and their relationship is
V = F/C
Where: V = Value, F = Function, and C = Cost
If the products function (performance) is improved while the
cost is held steady or reduced, then its value is increased.
4. Interrelationships Matrix
2. Planning Matrix
1. Customer Needs
(WHATs)
3. Technical Requirements
(HOWs)
6. Design Targets
FIGURE 1
INTRODUCING QUALITY
FUNCTION DEPLOYMENTS
HOUSE OF QUALITY
The heart of QFD is the set of interrelated matrices known as
the House of Quality (HOQ), so named because the complete
matrix takes on the appearance of a house. Examining Figure
1 you will see that the HOQ is made up of six submatrices. The
HOQ is utilized by a multifunctional QFD team (1) to take
input requirements from the customers, and translate them
into a set of customer needs, known in the QFD world as the
voice of the customer (VOC) and (2) from the VOC, and
some benchmarking with competing products, determine the
prioritized features of a new (or improved) product or service
that will best respond to the VOC.
311
The component matrices making up the HOQ are utilized in formal sequence from 1 through 6. In this chapter
we will take you through the process using a relatively simple
and fictitious project of improving a publishing companys
marketing position for its textbooks.
QUALITY CASE
Raytheon and a Culture of Quality
Raytheon has a long history of global quality leadership.
Founded as the American Appliance Company in 1922,
Raytheon evolved over time into a major developer of
national defense technologies and systems that are, in turn,
converted to civilian use. For example, the microwave oven
came about when Raytheon adapted World War II radar
technology for civilian use. Raytheons corporate culture is
one in which its scientists, engineers, and manufacturing
personnel are never satisfied with a given product or
solution. Continual improvement is the cornerstone of
Raytheons culture of quality. Even its processes that have
been recognized as best practices are subject to continual
improvement. One of Raytheon's principal goals is to equip
America's military personnel with the newest and best
warfighting technologies so war fighters have an edge on the
modern battlefield.
For exemplifying the principles of total quality,
Raytheons Missile Systems plant in Louisville, Kentucky,
was awarded the coveted Shingo Prize for Excellence in
Manufacturing. The judges cited the following achievements
in making the award:
Pedagogical
Issues
Production
Issues
Implausible
examples
Color would help
Must be accurate
Simplistic figures
No chapter
objectives
No chapter
summaries
Accuracy
Poor pedagogy
Too expensive
Substandard
binding strength
Choice of fonts
for easier reading
Writing style
among co-authors
inconsistent
Writing often
difficult to
understand
Paragraphs too
long
FIGURE 2
Fix
Production
Fix
Writing
Accuracy
Chapter Objectives
Fix
Pedagogical
Use of Color
Plausible Examples
Fix
Artwork
Comprehensible text
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
VOCCustomer Needs
Note: The final customer needs should be nonlimiting and nonspecific in terms of solution and measurement to allow the team to consider without bias all possible
approaches to meet the needs.
Customer Importance
Also coming out of the analysis is the teams best estimate
of the relative importance of each listed customer need.
Customer importance is usually based on a scale of 1 to 5
with 5 being the highest priority. This information is solicited from customer sources, but unanimity in ranking by
the customers is unlikely, so the team has to do its best to
evaluate and assign priorities as they believe the aggregate
of customers would. These importance rankings are entered
Interrelationships
Matrix
Customer Importance
314
Planning Matrix
FIGURE 3
Competitive Benchmarking
Next we must gather and analyze customer satisfaction data
relative to our product and competing products, develop a
planned satisfaction rating target for our forthcoming product, and calculate improvement factors and sales points.
First we are going to engage in some competitive benchmarking between our existing product and its competition.
We are interested in customer satisfaction ratings of competing products because they will come into play in determining what we have to do to make our products more
appealing than those of our competitors. In order to obtain
that information, we might use a focus group to compare
our product against its competition. We could also send
questionnaires to customers who use competing products
and to those who use ours. In both situations, participants
will be asked to rate the products on each of the characteristics listed in the customer needs matrix, using the familiar 1
to 5 scale (5 being most favorable).
Our publisher collects this information for its own
existing books, and for competing books of two prime competitors. The information is plotted on the planning matrix
as shown in Figure 5.
Improvement Factor
The team next calculates the improvement factor for each
need for the new product. The equation for Improvement
Factor with a 1 to 5 scale is:
Improvement factor = {(Planned CS Rating
- Existing CS Rating)0.2} + 1
where CS is Customer Satisfaction
For example, if a planned CS rating is a 4 and our CS
rating for our existing product is a 3, then the Improvement
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
FIGURE 5
% of Total Weight
Customer Importance
Overall Weighting
Sales Point
Comprehensible text
Improvement Factor
CS Rating Competitor B
Planning Matrix
CS Rating Competitor A
Interrelationships
Customer Needs
Factor is:
{(4 - 3) * 0.2} + 1 = 1.2
These data are also plotted in the Planning Matrix, as
shown in Figure 5.
Sales Point
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Assured Accuracy
Authors/Editors
Guideline Revision
Comprehensibility
Text Seq. Flow
Credibility Check
Plausible Examples
Chapter Objectives
Customer Needs
Chapter Summaries
Art
Effective-for-Purpose Check
Lower Cost
New Binding
Process
New Materials
Durability
New Press
Use of Color
Production
Management
Decision
FIGURE 6
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Ch. Aims/Summaries
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
CS Rating Competitor A
CS Rating Competitor B
Improvement Factor
FIGURE 7
% of Total Weight
Interrelationships
Overall Weighting
Sales Point
Planning Matrix
Comprehensible text
Customer Importance
EVALUATING
INTERRELATIONSHIPS
BETWEEN WHATs AND
HOWs: HOUSE OF QUALITY
MATRIX NUMBER 4
Now that we have the QFD teams technical requirements
(HOWs) in the HOQ, the next step is to examine how they
relate to the WHATs of the Customer Needs. The results will
be shown in the Interrelationships matrix, which links the
HOWs and the WHATs. At each intersection cell of the interrelationship matrix the team must assess the degree of relationship between the WHAT and the corresponding HOW.
This is usually done using scales of significance of 1 to 5 or 1 to
9, with the higher number indicating a stronger relationship.
Sometimes these numbers are entered, but often symbols are
used. For our example we will use symbols as follows:
= 9 (strongest relationship)
= 3 (medium relationship)
= 1 (weak relationship)
Blank cell indicates No relationship
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Color Emphasis
Effective Artwork
Text Clarity
Enhanced Durability
Technical Requirements
(HOWs)
Authors/Editors Guide
Ch. Aims/Summaries
4
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
CS Rating Competitor B
Improvement Factor
Interrelationships
FIGURE 8
% of Total Weight
Customer Importance
Overall Weighting
Sales Point
Comprehensible text
CS Rating Competitor A
Planning Matrix
Color Emphasis
Effective Artwork
Text Clarity
Enhanced Durability
Technical Requirements
(HOWs)
Authors/Editors Guide
Correlation Matrix
HOQs Roof
+
+
Type of Correlation
+ = Supportive
= Impeding
+
+
+
+
+
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
CS Rating Competitor A
CS Rating Competitor B
Improvement Factor
% of Total Weight
Interrelationships
Overall Weighting
Sales Point
Planning Matrix
Comprehensible text
Customer Importance
HOQs Roof
type, whether supportive, impeding, or having no correlation is determined for each of the technical requirements
against all other technical requirements. A supportive correlation is indicated by a plus sign (+) at the intersecting
columns of the two technical requirements under consideration. A negative correlation is indicated by the use of
the minus sign (). If there appears to be no significant
correlation, that intersection cell is left blank. Should it be
beneficial, the Supportive and Impeding classifications may
be expanded to Strongly Supportive, Supportive, Impeding
and Strongly Impeding.
In practice, the QFD team asks some variation of this
question, Does improving this technical requirement
result in the others improvement, or does it result in degradation of the other? If neither improvement nor degradation is indicated, there is apparently no correlation between
the two.
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Ch. Aims/Summaries
Effective Artwork
Color Emphasis
Text Clarity
Customer Needs
Enhanced Durability
Technical Requirements
(HOWs)
Authors/Editors Guide
In our example, the QFD team will first ask the question, Will employing a better Authors/Editors Guide support or impede Lower Cost Production? It might impede
lower cost production if the new-and-improved Guide significantly increased the work for the authors and editors,
but the team doesnt think that will be so, so the intersection cell for those two columns is left blank. Next, the team
will look for correlation between Authors/Editors Guide and
the technical requirement for Enhanced Durability. Clearly
there is no correlation there. The next correlation check is
between Authors/Editors Guide and the technical requirement for Text Clarity. The better the guide, the better the
text clarity should be, so this represents a supportive correlation. A plus sign will be placed in the intersecting cell
of the technical requirements of Authors/Editors Guide and
Text Clarity. There are four more correlation checks for
the Authors/Editors Guide technical requirement, and all
turn out to be supportive. Next, we will examine the possible remaining correlations for the Low Cost Production
requirement. The first will be with Enhanced Durability.
In this case the correlation is impeding, because making
the product more durable would be expected to directly
increase the cost of production, not lower it. The intersecting cell will get a minus sign. This means that during
the design process, either some tradeoffs must be made
between the needs for lower cost and enhanced durability, or better yet, that some process must be discovered to
improve the books durability while holding or reducing
cost. This examination is repeated for all remaining correlation cells, and the correlation matrix you see in Figure
9 is complete.
For an HOQ with eight technical requirements such
as our example, there are 28 possible correlations. Adding
one more technical requirement expands that number to
36, adding two more results in 45, and so on. Real world
HOQ diagrams are often much larger than ours, suggesting
that a lot of time and effort must be expended before the
team has it completed. The bigger and more complex they
become, however, the greater the need for the power of the
HOQ. The HOQs information presentation makes it easier
to work through complex situations with assurance that all
important factors have been considered and evaluated. That
should make it much more likely that our new product will
be successful with our customers.
Technical Priorities
To determine the relative importance, or priorities, of each
of the stated Technical Requirements (HOWs) in meeting the
Customer Needs (WANTs), the QFD team simply multiplies
each of the interrelationship ratings of the technical requirement (0, 1, 3, or 9) from the Interrelationship matrix, times
the corresponding customer needs Overall Weighting value
in the Planning matrix; and then sums the columns. All of the
data for these calculations are already in the HOQ of Figure
9. Starting with the technical requirement for a new and
responsive set of Authoring/Editing Guidelines, we find that
its relationship to the customer need for a Comprehensible
Text was indicated in the Interrelationship matrix as a 9.
Looking across the row to the Overall Weighting column of
the Planning matrix we find a value of 6.6. Multiplying them
gives us a value of 59.4
There are three more Interrelationship values for the
Authors/Editors Guide technical requirement, so a total of
four multiplications must be done and then summed.
For the Comprehensible Text need
For the Accuracy need,
For the Plausible Examples need,
For the Consistent Writing Style need,
Authors/Editors Guide Technical Priority
9 * 6.6 = 59.4
9 * 9 = 81.0
9 * 5 = 45.0
3 * 2 = 6.0
= 191.4
= 3 (medium)
= 1 (weak)
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
CS Rating Competitor A
CS Rating Competitor B
Improvement Factor
53.1 49.5
15
13
11
10
Our Product
$40
1.1
No
0%
No
Competitor A
$34
1.5
10
Yes
15%
Yes
Competitor B
$34
1.2
No
25%
No
$30
1.4
10
Yes
15%
Yes
Design Targets
% of Total Weight
38
% of Total Priorities
Technical
Benchmark
Overall Weighting
Sales Point
Planning Matrix
Comprehensible text
Technical Priorities
Technical Benchmarking
The next section of the Design Targets matrix involves comparing the organizations intended product with competing
products, in our case from same competitors A and B that
we used in the Planning Matrix. In HOQ Matrix 3 the team
identified the technical requirementshow they plan to
meet the customer needs. The Technical Benchmarking section is intended to provide specific information on where
the organizations current product (assuming there is one)
stands relative to competing products, with respect to each
of the technical requirements. The source of information for
the competing products may come from customers, focus
groups, the press, by actual testing and measurement of those
products, and so on. Usually it is dredged from a combination of all possible sources. The team starts by gathering the
data on its own existing product for each of the technical
requirements.
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= 9 (high)
Ch. Aims/Summaries
Color Emphasis
Effective Artwork
Customer Needs
(WHATs)
Customer Importance
Text Clarity
Interrelationships
Enhanced Durability
Authors/Editors Guide
Technical Requirements
(HOWs)
Authoring/Editing Guidelines.
Text Clarity.
In this case, rather than trying to determine a score, the team used a YES-NO system. If
the text seemed to flow in a logical, orderly sequence it was
graded YES. If the flow jumped back and forth from subject
to subject, it was given a NO. The publishers books tended
toward the latter, and got the NO.
Effective Artwork.
Color Emphasis. Color can be used not only in the artwork, but also in the text to make something more interesting, eye-catching, and hopefully more memorable. The team
concluded that a telling rating would be the percentage of
pages having color. It was easy to grade the publishers current books because no color was used except on the covers.
Score 0%.
This is another
YES-NO category. A book either uses them or it does not.
The current books mostly did not, so they got a NO score.
These scores were entered in the Our Product row of the
Technical Benchmark section. See Figure 10.
Next, the same data were developed by the team for the
books of competitors A and B. You will find that data in the
next two rows of Figure 10s Technical Benchmark section.
The data shows that this publishers books come off second
or third-best of the three. Good reason for low market share,
the issue that prompted the company to get involved with
QFD in the first place.
If you compare these ratings with those of the planning matrix, you should notice that the rankings of this
publishers books versus those of its competitors are very
much in agreement. If that does not turn out to be the case,
then something is wrong, and should be discovered before
proceeding. Was the customer understood correctly? Was
the data reliable? Have we put our emphasis on the wrong
thing?
Design Targets
The objective of the design targets is to establish specific
objectives for the design team. For example, the QFD team
determined that through the application of, and adherence
to an improved set of guidelines for all the people involved
in authoring and editing the books, increasing the score to
an eight would better the competition, and should be possible. Similarly, setting a target of $30 per book (on average) for production cost will beat the competition by $4 per
book. However, that represents a 25% reduction from the
present situation, and the publisher is also asking to markedly improve the durability of its books. This is the kind of
situation where one must consider a radical change that can
achieve both goals, and that is what the QFD team is counting on. They expect a complete change in the materials and
processes used in binding the books.
A measurement of book durability is relative strength.
That is the ratio of pull strength divided by binding stress.
The publishers current products have a relative strength
of 1.1, while the competitors A and B score 1.5 (much better) and 1.2 (somewhat better). By investing enough, the
publisher can equal Competitor As 1.5, but is that necessary? Competitor Bs books have a relative strength of 1.2,
and the books seem quite durable. This becomes a tradeoff.
The publisher can switch its current binding process to new
modern processes and materials making the bindings more
robust than most customers would ever need, or the company can scale the improvement back a bit in the interest of
economy, and still have adequate durability while simultaneously achieving lower production costs. The QFD team
sets the target at 1.4.
Our books scored 7 out of a possible 10 for clarity of text,
against the competitors scores of 10 and 9. The QFD team
sets the design target value at 10there is no reason to publish anything lacking clarity, and the competition proves it.
In similar fashion, the team sets YES for the design
objective for text sequence flow. If the authors cant manage
it, the editors must.
The design goal for having artwork that is effective in
clarifying and illuminating the text was elevated from the
current level of 7 to a 9, the same as leading Competitor
B. The target for color emphasis was set at having 15% of
the pages with some use of color. That is much less than
Competitor B, but in line with the customers needs. And
finally, the team determined that the publisher must include
chapter aims or objectives and chapter summaries in its
books. This is indicated as a YES. See Figure 10 for all the
inputs to the Design Targets matrix.
At this point the HOQ is complete. See Figure 11. What
happens next? That depends on the situation. HOQ is often
used at this level to guide all departments in their efforts to
design and produce the product. The HOQ will help the
organization ensure that all aspects of the products design
adheres to the customers needs, that extraneous bells and
whistles are prevented, and that all relevant activities of the
company are involved and participating.
In some cases, depending on the application, an
HOQ like the one we have just developed will be just the
starting point, with lower level HOQs being developed for
the various organizational functions. For example, subordinate HOQs may be utilized for the actual design of the
product, procurement of parts and materials, gearing up
to manufacture the product, and so on. It is important to
understand that QFD is appropriate for services as well
as for tangible products. Our development of an HOQ
involved a tangible product, but we could as easily have
addressed the improvement or development of a service
instead. Our objective here has been to acquaint you with
the purpose of QFD, and its language, layout, processes,
and functions.
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Correlation Matrix
HOQs Roof
+
+
Type of Correlation
+ = Supportive
= Impeding
+
+
+
+
+
Ch. Aims/Summaries
= 9 (high)
= 3 (medium)
= 1 (weak)
Accuracy
Plausible examples
Chapter objectives
Affordable
Use of color
CS Rating Competitor A
CS Rating Competitor B
Improvement Factor
53.1 49.5
15
13
11
10
Our Product
$40
1.1
No
0%
No
Competitor A
$34
1.5
10
Yes
15%
Yes
Competitor B
$34
1.2
No
25%
No
$30
1.4
10
Yes
15%
Yes
Design Targets
% of Total Weight
38
% of Total Priorities
Technical
Benchmark
Overall Weighting
Sales Point
Planning Matrix
Comprehensible text
Technical Priorities
SUMMARY
1. Quality Function Deployment (QFD) is an approach to
product/service design and continual improvement that
brings customers into the design process. It is used to
translate what the customer wants into what the organization produces.
2. QFD was originally developed by Dr. Yoji Akao in 1966,
combining quality strategies with features of value engineering.
3. QFD requires the involvement of all functional departments of the organization at the start of, and throughout the project. This is also a primary objective of TQM.
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Color Emphasis
Effective Artwork
Customer Needs
+
Flowing Text Sequence
Customer Importance
Text Clarity
Interrelationships
Enhanced Durability
Authors/Editors Guide
Technical Requirements
(HOWs)
9.
10.
11.
12.
uct versus competing products, and technical benchmarking comparing how the intended product will rate
against that competition.
A QFD rule of thumb is that only about 15% of the
Interrelationship matrix cells will be filled.
A QFD rule requires that all interrelationship rows and
columns must have at least one entry.
The Correlation Matrix (roof) indicates which technical
requirements support another, which impede another,
and which do neither.
Customer Needs define what the customers want,
Technical Requirements define how the organization
plans to provide the product characteristics the customers need, and Design Targets define how much of the
characteristics must be provided.
Value Engineering
Voice of the Customer (VOC)
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