Quality Function Deployment

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Quality Function Deployment

• Jess Wills
• Chong Yang
• Matthew Annala
• James Aprile

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Topics today will include

• Introduction Quality Function Deployment
• 4 Characters of QFD
• How to build a House of Quality
• Case Study (PGE)

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The Problem

• Engineers and customers often speak different
  languages
• What the customer wants is translated into
  technical specifications
• What is actually wanted by the customer can be
  lost through out the RD and Production Process

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The Solution

• QFD Quality function deployment
• Customer driven planning process
• Continual focus on the customer guides
• Design process
• Design of production systems
• Research and development
• Manufacturing
• Marketing

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History of QFD

• Developed 1960s in Japan
• First Industrial application
• Mitsubishis Kobe shipyard
• Toyota developed the concept further shortly
  after.
• In use since 1977 at Toyota
• Xerox and Ford initiated use of QFD in 1986
• Today used successfully by
• GM, Motorola, Kodak, IBM, ProcterGamble

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Toyotas Success

• January 1977 to October 1979
• 20 reduction of start-up cost on a new model van
• By 1982
• Start-up cost reduced by 38
• At 1984 comparing the baseline to 1977
• Start-up cost reduced by 61

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Four characters of QFD

• 1.
• QFD is a quality system that implements elements
  of Systems Thinking (viewing the development
  process as a system) and Psychology
  (understanding customer needs, what 'value' is,
  and how customers or end users become interested,
  choose, and are satisfied, etc.).
•  

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2.

•   QFD is a quality method of good Knowledge (how
  do we know the needs of the customer? how do we
  decide what features to include? and to what
  level of performance?)

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3.

•   QFD is a quality system for strategic
  competitiveness it maximizes positive quality
  that adds value it seeks out spoken and unspoken
  customer requirements, translate them into
  technical requirements, prioritize them and
  directs us to optimize those features that will
  bring the greatest competitive advantage.

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4.

•       Quality Function Deployment (QFD) is the
  only comprehensive quality system aimed
  specifically at satisfying the customer
  throughout the development and business process
  -- end to end.

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How To Build a House of Quality

• Six Steps
• 1. Identify customer requirements
• 2. Identify technical requirements
• 3. Relate the customer requirements to the
  technical requirements
• 4. Conduct an evaluation of competing products or
  services
• 5. Evaluate technical requirements and develop
  targets
• 6. Determine which technical requirements to
  deploy in the remainder of the production /
  delivery process

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House of Quality
Interrelationships
Technical requirements
Relationship between customer requirements and
technical requirements
Priorities of customer requirements
Voice of Customer
Competitive evaluation
Priorities of technical requirements
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Step 1 Customer Requirements
Most critical and most difficult step.
Difficult to capture the essence of the
customers needs and expectations
1. Voice of Customer
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Step 2 Technical requirements
The how's by which the company will respond to
the what's, or customer requirements
2. Interrelationships
2. Technical requirements
1. Voice of Customer
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Step 3 Relationship matrix between customer and
technical requirements
Purpose to show whether the final technical
requirements adequately address customer
requirements
2. Interrelationships
2. Technical requirements
3. Relationship between customer requirements
and technical requirements
1. Voice of Customer
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Step 4 Competitor evaluation
and key selling points
Identifies importance ratings for each customer
requirement and evaluates competitors existing
products or services for each of them.
2. Interrelationships
2. Technical requirements
3. Relationship between customer requirements
and technical requirements
4. Competitive evaluation
1. Voice of Customer
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Step 5 Evaluate technical requirements of
competitive products and services and develop
targets
2. Interrelationships
2. Technical requirements
5. Priorities of customer requirements
3. Relationship between customer requirements
and technical requirements
4. Competitive evaluation
1. Voice of Customer
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Step 6 Select technical requirements to be
deployed in the remainder of the process
2. Interrelationships
2. Technical requirements
5. Priorities of customer requirements
3. Relationship between customer requirements
and technical requirements
4. Competitive evaluation
1. Voice of Customer
6. Priorities of technical requirements
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Goals of QFD

• Prioritize spoken and unspoken customer wows,
  wants, and needs
• Translate these needs into technical
  characteristics and specifications
• Build and deliver a quality product or service by
  focusing everybody toward customer satisfaction

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Who uses QFD

• Automotive industries
• GM, Ford, DaimlerChrysler, Toyota, Nissan, Honda,
  Mazda
• Electronic industries
• IBM, Xerox, ATT, HP, Apple Computers
• Aerospace
• NASA, Boeing, Lockheed Martin, Airbus

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Case Study
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Who is PGE?

• Largest investor own utilities company in the US
• Covers majority of Northern Central California
• 94,000 square miles in territory
• 12 million customers (2001)
• 18.8 million callers to its call center (2001)

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QFD Implementation

• Began strategy to implement QFD into organization
  in 1990
• 1992 San Jose, California
• Voice of the Customer
• Series of 50 1-1 interviews
• 8000 questionnaires

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Results

• Saw large success in San Jose
• Identified customers quality dissatisfaction
• Changing management policy and allowing employees
  to take the time necessary to satisfy customers
  in a single call
• Providing adequate phone capacity
• Working across functional boundaries
• Improved quality

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Aftermath

• Began company wide implementation in 1993
• Project named Voice of the Customer Improvement
  Strategy (VOCIS)
• Finish in 1994

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Outcome

• Beneficial outcome from VOCIS
• VOCIS is a comprehensive continuous improvement
  strategy for PGE's entire market. Every
  organization in the business unit will be using
  this strategy to create excellent service for all
  of PGE's customers.
• There is a Corporate commitment to continuously
  improve service quality and reduce costs. VOCIS
  will help to achieve that commitment with
  customer needs-based internal measures and
  focused business process improvements. It is a
  tool to improve quality and reduce costs.
• VOCIS will support culture change. It places
  process improvements in the hands of front-line
  employees to meet customer needs. The entire
  business unit will become focused on meeting
  customer needs.
• VOCIS is not a program. It is a way of managing
  the business.