Quality Function Deployment

Jess Wills
Chong Yang
Matthew Annala
James Aprile
 Topics today will include

Introduction Quality Function Deployment

4 Characters of QFD
How to build a House of Quality
Case Study (PG&E)
 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 R&D and Production
Process
 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
 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, Procter&Gamble
 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%
 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.).
 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?)
 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.
 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.
 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
 House of Quality

Interrelationships

Technical requirements

Voice Relationship between Priorities of

of Customer customer requirements customer Competitive
and technical requirements requirements evaluation

Priorities of technical
requirements
 Step 1: Customer Requirements

Most critical and most Difficult to capture

difficult step. the essence of the
customers needs
and expectations

1.

Voice
of Customer
 Step 2: Technical requirements
The how's by
which the company
will respond to the
2. Interrelationships
what's, or customer
requirements 2. Technical requirements

1.

Voice
of Customer
 Step 3: Relationship matrix between
customer and technical requirements
Purpose: to show
whether the final
technical
requirements 2. Interrelationships

adequately address 2. Technical requirements

customer
requirements 3.

1. Relationship between
customer requirements
and technical
Voice
requirements
of Customer
 Step 4: Competitor evaluation

and key selling points

Identifies importance
ratings for each customer
requirement and evaluates
competitors existing 2. Interrelationships
products or services for
each of them. 2. Technical requirements

3.
4.
1. Relationship between
customer requirements Competitive
and technical requirements evaluation
Voice
of Customer
Step 5: Evaluate technical requirements of
competitive products and services and develop
targets

2. Interrelationships

2. Technical requirements

3. 5.
4.
1. Relationship between Priorities of
customer requirements customer Competitive
and technical requirements requirements evaluation
Voice
of Customer
Step 6: Select technical requirements to
be deployed in the remainder of the process

2. Interrelationships

2. Technical requirements

3. 5.
4.
1. Relationship between Priorities of
customer requirements customer Competitive
and technical requirements requirements evaluation
Voice
of Customer

6. Priorities of technical
requirements
 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
 Who uses QFD

Automotive industries:
GM, Ford, DaimlerChrysler, Toyota, Nissan,
Honda, Mazda
Electronic industries:
IBM, Xerox, AT&T, HP, Apple Computers
Aerospace
NASA, Boeing, Lockheed Martin, Airbus
Case Study
 Who is PG&E?

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)
 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
 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
 Aftermath

Began company wide implementation in

1993
Project named: Voice of the Customer
Improvement Strategy (VOCIS)
Finish in 1994
 Outcome

Beneficial outcome from VOCIS

VOCIS is a comprehensive continuous improvement strategy for
PG&E's entire market. Every organization in the business unit will be
using this strategy to create excellent service for all of PG&E'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.