Design Specifications and QFD Establishing the Need • Sources: – The market: what do customers want? – New technology: • Creates a market • Risky and expensive • Can be financially rewarding – Higher level system • Support for industries such as planes, automobiles Collecting Information • Customer: Inside or outside of company – External • • • • Obsolescence of product Discover of new technology New market requirements Competitor superiority – Internal • • • • Excess capacity Drop in profitability New technology New production methods Collecting Information • Company: what are its objectives? – – – – – Wants to grow and increase market share Wants flexibility in unstable market Wants high profits Life cycle of product Enterprise potential and limitations Collecting Information • Laws and Regulations: – – – – Environmental control Safety regulations Factory regulations Standards, company and government • Market – Demands – Potential for product – Competition Questions • What is the need or problem really about? • What implicit wishes and expectations are involved? • What paths are open for development? Quality Function Deployment • Developed in the mid-70’s – Method for developing specifications from voice of customer – Gives interdisciplinary teams a map for working together • Toyota needed to improve rust record – Body durability broken into 53 items – Ran experiments on details of production, temperature control, coating composition Pre-Production and Start-up Costs at Toyota Body Shop Before and After QFD Jan. 1977 Pre-QFD Apr. 1984 Post-QFD (39% of Pre-QFD Costs) Source: “The House of Quality,” J. Hauser and D. Clausing, Harvard Business Review, May-June 1988, pp. 63-73. QFD vs. no QFD No QFD Design Changes 90% of changes complete With QFD 20-24 months 14-17 months 1-3 months Job #1 +3 months Why Use QFD? A recent survey of 150 US companies: • 69% use QFD • 71% began using it since 1990 • 83% felt that it improve customer satisfaction • 76% felt it facilitated rational decision making QFD • Why use QFD? – Helps uncover new information – Can be applied to entire design problem or portions of it – Focuses team on what need to be designed, not how to design it – Helps overcome favoritism Steps of QFD • Identify the customer • Determine customer requirements • State whether desires are demands or wishes, rank the wishes • Competition benchmarking • Translate customer desires into measureable engineering requirements • Set targets for design: dates QFD: Step by Step 1. Who are the customers? 2. Determine customer requirements – Collection of information • • • • • • • Specify information needed Determine type of data collection Determine content of questions Design questions Order questions Take data Reduce data QFD: Step by Step 2. Determine customer requirements Delighted Excitement Customer Satisfaction Absent Fully Implemented Basic Disgusted Product Function QFD: Step by Step 3. Determine relative importance of requirements 4. Identify and evaluate competition: How satisfied is the customer now? 5. Generate product specifications: how will customers’ requirements be met? QFD: Step by Step 6. Translate into measureable engineering req’ts – If there is not measureable requirement, then it is not well understood – Two solutions • Break into finer parts • Repeat step three QFD: Step by Step 7. Identify relationships between customer and engineering requirements. 8. Set targets for design: how much is good enough? House of Quality Hows vs. Hows Hows Now Whats Whats vs. Hows Now vs. What How Muches Hows vs. How Muches Who Who vs. Whats