Tuesday, 12 March 2013

Home Assignment 2- QFD - Quallity Function Deployment

Introduction

Quality must be designed into the product, not inspected into it. Quality can be defined as meeting customer needs and providing superior value. This focus on satisfying the customer's needs places an emphasis on techniques such as Quality Function Deployment to help understand those needs and plan a product to provide superior value.

Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those needs. The "voice of the customer" is the term to describe these stated and unstated customer needs or requirements. The voice of the customer is captured in a variety of ways: direct discussion or interviews, surveys, focus groups, customer specifications, observation, warranty data, field reports, etc. This understanding of the customer needs is then summarized in a product planning matrix or "house of quality". These matrices are used to translate higher level "what's" or needs into lower level "how's" - product requirements or technical characteristics to satisfy these needs.

While the Quality Function Deployment matrices are a good communication tool at each step in the process, the matrices are the means and not the end. The real value is in the process of communicating and decision-making with QFD. QFD is oriented toward involving a team of people representing the various functional departments that have involvement in product development: Marketing, Design Engineering, Quality Assurance, Manufacturing/ Manufacturing Engineering, Test Engineering, Finance, Product Support, etc.
The active involvement of these departments can lead to balanced consideration of the requirements or "what's" at each stage of this translation process and provide a mechanism to communicate hidden knowledge - knowledge that is known by one individual or department but may not otherwise be communicated through the organization. The structure of this methodology helps development personnel understand essential requirements, internal capabilities, and constraints and design the product so that everything is in place to achieve the desired outcome - a satisfied customer. Quality Function Deployment helps development personnel maintain a correct focus on true requirements and minimizes misinterpreting customer needs. As a result, QFD is an effective communications and a quality planning tool.


 History of QFD

QFD was invented in Japan by Yoji Akao in 1966, but was first implemented in the Mitsubishi’s Kobe shipyard in 1972, possibly out of the teaching of Deming. Then later it was adopted and developed by other Japanese companies, notably Toyota and its suppliers.
In the USA the first serious exponents of QFD were the 'big three' automotive manufacturers in the 1980's, and a few leading companies in other sectors such as electronics. However, the uptake of QFD in the Western world appears to have been fairly slow. There is also some reluctance among users of QFD to publish and share information - much more so than with other quality-related methodologies. This may be because the data captured and the decisions made using QFD usually relate to future product plans, and are therefore sensitive, proprietary, and valuable to competitors.
The 3 main goals in implementing QFD are:

·         Prioritize spoken and unspoken customer 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.

Since its introduction, Quality Function Deployment has helped to transform the way many
Companies:

·         Plan new products

·         Design product requirements

·         Determine process characteristics

·         Control the manufacturing process

·         Document already existing product specifications

QFD uses some principles from Concurrent Engineering in that cross-functional teams are involved in all phases of product development. Each of the four phases in a QFD process uses a matrix to translate customer requirements from initial planning stages through production control
(Becker Associates Inc, 2000).

Each phase, or matrix, represents a more specific aspect of the product's requirements. Relationships between elements are evaluated for each phase. Only the most important aspects from each phase are deployed into the next matrix.

Phase 1, Product Planning:

Building the House of Quality, Led by the marketing department, Phase 1, or product planning, is also called The House of Quality. Many organizations only get through this phase of a QFD process. Phase 1 documents customer requirements, warranty data, competitive opportunities, product measurements, competing product measures, and the technical ability of the organization to meet each customer requirement. Getting good data from the customer in Phase 1 is critical to the success of the entire QFD process.

Phase 2, Product Design:

This phase 2 is led by the engineering department. Product design requires creativity and innovative team ideas. Product concepts are created during this phase and part specifications are documented. Parts that are determined to be most important to meeting customer needs are then deployed into process planning, or Phase 3.



Phase 3, Process Planning:

Process planning comes next and is led by manufacturing engineering. During process planning, manufacturing processes are flowcharted and process parameters (or target values) are documented.

Phase 4, Process Control:

And finally, in production planning, performance indicators are created to monitor the production process, maintenance schedules, and skills training for operators. Also, in this phase decisions are made as to which process poses the most risk and controls are put in place to prevent failures. The quality assurance department in concert with manufacturing leads Phase 4.



The House of Quality
The first phase in the implementation of the Quality Function Deployment process involves putting together a "House of Quality" (Hauser and Clausing, 1988) such as the one shown below, which is for the development of a climbing harness (fig. from Lowe & Ridgway, 2001)


Steps to the House of Quality (Becker and Associates, 2000)

Step 1: Customer Requirements - "Voice of the Customer"

The first step in a QFD project is to determine what market segments will be analyzed during the process and to identify who the customers are. The team then gathers information from customers on the requirements they have for the product or service. In order to organize and evaluate this data, the team uses simple quality tools like Affinity Diagrams or Tree Diagrams.


Step 2: Regulatory Requirements

Not all product or service requirements are known to the customer, so the team must document requirements that are dictated by management or regulatory standards that the product must adhere to.

Step 3: Customer Importance Ratings

On a scale from 1 - 5, customers then rate the importance of each requirement. This number will be used later in the relationship matrix.




Step 4: Customer Rating of the Competition
Understanding how customers rate the competition can be a tremendous competitive advantage. In this step of the QFD process, it is also a good idea to ask customers how your product or service rates in relation to the competition. There is remodeling that can take place in this part of the House of Quality. Additional rooms that identify sales opportunities, goals for continuous improvement, customer complaints, etc., can be added.



Step 5: Technical Descriptors - "Voice of the Engineer"

The technical descriptors are attributes about the product or service that can be measured and benchmarked against the competition. Technical descriptors may exist that your organization is already using to determine product specification, however new measurements can be created to ensure that your product is meeting customer needs.


Step 6: Direction of Improvement
As the team defines the technical descriptors, a determination must be made as to the direction of movement for each descriptor.



Step 7: Relationship Matrix
The relationship matrix is where the team determines the relationship between customer needs and the company's ability to meet those needs. The team asks the question, "What is the strength of the relationship between the technical descriptors and the customers’ needs?" Relationships can either be weak, moderate, or strong or carry a numeric value of 1, 3 or 9.







Step 8: Organizational Difficulty
Rate the design attributes in terms of organizational difficulty. It is very possible that some attributes are in direct conflict. Increasing the number of sizes may be in conflict with the company’s stock holding policies, for example.






Step 9: Technical Analysis of Competitor Products
To better understand the competition, engineering then conducts a comparison of competitor technical descriptors. This process involves reverse engineering competitor products to determine specific values for competitor technical descriptors.



Step 10: Target Values for Technical Descriptors
At this stage in the process, the QFD team begins to establish target values for each technical descriptor. Target values represent "how much" for the technical descriptors, and can then act as a base-line to compare against.





Step 11: Correlation Matrix
This room in the matrix is where the term House of Quality comes from because it makes the matrix look like a house with a roof. The correlation matrix is probably the least used room in the House of Quality; however, this room is a big help to the design engineers in the next phase of a comprehensive QFD project. Team members must examine how each of the technical descriptors impacts each other. The team should document strong negative relationships between technical descriptors and work to eliminate physical contradictions.



Step 12: Absolute Importance
Finally, the team calculates the absolute importance for each technical descriptor. This numerical calculation is the product of the cell value and the customer importance rating. Numbers are then added up in their respective columns to determine the importance for each technical descriptor. Now you know which technical aspects of your product matters the most to your customer!


The Next Stage

The above process is then repeated in a slightly simplified way for the next three project phases.
A simplified matrix involving steps 1, 2, 3, 5, 6, 7, 9 & 11 above is developed. The main difference with the subsequent phases however, is that in Phase 2 the process becomes a translation of the voice of the engineer in to the voice of the part design specifications. Then, in phase 3, the part design specifications get translated into the voice of manufacturing planning. And finally, in phase 4, the voice of manufacturing is translated into the voice of production planning.

QFD is a systematic means of ensuring that customer requirements are accurately translated into relevant technical descriptors throughout each stage of product development. Therefore, meeting or exceeding customer demands means more than just maintaining or improving product performance. It means designing and manufacturing products that delight customers and fulfill their unarticulated desires. Companies growing into the 21st century will be enterprises that foster the needed innovation to create new markets.

Example of successful QFD implementation
A successful story of QFD can be seen at the Chrysler Motors Corporation. The QFD at Chrysler Motor Corporation was formally launched in September 1986, but its first application was begun in June 1986.
Chrysler implemented the QFD in four-stage process: (1) spreading awareness, (2) developing successful case study and examples to motivate subsequent teams, (3) company-wide training and education on QFD techniques and philosophy, and (4) adopting QFD as business philosophy.
In the beginning, QFD idea was not widely accepted in the company. For many QFD was perceived as requiring additional time and effort. Such opinions led to organizational and perceptual barriers regarding the successful implementation of QFD.
Due to various resource constraints, Chrysler management was sometimes unable to authorize first-hand customer research. In such cases teams were encouraged to document what they knew concerning the customer requirement, based on their experiences. Often team members simulated customers by actually evaluating competing vehicles, and reviewing customer ratings.
The result of using QFD in Chrysler, in the launch of LH platform for mid-size cars was successful. The total product design cycle took approximately 36 months, versus the historical cycles ranging from 62 to 54 months. Only 740 people were required in the QFD program, while 1600 people were required in the historical environment. Also, by focusing on the customer requirement instead of only cost, Chrysler made innovative design changes that are gaining acceptance in marketplace. (Lockamy & Khurana, 1995).



Conclusion


QFD is a good system to be implemented in organization or industry, which can be seen from the examples mentioned above. QFD does not design to replace the existing organization design process by any means, but rather support the organization’s design process. And it also helps bring the customer’s voice into the production process to reduce the unnecessary cost. Cutting production time is also very beneficial to the companies.
However, QFD has not been widely accepted in the USA compared to Japan (42% or more of Japanese companies have adopted QFD to improve their quality). In the future we hope QFD can be more adopted and researched in the American manufacturing and service organizations. 


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