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Published byThéophile Louis St-Gelais Modified over 6 years ago
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Information on QFD Developed in Japan in the mid 1960s
Introduced in USA in the late 1980s Toyota was able to reduce 60% of cost to bring a new car model to market Toyota decreased 1/3 of its development time Used in cross functional teams Companies feel it increased customer satisfaction
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WHY ? Product should be designed to reflect customers’ desires and tastes House of Quality is a kind of a conceptual map that provides the means for interfunctional planning and communications To understand what customers mean by quality and how to achieve it from an engineering perspective HQ is a tool to focus the product development process
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MISSUNDERSTANDING QFD Target
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IMPORTANT POINTS Should be employed at the beginning of every project (original or redesign) Customer requirements should be translated into measurable design targets It can be applied to the entire problem or any third level problem First worry about what needs to be designed then how It takes time to complete
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MAKING SENSE OF THE WHY-HOW
Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Mat’l Supply Maximise Profitable Growth Reduce Operating Cost Improve Product Value Increase Sales Volume Design and Develop winning Product Supply and Distribute Product on time Research Novel Techn’gy and Science Develop People Resource and Capability EfficientlyManage Facilities and Assets Support and Develop Satisfied Customer Provide and Control Material Efficiently Produce Succesful Products Design and Develop winning Concepts ? Effective organisation design is dependant on a good understanding of the relationships between what you want to achieve, and the potential means you have to achieve it. The Why-How chart helps to draw out this insight through mapping the logical relationships between the objectives and the means to achieve them. However, the sheer number of possible relationship at the lower end of the chart often causes it to resemble a bowl of spaghetti, and it is difficult to see the relationships clearly. This is doubly unfortunate because it is the bottom end of the Why-How chart that provides most insight into how the activities and processes of the organisation may be best configured to optimally deliver its objectives. This level of complexity, and the resulting confusion is often the reason that people are reluctant to adopt the rigours of a disciplined approach to organisation design. But the issue is also true for complex products such as cars, computers and ships, and in the case of designing these it is not a valid option to resort to gut feel and instinct. Instead, designers in these fields adopt an approach developed in the Japanese Shipbuilding industry in The approach is called Quality Function Deployment, or QFD.
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AN ALTERNATIVE APPROACH
Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Mat’l Supply Maximise Profitable Growth Reduce Operating Cost Improve Product Value Increase Sales Volume Design and Develop winning Product Supply and Distribute Product on time Research Novel Techn’gy and Science Develop People Resource and Capability EfficientlyManage Facilities and Assets Support and Develop Satisfied Customer Provide and Control Material Efficiently Produce Succesful Products Design and Develop winning Concepts Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control The name may seem complex, but the basic idea is surprisingly simple, and in principle involves taking two layers of the why-how chart: a set of clear and relatively detailed objectives; and a set of processes by which they are to be delivered, and setting them at right angles to each other in order to create a matrix within which the relationships can be mapped more clearly. 27
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BUILDING THE QFD MATRIX
Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Mat’l Supply Maximise Profitable Growth Reduce Operating Cost Improve Product Value Increase Sales Volume Design and Develop winning Product Supply and Distribute Product on time Research Novel Techn’gy and Science Develop People Resource and Capability EfficientlyManage Facilities and Assets Support and Develop Satisfied Customer Provide and Control Material Efficiently Produce Succesful Products Design and Develop winning Concepts Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Material Supply The complex pattern of lines can then be simply mapped as links between the processes and the objectives of the organisation. Furthermore, because of the space that is available in the matrix, it is possible to identify particularly strong relationships and differentiate them from the others. It is also possible to map weaker relationships that would have proven practically impossible to link on the why-how chart without totally obscuring the picture. The matrix enables you to map out the identified relationships and also to include some other significant factors 28
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WEIGHTING THE OBJECTIVES
Maximise Profitable Growth Maximise Profitable Growth Reduce Operating Cost Reduce Operating Cost Improve Product Value Improve Product Value Increase Sales Volume Increase Sales Volume Improve Economy of Mat’l Supply Improve Economy of Mat’l Supply Reduce Costs of Poor- Quality Reduce Costs of Poor- Quality Improve Resource Utilisation Improve Resource Utilisation Reduce Lead Times Reduce Lead Times Produce Succesful Products Develop Winning Products Build Customer Loyalty Build Customer Loyalty Address New Market Areas Address New Market Areas Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Provide and Control Material Efficiently Provide and Control Material Efficiently Support and Develop Satisfied Customer Support and Develop Satisfied Customer EfficientlyManage Facilities and Assets EfficientlyManage Facilities and Assets Develop People Resource and Capability Develop People Resource and Capability Research Novel Techn’gy and Science Research Novel Techn’gy and Science Supply and Distribute Product on time Supply and Distribute Product on time Design and Develop winning Concepts Design and Develop winning Product Wt. Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 The other relationships in the Why-How chart can be summarised into differential weightings for each of the objectives, depending on how each is linked in to contributing to the fundamental objective. The matrix allows for reflecting the result of front end logic through a weighting column 31
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RANKING IMPORTANCE 3 x 1 + 5 x 1 + 2 x 9 + 4 x 3 = 38
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 3 x 1 = 38 + 5 x 1 + 2 x x 3 The combination of the weighting of the objectives, and the potential for each process to contribute to each objective provides a means to ascertain the potential importance of each process to achieving the objectives overall. This slide shows how the QFD grid can be used to rank the various processes in terms of their importance in leveraging the business to achieve its objectives. The value of the relationships are 9 for a critical (strong) relationship, 3 for a major (normal) one, and 1 for a significant (weak) relationship. These values have been empirically derived during the early years of QFD, and still provide a very effective basis for scoring the processes. Ranking 81 115 4 66 38 89 54 The result of the logic can be calculated numerically as a basis for discussion, or for setting priorities 35
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DRIVING INSIGHT Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 ? Working through the QFD cell by cell provides an opportunity to explore and understand the potential for each process to impact and influence each objective. As a result it helps the management team to identify links and opportunities that have previously been dormant, or worse! Working through the grid together enables the management team to develop a more comprehensive insight into the operation of the business as a whole, and enables them to learn from each others experience and ideas, and to develop a collective and shared understanding. Ranking 81 115 4 66 38 89 54 Exploring the full potential of each strategy to make a difference, and reconciling different views 35
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RECOGNISING NEED Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 ? When the grid has been completed, the QFD helps to identify issues in the current thinking, for instance where the current approaches are insufficient to ensure a key objective… Ranking 81 115 4 66 38 89 54 The grid can be used to identify poorly supported objectives… 35
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? CHALLENGING APPROACH …or poorly utilised (redundant?) processes 3 5
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 … or where an existing or planned process has little relevance to the current objectives. In each of these cases, QFD provides the means to understand these gaps, and to reconcile these. For instance by developing a new process, or extending the relationships, or removing objectives and processes …. Or merely identifying where the thinking has been in error and going back and correcting it. Ranking 81 115 4 66 38 89 54 ? …or poorly utilised (redundant?) processes 35
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DEPLOYING CONCLUSIONS
© TMS DEPLOYING CONCLUSIONS Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 Finally the relationships in the QFD (and the notes that have been taken during the discussions) can be deployed to teams who will undertake the design and management of each of the processes to ensure that they fulfil their potential. This approach ensures that each team can fully understand their potential and contribution and can then develop their process to effectively deliver that, probably by means of another QFD at the next level down. The level of understanding provided by the QFD, and the absence of prescription, means that each process team has the best opportunity to harness their creativity in taking things forward. Ranking 81 115 4 66 38 89 54 Providing clear direction and understanding to harness and harmonise the creative effort of separate teams 35
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ESTABLISHING MEASURES AND TARGETS
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Measure Target Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% The QFD diagram also provides a basis for listing out relevant measures and targets against the objectives and processes… Ranking 81 115 4 66 38 89 54 Quantitative Criteria for Determining Success Measure New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. The discussions should provide clear basis for identifying measures and setting targets... Target 36
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IDENTIFYING CONFLICT AND SYNERGY
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Wt. Measure Target Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply 3 5 4 2 1 Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Having established meaningful targets, the approach can be checked for conflict and synergy And for exploring the potential conflict and synergy between the various processes (and thereby determining their communication needs) Ranking Measure Target 81 115 4 66 38 89 54 New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. This should provide the basis of a communications/reporting strategy 37
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VALUE OF QFD ? Wt. ? Structured, systematic basis for reductionist thinking: Drives exploration and shared understanding of the whole business Establishes a basis for objective design and management of business entities Encourages thought before action Challenges assumptions Prioritises effort In summary – the key benefits of QFD … Ranking
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QFD: A TOUR OF THE HOUSE 1 Objectives 2 Approaches
3 Relationships 4 Weighting 5 Ranking 6 Correlation 7 Measures 8 Targets Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Clear objectives: Things to achieve
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Clear objectives: Things to achieve Role of your organisation How it serves The difference it makes What it wants to be 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Contribution:
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Contribution: Potential contribution of the process to achieving the goal Positive or Negative Critical, major or significant! Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Weighting: Relative importance
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Weighting: Relative importance Balance of priority Comparative value in its own right, or in supporting higher goals Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Ranking:
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Ranking: Calculated importance of process to all objectives Leverage in achieving goals Relative priority for mgt. time Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Measures: Objective indicators of success
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control Measures: Objective indicators of success Quantified assessment of achievement Represent a tangible effect Vs. impact 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Processes: Patterns of work
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Processes: Patterns of work Routes to fulfil the objectives Flows of activity to a defined end Logical model Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Process targets:
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Process targets: Defined objectives for process Normally more than one Rarely included on the chart Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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QFD: A TOUR OF THE HOUSE Correlation:
Product Design and Development Product Supply and Distribution Novel Research and Science People Resource Development Facilities and Asset Management Customer Support and Development Material Provision and Control 3 5 4 2 1 Wt. Overall Mkt.Share Customer Retention Innov. copied by Compet'n Production Cycle Asset Utilisation CoNC as %T/O Benefit / Cost Ratio Measure > 34% > 85% > 5 p.a. < 6 Days > 55% < 12% > 140% Target Correlation: Potential for synergy/conflict between processes Alignment or diversity of process goals Need for communication Address New Market Areas Build Customer Loyalty Develop Winning Products Reduce Lead Times Improve Resource Utilisation Reduce Costs of Poor- Quality Improve Economy of Materiel Supply ..and a quick recap of the relevant sections … 81 115 4 66 38 89 54 Ranking New Sales Growth Delivery on Time New Innov-ations Growth in ToR (%p.a.) Break -down Level Sales Growth Reduc'n as % of T/O >10% p.a. > 98.5% 3 p.a. >50% avg. pa <3% >20% p.a. 4% p.a. Measure Target 38
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