1. Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

2. Copyright 2006 John Wiley & Sons, Inc.5-2 Quality Function Deployment (QFD)  Translates voice of customer into technical design requirements  Displays requirements in matrix diagrams first matrix called “house of quality” first matrix called “house of quality” series of connected houses series of connected houses

3. Copyright 2006 John Wiley & Sons, Inc.5-3 House of Quality Trade-off matrix Design characteristics Customer requirements Target values Relationship matrix Competitive assessment Importance 1 2 3 4 5 6

4. Copyright 2006 John Wiley & Sons, Inc.5-4 Competitive Assessment of Customer Requirements Irons well Easy and safe to use Competitive Assessment Customer Requirements Customer Requirements12345 X Presses quickly9BAX X Removes wrinkles8ABX X Doesn’t stick to fabric6XBA X Provides enough steam8ABX X Doesn’t spot fabric6XAB X Doesn’t scorch fabric9AXB X Heats quickly6XBA X Automatic shut-off3ABX X Quick cool-down3XAB X Doesn’t break when dropped5ABX X Doesn’t burn when touched5ABX X Not too heavy8XAB

5. Copyright 2006 John Wiley & Sons, Inc.5-5 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º F Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Customer Requirements Presses quickly--+++- Removes wrinkles+++++ Doesn’t stick to fabric-++++ Provides enough steam++++ Doesn’t spot fabric+--- Doesn’t scorch fabric+++-+ Heats quickly--+- Automatic shut-off+ Quick cool-down--++ Doesn’t break when dropped++++ Doesn’t burn when touched++++ Not too heavy+---+- Irons well Easy and safe to use From Customer Requirements to Design Characteristics

6. Copyright 2006 John Wiley & Sons, Inc.5-6 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff - - + + + Tradeoff Matrix

7. Copyright 2006 John Wiley & Sons, Inc.5-7 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Units of measure ft-lblbin.cmtyeammoz/ssecsecY/NY/N Iron A 31.48x42SS27150.545500NY Iron B 41.28x41MG27150.335350NY Our Iron (X) 21.79x54T35150.750600NY Estimated impact 344454325530 Estimated cost 333343334452 Targets 1.28x53SS3030500 Design changes ******* Objective measures Targeted Changes in Design

8. Copyright 2006 John Wiley & Sons, Inc.5-8 SS = Silverstone MG = Mirorrglide T = Titanium Completed House of Quality

9. Copyright 2006 John Wiley & Sons, Inc.5-9 A Series of Connected QFD Houses Customer requirements House of quality Product characteristics A-1 Product characteristics Parts deployment Part characteristics A-2 Part characteristics Process planning Process characteristics A-3 Process characteristics Operating requirements Operations A-4

10. Copyright 2006 John Wiley & Sons, Inc.5-10 Benefits of QFD  Promotes better understanding of customer demands  Promotes better understanding of design interactions  Involves manufacturing in design process  Breaks down barriers between functions and departments  Provides documentation of design process

11. Copyright 2006 John Wiley & Sons, Inc.5-11 Performance Specifications Service Delivery Specifications Physical items Sensual benefits Psychological benefits Design Specifications Service Provider Customer Customer requirements Customer expectations ActivitiesFacility Provider skills Cost and time estimates ScheduleDeliverablesLocation Service Concept Service Package Desired service experience Targeted customer Service Design Process

12. Copyright 2006 John Wiley & Sons, Inc.5-12   Service concept purpose of a service; it defines target market and customer experience   Service package mixture of physical items, sensual benefits, and psychological benefits   Service specifications performance specifications design specifications delivery specifications Service Design Process (cont.)

13. Copyright 2006 John Wiley & Sons, Inc.5-13 Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services   Facility location   Convenient to customer  Near labor or transportation source Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Facility layout  Must look presentable, accommodate customer needs, and facilitate interaction with customer  Designed for efficiency

14. Copyright 2006 John Wiley & Sons, Inc.5-14 Design Decision High-Contact ServiceLow-Contact Service   Quality control   More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur  Measured against established standards; testing and rework possible to correct defects Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Capacity  Excess capacity required to handle peaks in demand  Planned for average demand High v. Low Contact Services (cont.)

15. Copyright 2006 John Wiley & Sons, Inc.5-15 Design Decision High-Contact ServiceLow-Contact Service   Worker skills   Must be able to interact well with customers and use judgment in decision making  Technical skills Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Scheduling  Must accommodate customer schedule  Customer concerned only with completion date High v. Low Contact Services (cont.)

16. Copyright 2006 John Wiley & Sons, Inc.5-16 Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services (cont.)   Service process   Mostly front-room activities; service may change during delivery in response to customer  Mostly back- room activities; planned and executed with minimal interference Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Service package  Varies with customer; includes environment as well as actual service  Fixed, less extensive