Copyright VoCate Ltd. 2013

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1 Product Excellence Using Six Sigma Module Warwick University, January 2013 Kim Stansfield, MD VoCate Ltd. Schedule for the Day 1. Introduction to QFD Why QFD? 2. Customer Wants & Needs Capturing & Structuring 3. Prioritisation Understanding Importance and Value 4. Benchmarking Customer Needs vs Design Solutions 5. Product / Design Characteristics Development from Customer Needs 6. Benchmarking - Customer, Technical Needs vs Designs 7. Integrating QFD with Concurrent Product & Manufacturing Design & DFSS 8. Why Agile or Blitz QFD? 9. Conclusions Where Is QFD Being Applied? 2 1

2 Why Develop Quality Function Deployment (QFD)? 1950s & early 1960s Japan: Limited working capital close to bankrupt after WW II Traditional product design slow & produced low quality products that didn t sell well Something had to be done! Copyright 2009 QFD Institute Course Overview qfdi. org 3 Why QFD - Issues addressed? Remoteness from the final customer. Lack of visibility of the customer chain. Informal (or inappropriate) customer requirement definition. Complex technologies. Technology-led products. Unclear relationship between customer requirements and technology. 4 2

3 Why QFD QFD History QFD developers: Prof Yoji Akao & Prof Shigeru Mitzuno in late 1960s Ensures critical customer needs addressed at all stages of New Product Introduction 1966 Effect & Cause Diagram used at Bridgestone Tire Corp, they Asked What causes desired effect in our tyres? i.e. QFD Matrix 1 st applied: Oil Tanker Design, Mitsubishi, in QFD What it looks like & high level benefits Effect and Cause approach at Bridgestone: Traditional QFD uses matrices Customer needs or outcomes at left, Design requirements at top Matrix is a multi-effect & cause map 6 3

4 Traditional 4 Phase QFD US Auto Format Links Customer needs to production control through 4 matrices Customer needs to Design Requirements Design Requirements to Product Characteristics Product Characteristics to Process Planning priorities Process Planning Priorities to Production Controls Summary - What does QFD do? QFD Gives: Focus on customer needs and value (Copyright 2009 QFD Institute. All rights reserved.) Concurrent design Product & Manufacturing over whole lifecycle Clear, measurable requirements for every business function Benchmarking of solutions vs Customer & Technical Needs Trace-ability to Customer Needs throughout NPI & supply chain Trust, Credibility and clarity across the supply chain 4

5 Resource/ Cost ( s) Benefits of Using QFD Effort by activity Optimising effort here reduces resource required here Usual Design Concept Design Product Design Dev. Manuf g & Ass y Time Exponential Cost Ramp-Up QFD Approach Problem Solving Dramatic Improvement in Customer Satisfaction Significant Improvement in Profitability Business Function Moral & Effectiveness Optimised Q1: Why does building quality into Design do these things? Toyota Experience With QFD Toyota reduces start-up costs with QFD 10 5

6 QFD Lost in Translation? Hin = Multitude of voices shitsu = ax & shell: money or value Ki = Frontier guards attend to detail no = Bear: Courage Ten = Unroll train of kimono Kai = Cooperate to open barriers Quality Function Deployment Working Definition: Deployment of Quality throughout the functions of the organisation i.e. understanding of quality responsibility of all, not just centralised quality dept. Based on slide from QFD Institute 2009 qfdi. org 11 QFD Definition A system for translating customer requirements into company requirements at each stage, from research and development through engineering and manufacturing to marketing, sales and distribution. Source: American Suppliers Institute 12 6

7 PART 2: Customers and capturing their Needs: Customer or Customer & Stakeholder Chains? There is rarely only one level of customer or key stakeholder for a product. For example, the customer chain for a breakfast cereal would be: distributor, wholesaler, retailer, purchaser and consumer. All of these customers must be taken into account for a successful design. They may be given a different weighting in terms of their impact on success. 13 Information Flow from Customers 14 7

8 Sources of Information for QFD Postal questionnaires. Interview questionnaires. Clinics. Focus groups. Listening. Complaints Gemba Visits Visits to the Crime Scene 15 What should you ask of Customers? Needs When we ask the customer for features, Who is doing the analysis to generate the features? Are they good at it? Benefits Needs Users Benefits Requirements Requirements Build to Requirements Specification Developer Features Therefore, What does the customer know best? Who should be doing the analysis? Needs Users Needs Value Benefits Benefits Value occurs when a problem is resolved or an opportunity enabled. Needs translate into Requirements Developer Copyright 2009 QFD Institute

9 Customer Satisfaction Kano Model & Voice of the Customer Must be characteristics are generally taken for granted unless they are absent! Delight Delighters Customers generally discuss or bring up issues related to More Is Better characteristics. Neutral Resigned to Reality Pleased Must Be Delighters are generally not mentioned, since customers are not dissatisfied with their absence. Dissatisfaction Absent Not Pleased Degree of Achievement Taken for Granted Fulfilled Exercise 1: Customer Requirements. Time Allowed: 40 minutes You are a member of a design bureau circa You have a brief to design a single engine, single seat fighter aircraft. No major technological breakthroughs are available. The aircraft will be manufactured in government factories. Group # (1,2 or 3): Group Name: Customers Represented by Group: 18 9

10 Exercise 1: Task 1. Your first task is to collect customer requirements. Each Group will represent a key customer Group, either 1) Pilot Looking at Combat Performance of the Aircraft, 2) Pilot considering general handling of aircraft, or 3) Team Responsible for Manufacturing and Maintenance and Operational Servicing of the aircraft. To do this, watch the video and record individually: (a) The different customers for the product. (b) Requirements for the product, keeping as close as possible to the voice of the customer, and considering which customer your group represents. 2. Next, in your team, produce an agreed list of customer requirements. You should have between 8 and Part 3: Structuring Requirements Why? Simplify later use of charts Team reaches a common understanding Identify areas missed by the sampling of customer needs Clarifies Whats and How Tos 10

11 Structuring Requirements Using Affinity Diagrams Structuring Requirements Using Affinity Diagrams 11

12 Hierarchy - Critical To Quality Requirements VOC I want Critical To Quality (CTQ) Tree CTQ CTQ CTQ need CTQ General Hard to measure CTQ CTQ CTQ CTQ Specific Easy to measure Affinity Grouping & Hierarchy of Car CTQs Need Drivers/ CSFs CTQs JD Powers Best in Class rating Operation All Wheel Drive/ 4 wheel drive Purchase New Family Car Family Friendly MPG > 25 4 doors Good storage space Built in Video player Safety Passenger side air bag; ABS 4 star crash rating General Hard to measure Specific Easy to measure 12

13 Priority All animals are equal, but some animals are more equal than others George Orwell, Animal Farm Separate out the important few from the trivial many Joseph Juran Q Once captured, the next stage is to prioritise requirements e.g. using a paired comparison - what do customer s rate as the top requirements? Pairwise Comparison Using AHP With customer, priorities can be established using pairwise comparison

14 Example: Hierarchy and Priority of Project Goals Primary Goals Secondary Goals Tertiary Goals Local Priority Global Priority Campaigns targetted better - >> returns on campaign costs 34.1% 10.3% Cross-product/ business selling - reduced sales costs 1.1 More Profitable Sales Campaigns 75.0% local Standard CRM Processes Across Business - Economy of Scale 30.3% global 36.4% 11.0% 20.5% 6.2% Corporate View of Sales Opportunities 9.0% 2.7% 1 Increased Return on Cost of Sales -Profit 40.4% New services achieve more sales / dev. cost 33.3% 3.4% 1.2 More Profitable Services Developed 25.0% local New services fit for multi-region deployment 10.1% global 66.7% 6.7% Reduced Complaints about irrelevant contact from company 80.0% 24.4% 2 Customer Experience of Brand Improved 38.2% Customer feels they are understood - company proactive 2.1 Intelligence About Customer Improved 80.0% local % global Information stored securely - doesn't leak elsewhere 20.0% 6.1% 66.7% 5.1% Information Storage & Distribution meets national security legislation 2.2 Customer Feels their information is safe 20.0% local % global 33.3% 2.5% Exercise 2: Organising Customer Requirements. Time Allowed: 20 minutes Group # (1,2 or 3): Group Name: Customers Represented by Group: Task: 1. Sort customer requirements into primary, secondary and tertiary requirements. Refer to your notes for stepby-step instructions. 2. Enter your customer requirements on the QFD chart in the appropriate positions. 3. Be prepared to discuss the difficulties encountered and the learning points associated with this task

15 Importance of Whats 5 = most important, 1 = Least Important Whats Customer Requirements Part 4: Building the QFD Matrix How Tos (design requirements) that help satisfy the Whats Top Roof Correlation of How Tos to How Tos Benchmark How well does competitor system satisfy the What, 5 = very well, 0 = not at all Technical Benchmark How well does competitor system satisfy the How Tos, 5 = very well, 0 = not at all Side Roof Correlation of Whats to Whats Difficulty Rating How complex/ difficult/ new is the How To, 3 = difficult, 1 = Easy 29 Prioritised Requirements Case Management System Case Management System Requirements identified in VoC Workshop with Senior Stakeholder Team The Requirements were prioritised using the paired comparison technique i.e gives ranking but not relative value. The Requirements were recorded versus the primary stakeholders 30 15

16 Customer Importance & Competitive Benchmarks Ask How well do competitor designs satisfy Customer Needs 1 = Barely 5 = Extremely well Plot at right of Matrix Areas where Customer need not met are areas where new design could win compared with competitors 31 Exercise 3: Customer Importance Ratings and Competitive Comparisons. Time Allowed: 40 minutes Task: 1. View the video again. While watching the video each individual team member should complete the customer rating chart: (a) Estimate the customer s view of the importance of each requirement on the 1 to 5 scale. (b) Estimate the customer s rating of each product on the 1 to 5 scale. 2. Note: You are estimating a numerical value for the customer ratings. You are not making a judgement on the product. 3. Average the scores for the group. 4. Double the average figure for the importance rating to give a score out of ten. 5. Fill in the results on the QFD chart. 6. What are the challenges with arriving at overall priorities? 32 16

17 Developing Product Characteristics for QFD 1 Supply team systematically identify Product Characteristics/ Design Requirements that meet CTQs For each CTQ, ask how can the design satisfy the CTQ? Do not use technology solutions 33 Developing Product Characteristics for QFD 1 Decide whether it is better for the product characteristic to increase Up arrow, hit target value (Circle) or for it to reduce (Down Arrow) 34 17

18 Technical Competitive Comparisons 35 Technical Competitive Comparisons Ask How well do competitor designs satisfy Product Characteristics 1 = Barely 5 = Extremely well Plot at foot of Matrix 36 18

19 Technical Competitive Comparisons Benchmark Area Areas where competitors don t satisfy Product Characteristics well are areas where new design could win compared with competitors 37 Exercise 4: Product or Design Characteristics. Time Allowed: 30 minutes Task: 1. For each of the first 5 customer requirements for your Group identify one or more product characteristics that are necessary to satisfy the requirement. 2. For each product characteristic classify the products on a scale of 1 to 5 (refer to the technical data sheets for information. 3. Complete the technical competitive assessment sheet on the QFD matrix. Note: It is more important to go through all the stages of the process than to produce a complete list of product characteristics. You are advised to split your time evenly between the three stages of the task

20 Correlation Matrix Product characteristics are correlated against each other the roof of the HoQ Positive Interactions open circle Strong Positive Filled Circle Negative Interactions - X Strong Negative - # Negative Interactions These are areas of technical & project risk Why? 39 Relationship Field In turn, ask how well does the product characteristic/ Design Requirement help meet the Customer Need? If it strongly helps meet the need, put in a filled circle. Value = 9. If it moderately helps, put open circle, value = 3 Weak relationship, use a triangle, value = 1 No relationship, put a dash, value =

21 Relationship Field Calculating Importance of Product Characteristics For each product characteristic, multiply importance value of Need or CTQ, times the value of the relationship (0, 1, 3 or 9) and sum this up for all of the needs. This is shown graphically at the bottom of each product characteristic column. The highest number has biggest impact on satisfying needs 41 Exercise 5: Relationship and Correlation Matrices. Time Allowed: 30 minutes Task: 1. Complete the relationship matrix for the 1 st 5 Product Characteristics. 2. Calculate the product characteristic importance rating for the 1 st four. Multiply the customer requirements importance rating by 9 for a strong relationship, 3 for a medium relationship and 1 for a weak relationship. Sum down the column. 3. Complete the correlation matrix for the first 5 product characteristics 4. Consider a target value for each product characteristic. If your team does not have the expertise to complete this task, consider who should be seconded to your team. Note: It is more important to go through all stages of the process than to complete any one part of it. You are advised to split your time evenly between the four stages of the task

22 Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder Groups Requirement Requireme nt Requireme nt Requireme nt Requireme nt Requireme nt By Stakeholder Design Requirements How Tos Benchmark Commercial in Confidence JC/KS 15/11/07 V1.1 Copyright CSC 2007 Exercise 6: Analysing the Chart. Time Allowed: 60 minutes Task: Review the Handout of the Completed Matrix for your group to: 1. Identify any blank rows or columns. 2. Identify major conflicts that must be resolved. 3. Identify any customer requirements to be developed in more detail. 4. Identify opportunities in the market place. 5. Present a five-minute summary of your conclusions without referring to QFD. 43 Design For Six Sigma Framework including Traditional QFD SYSTEM SCOPE DEFINITION SIPOC (PROCESS ANALYSIS & STAKEHOLDER VALIDATION) STAKEHOLDER REQ S. ANALYSIS HOUSE OF QUALITY (CUSTOMER TO SOLUTION REQ S. PRIORITISATION) Voice of the Design Team DESIGN CONVERGENCE ANALYSIS SYSTEM & Sub-System SCOPE DEFINITION & Context Supplier Supplier Supplier Supplier Supplier Input Input Input Input Process Output Output Output Output Customer Customer Customer Customer Customer Customer Paired Comparison Prioritisation Paired Comparison Prioritisation Conflicting and supporting o n Functional Groups/ Architecture Correlation Comparison PARALLEL DESIGN ACTIVITY (Inc. ConOps) Designs Prioritised design requirements Supplier Sub-Process SIPOCs Customer Customer / Ranked Stakeholders Stakeholder Requirements Sub- Component QFDs FMEA Best Design Business Use Cases Optimising Design Mitigating Risks Optimised Solution Spec s. REQUIREMENTS & Use Case DATABASE MODELLING & SIMULATION Traditional Matrix QFD at the Heart of DFSS Framework After: K.E. Stansfield, J. Cole and G. H. Mazur, Complex IT System Design Using Traditional QFD and Blitz QFD, 22nd QFD Symposium, Oregon, September

23 Traditional QFD Problems & Challenges Problems with Traditional QFD: Assumes customer understands critical requirements Prioritisation Rank Order not relative scale Often becomes too large & complex if used by inexperienced staff Often doesn t start with Customer Needs Why Blitz QFD? Time and resource poor environments e.g. Agile Software Development see Zultner [*] AHP Prioritisation based on relative value of contribution to higher level Goals/ Requirements not just rank order Understand who the key customers and users are and what is critical to them Understand mission critical processes Focus on critical needs understand how to transform customer experience efficiently & effectively [*] Zultner, Richard E. Project QFD Managing Software Development Projects, Transactions of the 9th Symposium on QFD. QFD Institute. ISBN ,

24 Marriott Host - Background In business 100 years Food and Beverage & retail merchandise in airports and travel plazas 70% of market in mid-1990s ($1.2 billion p.a.) 2000 stores in 170 locations But market stalling, growth killed by 911 and profit dwindling Copyright 2009 QFD Institute Marriott Host Traditional Product/ Service Development Define Project Success Copyright 2009 QFD Institute 24

25 Marriott Host Why Change? Define Project Success Copyright 2009 QFD Institute Project Goals prioritization Project Goals CS AS LL PI WR priority CS Customer Satisfaction AS Associate Satisfaction 1/ LL Landlord Satisfaction 1/7 1/5 1 1/ PI Profit Improvement 1/5 1/ WR Win & Retain Contracts 1/9 1/7 1/3 1/ st level or project goals, prioritized with AHP to get accurate, ratio-scale priorities pairwise evaluations for input directly applicable to a hierarchy of items Also measures judgment inconsistency Inconsistency Ratio 0.05 Define Project Success Copyright 2009 QFD Institute 25

26 Project Goals Project Goals Hierarchy diagram Primary Secondary Price Value CS Customer Satisfaction Increase Bulk Sales increase to 90% Improve Revisit Intent Enjoy Selling AS Associate Satisfaction Easy Delivery increase retention rate to 25% Increased Productivity Easy to Produce Tertiary subobjectives, or enabling tasks not shown CAP Improved Capture SAL Increased Sales PI Profit Improvement COP Good Product Cost increase to 15% WAS Less Waste HLD Good Hold Times added LL WR Landlord Satisfaction Win & Retain Contracts Define Project Success Copyright 2009 QFD Institute Customer Voice Table - Structure Define Project Success Copyright 2009 QFD Institute 26

27 Customer Voice Table - Structure Copyright 2009 QFD Institute Maximum Value Table - Steps Copyright 2009 QFD Institute 27

28 Maximum Value Table - Simplified Copyright 2009 QFD Institute Modern House of Quality For Bagel Copyright 2009 QFD Institute 28

29 Mkt. Strategy & Business Goals Strategy & Market Segments Copyright QFD Institute What is success for this project? QFD Green Belt Modern QFD Based on Blitz QFD Process flow diagram key project goal Which customer segment is key for this goal? Revised: 22 October 2008 key customer segment Gather the voices of your customers : what they say and do Define Customer Needs Customer Process model Go to gemba clarified items customer tasks, problems Customer Voice table items Analyze the true customer needs customer needs Affinity diagram needs Structure the customer needs structured customer needs Hierarchy diagram Analyze customer needs structure Matrix-lite QFD! Idea Generation Analytic Hierarchy Process priorities Prioritize customer needs high-value customer needs needs Maximum Value table items Deploy prioritized customer needs tasks Downstream Deployments (7MP+ Tools) product concepts image issues high-value items Concept Development Customer Needs Technical Innovation Lifestyle Deployment HoQ DPT optional TRIZ/ GTI Kansei Functional Requirements QPT optional Customer & Technical Competitive analysis To Design Deployments essential tasks Schedule Deployment CC PM These workshop materials are the intellectual property of the QFD Institute, which owns all the rights to these materials and any derivations thereof. These materials are for the exclusive use of workshop participants ONLY. Copyright QFD Institute. All rights reserved. problems Process Six Improvement Sigma Analyze [only] important issues in detail Modern QFD Blitz QFD * Modern QFD Exercise 7: Creating a Modern House of Quality Using Agile QFD Time Allowed: 40 Minutes Task: You are running a Blitz QFD exercise to focus on key customer needs for design of the British WWII fighter. You will be divided into your groups representing 1) Combat Performance of the aircraft, 2) General Handling of the Aircraft, and 3) Manufacturing, service and maintenance. Task: Part 1: For your group, identify on the Customer Voice Table template: 1) Up to 5 Needs using the left hand side of the table i.e. fill in the Customer Segment, Characteristics, Tasks, Problems and needs section 2) Prioritise the needs as a group using the simplified pairwise ranking system Part 2: Develop the right hand side of the table creating the matching solution characteristics and solution technology Part 3: Represent the results of parts 1 & 2 in a Modern House Of Quality Matrix 58 29

30 Emerging Applications of QFD Complex IT Systems Business Strategy Marketing Strategies Social Policy Design Educational Curricula App development Barriers to QFD Adoption Compartmentalised view of Quality Senior Management perceptions: technical / quality, too complex, too slow Focus on speed, not quality efficiency, not effectiveness Belief that QFD is more costly than haphazard, suck it and see approach. 30