Portfolio Activity Unit 6

BUS 5116-01 Operations Management - AY2024-T3

Group 0002

Maciej Olek

Dr. Derrick Randall

12 March 2024
Quality Function Deployment (QFD) is a strategic methodology employed in product

development, aiming to bridge the gap between customer expectations and product design. At

the heart of QFD lies the "house of quality," a pivotal tool that orchestrates the translation of

customer needs into tangible product features. This structured framework facilitates the

alignment of organizational objectives with market demands, fostering inter-functional

collaboration and driving continuous improvement throughout the product lifecycle.

The "house of quality" serves as a central component of Quality Function Deployment (QFD),

encapsulating key features that facilitate the translation of customer needs into product

development goals, technical capabilities, and improved product designs.

Salient Features of the House of Quality:

1. Customer Requirements: The left vertical side of the matrix delineates customer

requirements, derived from market research and articulated in measurable terms.

These requirements serve as the foundation for subsequent stages of the QFD process.

2. Design Evaluation Criteria: Across the top horizontal row of the matrix lie design

evaluation criteria, representing the technical characteristics necessary to meet

customer requirements. These criteria are carefully chosen to be measurable and

aligned with customer expectations.

3. Relationships: The matrix enables the identification of relationships between customer

requirements and design characteristics. Through cross-functional collaboration, teams

prioritize these relationships, facilitating informed decision-making and tradeoffs in

product design.

4. Competitive Analyses: QFD incorporates competitive analyses to benchmark products

against competitors and establish target values for design requirements. This step
 ensures that product development goals are competitive and aligned with market

demands (Dean and Bowen, 1994).

Translation of Customer Needs into Product Development Goals:

The house of quality serves as a structured framework for translating customer needs into

actionable product development goals. By systematically capturing customer requirements

and aligning them with technical specifications, organizations can prioritize features that are

most critical to customer satisfaction (Dean and Bowen, 1994).

Translation into Technical Capabilities:

Through the QFD process, customer requirements are translated into technical capabilities by

identifying design characteristics that fulfill those requirements. This alignment ensures that

product designs are technically feasible and aligned with customer expectations, enhancing

the likelihood of successful product development (Dean and Bowen, 1994).

Translation into Improved Product Designs:

The iterative nature of the QFD process allows for continuous improvement in product

designs. By incorporating feedback from customer requirements, design evaluations, and

competitive analyses, organizations can refine product designs to better meet customer needs

and market demands, ultimately resulting in improved product quality and customer

satisfaction (Dean and Bowen, 1994).

Quality Function Deployment (QFD) serves several key goals aimed at improving product

development processes and enhancing customer satisfaction. Additionally, QFD fosters inter-

functional coordination within organizations, aligning diverse departments towards common

objectives.
Goals of QFD:

1. Customer Focus: The primary goal of QFD is to ensure that the voice of the customer

is incorporated into all stages of product development. By capturing and prioritizing

customer requirements, organizations can create products that better meet customer

needs and expectations (Hauser and Clausing, 1988).

2. Cross-Functional Collaboration: QFD aims to break down silos within organizations

by fostering collaboration between departments such as marketing, engineering,

manufacturing, and quality assurance. Through cross-functional teams, QFD ensures

that all stakeholders contribute their expertise towards achieving common product

development goals (Hauser and Clausing, 1988).

3. Alignment of Objectives: QFD helps align organizational objectives with customer

needs by translating customer requirements into actionable design characteristics and

technical specifications. This alignment ensures that product development efforts are

focused on features that provide the most value to customers (Hauser and Clausing,

1988).

4. Continuous Improvement: Another goal of QFD is to promote continuous

improvement in product quality and customer satisfaction. By incorporating feedback

from customers and stakeholders, organizations can iteratively refine product designs

and processes to drive ongoing improvement (Hauser and Clausing, 1988).

Enhancement of Inter-Functional Coordination:

QFD enhances inter-functional coordination within organizations through several

mechanisms:

1. Structured Communication: QFD provides a structured framework for communication

and collaboration between departments. The house of quality matrix, for example,
 facilitates the systematic exchange of information between marketing, engineering,

and other functions, ensuring that all stakeholders have a clear understanding of

customer requirements and design priorities (Hauser and Clausing, 1988).

2. Shared Understanding: By involving representatives from different departments in the

QFD process, organizations create a shared understanding of customer needs and

product development goals. This shared understanding helps align departmental

objectives and fosters a sense of collective ownership over the product development

proces (Hauser and Clausing, 1988).

3. Cross-Functional Teams: QFD encourages the formation of cross-functional teams

tasked with driving product development initiatives. These teams bring together

individuals with diverse expertise and perspectives, facilitating holistic decision-

making and problem-solving (Hauser and Clausing, 1988).

Quality Function Deployment (QFD) plays a crucial role in creating and enhancing a firm's

competitive advantages by aligning product development processes with customer needs and

market demands.

Applicability of QFD in Creating Competitive Advantages:

1. Customer-Centric Product Development: QFD allows firms to prioritize customer

requirements and incorporate them into product design and development processes. By

understanding and addressing specific customer needs, firms can create products that

offer unique value propositions and differentiate themselves from competitors (Hauser

& Clausing, 1988).

 Example: Toyota's successful implementation of QFD enabled the company to design

vehicles that catered to diverse customer preferences, resulting in a competitive edge

in the automotive market.

2. Speed to Market: QFD streamlines product development processes by facilitating

efficient communication and decision-making across functional teams. By accelerating

time-to-market, firms can gain a first-mover advantage and capture market share

ahead of competitors (Dean & Bowen, 1994).

Example: Apple's use of QFD in developing the iPhone allowed the company to

introduce innovative features quickly, staying ahead of competitors and establishing

itself as a market leader in the smartphone industry.

3. Continuous Improvement: QFD fosters a culture of continuous improvement by

incorporating feedback from customers and stakeholders into product development

cycles. By iteratively refining product designs and features, firms can maintain

relevance in dynamic markets and stay ahead of evolving customer preferences Hauser

& Clausing, 1988).

Example: Procter & Gamble's application of QFD in developing consumer products

enabled the company to continually enhance product quality and adapt to changing

consumer trends, strengthening its competitive position in the consumer goods

industry.

In summary, the house of quality in QFD provides a structured approach to align customer

needs with product development goals, technical capabilities, and improved product designs,

ultimately driving organizational success and customer satisfaction. Through structured

communication, shared understanding, and cross-functional collaboration, QFD enhances

inter-functional coordination within organizations, driving collective efforts towards

achieving common product development goals. Through the systematic integration of

customer requirements into product design and development processes, firms can differentiate

themselves in the market, achieve faster time-to-market, and maintain a competitive edge

through ongoing innovation and refinement.

References:

1. Dean, J.W. and Bowen, D.E. (1994) Management Theory and Total Quality:

Improving Research and Practice through Theory Development. Academy of

Management Review, 19, 392-418.

2. Hauser, J. R., & Clausing, D. P. (1988). The house of quality. Harvard Business

Review, 66(3), 63-73.