Translating Customer Expectations
with Quality Function Deployment
(QFD)
Sheryl Vogt
Vogt Consulting, Inc.
April 24, 2013
Agenda
Welcome
Introduction of MBB Webcast
Series
Larry Goldman, MoreSteam.com
Todays Session
Sheryl Vogt, Vogt Consulting
Open Discussion and Questions
MoreSteam.com
Founded in 2000
Trained 400,000 Lean Six Sigma
professionals
Served over 2,000 corporate customers
(including 50+% of the F500)
First firm to offer the complete Black Belt
curriculum online
Courses reviewed and approved by ASQ
and PMI
Academic Partnerships with Ohio State
University, Cal Poly and George
Washington University
3
Todays Presenter
Sheryl Vogt
President, Vogt Consulting, Inc.
Develops and delivers LSS programs and
training for manufacturing, service,
healthcare, and government organizations.
Mentored hundreds of Black and Green
Belts on their projects.
Previously worked as a Black Belt and
Master Black Belt for GE.
B.S. in Mechanical Engineering and M.S. in
Industrial Engineering Purdue University
4
Todays Topic Simple QFD
Quality Function Deployment (QFD) is a
complex but powerful tool that is used for
product development
Today we will focus on a simplified version that
can be used for process design
QFD Simplified for Process
History and purpose of Quality Function
Deployment (QFD)
Simplified version that can be used for process
design
Some examples
History of QFD
Developed in the 1960s by two professors in
Japan
Purpose was to design customer satisfaction
into products
Refined in 1970s
Caught on in the US in the 1980s and 90s for
product design
House of Quality
Importance
Competitive
Goals/Targets
The House of Quality
Action
Competitive Data
Complaints
Importance
Customer Needs
Requirements
Quality Function
Deployment (QFD) is
recognized for the matrix
which translates customer
requirements (the voice of
the customer) into technical
requirements
The matrix is often referred
to as the house of quality.
Why is QFD Good?
Its a Translation Tool
Translating Customer Requirements
Customer Needs
Y=f(x)
Customer Requirements
Functional Requirements
Y=f(x)
Design Specs
Process Specs
Y=f(x)
Y=f(x)
Produce
Customers are Hard to Understand
Great Tool but
Very long and tedious method
Correct application requires rigor and time
Hard to translate from product to process
Typical Team Reaction
Had this experience?
Adapting Tools to our Needs
QFD is a great tool for
product development
or even complex
process development
Most of us spend more
time on small pieces of
internal processes
Simplified Approach
What if we could apply the idea in a
much simpler way?
Translate customer requirements
without confusing out teams
Lets make the tool work for us, not
us working for the tool
A Translation Tool
CUSTOMER NEEDS
CUSTOMER REQUIREMENTS
DESIGN
SPECIFICATIONS
IMPORTANT
DIFFICULT
NEW
HIGH
RISK
QFD is actually more than one
matrix. It is a whole process of
translating customer requirements
into specifications.
PROCESS SPECS
Produce
Y=f(x)
IMPORTANT
DIFFICULT
NEW
HIGH
RISK
PROCESS
SPECIFICATIONS
DESIGN
SPECIFICATIONS
Y=f(x)
REQUIREMENTS
HIGH
RISK
DESIGN SPECIFICATIONS
TEHCNICAL
Y=f(x)
IMPORTANT
DIFFICULT
NEW
FUNCTIONAL REQUIREMENTS
TECHNICAL
REQUIREMENTS
CUSTOMER
REQUIREMENT
CUSTOMER
NEEDS
CUSTOMER
REQUIREMENTS
Y=f(x)
IMPORTANT
DIFFICULT
NEW
HIGH RISK
A Translation Tool
CUSTOMER NEEDS
CUSTOMER REQUIREMENTS
DESIGN
SPECIFICATIONS
IMPORTANT
DIFFICULT
NEW
HIGH
RISK
QFD is actually more than
one matrix. It is a whole
process of translating
customer requirements into
specifications.
PROCESS SPECS
Produce
Y=f(x)
IMPORTANT
DIFFICULT
NEW
HIGH
RISK
PROCESS
SPECIFICATIONS
DESIGN
SPECIFICATIONS
Y=f(x)
REQUIREMENTS
HIGH
RISK
DESIGN SPECIFICATIONS
TEHCNICAL
Y=f(x)
IMPORTANT
DIFFICULT
NEW
FUNCTIONAL REQUIREMENTS
TECHNICAL
REQUIREMENTS
CUSTOMER
REQUIREMENT
CUSTOMER
NEEDS
CUSTOMER
REQUIREMENTS
Y=f(x)
IMPORTANT
DIFFICULT
NEW
HIGH RISK
Components of the House of Quality
8
Importance
Competitive
Goals/Targets
Action
Competitive Data
3
Complaints
Importance
Requirements
Customer Needs
1. Identify Customer Needs
2. Competitive Comparison of
Customer Ratings
3. Measurable Customer
Requirements
4. Correlations
5. Calculated Importance
6. Competitive Benchmarks
7. Target Limits
8. Measurement Conflicts
Simplified House of Quality
8
Importance
Competitive
Goals/Targets
Action
Complaints
Importance
Competitive Data
Requirements
Customer Needs
1. Identify Customer Needs
2. Competitive Comparison of
Customer Ratings
3. Measurable Customer
Requirements
4. Correlations
5. Calculated Importance
6. Competitive Benchmarks
7. Target Limits
8. Measurement Conflicts
HOWs - Product
Features
WHATs - Customer
Needs
Importance: 5 High, 1 Low
Similar to C&E but Not Quite
Feature Raw Score
Feature Rank
Target
HOWs - Product
Features
WHATs - Customer
Needs
Importance: 5 High, 1 Low
Critical Elements
Feature Raw Score
Feature Rank
Target
Needs, Requirements, and Specifications
Focus Today
Needs Something a Customer would say they wanted
you could hear this coming from a customers
mouth
Requirements Something measurable you can tell
how you are doing in comparison but generic
doesnt imply a solution
Specifications Something measurable from a
specific design or process design parameters and
process parameters
Examples
RESPONSIVENESS
MINUTES ON HOLD
EASY TO ERASE
AUTOMATIC ROLL-OVER
PRESSURE TO ERASE
Product is
a Pencil
Service is
a Call Center
ROLLOVER IN 2 MIN
ERASER
ERASER (SOFTNESS)
ERASER HOLDER (TENSION)
HOWs - Product
Features
WHATs - Customer
Needs
Importance: 5 High, 1 Low
Customer Needs
Feature Raw Score
Feature Rank
Target
What are Customer Needs
A complete set of customer wants and
needs
Expressed in their own language
Organized into a hierarchy
Prioritized by importance and current
performance or satisfaction
Voice of the Customer is both
qualitative and quantitative
Capturing Customer Needs
Look for existing information
Historical data
Complaints
Standards and Regulation
System specifications
Conduct Surveys
Conduct Team Meetings and Focus Groups
Conduct individual interviews
Do you know what data you already have?
Mixed messages
Laptop wish-lists: Customer Needs, Functional
Requirements or Design Specifications?
Light
Fits onto Airplane table, with
space for my diet Pepsi
Easy to carry
At least 2 GHz
Enough space for all of my
software
No cheap plastic housings
8X DVD+/-R/RW drive
No sweat or tears operation
Intel Core i3
Bright Screen
At least 1366 x768
resolution
Fast
6 cell Lithium-Ion battery
An easy to use mouse
Minimum 500 Gigabytes
Hard disk space
Free game software
As small as possible
Doesnt run out of juice
Mixed messages
Laptop wish-lists: Customer Needs, Functional
Requirements or Design Specifications?
Light
Fits onto Airplane table, with
space for my diet Pepsi
Easy to carry
At least 2 GHz
Enough space for all of my
software
No cheap plastic housings
8X DVD+/-R/RW drive
No sweat or tears operation
Intel Core i3
Bright Screen
At least 1366 x768
resolution
Fast
6 cell Lithium-Ion battery
An easy to use mouse
Minimum 500 Gigabytes
Hard disk space
Free game software
As small as possible
Doesnt run out of juice
Mixed messages
Laptop wish-lists: Customer Needs, Functional
Requirements or Design Specifications?
Light
Fits onto Airplane table, with
space for my diet Pepsi
Easy to carry
At least 2 GHz
Enough space for all of my
software
No cheap plastic housings
8X DVD+/-R/RW drive
No sweat or tears operation
Intel Core i3
Bright Screen
At least 1366 x768
resolution
Fast
6 cell Lithium-Ion battery
An easy to use mouse
Minimum 500 Gigabytes
Hard disk space
Free game software
As small as possible
Doesnt run out of juice
Mixed messages
Laptop wish-lists: Customer Needs, Functional
Requirements or Design Specifications?
Light
Fits onto Airplane table, with
space for my diet Pepsi
Easy to carry
At least 2 GHz
Enough space for all of my
software
No cheap plastic housings
8X DVD+/-R/RW drive
No sweat or tears operation
Intel Core i3
Bright Screen
At least 1366 x768
resolution
Fast
6 cell Lithium-Ion battery
An easy to use mouse
Minimum 500 Gigabytes
Hard disk space
Free game software
As small as possible
Doesnt run out of juice
Needs or Requirements
Its our job to sort that out
Affinity Diagrams or CTQC trees
are helpful tools
VOC Affinity Diagram
Break for Questions ( and snacks)
33
Importance: 5 High, 1 Low
WHATs - Customer
Needs
HOWs - Product
Features
Entering Customer Needs
Needs Something a Customer would say they wanted
you could hear this coming from a customers mouth
but not measureable or specific
Importance: 5 High, 1 Low
WHATs - Customer
Needs
HOWs - Product
Features
Entering Customer Needs
Dont forget
the
importance
rating
Relative Importance of Needs we usually use a scale of
1-5 or 1-10. (You may need to understand which
customers matter most before you do this)
HOWs - Product
Features
WHATs - Customer
Needs
Importance: 5 High, 1 Low
Requirements
Feature Raw Score
Feature Rank
Target
What is a Customer Requirement?
Something that measures whether the
customer need is met
Not a solution, but may point the way to
solutions
Should not be design / implementation
specific
What measures might the customer use to
determine whether the need is met?
Sometimes we get many of these in our VOC
Developing the List
Use tools to group like needs together & identify
high level requirements
Affinity diagram
Tree diagram
Make sure requirements are clearly
stated
Try to keep requirements to five words
or less
Brainstorm (this is the creative part)
Need to a Customer Requirement
Customer requirements means customer needs
translated into quantified characteristics CTQs or CTSs
Fast
Service
Business
Goal
5 or better
performance
Measure
Functional
Requirement
(Product/Process/
Service
Characteristic)
Target/
Nominal
Value
Cycle Time
Specification/
Tolerance
Limit(s)
From
Request to
Response
5 Days
+/- 3 Days
Customer Need + Measure + Target
Entering Customer Requirements
Requirements Something measurable you
can tell how you are doing in comparison but
generic doesnt imply a solution
HOWs - Product
Features
WHATs - Customer
Needs
Importance: 5 High, 1 Low
Similar to C&E but Not Quite
Feature Raw Score
Feature Rank
Target
Relationship Score
Scoring is like the C&E Matrix
1, 3 and 9
The criteria for each score:
Blank = No relationship
1 = The customer requirement only remotely
affects the customer need
3 = The customer requirement has a moderate
effect on the customer need
9 = The customer requirement has a direct and
strong effect on the customer need
Requirements Rating
Rate the customer requirements by multiplying the
customer need rating with the relationship score and
summing by customer requirement.
QFD Results Requirement Weights
Pareto Chart showing Importance of Measures
2500
80
1500
re
60
1000
40
500
20
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New Process Goals
Score
Percent
Cum %
443.8 431.5 254.8 221.9 193.2 134.2 123.3 119.2 86.3 75.3 74.0 61.6
20.0 19.4 11.5 10.0 8.7 6.0 5.6 5.4 3.9 3.4 3.3
2.8
20.0 39.4 50.9 60.9 69.6 75.7 81.2 86.6 90.5 93.9 97.2 100.0
Percent
100
2000
One Last Step
Customer requirements means customer needs
translated into quantified characteristics CTQs or CTSs
Fast
Service
Business
Goal
5 or better
performance
Measure
Functional
Requirement
(Product/Process/
Service
Characteristic)
Target/
Nominal
Value
Cycle Time
Specification/
Tolerance
Limit(s)
From
Request to
Response
5 Days
+/- 3 Days
Customer Need + Measure + Target
Simplified QFD Results
Now we have translated our Customer Voices
into something we can measure how well our
new processes will meet the needs of our
customers.
Examples
Quick Process Time
Efficient
++
Best Margins
++
Aligns with Business
Importance: 5 High, 1 Low
+++ +++
++
+++
+++ +++ +++
+++
+
Appropriate Approval
+++ +++
+++ +++
++
Complete Information
Compliant to Internal and SO
Accurate Margin
Redundancy
+++ +++ +++
Meets Compliance
3. Increase
amount of
value added
time
Value Added Time
2. Accurate
margin
projections
WHATs - Customer
Needs
Cycle Time Request to
Response
1. Completeness
of information
HOWs - Product
Features
Quote Approval Process
++
Feature Raw Score
60
75
67
82
55
147
63
Feature Rank
Target
Customer Need
1 Open Communication
2 Buy-in
3
4 Valid Selection Process
5 Sustainable Results
Complete
Information
Communicated
Management
Support
Employee
Involvement
Benefits easy to
understand
Visability of
benefits
Data Supported
Selection
Involvement from
PDC's on
Selection
Data Supporting
Improvement of
Metrics
3
9
9
9
9
9
9
9
3
9
3
3
3
9
1
1
9
9
3
3
1
1
1
1
9
9
9
9
3
9
3
9
9
3
9
3
9
1
3
3
3
9
3
3
252
252
192
144
144
180
108
168
108
56
1
2
3
4
5
6
7
8
9
10
Feed Back on
Practice Sharing
Communicattion
Communication
totoall
all affected
affected
parties
parties
10
4
Timely
Communication
Total
Priority Ranking
8
6
92
Best Practice Sharing
11
Summary
QFD (Quality Function Deployment) is a very
powerful tool to translate the customer voice into
something measureable
We can use a simplified version in smaller process
design projects
The result is a good translation of customer needs
that teams can do easily and much more quickly
Thank You for Joining Us
51
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52
Resource Links and Contacts
Questions? Comments? Wed love to hear from you.
Sheryl Vogt, President Vogt Consulting
[email protected]Larry Goldman, Vice President Marketing MoreSteam.com
[email protected]Watch for upcoming programs throughout the year!
Archived presentations and other materials:
http://www.moresteam.com/presentations/
53
