Executive Summary

Operation Management is one of the key courses we are studying in the second half of bachelors
program. The course will be very helpful in learning the transformation process comprising the
effective use of inputs in order to achieve the standard output. Enhancing the creativity of the
students and to prepare them for the challenges ahead in their future life is the objective of this
course. For this purpose short individual projects were given to the whole of class. The goal of
the project is to enable us to understand the HOQ or “House of Quality”. My part is to develop
House of Quality for ATM or Automated Teller Machine. Through house of quality i will show
what customers demand regarding ATMs and how engineers will make these demands possible
into reality. The House of Quality has five steps. First is to gather information about the demands
of the customers through various research methods and instruments. The next step will be
conversion or translation of customer demands into technicalities required according to the
engineer. The relationship matrix is developed after developing Voice of Engineer. The
relationship matrix will show the link between Voice of Customers and Voice of Engineer. Roof
will be developed after the relationship matrix. Roof will compare factors related to Voice of
Engineer with each other. After developing Roof, Planning matrix can be drawn. The planning
matrix will eventually help in acting to customer feedback.
 ATM: House of
Quality
1. Overview of our company

NCR Corporation is a technology company specializing in solutions for the retail and check
processing systems, barcode scanners, business consumables and high-powered data warehousing
systems. They also are one of the largest providers of IT maintenance support services.

The company was founded in 1884 and acquired by AT&T in 1991. A restructuring of AT&T in
1996 led to NCR's re-establishment on 1 January 1997 as a separate company, On 26 January
2006, the company reported revenue of $6.028 billion for the twelve months ending 31 December
2005.

Automated Teller Machines (ATMs) are now arguably NCR's principal product line. NCR had
made its first ATM in the late 1970s, but it was not until the Model 5040, developed at its Dundee
plant in Scotland and introduced in 1983 that the company began to make serious inroads into the
ATM market. Subsequent models included the 5084, 56xx series and the current 58xx (Personas)
series. NCR currently commands over a third of the entire ATM market, with an estimated $18
trillion being withdrawn from NCR ATMs every year. NCR is no.1 in ranking of ATM
manufacturers worldwide.

The product projected in the next steps will be the latest in market for NCR Corporation and it
will be based on “Quality Function Deployment” based on the demands of customer and its
transformation in technicalities is provided by the engineers.

2. Competitors of our ATM

The two major competitors of NCR Corporation are Diebold, Inc & Wincor Nixdorf. These
companies are discussed briefly in the following lines:

Diebold, Inc. (pronounced DEE-bold) is a United States-based security systems corporation that
is engaged primarily in the sale, manufacture, installation and service of self-service transaction
systems (such as ATMs), electronic and physical security products (including vaults and currency
processing systems), voting machines, and software and integrated systems for global financial
and commercial markets. Diebold was incorporated under the laws of the State of Ohio in August

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1876, The existing product line in ATMs of Diebold is Diebold i-Series ATMs and Diebold
Opteva ATMs.

Wincor Nixdorf Founded by Heinz Nixdorf, Nixdorf Computer AG was formed in 1952. In 1990
the company was purchased by Siemens AG and renamed Siemens Nixdorf Information system.
The company was re-focused exclusively on its current product set in 1998 and renamed Siemens
Nixdorf Retail and Banking Systems GmbH. On October 1, 1999, the company was renamed
Wincor Nixdorf is a corporation that provides retail and retail banking hardware, software, and
services. Wincor Nixdorf is engaged primarily in the sale, manufacture, installation and service of
self-service transaction systems (such as ATMs), retail banking equipment (such as passbook
printers), lottery terminals, software and services for global financial and commercial markets.

3. HOQ/House of Quality for our ATM

3.1 Design Objectives

o What customers think about your product?

o What are our strengths and weakness?
o How to fulfill customer demand?
o What are the changes and innovations required?

3.2 Project Schedule

Considering time constraint was an important part to be taken care of; in order to complete the
project in the given time. Time allocation for various steps involved in developing “House of
Quality” for an ATM is done as follows:

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Activities Time Taken Activity start@

1. Information Gathering 1 day September 18, 2007

2. Collecting VOC 2 days September 19, 2007

3. Changing VOC into VOE 2 days September 21, 2007

4. Developing Relationship b/w VOC and VOE 3 days September 23, 2007

5. Developing The Roof of HOQ 2 days September 26, 2007

6. Drawing Planning Matrix 2 days September 28, 2007

7. 1st Draft 1 day September 30, 2007

8. Editing Required 1 day October 1, 2007

9. Final Draft 1 day October 2, 2007

Fig. 1 Project Schedule

3.3 Steps in developing House of quality

3.3.1 Voice of Customer:

The world's first ATM was installed in a branch of Barclays in Enfield,

Middlesex, in 1967. The ATM got smaller, faster and easier over the years. NCR stands first in
the ranking of ATMs manufacturer, the reason behind the success of NCR range of ATMs is their
customer centred philosophy through which they are getting regular feedback about their
products in the market and changes required for the improvement. NCR is able to know the
customer response through various channels that are discussed below:

1. Questionnaire survey:

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 ATM: House of
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A formal questionnaire was developed related to customer feedback about the NCR current
product ranges in the market. A healthy percentage of questions included in questionnaire were
related to the customer preferences, and an open ended question was also given for customers if
they want to suggest something to company that can help in improving the quality of their
products.

2. Online complaints and Feedback:

Customers were given option of giving their feedback about NCR’s ATMs; as well as any
complaint regarding them.

3. Maintenance Department:

Data can also be collected through the maintenance departments as they have past records about
the complaints made about the discrepancies in the product.

4. Operating staff: Operating staff of the ATMs can also be reached in order to gather data about
the problems they found in the ATM operations. After using the above methods we manage to
gather the data on customer’s responses. By organizing the data into a meaningful whole we are
able to generate VOC or Voice of Customer.

Voice of Customer

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 ATM: House of
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 Performance

Primary Secondary Importance

1. Fast processing 3

Performance 2. Secure transactions 1

3. 24*7 transactions 2

1. Multi-language Menu 5

Usability 2. Voice Directions in Major Languages 6

3. Touch system 7

4. Guidelines option in Menu 8

1. Bill payment 9

Utilities 2. Cash Deposit 10

3. E-shopping 12

4. Cash Transfer 11

5. Choice of Selection of Denominations 4

 Fast Processing

After analyzing the data collection, the customer gave a healthy weightage to the fast processing
in the ATMs. Actually there are ATMs that hang while processing. The reason behind this can be
processor speed, software problem or incompatibility.

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 ATM: House of
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 Secure Transactions

Secure transactions ranked at the top in customer priority list. There have been such cases in
which cards ATM cards were used by unauthorized persons or person having ATM card was
forced on gunpoint to draw cash out of his account through ATM. Certain measures can be taken
to enhance the security of ATM transactions. These measures can be face recognition, built-in
camera in ATM capturing snap of the person using ATM and scanners.

 24*7 transactions

Customers complained about the non-availability of ATMs 24 hours and seven days a week.
Sometime shortage of electricity in developing and under-developed countries, and cash shortage
in ATM are the reasons behind this problem. This problem can be solved by placing a generator
in case of un-availability of electricity and using in JIT (Just in Time) Approach for supply of
Cash in ATM cash box.

 Usability

 Multi-Language Menu

Customer survey enabled us to find that understanding language can be a problem for the people
that are not literate or they don’t know English Language. This can also be a reason behind the
wide acceptance of ATMs worldwide. So solution for this to provide menu in major regional
languages of the area in which ATM is installed.

 Voice Directions in major languages

Voice Directions can be used in order to facilitate the individuals especially those who are
visually impaired. For this the software can be used.

 Touch Screens

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 ATM: House of
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Touch Screen in addition to the keys was also given good importance level by the respondents. In
order to provide touch system facility some hardware changes such as touch screen LCDs and
software modifications can be used.

 Guidelines options in Menu

Survey revealed that new users are facing some difficulty in understanding the use of ATM. In
order to overcome this problem Guidelines option can be added in Menu by which new users will
be able to first understand the use of ATM and then to use it. Guideline Options can be added
with the help of Software Modification.

 Utilities

Data collection helped us in finding new ways to make new innovations in ATMs. These changes
can be

 Bill Payment

Good percentage of respondents in their feedback revealed that they really hate paying utility
bills in banks, post offices by waiting in a line to wait for their turn; that not only reduces their
energy level but also waste a lot of time. So they demanded for a system that gave their opinion
that there should be facility in ATMs to pay utility bills through their Debit and Credit cards by
giving their connection number and primary details. This can be provided by company through
hardware, software and networking changes.

 Cash Deposit

Users gave opinion in survey that ATMs should be provided with facility of cash deposit in
addition to cash receipt. In order to fulfill voice of customer in this case physical, hardware,
software, networking changes are required. These changes can be High quality scanner to identify
currency counting only the valid currency and giving back the invalid currency, network

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 ATM: House of
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affiliations with the banks in country through internet, software changes to make the deposit
possible.

 E-shopping

Some respondents also demanded that selected ATMs should be provided with facility of e-
shopping to the customer by inserting your credit or debit card in ATM. In order to fulfill voice
of customer in this case physical, hardware, software, networking changes are required.

 Cash Transfer

Users gave opinion in survey that ATMs should be provided with facility of cash transfer from
one account to another. Voice of customer in this case can be met by software and networking
changes are required. In this case like cash deposit affiliations are required with the other banks.

 Choice of Selection of Denominations

Some respondents demanded that ATMs should provide users with the facility with the help of
which customers can withdraw cash in their desired denominations. In order to provide this
company has to bring about some changes such software changes, cash supply changes as well s
hardware changes.

3.3.2. Voice of Engineer:

After getting the voice of customer through their feedback, their

suggestions and complaints. Now it’s the duty of organization to convert that voice of customer
into voice of organization or voice of engineers.

In this step, those changes will be discussed which are to be done in order to fulfill the demands
of customers. Engineers will find in this step the demands to be fulfilled are feasible or not from
an engineer and organization prospective. Changes can be in Hardware, software, network
components will be made where needed. Here is list of some of the materials and operations to
be performed.

Voice of Engineer

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 ATM: House of
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Hardwares Softwares Supply

Changes

Process Network Touc Menu Voice Face- Operati Securit C Generat

or compone h Generati generati Recogniti ng y ash ors
nts scre on on on System Ensuri Box
en Software softwar Software ng
e (OS) Softwa
(MGS) (FRS) re
(VGS)
(SES)

Fig.3 Voice of Engineer

Components for VOC

Following are the changes required in order to improve the quality and to provide the features as
per demanded by the customer.

Hardwares:

Following hardware changes are to be done for the quality purpose.

Network Components such as Modem, LAN, or network used by the ATM machine has
considerable effect on the cash transfer, cash deposit and e-shopping.

System Components such as Processor speed, Ram can also have an influence on the
transactions.

LCD can be helpful in improving the usage. e.g. Touch screen LCDs can be used for the user’s
facilitation.

High Quality Scanner is required for scanning currency in case of cash deposit.

Softwares:

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 ATM: House of
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Softwares are also significant in the conversion of VOC in the Voice of Organization or Voice of
Engineer. Following Softwares can be helpful in this regard

 Menu Generation Software can be helpful in generating menus that are easy to understand.

 Voice Generation Software can be helpful in generating voice commands that will facilitate
the users in major regional languages.

 Face Recognition Software will be helpful in capturing snap of user through camera and
then save the snap in order to ensure security.

 Operating System Software can have an effect on the quality of ATM processing.

Supply changes:

There are two major changes that are required to facilitate the users. These changes are different
to each other buy in case of providing user facilitation they are required. Supply changes can be

 Cash Box should have cash in different currency denominations.

 Generators should be there in case of power shutdown.

3.3.3 Relationship Matrix:

The third step in the development of latest ATM is to make relationship between the voice of
customer and voice of engineer. The extent of relation will be also discussed. There could be a
strong, medium, weak, or no relation between the two voices i.e. VOC and VOE. In this step we
will find the relationship between the VOC i.e. performance, usability, and utility and VOE i.e.
hardware, software, supply changes.

Relationship Matrix

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 ATM: House of
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Importance
VOE
Pri

VOC
Hardwares Softwares Supply
Sec

Cash Supply

Power Supply
Network Components

FRS
MGS
Processor

VGS

OS
Touch Screen
Pri Sec

Fast 3
processing
Performance

1
Secure
transactions
2
24*7
transacti
ons
Multi- 5
Usability

language
Menu
Voice 6
Directions in
Major
Languages
7
Touch
system
Guidelines 8
option in
Menu

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 ATM: House of
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Utility Bill 9
payment
Cash 10
Deposit
E-shopping 11

Cash 12
Transfer
Selection of 4
Currency
Denominatio
ns
Figure .4 Relationship matrix

Relations: = Strong = Medium = Weak

The box shows that there is a strong relation between voice of customer and voice of engineer.
The circle shows a weaker relation between voice of customer and voice of engineer. Similarly
the triangle shows a medium relation between voice of customer and voice of engineer. For
example there is strong relation between Processor (voice of engineer) and fast processing (voice
of customer) because more will be the frequency of processor, faster will be the processing. The
above table summarizes similar type of relation between voice of customer and voice of engineer.

3.3.4 Roof of the House of Quality

Now in fourth step we will build a roof for our house of quality. The purpose of the roof is to find
relations between different segments of voice of engineer. Roof will show that if there are there
are any contradictions between different segments of voice of engineer.

The following figure represents the roof:

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 ATM: House of
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Figure (5) Roof of the House of Quality

The roof on previous page summarizes the relations between different segments of voice of
engineer. For example Processor has positive strong relation with Softwares.

3.3.5. Planning:

This is the fifth step of House of quality; Value of our product with respect to that
of competitors’ products is evaluated. An overall weightage will be found by using some
mathematical techniques. A questionnaire is used to get feedback of customer regarding our
product that tells us what is the perceived value of our product in customer mind as compared
with product of our competitor. Similarly we will assign planned value to voice of customer. And
also sales point values will be assigned.

As this is more technical than the other steps a careful review of the values will be required in
order to ensure that they are based on reality. And also we will find improvement factor so that
we can determine how we can improve the quality of our product.

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 ATM: House of
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The formula for determining improvement is given below:

Imp Factor = (Planned Value – Our Prod Value) x Incremental Fact + 1

Here we take Incremental Factor equal to ONE.

 After that we will find the overall weightage of the planning matrix. Formula for finding the
overall weightage is as:

Overall weightage = Sales point x Improvement factor x Importance

Here the range for sales point is From 1 --- 1.5. Now using these techniques we will develop the
planning matrix. Look at the figure on next page.

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 ATM: House of
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Figure (6) The values of our product, Diebold, and Wincor Nixdorf Came from the results

Wincor Nixdorf
Diebold

Overall weight
Our Prod

Planned

Sales Point
Importance

Improvement factor
Voice of Customer

Primary Secondary
3 3 4 2 4 2 1.0 6.0
Performance Fast processing

1 4 3 2 5 2 1.3 2.6
Secure transactions

2 0 2 0 3 4 1.4 11.2
24*7 transactions

5 3 2 1 4 2 1.1 11
Usability Multi-language Menu

6 3 2 3 5 3 1.0 18
Voice Directions in

7 0 3 1 4 5 0.9 31.5
Touch system

8 4 2 1 4 1 1.0 8
Guidelines option in
Menu

9 3 2 0 4 2 0.8 14.4
Utility Bill payment

10 2 2 1 3 2 1.1 22
Cash Deposit

12 4 3 1 5 2 1.0 24
E-shopping

Cash Transfer 3 2 2 4 2 1.2 26.4

11

Select 2 1 2 3 2 1.3 10.4

4
Denominations

4. Appendix

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 ATM: House of
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 House of Quality Chart Attached

 Figures

Fig. 1 Project Schedule

Fig.2 Voice of Customer

Fig.3 Voice of Engineer

Fig.4 Relationship matrix

Fig.5 Roof of the House of Quality

Fig.6 Planning matrix

5. References

www.diebold.com

www.wikepedia.com

http://www.ncr.com/

http://www.wincor-nixdorf.com/

www.atmmarketplace.com

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