UNIT IV – TQM TOOLS AND 2

TECHNIQUES II

Control Charts - Process Capability - Concepts of

Six Sigma - Quality Function Development (QFD)

- Taguchi quality loss function - TPM - Concepts,

improvement needs - Performance measures.

QFD from the Japanese -

HIN SHITSU KI NO TEN KAI

Quality
Features Function
Deployment
Diffusion
= QFD
Attributes Mechanization Development
Qualities Evolution

Quality Function Deployment - “Customer Driven

Product / Process Development”
 Quality Function Development (QFD) 4

Definition of Quality Function Deployment :

A system for translating customer requirements

into appropriate company requirements at each
stage from research and product development
to engineering and manufacturing to
marketing/sales and distribution
Why was QFD developed?
QFD was developed in Japan in the late 1960s by Professors Yoji
Akao and Shigeru Mizuno.
The Professors aimed at developing a quality assurance method that
would design customer satisfaction into a product before it was
manufactured. Prior quality control methods like Ishikawa were
primarily aimed at fixing a problem during or after manufacturing.

Key Rationale:

1 Customers are our number one concern. Satisfied customers keep us

in business. Therefore, we must have an excellent understanding of their
needs.
2 Proactive product development is better than reactive product
development. QFD can help a company move toward a more proactive
approach.
Why was QFD developed?
Key Rationale:

3 Quality is a responsibility of everyone in the organization. QFD is a team

methodology which encourages a broader employee involvement and
focus.
4 The QFD methodology helps an organization determine the most effective
applications for many engineering and analytical tools such as: Design of
Experiments, Failure Analysis and Statistical Process Control.
 KANO MODEL
(Of Quality/Features)
Where does QFD fit? • UNEXPECTED,
PLEASANT SURPRISES
• 3M CALLS THEM
Satisfied CUSTOMER DELIGHTS
Customer


 Spoken
 Measurable
Range of Fulfillment
Excitement
Needs QFD focuses on
Performance
Don’t Have Included
Needs and unmet
Don’t Do Do Well
Basic Needs
Unspoken
Performance Taken For granted
Basic
Needs Spoken If Not Met

Basic
Needs Dissatisfied
Customer

RECOGNIZE 1) The Impact of Needs on the Customer

2) That Customer Needs Change With Time
3) The impact of Communication of Customer Wants
throughout the Organization
Where does QFD fit?

Six Sigma / TQM

Strategic Issues - Technical Tools - Cultural Change

Quality Improvement Tools

QFD • Taguchi Methods • SPC
• FMEA’s
- Planning Tool
•
- Customer Driven •
Fault Tree Analysis
Cause-Effect Diagram
• Check Sheets
• Pareto - Monitor
- Proactive
• Benchmarking
- Continuous Improvement
- Cross Functional Teams • Pugh Concept Selection
• Etc - Hold the “Gains”
QFD Overview Customer Requirements

Converted to

Company Measures

Converted to

Part Characteristics (Design)

Converted to

Manufacturing Process

Converted to

Production Requirements
(Day to Day Operations)
BENEFITS OF QFD

Change Comparison

Fewer and Earlier Changes Reactive

Company

Proactive
Company

Time - 14 Months Production

90% Complete Start
Voice of the Customer
 Driving Force Behind QFD
 Customer Dictates Attributes Of Product

 Customer Satisfaction
 Meeting Or Exceeding Customer Expectations

 Customer Expectations Can Be Vague & General In Nature

 Customer Expectations Must Be Taken Literally, Not Translated Into What The
Organization Desires
Collecting Customer Information
 What Does Customer Really Want ?
 What Are Customer’s Expectations ?
 Are Customer’s Expectations Used To Drive Design Process ?
 What Can Design Team Do To Achieve Customer Satisfaction?
Types Of Customer Information
 Solicited, Measurable, Routine
 Cus. & Market Surveys, Trade Trials

 Unsolicited, Measurable, Routine

 Customer Complaints, Lawsuits

 Solicited, Subjective, Routine

 Focus Groups

 Solicited, Subjective, Haphazard

 Trade & Cus. Visits, Indep. Consultants

 Unsolicited, Subjective, Haphazard

 Conventions, Vendors, Suppliers
House Of Quality

Interrelationship
between
Technical Descriptors

Technical Descriptors
(Voice of the organization)

Requirements
Requirements
(Voice of the

Prioritized
Customer)

Customer
Customer

Relationship between
Requirements and
Descriptors

Prioritized Technical
Descriptors
 Building a House Of Quality
 List Customer Requirements (What’s)

 List Technical Descriptors (How’s)

 Develop Relationship (What’s & How’s)

 Develop Interrelationship (How’s)

 Competitive Assessments

 Prioritize Customer Requirements

 Prioritize Technical Descriptors

QFD Matrix Technical
Descriptors
Relationship between
Customer Requirements
and
Primary
Technical Descriptors
Interrelationship between
Secondary WHATs vs. HOWs
Technical Descriptors
(correlation matrix) +9 Strong

Secondary
HOWs vs. HOWs +3 Medium

Primary
+1 Weak
+9 Strong Positive
+3 Positive
-3

Requirements
Negative
Requirements

Prioritized
Customer
Customer

-9 Strong Negative

Technical Our

Customer Importance
Competitive A’s

Our
Assessment

B’s
A’s
B’s

Absolute Weight
Scale-up Factor
Degree of Technical Difficulty

Target Value
Assessment
Target Value

Competitive

Sales Point
Customer
Absolute Weight and Percent
Relative Weight and Percent
Prioritized Technical
Descriptors
Customer Requirements
(WHATs)
Primary

Secondary

Tertiary
Customer Requirements (What’s)
Technical Descriptors
(HOWs)
Primary

Secondary

Tertiary
Technical Descriptors (How’s)
L - Shaped Diagram
Technical
Descriptors
Primary

Secondary

Secondary
Primary
Requirements
Customer
Relationship Matrix Technical
Descriptors
Primary

Secondary Secondary
Primary

Relationship between
Customer
Requirements and
Requirements

Technical Descriptors
Customer

WHATs vs. HOWs

+9 Strong
+3 Medium
+1 Weak
Correlation Matrix
Interrelationship between Technical
Descriptors (correlation matrix)
HOWs vs. HOWs
Technical
Descriptors +9 Strong Positive
+3 Positive
Primary
-3 Negative
Secondary -9 Strong Negative
Secondary
Primary

Relationship between
Customer Requirements
and
Requirements

Technical Descriptors
Customer

WHATs vs. HOWs

+9 Strong
+3 Medium
+1 Weak
Customer Competitive Assessment
5
3
Requirements

Relationship between
1
Customer

Customer Requirements
2
and
5 Technical Descriptors
1 WHATs vs. HOWs
4
4 +9 Strong
+3 Medium
+1 Weak

Ours

Assessment B’s
Competitive A’s
Customer
Technical Competitive Assessment
5
3
Requirements

Relationship between
Customer

1
Customer Requirements
2
and
5 Technical Descriptors
1 WHATs vs. HOWs
4
4 +9 Strong
+3 Medium
Technical Our 1 3 4 2 1 2 1 4
+1 Weak
Competitive A’s
Assessment B’s

Our

B’s
A’s
Assessment
Competitive
Customer
Prioritized Customer Requirements
 Importance Rating

 Target Value

 Scale-Up Factor

 Sales Point

 Absolute Weight & Percent

 (Importance Rating)

 (Scale-Up Factor)

 (Sales Point)
 Technical
Descriptors
Primary Relationship between
Customer Requirements
Secondary and
Technical Descriptors
Secondary

WHATs vs. HOWs

Primary

+9 Strong
+3 Medium
5 7 5 1.2
+1 Weak
3 3 3 1.5

Requirements
Requirements

Prioritized
Customer
1 9 2 1
Customer

2 10 3 1.5 1 15
5 2 5 1 1.5 3
1 4 2 1
4 8 4 1.5
4 1 4 1
Technical Our 1 3 4 21 2 1 4
Competitive A’s Customer Importance
Our

Assessment
B’s
A’s

B’s

Absolute Weight
Scale-up Factor
Target Value
Assessment
Competitive

Sales Point
Customer
Prioritized Technical Descriptors
 Degree Of Difficulty
 Target Value
 Absolute Weight & Percent

 Relative Weight & Percent

n R is Relationship Matrix
a   R c c is Customer Importance
j ij i
i 1

n R is Relationship Matrix
b   R d d is Customer Absolute
j ij i
i 1 Weights
 Relationship between
Technical
Descriptors Customer Requirements
and
Primary
Technical Descriptors
Interrelationship between
Secondary WHATs vs. HOWs
Technical Descriptors
(correlation matrix) +9 Strong

Secondary
HOWs vs. HOWs +3 Medium

Primary
+1 Weak
+9 Strong Positive
+3 Positive 5 7 5 1.2
-3 3 3 3 1.5

Requirements
Negative
Requirements

Prioritized
Customer
1 9 2 1
Customer

-9 Strong Negative
2 10 3 1.5 1 15
5 2 5 1 1.5 3
1 4 2 1
4 8 4 1.5
4 1 4 1
Technical Our 1 3 4 21 2 1 4

Customer Importance
Competitive A’s

Our
Assessment

B’s
A’s
B’s

Absolute Weight
Scale-up Factor
Degree of Technical Difficulty 1 8 4 2 9 8 2 5

Target Value
Assessment
Target Value 2 3 4 31 3 1 5

Competitive

Sales Point
Customer
Absolute Weight and Percent 90
Relative Weight and Percent 133
Prioritized Technical
Descriptors
House of quality
Roof
Hows? Trade off matrix
(similar and/or conflicts)
Inter relationship between
Technical descriptors
Ceiling / II floor
Technical descriptors
Hows? (voice of the organization)
Product design characteristics
Whats? Expressed in engineering terms

Whats and Hows

(between customer requirements

and
technical descriptors)
Interior walls

LHS RHS
Prioritized customer
Customer requirements
(voice of the customer) requirements

Foundation
Prioritized technical
How much? Descriptors
Technical BM
Degree of technical difficulty
Target value
Components of House of Quality

Relationships Among Customer

Engineering Characteristics Evaluation
Customer
Identifying
Engineering performance measure conflicts
Characteristics Evaluation

Record Performance
Relative Importancemeasures for each customer
demanded
Record customer quality ratings for your
performance
Customer Attributes
Similar product and competitors’ products
Importance for each demanded quality needs
Relationship
The first step is tobetween
list alltothe
Technical demanded
bedemanded customer
determinedqualitiesqualities
benchmarking and
at the same
Engineering Performance
level of abstraction

Units
Units
ObjectiveTechnical Difficulty associated with achieving
Engineering
Measures Targets/improvements and importance of Influence
Setting Technical
technical Targets
characteristics Customer
Determining Targets Qualities
Important Technical Difficulty Targets
Characteristics Importance
QFD Process

HOWs HOWs
WHATs

WHATs
HOW HOW
MUCH MUCH
 Customer
attributes

Engineering
Engineering characteristics
characteristics
Parts
characteristics

Parts
characteristics
operators
The Four Phases of QFD

Key process

Key process
operators
Machine settings
Control methods
Sampling
Control documents
Operation
maintenance
Phase I
Product Planning

Design
Requirements Requirements
Customer
Phase II
Part Development

Part Quality
Characteristics
Requirements
Design
 Phase III
Process Planning
Key Process
Characteristics Operations
Part Quality
 Phase IV
Production Planning
Production
Requirements
Key Process
Operations

Production Launch
Benefits of QFD

 Customer driven: The focus is on customers wants, not what the

company thinks the customer wants. The "Voice of the Customer"
drives the development process.
 Competitive analysis: Other products in the marketplace are
examined, and the company product is rated against the competition.
 Reduced development time: The likelihood of design changes is
reduced as the QFD process focuses on improvements to be made to
satisfy key customer requirements.
Careful attention to customer requirements reduces the risk that changes
will be required late in the project life cycle. Time is not spent developing
insignificant functions and features.
 Reduced development costs: The identification of required changes
occurs early in the project life cycle.
Minimizing changes following production reduces warranty costs and
product support costs.
 Documentation: A knowledge base is built as the QFD process is
implemented. A historical record of the decision-making process is
developed.
Taguchi’s Quality Loss
Function (QLF)

DR. GENICHI TAGUCHI

(B. 1924)
-Loss Function.
 Taguchi’s Quality Loss Function (QLF)

 The quality loss function is based on the work of Electrical engineer,

Dr.GENICHI TAGUCHI (born January 1, 1924, in Tokamachi, Japan)
worked during 1950’s to improve Japan’s post-WW II telephone
communication system

 Served as Director- Japanese Academy of Quality from 1978 to 1982

 Awarded the Deming prize in 1960- development of various techniques for

industrial optimization

 Father of the
“Taguchi Method” and “Robust Engineering”

 QLF view disagrees with the traditional (goalpost) view.

 The quality loss function recognizes that products falling between specific
limits are not all equal.
 The Quality Loss Function (QLF)

The four following statements summarize Taguchi’s philosophy.

1. We cannot reduce cost without affecting quality.
2. We can improve quality without increasing cost.
3. We can reduce cost by improving quality.
4. We can reduce cost by reducing variation.

When we do so,
performance and quality will automatically improve.

In Taguchi’s view,
 quality is not defined by specific limits,but rather on whether or
not it creates a financial loss to society. An example given is a
defective automobile exhaust system creating air pollution.
 There are many types of quality loss functions. However, in all
types, the loss is determined by evaluating variation from a specific
target.Taguchi’s philosophy includes three general ways to evaluate the
relationship between quality and variability.
Taguchi’s Quality Loss Function

Quality Defined
 “Any engineered system reaches its ‘ideal function’ when all of its
applied energy (input) is transformed
efficiently into creating desired output energy.”

 Employee energy = input

 Customer satisfied = output

CUSTOMER SATISFACTION

 Design to the highest standards early in the process to eliminate all

non-random errors

 Quality Loss = Loss to Society quantified through “Quality Loss

Function”

 Variation (+/-) from optimal measure results in a loss.

Taguchi’s Quality Loss Function
Resources Expended on Quality

Design

Service Delivered

Post Service Delivery

If the problem is corrected in the design phase, less resources are expended
than if the problem is corrected post-delivery.
Taguchi’s Quality Loss Function

Customer Satisfaction

Ways to measure service:

1. Returning customers

2. Number of complaints (1:10)

3. Number of compliments

4. Employee attitude

Design:

 Equipment – No breakdowns

 Specific jobs defined – Need to know responsibilities

 Policies and Procedures – What do you want, anyway?

 Taguchi Method experiment

Quality Loss Function
Quality Loss Function

Taguchi’s Quality Loss Function concept combines

cost, target and variation in one metric with
specifications being of secondary importance

There are three common quality loss functions

1. Nominal - the - best.

2. Smaller - the - better.

3. Larger - the - better.

NOMINAL – THE – BEST :
Although Taguchi developed so many loss
functions, many situations are approximated by
the quadratic function which is called the
Nominal – the – best type.
NOMINAL – THE – BEST :
The quadratic function is shown in figure.

In this situation, the loss occurs as soon as the

performance characteristic, y, departs from the
target .

At , the loss is Rs. 0.

At LSL (or) USL, the loss is Rs. A.

NOMINAL – THE – BEST :
The quadratic loss function is described by the
equation L = k (y - ) 2.

Where,
L = cost incurred as quality deviates from the
target.
y = Performance characteristic
 = target
k = Quality loss coefficient.
SMALLER – THE – BETTER :
The following figure shows the smaller – the –
better concepts.
SMALLER – THE – BETTER :
The target value for smaller – the – better is 0.
There are no negative values for the
performance characteristic.

The radiation leakage from a microwave

appliance, the response time for a computer,
pollution from an automobile, out of round for a
hole etc. are the performance characteristics for
this concept.
LARGER – THE – BETTER :
The following figure shows the concept of the
Larger – the – better.
LARGER – THE – BETTER :
In the Larger – the – better concept, the target
value is ∞ (infinity), which gives a zero loss.
There are no negative values and the worst
case is at y = 0.

Actually, larger – the – better is the reciprocal of

smaller – the – better.
The performance characteristics in Larger – the –
better are bond strength of adhesives, welding
strength etc.
Uses of Quality Loss Function (QLF) Data

1. Reduces Costs

There are three ways that managers can use QLF to reduce costs.
1. Move the average of the actual distribution closer to the target
value.
2. Reduce variability.
3. Do a combination of both.

2. Setting Specific Limits

 The data from the quality loss function can be used to determine
where limits should be set to help minimize losses.