KORBELFOUNDATI

ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

SUBJECTCODE:TQM
MODULENO: Module6
SUBJECTNAME:TOTALQUALITYMANAGEMENT
TOPIC:
STRATEGIES FOR PRODUCT OR SERVI CE LI
FE STAGES,
DEGREE OF
STANDARDIZATI
ON,DESIGNING FOR MASS CUSTOMI
ZATI
ON,ROBUST DESI
GN,
QUALITYFUNCTIONDEPLOYMENT,THEKANOMODEL

OBJECTI
VE/S:
Att
heendofthelect
ure/
discussi
on/
week,
thest
udentshoul
dbeabl
eto:
Def
inerel
i
abil
it
y.
Under
standt
her
oleandi
mpor
tanceofKanomodel
.
Knowt
hest
rat
egi
esi
ntendedt
oeachl
evel
oft
hepr
oduct
’sl
i
fe

PART1.LECTURE/
DISCUSSI
ON

STRATEGI
ESFORPRODUCTORSERVI
CELI
FESTAGES
Most,butnotall
,productsandservi
cesgot
hroughaser
iesofst
agesoverthei
r
usefull
i
fe,somet i
mesr eferr
edtoast hei
rlif
ecy
cleasseeninthefi
gure.Di
ffer
ent
phasescal
l f
ordif
ferentstr
ategi
es.
I
ntr
oduct
oryst
age.Whenapr
oductorser
vicei
sint
roduced,
itmaybet
reat
edas
Page1of1
 KORBELFOUNDATI
ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

acur i
osi
tyit
em.Manypot ent
ialbuyer
smaysuspectt hatal
lt hebugshaven’tbeen
workedoutandthatthepr i
cemaydr opaf terthei
ntr
oduct
oryperiod.St
rat
egicall
y,
companiesmustcareful
l
ywei ghthetrade-
offsingett
ingallthebugsoutv er
sus
gett
ingaleapont
hecompet it
ion,aswellasgett
ingt
othemarketatanadvantageous
ti
me.
Overt
ime,designimpr ovementsandincreasingdemandy i
eldhigherr
eli
abil
i
ty
andlowercosts,l
eadingthegrowthindemand.I nthegrowthphase,i
tisimport
antto
obt
ainaccurat
epr oj
ecti
onsoft hedemandgr owthrateandhowl ongthatwil
lpersi
st,
andthentoensurethatcapacit
yincr
easescoi
ncidewi t
hincr
easi
ngdemand.
I
nthenextphase,t
heproductorservi
cer
eachesmat ur
it
y,anddemandlevel
soff.
Few,ifany,desi
gnchangesareneeded.Gener al
ly
,cost sarelow andproduct
ivi
tyi
s
hi
gh.Anaccuratefor
ecastofhowlongt hi
sphasewi l
llastbef
orethemarketbecomes
sat
uratedandthedecl
inephasebeginsi
simportant
.

DEGREEOFSTANDARDI
ZATI
ON
Ani mportantissuet hatoftenar i
sesi nbothpr oduct /servi
cedesi gnandpr ocess
designi st hedegreeofst andardization.St andardizationr eferstot heext enttowhi ch
therei sabsenceofv arietyinapr oduct ,servi
ce,orpr ocess.St andar dizedser vice
i
mpl iest hateverycust omerori tem pr ocessedr eceiv esessent i
all
yt hesameser vice.
Standar dizedprocessesdel i
verst andar di
zedser viceorpr oducest andar dizedgoods.
Standar dizat
ion car r
ies a number of i mportant benef it
s as wel l as cer tain
disadv antages.St andar dized pr oduct s ar ei mmedi ately av ai
lablet o cust omer s.
Standar dizedproductsmeani nter changeabl epar ts,whi chgr eatlylowert hecostof
product i
onwhi leincreasi ngpr oduct i
vi
tyandmaki ngr eplacementorr epairrel
at i
vel y
easycompar edwit hthatofcust omi zedpar t
s.Anot herbenef i
tofst andar di
zationi s
reducedt i
meandcostt ot rai
nempl oyeesandr educedt i
met odesi gnj obs.
Lackofst
andar
dizat
ioncanatt
imesl
eadt
oser
iousdi
ff
icul
ti
esandcompet
it
ive
st
ruggl
es.
Standardizat
ional sohasdi sadvantages.Amaj oroner elat
estot hereduct
ionin
vari
ety.Thiscanl i
mi tther angeofcust omerst owhom apr oductorserviceappeal
s.
Andt hatcreatesar iskthatacompet i
torwillint
roduceabet t
erproductorgr eat
er
vari
ety and r eali
ze a compet i
ti
ve adv ant
age.Anot her di
sadvantage ist hat a
manuf actur
ermayf reeze( standar
dize)adesi gnpremat ur
elyand,oncet hedesignis
fr
ozen, f
indcompel li
ngr easonst oresi
stmodi f
icati
on.

DESI
GNI
NGFORMASSCUSTOMI
ZATI
ON
Compani
es li
ke st
andardi
zat
ion because i
tenabl
es t
hem to produce hi
gh
v
olumesofrel
ati
vel
ylow-costpr
oduct
s,albei
tproduct
swit
hli
tt
lev
ari
ety.Customers,

Page2of2
 KORBELFOUNDATI
ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

ontheotherhand,ty
pical
l
ypr
efermor evari
ety,al
thought heyl
i
ket
hel
ow cost
.The
quest
ionf
orproducer
sishowt
or esol
vetheseissueswithout
(
1)l
osi
ngt
hebenef
it
sofst
andar
dizat
ionand
(
2)i
ncur
ri
ngahostofpr
obl
emst
hatar
eof
tenl
i
nkedt
ovar
iet
y.
These include increasi ng the r
esources needed t o achieve desi
gn v ari
ety;
i
ncr easingvariet
yi nthepr oductionprocess,whi
chwoul daddt ot heskil
lsnecessaryto
producepr oduct s,causingadecr easeinproduct
iv i
ty;creatinganaddi t
ionali
nventory
burdendur i
ngandaf terpr oduction,byhav i
ngt o carryr eplacementpar tsfort he
i
ncr easedv ariet
yofpar ts;andaddi ngtot hediffi
cultyofdi agnosi
ngandr epairi
ng
productf ai
lur
es.Theanswer ,atleastforsomecompani es,ismasscust omization,a
strategyofpr oducingst andar di
zedgoodsorser vices,buti ncorporat
ingsomedegr ee
ofcust omizationinthef i
nal productorservi
ce.
Sever
alt act
ics t
hat wil
lmake mass customi
zat
ion possi
ble.One i
s del
ayed
di
ff
erent
iati
on,andanot
herismodul
ardesi
gn.
Delayeddi fferentiati
oni sapost ponementt actic:thepr ocessofpr oduci
ng,but
notqui tecompl eting,apr oductorser v
ice,postponingcompl etionunt i
lcustomer
prefer
encesorspeci fi
cationsar eknown.Ther ear eanumberofv ar i
ationsoft his.In
thecaseofgoods,al most fi
nisheduni t
smi ghtbehel di ni nventor yunt i
lcustomer
ordersarer eceived,atwhi cht i
mecust omizedfeaturesar eincor porat ed,accordingt o
customerr equest s.Forexampl e,fur
nituremakerscanpr oducedi ni ngr oom sets,but
notappl ystain,allowingcust omer sachoi ceofst ai
ns.Oncet hechoi cei smade,t he
stain can be appl ied inar elati
vel
yshor tti
me,t hus el iminating a l ong waitf or
customer s,giving t hesel lera compet it
iveadvantage.Si mi l
arly,v ariouse- mailor
Inter
netserv i
cescanbedel iver
edt ocust omersasst andardizedpackages,whi chcan
thenbemodi fi
edaccor dingt othecustomer ’
spref
erences.
Modulardesi gnisaf or
m ofst andardizat
ion.Modulesr epresentgr oupingsof
componentpar tsintosubassembl ies,usuall
yt othepointwher et hei ndi
vidualparts
l
oset hei
rsepar ateidenti
ty.Onef ami l
iarexampl eofmodul ardesi gni scomput ers,
whichhavemodul arpart
st hatcanber eplacediftheybecomedef ectiv
e.Byar ranging
modulesindi fferentconfigurat
ions,dif
f er
entcomput ercapabil
iti
escanbeobt ai
ned.
Formasscust omi zat
ion,modul ardesi gn enablesproducerst o qui ckl
yassembl e
product
s wi t
h modul es to achieve a cust omized conf
igurati
on f oran i ndivi
dual
customer,avoidingt helongcust omerwai tthatwouldoccurifi ndivi
dualpar t
shadt o
beassembl ed.
Oneadvantageofmodul ardesignofequipmentcompar edwi thnonmodular
desi
gni sthatfai
lur
esar eofteneasiertodiagnoseandr emedybecauset hereare
fewerpiecestoi nvest
igat
e.Si mi
l
aradv ant
agesar ef ound in ease ofrepai
rand
repl
acement;t
hefaultymoduleisconveni
entl
yremov edandr epl
acedwi t
hagoodone.
Themanuf act
ureandassembl yofmodulesgener al
lyi
nv olvesi
mpl i
fi
cati
ons:Fewer

Page3of3
 KORBELFOUNDATI
ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

parts arei nvolv ed,so pur chasing and i nvent

ory contr
olbecome mor er out
ine,
fabri
cationandassembl yoper ati
onsbecomemor estandardized,andtrai
ningcosts
oftenar erelati
v elylow.Themai ndi sadvantagesofmodul ardesignstem f r
om the
decreasei nv ari
et y:Thenumberofpossi bleconfi
gurati
onsofmodul esismuchl ess
thant henumberofpossi bleconf i
gurat
ionsbasedoni ndi
vidualcomponents.Another
disadvantaget hati ssomet i
mesencount eredistheinabil
it
yt odisassembleamodul e
i
nor dertor eplaceaf ault
ypar t;theent i
remodul emustbescr apped—usuall
yata
highercost.
Adv
ant
ages
1.Fewerpar
tst
odeal
wit
hini
nvent
oryandi
nmanuf
act
uri
ng.
2.Reducedt
rai
ningcost
sandt
ime.
3.Mor
erout
inepur
chasi
ng,
handl
i
ng,
andi
nspect
ionpr
ocedur
es.
4.Or
der
sfi
l
labl
efr
om i
nvent
ory
.
5.Oppor
tuni
ti
esf
orl
ongpr
oduct
ionr
unsandaut
omat
ion.
6.Needf
orfewerpar
tsj
usti
fi
esincr
easedexpendi
tur
esonper
fect
ingdesi
gnsand
i
mprov
ingqual
it
ycont
rol
procedur
es.
Di
sadv
ant
ages
1.Desi
gnsmaybef
rozenwi
tht
oomanyi
mper
fect
ionsr
emai
ning.
2.Hi
ghcostofdesi
gnchangesi
ncr
easesr
esi
stancet
oimpr
ovement
s.
3.Decr
easedv
ari
etyr
esul
tsi
nlessconsumerappeal
.

Reli
abilit
yisameasur eoft heabi l
ityofapr oduct,apar t,aservi
ce,oranent ir
e
system toper f
or mi t
si ntendedf uncti
onunderapr escri
bedsetofcondi t
ions.The
i
mpor t
anceofr eli
abil
i
tyisunder scoredbyi tsusebypr ospecti
vebuyersincompar i
ng
alt
ernativesandbysel l
er sasonedet erminantofpri
ce.Rel i
abil
i
tyalsocanhav ean
i
mpactonr epeatsales,reflectont heproduct’
simage,and, i
fiti
stoolow, cr
eatelegal
i
mpl icat
ions.Rel i
abil
i
tyi s al so a consi der
ati
on forsust ai
nabil
it
y;the higherthe
rel
iabil
it
yofapr oduct,t
hef ewert heresourcesthatwillbeneededt omaintainit
,and
thelessfr equentlyi
twi l
linvolvethet hr
eeRs.
Thetermf ai
lur
eisusedt odescr
ibeasituat
ioninwhichani tem doesnotper
form
asint
ended.Thisi
ncludesnotonl
yinst
ancesinwhichtheitem doesnotfunct
ionatal
l,
butal
soinstancesinwhichtheit
em’sperf
ormancei ssubstandardoritf
uncti
onsina
waynotint
ended.
Reli
abi
li
ti
esareal
way sspeci
fi
edwi t
hr espectt
ocer t
aincondi
ti
ons,cal
lednormal
oper
ati
ngcondi
ti
ons.Thesecanincl
udeload,temperat
ure,andhumidi
tyr
angesaswell
asoperat
ingpr
oceduresandmai nt
enanceschedules.Fai
lureofuser
stoheedt hese

Page4of4
 KORBELFOUNDATI
ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

condit
ions of ten result
si n prematurefail
ure ofpar ts orcomplete sy
stems.For
example, usingapassengercart otowheav yloadswillcauseexcesswearandt earon
thedrivet r
ain;dr i
vi
ngov erpotholesorcurbsof t
enresultsinunti
melyti
refail
ure;and
usingacal cul
at ortodr i
venai l
smi ghthaveamar kedi mpactoni t
susefulnessfor
perfor
mi ngmat hematicaloperati
ons.

ROBUSTDESI
GN
Somepr oductsorser v
iceswi l
lf unctionasdesi gnedonlywi thi
nanar rowr angeof
condi ti
ons,whileot her swi l
lper form asdesi gned overamuchbr oaderrangeof
condi ti
ons. The l atter hav e robust desi gn. Consider a pai r of f i
ne leat
her
boot s—obv i
ouslynotmadef ortrekki ngthroughmudorsnow.Nowconsi derapairof
heav yrubberboot s—j ustthethingf ormudorsnow.Ther ubberboot shav eadesign
thati smor erobustt hant hatoft hef i
neleatherboots.Themor erobustapr oductor
service,thelesslikel
yi twillf
ailduet oachangei ntheenvironmentinwhi chitisused
orinwhi chitisper f
or med.Hence,t hemor edesignerscanbui ldrobustnessintothe
productorser vice,thebet teritshoul dholdup,r esult
inginahi gherlevelofcustomer
satisfacti
on.

QUALI
TYFUNCTI
ONDEPLOYMENT
Obt ai
ningi nputf r
om customer sisessent i
altoassurethattheywi llwantwhati s
off
eredf orsal e.Althoughobt aini
nginputcanbei nfor
malthroughdi scussi onswith
customer s,ther eisaf ormalwayt o documentcust omerwant s.Qual i
tyf unct
ion
depl
oy ment( QFD)i sast ruct
uredapproachf orint
egrati
ngthe“voiceoft hecust omer”
i
ntobot ht hepr oductandser v
icedevelopmentpr ocess.Thepurposeist oensur ethat
customerr equirement sarefactoredi
ntoev er
yaspectoft heprocess.Listeningtoand
understandingt hecustomerist hecentr
alfeatureofQFD.

THEKANOMODEL
TheKanomodeli sat heoryofproductandser vicedesi
gndev elopedbyDr .
Nor i
aki
Kano,aJapanesepr of
essor,whoof feredaper spect i
veoncust omerper ceptionsof
quali
tydi
fferentfr
om thet r
aditi
onalview that“mor eisbetter
.”Instead,hepr oposed
dif
fer
entcat egor
iesofqual ityand posited thatunder st
anding them woul d bet t
er
posit
iondesignerstoassessandaddr essqual i
tyneeds.Hismodelpr ovi
desi nsights
i
ntotheattri
butesthatar
eper cei
vedtobei mpor tanttocust
omer s.Themodel empl oys
thr
eedefi
niti
onsofqual i
ty:
basic,per
formance, andexci t
ement.
Basi
cquali
tyref
erstocustomerrequi
rementsthathav
eonlyal i
mitedef
fecton
cust
omersat
isf
acti
onifpr
esent,
butl
eadtodissat
isf
acti
oni
fnotpr
esent.
Per
for
mancequal
i
tyr
efer
stocust
omerr
equi
rement
sthatgener
atesat
isf
act
ionor
Page5of5
 KORBELFOUNDATI
ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

di
ssat
isf
act
ioni
npr
opor
ti
ont
othei
rlev
eloff
unct
ional
i
tyandappeal
.
Exci
tementqual
i
tyreferst
oaf eat
ureorat t
ri
butethatwasunexpectedbythe
cust
omerandcausesexcit
ement(
the“wow”fact
or)
,suchasavoucherfordi
nnerf
or
twoatt
hehotelr
est
aur
antwhenchecki
ngin.

PARTI
I.ASSESSMENT
1.Whati
spur
poseofRobustdesi
gn?
2.Whati
sKanodesi
gn?
3.Whyi
sitr
eli
abi
l
ityi
mpor
tant
?
4.Howi
mpor
tantt
ofor
mul
atest
rat
egi
esi
ntendedt
oeachl
evel
oft
hepr
oduct
’sl
i
fe?

PARTI
II
.SOURCES/
REFERENCES
Oper
ati 11thedi
onsManagement( ti
on)ByWi
l
li
am St
evenson

Page6of6
 KORBELFOUNDATI
ONCOLLEGE,
INC.
Pur
okSpr
ing1,
Brgy
.Moral
es,KoronadalCi
ty
Cont
actNo.228-1996/
887-
2051
Busi
nessDepar
tment
korbel
businessdepar
tment
@gmai
l
.com
Lectur
er:ReyApaez Y.2NDSEMESTER,
A. 2020-
2021

Page7of7