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Building and Environment 40 (2005) 245–255


www.elsevier.com/locate/buildenv

Strategic use of quality function deployment (QFD) in the


construction industry
Irem Dikmen, M. Talat Birgonul, Semiha Kiziltas
Department of Civil Engineering, Middle East Technical University, 06531 Ankara, Turkey
Received in revised form 1 June 2004; accepted 1 July 2004

Abstract

In this paper, an attempt has been made to examine the applicability of QFD as a strategic decision-making tool after the
construction stage of a housing project to determine the best marketing strategy, to make a comparison between the performances of
different competitors and to transfer the experience gained from the current project to the forthcoming projects. For this purpose, a
QFD team has been formed to collect and verify the expectations of the customer profile of the sample project, which was a high-rise
building project located in Ankara, Turkey. The case study findings demonstrated that QFD could be successfully applied in the
housing projects as a strategic tool to facilitate marketing decisions. As a result of extensive literature review and the case study
observations; the paper also points out the limitations and breakthroughs of the QFD methodology. Finally, critical success factors
are proposed to improve the performance of the QFD methodology in construction projects.
r 2004 Elsevier Ltd. All rights reserved.

Keywords: Quality function deployment; Marketing; Critical success factors

1. Introduction Over the past decades, quality has been a differentiat-


ing factor within the construction industry. It has been
Long-term viability of an organization mainly de- demonstrated that despite the constraints on quality
pends on how effectively the organization utilizes its differentiation efforts (like project budget, rules and
resources for satisfying its stakeholders. For the regulations, etc.), many companies are competing using
organizations operating in the construction industry, quality differentiation strategy and sustaining their
one of the most privileged stakeholders are the clients competitiveness in the long run [1]. Achievement of
(end users or customers depending on the project type; client satisfaction, however, necessitates the manage-
therefore, in the rest of this paper, client, customer and ment of quality systematically, which further necessi-
end user will be used interchangeably). Satisfying their tates utilization of quality tools and techniques for this
needs and expectations is of the uttermost importance purpose. Quality function deployment (QFD) is one of
for the companies because quality is in the eye of the these techniques to deal with customer needs and
beholder and whatever they demand and expect from a expectations more systematically for achieving the most
product/project defines the quality characteristics of an important objective of a construction company, satisfac-
entity. The unique nature of the industry necessitates the tion of clients. QFD is broadly a total quality manage-
understanding of client needs and expectations for each ment (TQM) implementation technique requiring clear
project carefully for increasing their satisfaction level. assessment of client/end-user expectations apart from
the basic needs of a project to convert them into design
Corresponding author. Tel.: +90-312-210-24-70; fax: +90-312- targets. Within the context of this paper, an attempt has
210-12-62. been made to discuss QFD as a strategic tool to increase
E-mail address: irar@metu.edu.tr (I. Dikmen). client satisfaction with a step-by-step implementation of

0360-1323/$ - see front matter r 2004 Elsevier Ltd. All rights reserved.
doi:10.1016/j.buildenv.2004.07.001
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246 I. Dikmen et al. / Building and Environment 40 (2005) 245–255

the methodology to a high-rise housing project and to designers and this gives way to observation of
depict limitations and challenges of QFD implementa- designer selections in the final facility rather than
tions in construction industry as a result of extensive the client expectations, leading to reduced satisfac-
literature survey. For this purpose, the previous works tion. QFD is proved to be helpful in both collecting
on the subject area have been categorized to find out the and transferring client expectations into design
limitations reducing the applicability of QFD in con- solutions without them diminishing as the project
struction. By considering these limitations, critical goes on when used parallel to the traditional design
success factors (CSFs) for increasing the applicability process.
in construction projects are proposed.  Better planning: QFD helps to track client expecta-
tions from the start till the end of the project and any
possible distortions can be checked in time.
2. QFD and its major benefits  Enhanced communication and concurrency: QFD
necessitates cross functional team formations so that
As Preece et al. [2] stated ‘‘rewards go to these who client needs are collected and converted accurately
can best understand customer needs and deliver the into design targets without sacrificing any of them.
greatest value to their clients’’. Hence, companies Therefore, it forces the parties to integrate their work
serving the quality expected by their clients using quality through the use of concurrent procedures and
tools and techniques will receive the awards. Being one processes.
of these quality tools, QFD has been defined by its  Reduced uncertainty: Early identification of client
originator Yoji Akao [3] as ‘‘a method for developing a expectations minimizes uncertainty as the project
design quality aimed at satisfying the customer and then phases develop. Reduced cycle time and redesigns
translating the customer’s demands into design targets are observed with QFD since, project teams thor-
and major quality assurance points to be used through- oughly know what to produce from the beginning.
out the production phase’’. It is a highly effective and Accordingly, both clients and contractors would benefit
structured planning tool to deal with client demands from QFD usage during different phases of a project.
more systematically and defining what they want Clients would obtain optimum definition of project
precisely to do it right in the first time. QFD is produced requirements and a higher conformance of the project to
to be used at early stages of a project in order to produce preset targets, whereas contractors would experience
more accurate decisions by focusing on project budgets fewer conflicts with owners due to better definition of
in terms of quality and client’s needs [4]. However, using their demands, minimal rework and fewer abortive cost
the same methodology as a decision-making tool at later increases during project execution.
stages also may be beneficial.
In the construction industry, usually the client needs
and requirements are not treated systematically. Even if
3. QFD applications in construction literature review
they are collected before the design phase, they tend to
be disregarded and finally vanish as the construction
Although the interests in QFD applications in
phase goes on. Usually, the client needs/expectations
construction are growing slowly, there are only a small
together with quality standards are defined during the number of QFD implementation examples in the
project requirement and feasibility stages. Due to the
construction management literature. Various applica-
lack of integration between the parties involved in a
tions within the literature can be grouped under three
project and lack of attention given to collection of client
categories as: QFD implementations before the design
needs at these stages, problems in terms of buildability,
stage; QFD implementations during the design stage
delays due to incomplete designs, misunderstanding of
and QFD implementations after the design stage.
client expectations, rework, etc. are observed. QFD
applications have many benefits in reducing the quality
related problems. These benefits have been observed to 3.1. QFD implementations before the design stage
concentrate on the following headings; identification of
client needs and expectations, planning, communication The construction literature is quite limited in terms of
and concurrency; and uncertainty reduction [5–9]. the number of QFD applications and the number of
examples in this category is even fewer due to the
 Precise collection and identification of client needs/ unawareness of the sector participants about this
expectations: The methodology provides a systematic technique. As demonstrated by Pheng and Yeap [1], 14
way to collect and identify client needs. Client out of 15 respondents in the construction sector were
expectations are collected at earlier stages and used unaware of the QFD tool. The unique application of
to provide the correct design solutions. Usually in QFD in this category is used for the assessment of
construction projects, design solutions are decided by corporate service quality performance of design/build
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(D/B) contractors by Arditi and Lee [10]. Owners before validity of the model to construction projects after the
the project-planning phase may be willing to select a D/ design stage has been verified by a case study [18]. In the
B firm and therefore should be well informed about the next paragraphs, the case study findings will be
quality performance of potential firms on their bidding presented.
list. In the research of Arditi and Lee [10], QFD has
been utilized to measure the corporate service quality of
a D/B firm and concluded that QFD can be used as a 4. Case study: QFD application in a housing project
ranking mechanism for the selection of D/B firms. A
similar application by Ahmed et al. [6] confirmed that The case study covers a QFD exercise carried out by a
QFD could be successfully applied during civil engineer- medium-large scale construction company mainly in-
ing capital project planning. volved in the housing sector. The company, whose name
is withheld due to confidentiality reasons, is an
3.2. QFD implementations during the design stage experienced builder that has constructed various hous-
ing complexes mainly within the region of Ankara. At
The majority of the examples in the literature are the time of the QFD exercise, the construction phase of
observed to fall in this category as originally, QFD was the big housing complex was over and the company was
proposed for this stage. First, Mallon and Mulligan [4] trying to formulate an effective marketing strategy to
introduced the construction literature with QFD meth- sell the units. The total area of the high-rise housing
odology and proved the applicability of QFD in design complex was 23 000 m2 where 11 388 m2 was utilized for
of a hypothetical renovation project. Next, Huovila et social facilities and housing units. The remaining area
al. [11] utilized the methodology for finalizing the was reserved for recreational purposes.
structural design of an industrial building, whereas it The aims of the QFD exercise are indicated as
has been applied to determine the design characteristics follows:
of an internal layout of a building complex by Serpell
and Wagner [12]. By using QFD methodology, Gar- 1. determination of a marketing strategy by identifica-
gione [13] changed the design of a single apartment tion of expectations of the target customer groups
according to end-user requirements. Similarly, the client and comparing the strengths/weaknesses of the
requirements processing model developed by Kamara housing complex with those of alternative housing
and Anumba [9,14,15] employed QFD for processing of projects available in the market;
client requirements. They utilized QFD for determining 2. using the current QFD exercise findings to facilitate
the actual requirements for a building project, namely, decision-making in forthcoming projects;
Teesside Innovation Centre at the University of Tees- 3. formulation of a systematic procedure which may
side. In a similar manner, Huovila and Nieminen [16] guide the decision makers in all stages of the
activated QFD for supporting the design of eco-efficient construction value chain including feasibility analysis
buildings, specifically nursery schools and villas, and design so that the company may create a
whereas, Eldin and Hikle [17] applied QFD in the competitive advantage within the housing market
development of the conceptual design for a modern by ‘‘quality differentiation’’.
large-size college classroom.
The above-mentioned objectives imply that although
3.3. QFD implementations after the design stage the current exercise is mainly for a short-term marketing
solution, it also has a long-term dimension as it will
In the construction management literature, the constitute the initial stage of an institutionalized effort
benefits of QFD usage after the design stage has not to maximize quality in housing projects. The company
been explored widely yet. Although, it is better to was not aware of the QFD methodology and had not
implement QFD as early as possible in a construction employed it in any of its previous housing projects.
project, it is not too late to benefit from QFD even after QFD has been introduced by the researchers as a
the construction stage is over. In this paper, use of QFD solution method as it can incorporate identification of
after the construction stage, as a decision-making aid customer needs, convert them into quality indicators
during marketing will be demonstrated by a case study. and facilitate competitive benchmarking in a structured
QFD can be used as a tool to make comparisons way. Then, the organizational infrastructure (availabil-
between competitors and to gain knowledge of the ity of databases, utilized environmental scanning tools,
expectations of end users to be used in the forthcoming etc.) has been examined to check whether necessary
projects. Especially, in the housing sector, where there information resources exist within the company to guide
are repetitive types of projects, knowledge gained from the QFD exercise.
the current project can be used for forthcoming projects QFD methodology has many steps to follow, all of
to increase customer satisfaction levels. Therefore, the which are interconnected to form the house of quality
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Technical correlations the database owned by the company has been


Section V
Technical measures
Planning matrix investigated to extract customer expectations for
Section II
high-rise building complexes. Results of customer
surveys, face-to-face interviews with potential buyers
Section I Section IV Section III
and complaints received from previous projects have
Section VI
constituted the entries of this database. An alternative
Voice of customers
Relationship matrix way of determining VOC related to the housing
Targets project under investigation was to form an inter-
disciplinary research team responsible for providing
Fig. 1. Basic house of quality matrix (HOQ) [7]. expert opinions/judgments. This joint research team
comprised of 5 members, 2 of which were the project
manager and chief-site engineer of the housing
matrices. The HOQ matrix whose name derives from its project, whereas the remaining 3 were the authors of
house-like appearance is a combination of sub-matrices this paper. After conducting a series of brainstorming
used to increase customer satisfaction by producing sessions and utilizing QFD tools like affinity dia-
products/projects exactly demanded by the customers. grams, tree diagrams and matrix diagrams, the joint
The sections constituting the HOQ matrix are namely research team managed to determine the 25 most
(Fig. 1): important criteria that would satisfy the customers of
this high-rise building project. The determined custo-
 Section I : Customer needs and requirements (voice of
mer needs are presented in Table 1. Finally, it has
customer, VOC)
been agreed that, customers of such a project would
 Section II: Technical measures
require a prestigious district as the location of their
 Section III: Planning matrix
houses as well as the ease of accessibility and closeness
 Section IV: Relationship matrix
to the city centre. These requirements have been
 Section V: Correlation matrix
collected under the heading of ‘social differentiation’
 Section VI: Weights, benchmarks and targets

More information can be found in Akao [3], Ahmed Table 1


Voice of customers section of HOQ matrix
et al. [6], Eldin [17] and Birgonul et al. [18] about the
QFD steps and construction of the HOQ. For the Customer needs/expectations
purpose of collecting necessary information to construct Location/ 1. Social differentiation
the HOQ matrix, several interviews have been con- district
Size 2. Large apartment unit
ducted with top level executives of the company, who
are also members of the research team. In the rest of this Comfort 3. Functionality and quality of materials/fixed
section, the step-by-step procedure conducted in the furniture used in the kitchen
aforementioned QFD exercise will be explained and the and 4. Functionality and quality of accessories/
outputs of each step will be discussed briefly. materials used in bathroom(s)
Convenience 5. Availability of independent/in house storage
unit
4.1. Determination of the target group 6. Architectural layout of the apartment unit
Security 7. Security from external threats
Before starting to identify customer needs and filling Car safety 8. Parking area/garage
the 1st section of the HOQ matrix, the customer profile
Social facilities 9. Indoor swimming pool
of the project has to be defined. The targeted customer
10. Tennis courts
group as defined by the company professionals cover 11. Fitness centre
middle and high income people who are seeking 12. Playrooms and play field for the children
differentiation in housing units through aesthetics, 13. Mini football field
favourable location and availability of social facilities. 14. Sufficient green area for recreational purposes
Strength 15. Earthquake resistance
HVAC 16. Air conditioning
4.2. Constructing the HOQ matrix 17. Efficient central heating
Energy 18. Continuous water and electricity supply
The steps followed during the research for applying 19. Low energy costs and high thermal quality
QFD methodology to this high-rise housing project are Fire safety 20. Availability of smoke/fire detectors
21. Efficient fire extinguishing system
summarized below:
Elevators 22. Sufficient number of elevators with high speed
 As stated before, the first step in the application is to Scenery 23. Good and fascinating sight
Management 24. Efficient building management
identify the expectations of the target customer
Aesthetics 25. Exterior appearance of the facility
groups from the project. To achieve this purpose,
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and assigned with the highest importance level. Table 2


Technical measures section of HOQ matrix
Likewise, the other possible expectations of the
targeted customers from this project have been Technical measures
investigated and given importance levels accordingly. 1. Location of the housing units (which district of the city)
Importance levels have been assigned by considering 2. Size of the apartment units (m2 )
the customer priorities learnt from previous projects. 3. Provision of fixed furniture and materials according to customer
selection
Similarly, the research team identified other projects
4. Provision of materials and accessories according to customer
having compatible properties and also completed in selection
the same time period as the case project and obtained 5. Size of storage unit for each apartment (m2 )
necessary information about these projects. Accord- 6. Functional architectural layout
ingly, starting from the most valued customer need to 7. Security system (cameras, fences, password protected entrance gates,
etc.) and professional security team (# of members in the team)
the least, subjective customer evaluations for each
8. Number of parking space reserved for each apartment unit (#)
rival company have been decided on. These evalua- 9. Daily capacity of swimming pool(s)
tions have been used to complete the planning matrix. 10. Number of tennis courts (#)
 The technical measures corresponding to each custo- 11. Daily capacity of the fitness center
mer need have been identified in the next step. 12. Total size of the play field for children (m2 )
Technical measures reflect the solutions selected by 13. Total size of the mini football field (m2 )
the company to supply the customers with their needs. 14. Total area reserved for recreational purposes (m2 )
15. Type of structural system and foundation
They help the different disciplines working on the 16. Individual AC system for each apartment unit
project, to understand customer requirements in the 17. Central heating system for the complex
same meaning and avoid confusions that can be faced 18. Capacity of the generator (kva) and water tank (m3 )
while interpreting the customer needs. The corre- 19. Heat and sound insulation
sponding technical indicator of each customer re- 20. Installation of smoke detectors (#)
21. Fire extinguisher system
quirement listed in the HOQ matrix has been found in 22. Number/capacity of elevators
order to reach the correct targets that would mostly 23. Dimensions of windows for good sight
satisfy the buyers. Technical measures, which have 24. A company assigned for operation and maintenance of buildings
been identified as a result of brainstorming sessions, 25. Architectural appearance
are listed in Table 2.
 In order to fill the appropriate section of the HOQ
matrix (Section 4), the relationships between customer Table 3
needs and technical measures have to be identified Scoring scale and corresponding explanation of relations
subjectively by the research team. This step is essential Score Meaning of relation/linkage
to understand the contribution of each technical
measure in overall customer satisfaction level as well 9 Strong relationship
3 Moderate relationship
as to see how the technical measures are helpful to 1 Weak relationship
satisfy each customer expectation. The scoring scale 0 No relationship
and the corresponding explanation of relations
utilized within the case study are shown in Table 3.
All of the relationships are defined in Fig. 2.
 The performance of the company on meeting each improvement ratio is found by dividing the target
customer need has been compared with its major level (5) to the current performance level (3). The
rivals’ performance. As a result of this comparison, improvement ratio is calculated as 1.67. Furthermore,
the customer requirements necessitating improve- the revised weight of the customer expectation is
ments have been identified and goals have been set found by multiplying the improvement ratio (1.67)
for better meeting each of them. The goals have been with the original importance weight (8). Thus, the
set by considering the best alternative for each revised weight is approximately 13.36. The purpose of
customer expectation as compared to major rivals. this calculation is to increase the weight of the
Improvement ratios for each customer need, which customer needs where the company is unsuccessful
are found by dividing the goal to the current in meeting so far and to bring these issues to the
performance, are calculated. For instance, ‘‘availabil- attention of the development team.
ity of sufficient green area for recreational purposes’’  The interactions between technical measures have
has an initial importance level of 8. The performance been examined and assigned in the roof of the matrix
of the current company in satisfying this need is given as shown in Fig. 2. Finally, the weights of the
a score of 3 whereas the competitors have a technical measures have been calculated by multi-
corresponding performance score of 5. Thus, the plying each customer need’s revised weight with the
target performance level is decided to be 5 and the relationship score on the same row and adding them
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250 I. Dikmen et al. / Building and Environment 40 (2005) 245–255

Fig. 2. HOQ matrix.

column-wise (see Fig. 2). After these calculations have ‘location of the housing complex’, ‘functional archi-
been made for each technical measure, the weights tectural layout of the apartment units’, ‘total size of
have been analysed and the most important ones have each apartment unit’, ‘security system/professional
been identified. This identification process has also security team’ and finally, ‘area reserved for recrea-
showed the order of measures needing improvements tional purposes/good sight’. Those points should be
to provide the customers with what they mostly want highlighted during the marketing efforts as these
to see in the final stage of the project. points are most valued by the end users. The better
 In order to decide on the specific targets for technical the customer satisfaction, the more successful will be
measures, the rival companies’ performances with the selling of the units in the short run. In the long
respect to each technical measure have been evaluated run, the improved customer satisfaction will bring
and the best performance has been determined as the good reputation meaning increased competitive ad-
target level. The final weights of technical measures vantage within the housing market.
and selected targets for the project are shown in  The calculations performed to find the weights of
Fig. 3. customer needs are important to highlight the needs
that require improvements. The initial importance
levels reflect the importance of each need in the eyes
of customers. In the case study, the three most
5. Findings of the case study important customer demands were listed as; ‘social
differentiation’, ‘large apartment units’ and ‘security
 The major output of the analysis is the HOQ shown in from external threats’. After the strategic decision-
Fig. 2. The results achieved in Fig. 2 demonstrated making process, goals have been set which in the end
that, the five most important technical measures affected the revised weights of the needs. When the
which contributed to the success of the project were; revised weights, which show the order of importance
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Fig. 3. Technical benchmarks and final targets section of the HOQ matrix.

to the decision-makers has been investigated, it is technical measures in satisfying a single customer
observed that many of the weights have been need are observed. Again in Fig. 2, customer needs,
increased leading to a change in the order of priority. namely; ‘low energy costs/high thermal quality’,
Setting goals by benchmarking the performance of the ‘exterior appearance of the whole facility’ and
rivals increased the weighting of the customer needs ‘efficient central heating system’ have been linked
requiring urgent improvements. According to the with the highest number of technical measures. So,
results obtained, the three most significant customer they have been the customer needs that could be
needs have been ranked as; ‘security from external handled with the highest number of technical
threats’, ‘parking area/garage’, and ‘sufficient green measures and also shows the success of the develop-
area for recreational purposes’. ment team while assigning technical measures.
 Moreover, if the relationship matrix of the HOQ  The company professionals were satisfied with the
matrix given in Fig. 2 is investigated column-wise, the results of the QFD exercise, as it helped them to
significance and contribution of each technical identify customer needs and carry out competitive
measure in satisfying overall customer needs can be benchmarking in a structured way. It was evident that
seen. The output of the case study (Fig. 2) has shown the major CSF was availability of databases about
that, the technical measures, namely; ‘total size of customer expectations, complaints, etc. which facil-
each apartment unit’, ‘location of the housing itates the data collection phase significantly. Also, a
complex’ and ‘company assigned for the operation competitor intelligence system is an imperative as in
and maintenance of the complex’ have been the order to set accurate and reliable goals, the company
highest contributors in the overall success of the should know the properties and technical solutions
project. Similarly, if the relationship matrix is proposed by the rival companies working on similar
investigated row-wise, the contributions of all the projects. As a result of the QFD exercise, the
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company decided to use the QFD methodology in decision criterion that should be taken into account
forthcoming projects and establish an information while making comparisons between alternative housing
infrastructure within the company to manage quality. projects, which was neglected within the QFD analysis.
Thus, as well as determination of a marketing In a similar manner, from a strategic management
strategy, company professionals were able to con- point of view, the methodology does not consider the
struct a foundation for a structured value manage- strategic objectives of the organization. Although the
ment system which may be used in the forthcoming planning matrix part of the HOQ matrix encounters
projects. the rivals’ selection during decision-making, it does not
 Almost 1.5 years after the QFD implementation, a consider resource allocation in the current project
follow-up interview has been conducted with the same according to the long-term objectives of the organiza-
company professionals. They note that the company tion. However, a better understanding of the methodol-
used the outputs of the QFD exercise in a new ogy and utilization of it according to the strategic
housing project which had a very similar target objectives would yield optimum solutions both for the
customer group. Furthermore, they declared that projects and the organization as a whole.
the marketing strategy determined by the QFD Subjectivity in decision-making is another constraint
exercise reduced the selling period of the housing of the methodology. The formation of the HOQ matrix
units considerably, although the exact impact could is mainly done by subjective judgments rather than
not be quantified exactly. However, in forthcoming concrete solutions. This may reduce the reliability of the
projects, they are planning to carry out a new QFD methodology because the decisions reflect preferences
exercise as the rivals have changed as well as the and judgments of the team responsible for QFD
customer expectations. implementation.
Also, the fact that, in the traditional procurement
system, the design and construction is carried out by
different parties creates a major problem for the overall
6. Limitations and constraints of QFD success of the QFD methodology if it is applied before
or during the design stage. It is evident that the
As well as its benefits defined so far, the QFD methodology is more useful for a D/B project where a
methodology has some limitations for practical imple- single party is responsible for every phase of the project
mentation. QFD methodology encounters some pro- or for repetitive type of projects (like pipeline, housing,
blems in construction projects regardless of which stage highway, etc.).
of construction it is utilized. The potential limitations Apart from these, the lack of awareness about QFD
should be noted for the potential users of QFD so that process within construction companies or professionals
corrective actions can be planned beforehand. These in this area brings further problems for implementa-
limitations and breakthroughs which have been experi- tions. Moreover, the consideration of QFD implemen-
enced both in the case study implementation and tation as a unique and standalone activity leads to a
reviewed in the literature findings can be classified under reduction of performance. Rather, the methodology
two categories as global limitations (i.e. limitations should be part of a quality program in a quality-oriented
due to its philosophy) and application-specific limita- organization. Quality consciousness must be deployed in
tions (i.e. limitations according to its practical the company culture together with real commitment to
implementation). continuous improvement. Otherwise, the implementa-
tions will not produce the required performance.
6.1. Global limitations In a similar manner, the cross functionality and
concurrent-working environment inside the organiza-
Typically, one of the most important challenges of the tions should be enhanced. Customer needs can only be
QFD technique is its being mainly quality based. satisfied with cross functional communications so that
Quality is the primary issue of QFD methodology for the misunderstandings are eliminated which are ob-
increasing client satisfaction levels in a project. The served mainly in ‘throw over the wall’ type orientations
technique lacks comprehensiveness in terms of budget, [20]. Cross-functionality is hard to attain in the
schedule, technology constraints of the project or other construction industry, since different parties are respon-
company specific constraints. The considerations on sible for different parts of the project.
these issues are not incorporated and analysis is carried
out as if they are limitless resources. However, it is 6.2. Application-specific limitations
proven that budget constraints together with other
timing and resource limitations affect QFD implemen- One of the major problems faced in the QFD
tation performance [1]. In the case study presented applications is poor definition of the customers. In the
above, the price of the housing units was a significant construction industry, the customer is usually known at
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the beginning of the project. Therefore the seriousness of distinct groups; as recommendations for global limita-
the problem may not be significant for the construction tions and CSFs for implementations.
industry in general. In the case study given in this paper,
as the project type was ‘‘build and sell’’, the definition of 7.1. Recommendations for global limitations
the customer was a critical activity which could
significantly affect the outcome of the QFD exercise.  To reduce the general limitations due to inadequate
Another point is the application process itself. The consideration of cost constraints, a wider framework
process is lengthy requiring great time, resource and for the methodology is necessary. The reliability of
effort to perform. The size of the matrices in HOQ the model would be more promising if the model
matrix may vary according to the project but generally produced solutions by considering cost and schedule
speaking, large and complex matrices are formed in the constraints. Finding solutions as if the company or
implementation of QFD. This sometimes leads to project resources are limitless does not reflect reality.
misunderstandings and miscalculations in the matrix Therefore, a revised QFD framework covering cost
formations as also experienced in the case study constraints to optimize resources and decisions is
example. As a remedy, the process can be computerized essential. The current framework of QFD should be
but this would incur capital investments for the improved with a model incorporating the cost
formation of the necessary infrastructure. dimension into the calculations. The model proposed
Formation of the team for QFD implementation is by Bode and Fund [21] for evaluation of cost-quality
another challenge faced during the implementation of tradeoffs can be a solution to this problem. This
the methodology. One of the most important tasks is the model tries to integrate cost into the QFD framework
team formation phase since their experience and so that an optimization is performed for customer
intuition determine the necessary design attributes and satisfaction and cost of the resources.
solve conflicts among them. The better the team is  The strategic implementation of QFD has not been
formed, the more accurate will be the completion of the considered so far. It is a widely known fact that if
matrices. Inadequacy of the professionals having knowl- QFD is implemented in a quality oriented organiza-
edge on QFD, quality standards or design attributes will tion, the ultimate effect of QFD will be felt in the
also hinder the successful implementation of the achievement of the overall objectives of the company
methodology. [19]. This is because the client satisfaction in the
Apart from these, during implementation of QFD, current project will bring client retention, as the
trying to reduce the wide variety of client needs into a clients will prefer the company in their later projects.
manageable number, choosing the right technical Similarly, better designs with QFD will result in
measures for each VOC, deciding on the correct reduced construction costs, which is another source of
relations between the VOC and technical measures, competitive advantage for the company. When the
finding the optimum design targets are observed as other design deviates, which are observed as the principal
challenges faced by the authors. reasons for project cost deviations [22] are reduced
As a conclusion, it is not wrong to say that QFD is considerably by focusing on the client expectations at
hard to implement and still not widely used by earlier stages, this will create price differentiation for
contractors for quality improvement. Contractors are the company. Also, as demonstrated by the case
subject to push (like compulsory applications by study, using QFD as a tool to select a marketing
government) or pull (like self-actualization needs) strategy may significantly increase the effectiveness of
factors varying from organization to organization [1]. the marketing efforts.
This means that, although CSFs are taken into account  QFD can be employed in any stage of the project
to minimize the limitations of the methodology, it will according to the different needs of the company. As
take a long time for QFD to be used widely in demonstrated in the case study, the expectations from
construction projects during different stages of con- the methodology should match with the potential
struction value chain. outputs of QFD.
 The subjective assignment of the relationships and
weights in the matrices is another important limita-
tion of the QFD methodology. The impreciseness and
7. How to improve applicability of QFD vagueness in the subjective inputs reduce the relia-
implementations? bility of the decisions quite considerably. Therefore
systems that take into account these vague calcula-
As the limitations and challenges of QFD are grouped tions should be imposed to the conventional QFD
under two categories, the remedies and possible calculations. Quantitative methods such as artificial
recommendations for improving the applicability of neural networks, analytical hierarchy process and
QFD in construction projects will be provided in two fuzzy logic can be combined with the model to
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254 I. Dikmen et al. / Building and Environment 40 (2005) 245–255

improve the reliability of the decisions. For instance, not been covered in depth within the construction
the fuzzy QFD system proposed by Yang et al. [23], management literature. This paper is intended to list
which defines triangular fuzzy members to capture these limitations in a categorical format and propose
vagueness of the fuzzy linguistic terms and to reduce CSFs to eliminate some of these limitations to improve
subjectivity, can be a solution for this problem. the applicability of the technique for construction
 In summary, total involvement in quality and con- projects. To ensure the best performance in QFD
current working environment are necessary for applications, CSFs should be taken into account.
successful implementations. Therefore, the corporate So far, the construction industry has failed to under-
culture of the organizations should support these stand or has ignored the QFD methodology as a tool to
items for attaining higher performance in QFD increase the quality of projects, as it is perceived by the
applications. end users. However, as the number of successful
implementations increase by considering these CSFs
and the companies experience the potential benefits in
7.2. CSFs for QFD implementations various stages of construction, it is believed that they
will use QFD both to minimize quality-related costs and
 The lengthy process can be easier to handle if to sustain a successful strategic position in the long run.
computer applications like QFD software are utilized.
Similarly, knowledge of QFD has to be maintained by
the professionals responsible for the implementations. References
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