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TOPIC 6 LEARNING OBJECTIVES

DESIGNING QUALITY
❖ Able to explain the relationship
1. Linking Customer Needs to between customer needs and
Design, Production and Service product / service specification.
2. Concept Development & ❖ Able to describe on concept
Innovation development and innovation.
3. Design for Product and Service ❖ Able to illustrate the tools used for
designing quality i.e. House of
❖ Product Development
Quality and GAPS Model.
❖ GAPS Model

6.1 LINKING CUSTOMER NEEDS

TO DESIGN, PRODUCTION 6.2 CONCEPT DEVELOPMENT
& SERVICE DELIVERY & INNOVATION
❖ VoC must be linked to design, production &
delivery process. ❖ Concept development

❖ It must consider the quality dimensions that are “the process of applying scientific,
important to the customers. engineering, and business knowledge to
produce a basic functional design that
❖ For e.g., in online system quality, a customer meets both customer needs and
might has high expectation on content, accuracy, manufacturing or service delivery
ease of use, timeliness, aesthetics & security. requirements.”

❖ The great way to link – via empowered employees.

❖ Related to innovation and creativity.
❖ Good communication is imperative – will impact
on overall customer experiences.

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Innovation Creativity 6.3 DESIGN FOR PRODUCT &

SERVICE
The adoption of an idea, Seeing things in new / novel
process, technology, ways.
product or business model
that is either new or new to ❖ Most companies have some structured
its proposed application. Brainstorming / product development process:
brainwriting – to change the
context in which one views
4 categories: a problem / opportunity –
1) New product lead to fresh perspectives. Preliminary Product /
Idea
2) First type in a product concept process
generation
category TRIZ (Theory of Inventive development development
3) Major improvement Problem Solving) –
4) Modest improvement Answering “What is the P/S
intended to do?” – reflect
the concept development
Built upon strong R&D start up. Market Market Full-scale
processes. evaluation introduction production

6.3.1 Product Development Design -

Quality Function Deployment
(QFD)
❖ Developed by the Japanese as an approach to meet
customers requirement through the design process
and through design production system.
❖ Originated at Mitsubishi’s Kobe shipyard site in 1972.
Other applications:
 Toyota uses it in 1977 with impressive result.
 Xerox and Ford initiated the use of QFD in USA in
1986, and at this time more that 50 companies
has successfully uses QFD in Japan.
❖ Now QFD is used successfully by manufacturers of
electronics, appliances, clothing and construction
equipment.
❖ Why do we need QFD?
➢ The VOC can be lost in the translation &
subsequent interpretation by design and
production channel.
❖ Example:
➢ Customer might desire to own a car that is easy
to start. The translation in technical language
is “the car will start in 10 seconds of
continuous cranking”. The actual message can
be lost because the customers and engineers
speak different languages.
❖ Developing a basic functional design involves
translating customer requirements into measurable
technical requirements & subsequently, into
detailed design specification.

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Benefits of QFD

❖ Q: What are the objectives of QFD?

Documentation
Oriented
➢ To enable a company to organise and
analyse relevant information associated Teamwork
with its product or service. Oriented
➢ Preventive action rather than reactive
action.
Time Efficient
➢ Fulfill customers needs & wants.

Customer Focused

House of Quality
❖ It looks like a House with correlation matrix
❖ A graphic tool for defining the relationship as its roof, customer wants versus product
between customer desires and the firm/product features as the main part, competitor
capabilities. evaluation as the porch etc.

❖ A set of matrices used to relate the VOC to a ❖ It is based on "the belief that products
product’s technical requirements, should be designed to reflect customers'
component’s requirement, process control desires and tastes" (Hauser & Clausing 1988).
plans, and a manufacturing operation

❖ It also is reported to increase cross

❖ It is a part of the QFD and it utilizes a planning functional integration within organizations
matrix to relate what the customer wants to using it, especially between marketing,
how a firm (that produce the products) is going engineering and manufacturing.
to meet those wants.

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Structure of HOQ (Explanation)

Structure of HOQ
3 1. Voice of Customer – Refers to customers’ input /
Trade off/
requirements.
interrelationship 2. Technical Requirements – To meet customers’
requirements, the manufacturer works to certain
2 performance specifications and requires the supplier
Technical requirement to do the same.
3. Interrelationships – Roof of the house. It is where
trade-offs are identified. These trade-offs relating
5 to manufacturers’ requirements.
1 4 4
Relationship matrix 4. Planning Matrix (both at the right) – It is used to
Voice of Priorities of
Competitive translate customers’ requirements into plans for
customers customer
evaluation meeting/exceeding those requirements.
requirements
5. Relationship matrix – Customers’ requirements are
Priorities of converted into manufacturing terms.
6 technical 6. Technical Requirement Priorities – Floor of the
requirement house. It is where the manufacturers’ critical
process requirements are prioritized.

❖ Building the House of Quality consists of

6 basic steps:

1. Identify customers requirements.

2. Identify technical requirements.
3. Relate the customers requirements to the
technical requirements.
4. Conduct an evaluation of competing
products or services.
5. Evaluate technical requirements and
develop target.
6. Determine which technical requirements
to deploy in the remainder of production
/ delivery process.

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❖ The HOQ provides the marketing function with

an important tools to understand customers
needs and gives top management strategic
direction.

❖ However this is the only first steps in the QFD

process.

❖ Three other “HOQ” are used to deploy the VOC

(in manufacturing setting):
➢ Component part characteristic
➢ Process planning
➢ Quality Control

6.3.2 GAP Analysis

❖ Use to measure services.

❖ Good understanding between customers and

employees will reduce the negative perceptions
of quality services.

❖ A gap analysis research instrument:

➢ Created by Parasuraman, Zeithaml, and Berry
in 1988.

?
❖ Advantages/benefits:
➢ To service providers
➢ To customers

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GAP 1 (Knowledge/Research Gap) GAP 2 (Standard / Design Gap)

❖ Different between actual customer ❖ Manager’s expectations of service quality may not
expectations and management’s match service quality specs.
perception. ❖ To implement a system to improve this gap,
❖ Managers and employees have a very management must first understand exactly what the
internal process-oriented view of their customer wants.
business, it is tough to break this view
❖ If this understanding is not present, it will be
and to see things the way the customer
impossible for management to know whether their
does.
expectations are aligned with customer
specifications.
Mgt Perceptions of Expected
Customer Expectations Service Mgt Perceptions of Service Q.
Customer Expectations Spec.

GAP 3 (Delivery Gap) GAP 4 (Communication Gap)

❖ Differences between services delivery and
Service Quality Service external communications with the customer
(Ex: promised one thing (advertisement) and
Specifications Delivery give the other thing (actual)).

❖ Customers are influenced by what they hear and

❖ Once the specifications from gap 2 are aligned the see about a company’s service.
next step is to deliver these services in a perfect
manner.
❖ Word-of-mouth publicity and advertising are
main outlets which customers open their
❖ The employees that are responsible for these actions opinions to.
are referred to as contact personnel.
❖ This gap can lead to dangerously negative
❖ Some reasons for a lack of quality include poor customer perception.
training, communication, and preparation.

❖ Delivery of perfect services quality is still not Service External Communications

guaranteed (Ex: lack of experience of contact Delivery to Customers
personnel).

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GAP 5 (Service Gap) How to close the GAP?

❖ Difference between perceived and expected services.

❖ This gap is directly related to everyone’s perception of Close gaps 1 through 4 through:
service quality.

❖ Customers expect certain things from certain companies. 1. Thoughtful systems design
❖ If gaps 1 through 4 are closed to a minimum then gap 5
should follow, if there are any gaps left in steps 1
through 4 the perceived customer service quality will be 2. Careful communication with the
negatively affected. customer (promotion/advertisement)
❖ The way to make sure these gaps are closed is through
thorough systems design, precise communication with
customers, and a well-trained workforce. 3. Train the workforce to provide
consistently outstanding customer
Expected Perceived service.
Service Service

End of Topic 6