House of Quality

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House of Quality

• and an overview of the topics
• to be covered by the papers Systems and Results

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The four matricesconstancy of purpose
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What is it?

• A structured format to translate customer
  requirements into specific product and service
  characteristics
• The QFD process is complex
• Multiexperts undertaking
• Multicriteria decision making
• Ultimately to deliver customer satisfaction
• Best-in class products
• Multifunctional teams

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Whos using it ?

• Mistubishi Kobe shipyard 1972
• Toyota since 1972
• Xerox and Ford (Taurus model) first in USA in
  1983, but now used by
• Canon (red eye reduction,microchips for autofocus
  etc))
• Procter Gamble
• Kodak
• IBM
• Hewlett-Packard
• General Motors
• AT T .

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Product development

• House of Quality
• improving an existing product
• developing best-in-class products
• Superior to known products
• Breakthrough product development
• HOQ not usable because data are not available

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QFD

• Pros
• Customer focus from the beginning
• Teamwork
• A framework for decisions
• Documentation of the product development process

• Cons
• Time consuming
• Difficult to reach agreement on conflicting
  technical requirements
• The matrices are too big

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Consumer generated lists

• Focus groups
• Unstructured
• Semistructured
• Structured approaches
• Means-end chain analysis (hierarchy of benefits
  and drawbacks in a product or service)
• Critical incidents approach
• Based on satisfying or dissatisfying encounter
  (describe what they feel about this encounter)

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Affinity diagram
One out of seven new quality tools
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How Puritan-Bennett used HOQSloan Management
Review 1993

• Spirometers
• Medical devices to measure lung capacity
• A patient is required to inhale and then to
  exhale as hard, as fast and as long as possible
  in one long breadth
• The spirometer measures
• Total volume of air in the lungs as well as the
  amount that can be exhaled in the first second
• New competitor on the market

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Customer needs from focus groups
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The most important consumer needs- a
quantitative approach

• Latent needs
• Perceptions
• Overall evaluation of products on the market
• Similarity analysis, proximity analysis
• INDSCAL
• Evaluation of products on a set of identified
  consumer needs
• Matrix data analysis
• Similarity analysis
• Preferences
• Preference analysis
• Manifest needs (preferences)
• Conjoint analysis

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Ultimate goal with HOQ

• Consumer satisfaction
• and consumer loyalty

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• How to define ?
• Encounter specific satisfaction
• Transaction-specific
• Cumulative satisfaction (firm-specific)
• How to measure ?

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House of Quality

• A matrix diagram

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A completely different applicationdeveloping
good performance measures
Metrics You are what you measure, European
Management Journal,16,5,1998