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QUALITY FUNCTION DEPLOYMENT (QFD). 05.12 .2013. Açelya Ecem Yıldız, Çağıl Köseoğlu. Table of Contents. Introduction History of QFD Definition of QFD Steps of QFD Benefits of QFD Problems regarding the implementation of QFD QFD Resources Functional Fields of QFD
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QUALITY FUNCTION DEPLOYMENT (QFD) 05.12.2013 Açelya Ecem Yıldız, Çağıl Köseoğlu CE726- Strategic Management in Construction Industry
Table of Contents • Introduction • History of QFD • Definition of QFD • Steps of QFD • Benefits of QFD • Problems regarding the implementation of QFD • QFD Resources • Functional Fields of QFD • Applied industries of QFD • Methodological development of QFD • Quality Function Deployment in Construction Industry • Benefits of QFD in Construction • Limitations of QFD in Construction • Application of QFD in Construction Industry • QFD Application- Example • Recommendations for Implementation of OFD in Construction Industry • Conclusion • References CE726- Strategic Management in Construction Industry
Introduction • QFD is an ideal opportunity to move away from “we know best what the customer wants” to a new culture of “let’s hear the voice of the customer” (Zairi and Youssef, 1995). • Major focuses; customer orientation, cross functional management and process rather than product orientation • In the House of Quality as it was named by Hauser and Clausing (1988), the different steps of the planning phase for a new product are summarized. • During this phase the customer requirements (WHATs) are translated into design characteristics (HOWs) on the basis of market research and past experiences (the WHY scores) (Govers, 2001) CE726- Strategic Management in Construction Industry
History of QFD • born in Japan as a strategy for assuring that quality is built into new products • first used in 1972 by Kobe Shipyard of Mitsubishi Heavy Industries Ltd • the use of QFD in Japan has increased over the years • however,its extension to the West wasvery slow. • first examples in the USA did not emerge until 1986 • in USA, companies such as Ford and Rank Xerox first introduced it • Then, AT&T Bell Labs, Digital Equipment, Procter & Gamble and Hewlett-Packard • in the UK the uptake of QFD is very recent CE726- Strategic Management in Construction Industry
Definition of QFD Hauser and Clausing (1988) “focuses and coordinates skills within an organization, first to design, then to manufacture and market goods that customers want to purchase and will continue to purchase. The foundation of the [QFD] is the belief that products should be designed to reflect customers’ desires and tastes – so marketing people, design engineers, manufacturing staff must work closely together from the time a product is conceived” Akao (1990) “a method for developing a design quality aimed at satisfying the customer and then translating the customers’ demands in to design targets and major quality assurance points to be used throughout the production phase” CE726- Strategic Management in Construction Industry
House of Quality: a 9-step model • Based on the study of Hauser and Clausing (1988) • Modification by Chan and Wu (2005) CE726- Strategic Management in Construction Industry
House of Quality: Step 1 The producing company should know who are the customers for the product concerned. • Threetypes of customers, internal customers (shareholders, managers and employees), intermediate customers (wholesale people and retailers), and ultimate customers (recipients of service, purchasers, institutional purchasers) • The main focus is on the ultimate customers who could be identified through previous information and marketing research. • Available methods to collect customer needs include focus group, individual interviews, listening and watching, and using existing information. CE726- Strategic Management in Construction Industry
House of Quality: Step 2 Customer needs (WHATs) usually are of different degrees of importance so focus more on the important WHATs. • Expressed ascustomers perceptions on the relative importance of the WHATs and then averaging their perceptions. • The appropriate ways of obtaining customers’ perceptions are by individual interviews and mail surveys. CE726- Strategic Management in Construction Industry
House of Quality: Step 3 Competitors who produce the similar products should be identified • Knowing the company’s strengths and constraints in all aspects of a product and in comparison with its main competitors is important to sustain competitiveness • This kind of information can be obtained by asking the customers to rate the relative performance of the company and its competitors on each WHAT and then to aggregate the customers’ ratings. • Useful ways of conducting this kind of comparison analysis are also via mailed surveys and individual interviews. CE726- Strategic Management in Construction Industry
House of Quality: Step 4 Customer needs with higher relative importance perceived by customers and higher competitive priorities and improvement ratios should receive higher attention. CE726- Strategic Management in Construction Industry
House of Quality: Step 5 • The company’s technicians or product development team should develop a set of HOWs to capture the customer needs in measurable and operable technical terms. • HOWs could be generated from current product standards or selected by ensuring through cause– effect analysis that the HOWs are the first-order causes for the WHATs CE726- Strategic Management in Construction Industry
House of Quality: Step 6 • The relationship between a HOW and a WHAT is usually determined by analyzing to what extent the HOW could technically relate to and influence the WHAT. • All these relationships form a matrix with the WHATs as rows and the HOWs as columns. CE726- Strategic Management in Construction Industry
House of Quality: Step 7 • Initial technical ratings of HOWs are decided by two factors, • final importance ratings of WHATs • the relationships between the HOWs and the WHATs. • These ratings indicate the basic importance of the HOWs developed in relation to the WHATs. CE726- Strategic Management in Construction Industry
House of Quality: Step 8 • It is hard to colledct technical parameters and know-hows of the competitors’ products • However, the producing company should make every effort to acquire this information to not fail! • If technical parameters of competitors’ products could not be obtained, careful technical assessments should be made to give reliable scores CE726- Strategic Management in Construction Industry
House of Quality: Step 9 Those HOWs with higher initial technical ratings, higher technical competitive prioritiesand higher improvement ratiosindicate working focuses and market opportunities for the producing company !!!! CE726- Strategic Management in Construction Industry
Benefits of QFD • Zairi and Youssef (1995) and Zucchelli (1992) • To define product specifications meeting the customer’s requirements, while paying attention to the competitors • To ensure consistency between the customer’s requirements, and the measurable characteristics of the product • To inform and convince all those responsible for various stages of the process of the relationship between the quality of the output of each phase and the quality of the finished product • To ensureconsistency between the planning and the production process • To get things moving more quickly because planning takes place at an earlier stage and mistaken interpretations of priorities and objectives are minimized CE726- Strategic Management in Construction Industry
Benefits of QFD • Akao(1990) • QFD enables organizations; • To translatecustomer requirements into meaningful (technical) requirements at each stage of the development and production processes. • To offera structured method to tap into all the knowledge on NPD in any organization and facilitates its management and control. • To bringpeople together from various disciplines and facilitates the formation of teams capable of meeting customer requirements. CE726- Strategic Management in Construction Industry
Problems regarding the implementation of QFD • Ernst & Young identified the following problems associated with QFD implementation: • Engineers think that QFD is a “false science”, too focused on the mechanics of scoring. QFD however is an effective tool of capturing and displaying data and serves as a communication vehicle for generating • structured discussions among team members, in order to meet customer requirements (the expertise is in the hands of the team members and not the tool!). • It takes a long time to develop a QFD chart fully. • Team members get caught in the details of the exercise while the market window closes on them CE726- Strategic Management in Construction Industry
Problems regarding the implementation of QFD • Hewlett-Packard identified the following problems during the implementation of QFD • Project scheduling (time to market) ruling as the dominant consideration. • Inadequate management commitment • Looking for high return on investment with the first application of QFD. • Lack of adequate facilitation: • not timely; • not continued long enough; • not skillful enough in facilitation • not trained well enough in QFD. • Takingon too large a product (especially if a first QFD project). • Getting into too much detail (QFD tables become unmanageably large). CE726- Strategic Management in Construction Industry
QFD Resources - Organizations Based on the study of Chan and Wu (2002) CE726- Strategic Management in Construction Industry
QFD Resources – Software/websites/discussion groups Based on the study of Chan and Wu (2002) CE726- Strategic Management in Construction Industry
Functional fields of QFD CE726- Strategic Management in Construction Industry
Applied industries of QFD Based on the study of Chan and Wu (2002) CE726- Strategic Management in Construction Industry
Applied industries of QFD Based on the study of Chan and Wu (2002) CE726- Strategic Management in Construction Industry
Methodological development of QFD 1. Quantitative methods for QFD CE726- Strategic Management in Construction Industry
Methodological development of QFD 2. Extensions and implementation issues of QFD CE726- Strategic Management in Construction Industry»
Methodological development of QFD 3. Comparative studies, surveys, and reviews on QFD Based on the study of Chan and Wu (2002) CE726- Strategic Management in Construction Industry
Quality Function Deployment in Construction Industry • QFD is widely used in manufacturing and developing new products with high customer satisfaction. • Implementationof QFD in the construction industry is rather scarce. (Schriener et al.,1995) • Survey results showed that; (Delgado- Hernandez et al., 2007) • Awarenessof QFD was still little in the construction sector and only 18% respondents knew the tool. CE726- Strategic Management in Construction Industry
Definition of Quality & Customer Quality: • Quality in the construction industry: “meeting the requirements of the designer, constructor and regulatory agencies as well as the owner.” (Arditi and Gunaydin,1997) Customers: • "the first step in quality planning is to identify who are the customers". (Juran, 1988) • Therefore, understandingof the concept of customer is crucial to the application of QFD. • Inconstructionindustry, interchangingrelationsbetweendesigner, contractor, ownerandbuyers. CE726- Strategic Management in Construction Industry
Quality in Construction Industry Differences in construction industry compared to manufacturing; (Rounds and Chi, 1985) • Uniqueness of each construction project • Differentsite conditions of each construction production • The life-cycle of a construction project is much longer • Construction projects usually are evaluated subjectively as there is no clear and uniform standard in evaluating overall construction quality • The owner usually directly influences the production • The participants in the construction projectdiffer for each project. CE726- Strategic Management in Construction Industry
Benefits of QFD in Construction • Precise collection and identification of client needs/expectations(Oswald and Burati, 1992; Tran and Sherif, 1995) • Better planning • Enhanced communication (Griffin and Hauser, 1992; Kamara et al., 2000) • Reduced uncertainty(Kamara et al., 2000) • Chan and Wu reported (Chan and Wu, 2002) • 30–50% reduction in engineering changes • 30–50% shorter design cycles • 20–60% lower start-up costs • 20–50% fewer warranty claims CE726- Strategic Management in Construction Industry
Limitations of QFD in Construction • Limitations in construction projects;(Dikmen et al., 2005) • Global limitations: • lack of awareness about QFD • it mainly quality based and lacks comprehensiveness in terms of project constraints(Pheng and Yeap, 2001) • it does not consider the strategic objectives • HOQ matrix is mainly done by subjective judgments • it is more useful for D/B project (a single party is responsible for every phase) • Application-specific limitations: • team becomesimportant • requires time, resource and effort • for large construction projects Pheng and Yeap suggested use of four HOQ matrices of subprojects(Pheng and Yeap, 2001) CE726- Strategic Management in Construction Industry
Limitations of QFD in Construction (PhengandYeap, 2001) CE726- Strategic Management in Construction Industry
Application of QFD in Construction Industry • Construction Industry has been slow in adopting the methodology, most of them in design of flats. (Delgado-Hernandez et al. 2007) • Surveys have beenconductedto evaluate the awareness of QFD in construction industry: • Pheng saw that approximately 7% of the sample size has heard of QFD. (Pheng and Yeap, 2001) • Chia reported that the awareness of QFD among professionals, mainly architects and engineers was approximately 10% of the sample size.(Chia, 1999) • Delgado-Hernandez et al.showed that only 18% respondents knew the OFD tool. (Delgado-Hernandez et al. 2007) CE726- Strategic Management in Construction Industry
Application of QFD in Construction Industry • Applicationsin the literature are grouped under three categories; (Dikmen et al., 2005) • QFD implementations before the design stage: • Arditi and Lee used QFD tool for the selection of D/B firms (Arditi and Lee, 2003) • QFD implementations during the design stage: • Mallon and Mulliganintroduced the construction literature with QFD and demonstrated applicabilityof QFD in design of a hypothetical renovation projectof an existing computer workroom facility. (Mallon and Mulligan, 1993) • Huovila et al. Used the method for structural design of an industrial building. (Huovila et al., 1997) • Serpell and Wagner applied the HOQ to determining design characteristics of flats in Chile. (Serpell and Wagner,1997) • Abdul-Rahman et al. applied it to identify the most important consumer requirements, evaluate current status of low-cost flats and improvements for future projects. (Abdul-Rahman et al., 1999) CE726- Strategic Management in Construction Industry
Application of QFD in Construction Industry • Gargioneused HOQ in Brazilian construction industry to improve design of a middle-class flat and changed the design of an apartment accordingly. (Gargione, 1999) • Kamara et al. applied QFD for processing client requirements and determined the actual requirements for a building refurbishment project. (Teesside Innovation Centre at the University of Teesside) (Kamara et al., 1999) • Eldin and Hikle applied QFD in development of the design for a modernuniversity classroom. (Eldin and Hikle,2003) • Benefits were reported: critical decisions made on time, the elimination of rework and design flaws, and cleardefinition of customer needs. • The process made it possible for a group of individuals with different interests to listen clearly to the customers’ needs, communicate their needs, find and approve critical decisions on time. CE726- Strategic Management in Construction Industry
Application of QFD in Construction Industry • Delgado-Hernandez studied the method on determining important factors in the design of a new children’s nursery in the UK. • QFD was successful especially at the early stages of the construction in identifying customerneeds, determining technical characteristics and enhancing communication with customers. (Delgado-Hernandez et al., 2007) • Pheng and Yeap studied a hypothetical personal computer workroom facilityupgrading project at a universityto decide if improvements are desirable or needed and elements for improvements.(Pheng and Yeap, 2001) CE726- Strategic Management in Construction Industry
QFD Application- Example • QFD implementations after the design stage: Dikmen at al. studied use of QFD after the construction stage. • They applied QFDin Turkish construction industry using HOQ method to a high-rise housing project for guiding their marketing plans. (Dikmen et al., 2005) HauserandClausing, 1988 CE726- Strategic Management in Construction Industry
QFD Application- Example Step 1 • customer profile of the project was defined (company professionals) • middle&high income people • lookingfordifferentiation in housing units Step 2 • expectations of the target customer profile was identified • customer surveys, interviews • feedbacksfrom previous projects • interdisciplinary research team wasconstructedfor expert opinions • important criteria for customer satisfaction • VOC sectionwas constructed (section 1) Dikmen et al., 2005 CE726- Strategic Management in Construction Industry
QFD Application- Example Step 3 • importance level of needs have been decided • by considering previous customer priorities • by considering compatible projects • subjective customer evaluations for rivals were included • with 1-5 scale importance levels • by considering rival companies’ evaluations • planning matrix was formed (section 3) Dikmen et al., 2005 CE726- Strategic Management in Construction Industry
QFD Application- Example Step 4 • technical measures were identified(solutions to each customer need) • by brainstorming sessions (section 2) • relationships between customer needs and technical measures were identified(section 4) • subjectively by the research team • scoring scale of 9, 3, 1 and 0 (from strong to no relationship) CE726- Strategic Management in Construction Industry
QFD Application- Example Step 5 • performance of company compared with rivals’ performance • need of improvements& goals for meeting • weights of each need were calculated and weight of unsuccessful need is increased (attention) ‘‘availability of sufficient green area for recreational purposes’’ CE726- Strategic Management in Construction Industry
QFD Application- Example Step 6 • interactions between technical measures are induced in the roof of the matrix (section 5) -/+ correlation • weights of technical measures have been calculated (Σcustomer need weight x relationship score) • measures that need improvement identified Dikmen et al., 2005 CE726- Strategic Management in Construction Industry
QFD Application- Example CE726- Strategic Management in Construction Industry
QFD Application- Example • Results of the case study were listed in terms of; • five most important technical measures for project success • location of the housing complex • functional architectural layout of the apartment units • total size of each apartment unit • security system/Professional security team • area reserved for recreational purposes/good sight • three most important customer demands • socialdifferentiation • large apartment units • Securityfrom external threats CE726- Strategic Management in Construction Industry
QFD Application- Example • three most significant customer needs have been ranked as; • security from external threats • parking area/garage • sufficient green area for recreational purposes • highest contributors in the overall success of the project are; • total size of each apartment unit • location of the housing complex • company assigned for the operation and maintenance of the complex • Evaluation of the results • thestudysatisfied the company professionals; see customer requirements & rival performance structured way • the company decided to use the QFDmethodology in future projects • later on an interview has been conducted after 1.5 years, according to this • the company used the outputs in a new housing project • marketing strategy reduced the selling period of the housing units CE726- Strategic Management in Construction Industry
Recommendations for Implementation of OFD in Construction Industry • reliability ofthe model would improve by; • considering cost and scheduleconstraints • subjective relationships andweightsassignment should be imposed by quantitative methods such fuzzy logic • for successful application of the method; • computer applications for timely concerns, trainings and seminars to increase knowledge • applicationat earlier stages to prevent late changes, missingimportant client requirements • careful definition of the QFDteam for reliable outputs from the HOQmatrix Dikmen et al., 2005 CE726- Strategic Management in Construction Industry
Conclusion • Customer's requirements and their relationships with design characteristics are the driving forces of QFD methodology. (Govers, 2001) • QFD enables an organization to build a quality into the product and to control the development process from concept to the commencement of manufacturing operations. (Govers, 2001) • QFD has been successful in manufacturing and developing new products and a large number of companies in many industries are using QFD. • However, unlike these industries the number of companies that attempted the implementation of QFD in the construction industry is rather scarce. CE726- Strategic Management in Construction Industry
Conclusion • Inimplementation, method has certain global andapplication-specificlimitations; such as ignoringprojectconstraints, lack of awarenessandformation of complexmatrices. • Manyresearchers found that the methodology improved both the project definition process and the identification of customer requirements while reducing time and enhancing functional communication. CE726- Strategic Management in Construction Industry
References • Zairi, M., Youssef, M.A. (1995). Quality function deployment: a main pillar for succefful total quality management and product developmet. International Journal of Quality and Reliability Management, 12(6), 9-23. • Hauser, J.R. and Clausing, D., “The house of quality”, Harvard Business Review, May-June 1988, pp. 63-73. • Govers, C.P.M. (2001), QFD not just a tool but a way of quality management, International Journal of Production Economics, 69, 151-159. • Y. Akao, (Ed.), Quality Function Deployment, Integrating Customer Requirements into Product Design, Productivity Press, Cambridge, MA, 1990 • Chan, L.K., and Wu, M.L. (2005). A systematic approach to quality function deployment with a full illustrative example. Omega, 33, 119-139. • Zucchelli, F., “Total quality and QFD”, 1st European Conference on Quality Function Deployment, Milan, 25-6 March 1992, Galgano & Associati. • Chan, L.K., and Wu, M.L. (2002). Quality function deployment: A literature review. European Journal of Operational Research 143, 463–497 • Abdul-Rahman, H., Kwan, C.L., Woods, P.C. (1999), Quality Function Deployment in Construction Design: Application in Low-cost Housing Design, International Journal of Quality & Reliability Management, Vol. 16 No. 6, pp. 591-605. • Arditi D, Lee D. (2003), Assessing the corporate service quality performance of design-build contractors using quality function deployment. Construction Management and Economics;21: pp. 175–85. • Chia, C. H. (1999), ‘‘Application of quality function deployment in design and construction.’’ BSc dissertation, School of Build. and Real Estate, National University of Singapore, Singapore. • Delgado-Hernandez, D.J., Bampton, K.E., Aspinwall, E. (2006), Quality Function Deployment In Construction, Construction Management and Economics, 25; pp. 597-609. • Dikmen, I., Birgonul, M.T., Kiziltas, S., (2005), Strategic Use of Quality Function Deployment (QFD) In The Construction Industry, Building and Environment, 40; pp. 245-255. CE726- Strategic Management in Construction Industry