quality-function-deployment

Quality Function Deployment In A Nutshell

Business / By / October 28, 2023

Quality Function Deployment (QFD) is a total quality management tool that systematically develops the needs and expectations of customers. Quality Function Deployment was developed by the Mitsubishi Corporation for defining shipbuilding requirements in the late 1960s. 

AspectExplanation
DefinitionQuality Function Deployment (QFD) is a systematic and structured approach to product or service development that focuses on translating customer needs and requirements into specific product or service characteristics. It originated in Japan in the 1960s and is widely used in various industries to ensure that customer expectations are met or exceeded. QFD aims to enhance the quality and customer satisfaction of a product or service by aligning all aspects of its design, production, and delivery with the voice of the customer. It involves cross-functional teams and a set of tools and matrices to prioritize customer requirements, translate them into engineering characteristics, and track their implementation throughout the development process. QFD is a valuable tool for product and service designers and quality assurance professionals to ensure that their offerings meet customer expectations.
Key Concepts– Customer Voice: QFD starts by capturing and understanding the voice of the customer (VOC), which includes their needs, expectations, and desires. – House of Quality: The House of Quality is a central QFD matrix that links customer requirements (Whats) with engineering characteristics (Hows). – Cross-Functional Teams: QFD relies on cross-functional teams that collaborate to integrate customer requirements into design and production processes. – Matrix-Based Approach: It uses matrices and tables to organize and prioritize information. – Continuous Improvement: QFD supports the concept of continuous improvement, where products or services are refined over time to better meet customer needs.
Characteristics– Structured Process: QFD follows a structured step-by-step process, ensuring consistency and thoroughness. – Customer-Centric: It places the customer at the center of product or service development. – Data-Driven: QFD relies on data and information gathered from customer feedback and market research. – Cross-Functional Collaboration: Teams from different departments work together to implement QFD effectively. – Visual Tools: Matrices and graphs are used to visualize and prioritize information.
Implications– Customer Satisfaction: QFD directly impacts customer satisfaction by aligning products or services with customer needs. – Efficiency: It streamlines the development process, reducing wasted resources and effort on non-essential features. – Competitive Advantage: Companies that use QFD effectively can gain a competitive advantage by consistently delivering what customers want. – Innovation: QFD fosters innovation by encouraging teams to find creative solutions to meet customer requirements. – Risk Mitigation: It helps identify potential issues early in the development process, reducing the risk of costly redesigns or recalls.
Advantages– Improved Product Quality: QFD leads to higher product or service quality as it focuses on meeting customer needs. – Customer-Centric Approach: It reinforces a customer-centric approach to product and service development. – Efficiency: QFD streamlines processes, reducing time and resource wastage. – Enhanced Communication: It promotes better communication and collaboration among cross-functional teams. – Data-Driven Decisions: QFD relies on data, ensuring informed decision-making.
Drawbacks– Resource-Intensive: QFD can be resource-intensive in terms of time, personnel, and data collection. – Complexity: The process can be complex, especially for smaller organizations. – Overemphasis on Customer Input: Overemphasizing customer input can lead to a lack of innovation or strategic vision. – Resistance to Change: Implementing QFD may face resistance from employees accustomed to traditional development methods. – Limited to Developed Markets: It may be less applicable in markets with low levels of customer feedback or where customer needs are not well-defined.
Applications– Product Development: QFD is commonly used in designing and developing new products or improving existing ones. – Service Development: It is also applied to the development and improvement of services, such as healthcare or financial services. – Process Improvement: QFD can be used to optimize manufacturing or service delivery processes. – Marketing Strategy: Some companies use QFD to align marketing strategies with customer preferences. – Quality Control: It plays a role in quality control and ensuring consistent product quality.
Use Cases– Automotive Industry: Car manufacturers use QFD to incorporate customer preferences into vehicle design, leading to features that appeal to their target markets. – Consumer Electronics: Companies producing smartphones, laptops, and other electronics use QFD to balance design with functionality and user experience. – Healthcare Services: Hospitals and healthcare providers apply QFD to improve patient care and the overall healthcare experience. – Financial Services: Banks and financial institutions use QFD to enhance the quality of customer service and financial products. – Manufacturing: Manufacturing companies employ QFD to improve production processes and product quality, reducing defects and waste.

Understanding Quality Function Deployment

Given that ship construction is an enormously expensive process, Mitsubishi realized the importance of building a product to suit customer needs.

QFD was later adopted by General Motors, Ford, and Chrysler, shortening design cycles and reducing the number of employees required during the design process.

These companies were also the first to introduce a customer-centric focus to the car manufacturing industry – moving away from a fixation with the bottom line.

In so doing, domestic vehicle sales increased on the back of greater innovation and customer satisfaction.

Implementing Quality Function Deployment

QFD is a four-phase process describing activities throughout the product development cycle.

Each phase is accompanied by a matrix called the House of Quality. This matrix translates customer needs to the design requirements for each system, sub-system, and component.

With this in mind, here is a list of the four phases:

Product definition

QFD begins with the business implementing a Voice of the Customer (VoC) methodology to describe customer needs in the context of product specifications.

VoC may include the gathering of information through focus groups, surveys, interviews, or other means. Sometimes, product definition will also incorporate competitor products. 

Product development (design)

Here, the product team will take priority product specifications and translate them into assembly characteristics.

They will also define the functional requirements for each.

Process development

Based on product and component specifications, manufacturing and assembly processes are designed.

The process flow is developed and important process characteristics are identified.

Process quality control

To ensure that characteristics are met, QFD advocates the development of controls, inspections, and tests.

Using the House of Quality matrix

Prioritising the most important customer needs is an integral part of QFD. This is achieved via the aforementioned House of Quality matrix.

To use the matrix, follow these steps:

Add customer needs (based on research) on the left hand side of the matrix

For a company developing a new smartphone, needs may encompass size, battery life, camera quality, and weight.

Assign customer ratings to each feature conducted through quantitative research using a scale of 1 to 5.

Then, calculate the percentage importance for each feature by dividing the rating by the total of all ratings.

Add design requirements

Along the top of the House of Quality, add a horizontal row of design requirements for each feature.

Examples for a smartphone may include operating system, battery size, and cost of production.

Determine the strength of the relationship between design requirements and customer needs

Strength is rated as either Strong (9), Medium (3), or Weak (1).

For example, a customer preference for long battery life has a strong relationship to weight but a weak relationship to camera resolution.

For each feature, calculate the importance rating by multiplying the percentage importance by the relationship score.

To determine which features the product team should work on first, divide the importance rating of one feature by the sum of all importance ratings.

Add competitor research

This means determining how competitors currently rank for each of the prioritized needs determined in the previous steps.

Using this information, product teams can quickly see features competitors have overlooked or that are being under served.

Note that the competitive assessment does not impact on importance ratings. Rather, they are intended to serve as an additional layer of analysis.

Key takeaways

  • Quality Function Deployment is a systematic quality management tool that focuses on designing features and products according to customer needs.
  • Quality Function Deployment is based on four phases that guide design during the product development cycle: product definition, product development, process development, and process quality control.
  • Feature prioritization is integral to Quality Function Deployment. Using quantitative research and competitor analysis, product teams can use the House of Quality matrix to accurately prioritize product features.

Key Highlights

  • Definition and Purpose: Quality Function Deployment (QFD) is a total quality management tool that systematically identifies and addresses the needs and expectations of customers during product development.
  • Origins and Adoption: QFD was initially developed by the Mitsubishi Corporation in the late 1960s for defining shipbuilding requirements. It was later adopted by companies like General Motors, Ford, and Chrysler to streamline design cycles and improve customer-centric focus in the car manufacturing industry.
  • Four Phases of QFD: QFD involves four distinct phases that guide product development:
    • Product Definition: Gathering customer needs through methodologies like Voice of the Customer (VoC) and competitor analysis.
    • Product Development (Design): Translating customer needs into product specifications and functional requirements.
    • Process Development: Designing manufacturing and assembly processes based on product and component specifications.
    • Process Quality Control: Developing controls, inspections, and tests to ensure process and product characteristics are met.
  • House of Quality Matrix: The House of Quality is a matrix used within QFD to prioritize and align customer needs with design requirements. It involves several steps:
    • Add customer needs on the left side of the matrix and assign customer ratings (1 to 5) to each.
    • Calculate the percentage importance for each need.
    • Add design requirements along the top of the matrix.
    • Determine the strength of relationships between design requirements and customer needs (Strong, Medium, Weak).
    • Calculate importance ratings for each feature.
    • Use competitor research to assess where competitors rank in relation to prioritized needs.
  • Key Takeaways:
    • QFD aims to design products and features based on customer needs.
    • The process involves four phases: product definition, product development, process development, and process quality control.
    • The House of Quality matrix is a crucial tool in QFD, helping prioritize features and align them with customer expectations.

Connected Agile & Lean Frameworks

AIOps

aiops
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.

AgileSHIFT

AgileSHIFT
AgileSHIFT is a framework that prepares individuals for transformational change by creating a culture of agility.

Agile Methodology

agile-methodology
Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.

Agile Program Management

agile-program-management
Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.

Agile Project Management

agile-project-management
Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.

Agile Modeling

agile-modeling
Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.

Agile Business Analysis

agile-business-analysis
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.

Agile Leadership

agile-leadership
Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles. 

Andon System

andon-system
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).

Bimodal Portfolio Management

bimodal-portfolio-management
Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.

Business Innovation Matrix

business-innovation
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.

Business Model Innovation

business-model-innovation
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.

Constructive Disruption

constructive-disruption
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.

Continuous Innovation

continuous-innovation
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.

Design Sprint

design-sprint
A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.

Design Thinking

design-thinking
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.

DevOps

devops-engineering
DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.

Dual Track Agile

dual-track-agile
Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.

eXtreme Programming

extreme-programming
eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.

Feature-Driven Development

feature-driven-development
Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.

Gemba Walk

gemba-walk
A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.

GIST Planning

gist-planning
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.

ICE Scoring

ice-scoring-model
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.

Innovation Funnel

innovation-funnel
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Innovation Matrix

types-of-innovation
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

Innovation Theory

innovation-theory
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.

Lean vs. Agile

lean-methodology-vs-agile
The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.

Lean Startup

startup-company
A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.

Minimum Viable Product

minimum-viable-product
As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.

Leaner MVP

leaner-mvp
A leaner MVP is the evolution of the MPV approach. Where the market risk is validated before anything else

Kanban

kanban
Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.

Jidoka

jidoka
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.

PDCA Cycle

pdca-cycle
The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.

Rational Unified Process

rational-unified-process
Rational unified process (RUP) is an agile software development methodology that breaks the project life cycle down into four distinct phases.

Rapid Application Development

rapid-application-development
RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.

Retrospective Analysis

retrospective-analysis
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.

Scaled Agile

scaled-agile-lean-development
Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.

SMED

smed
The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.

Spotify Model

spotify-model
The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.

Test-Driven Development

test-driven-development
As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.

Timeboxing

timeboxing
Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.

Scrum

what-is-scrum
Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.

Scrumban

scrumban
Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.

Scrum Anti-Patterns

scrum-anti-patterns
Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).

Scrum At Scale

scrum-at-scale
Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.

Six Sigma

six-sigma
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.

Stretch Objectives

stretch-objectives
Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.

Toyota Production System

toyota-production-system
The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.

Total Quality Management

total-quality-management
The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.

Waterfall

waterfall-model
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework. 

Read Also: Continuous Innovation, Agile Methodology, Lean Startup, Business Model Innovation, Project Management.

Read Next: Agile Methodology, Lean Methodology, Agile Project Management, Scrum, Kanban, Six Sigma.

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Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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