copyright 2006 john wiley & sons, inc. products and services chapter 5, part 2

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Copyright 2006 John Wiley & Sons, Copyright 2006 John Wiley & Sons, Inc. Inc. Products and Services Products and Services Chapter 5, Part 2 Chapter 5, Part 2

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Page 1: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.

Products and ServicesProducts and Services

Chapter 5, Part 2Chapter 5, Part 2

Page 2: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-22

Quality FunctionDeployment (QFD)

Translates voice of customer into technical Translates voice of customer into technical design requirementsdesign requirements

Displays requirements in matrix diagramsDisplays requirements in matrix diagrams first matrix called “house of quality”first matrix called “house of quality” series of connected housesseries of connected houses

Page 3: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-33

House of QualityHouse of Quality

Trade-off matrix

Design characteristics

Customer requirements

Target values

Relationship matrix

Competitive assessment

Imp

ort

ance

11 22

33

44

55

66

Page 4: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-44

Competitive Assessment of Customer Requirements

Iro

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and

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Competitive Assessment

Customer RequirementsCustomer Requirements 1 2 3 4 5

Presses quickly 9 B A XX

Removes wrinkles 8 AB XX

Doesn’t stick to fabric 6 XX BA

Provides enough steam 8 AB XX

Doesn’t spot fabric 6 XX AB

Doesn’t scorch fabric 9 A XXB

Heats quickly 6 XX B A

Automatic shut-off 3 ABXX

Quick cool-down 3 XX A B

Doesn’t break when dropped 5 AB XX

Doesn’t burn when touched 5 AB XX

Not too heavy 8 XX A B

Page 5: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-55

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Customer RequirementsCustomer Requirements

Presses quickly - - + + + -

Removes wrinkles + + + + +

Doesn’t stick to fabric - + + + +

Provides enough steam + + + +

Doesn’t spot fabric + - - -

Doesn’t scorch fabric + + + - +

Heats quickly - - + -

Automatic shut-off +

Quick cool-down - - + +

Doesn’t break when dropped + + + +

Doesn’t burn when touched + + + +

Not too heavy + - - - + -

Iro

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wel

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asy

and

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From Customer From Customer RequirementsRequirementsto Design to Design CharacteristicsCharacteristics

Page 6: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-66

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--

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Tradeoff Matrix

Page 7: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-77

En

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Units of measure ft-lb lb in. cm ty ea mm oz/s sec sec Y/N Y/N

Iron A 3 1.4 8x4 2 SS 27 15 0.5 45 500 N Y

Iron B 4 1.2 8x4 1 MG 27 15 0.3 35 350 N Y

Our Iron (X) 2 1.7 9x5 4 T 35 15 0.7 50 600 N Y

Estimated impact 3 4 4 4 5 4 3 2 5 5 3 0

Estimated cost 3 3 3 3 4 3 3 3 4 4 5 2

Targets 1.2 8x5 3 SS 30 30 500

Design changes * * * * * * *

Ob

jec

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me

as

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s

Targeted Changes in Design

Page 8: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-88

SS = SilverstoneMG = MirorrglideT = Titanium

CompletedHouse of Quality

Page 9: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-99

A Series of Connected QFD Houses

Cu

sto

mer

re

qu

irem

ents

House House of of

qualityquality

Product characteristics

A-1P

rod

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ch

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s

Parts Parts deploymentdeployment

Part characteristics

A-2

Par

t ch

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stic

sProcess Process planningplanning

Process characteristics

A-3

Pro

cess

ch

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stic

s

Operating Operating requirementsrequirements

Operations

A-4

Page 10: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1010

Benefits of QFD

Promotes better understanding of customer Promotes better understanding of customer demandsdemands

Promotes better understanding of design Promotes better understanding of design interactionsinteractions

Involves manufacturing in design processInvolves manufacturing in design process Breaks down barriers between functions and Breaks down barriers between functions and

departmentsdepartments Provides documentation of design processProvides documentation of design process

Page 11: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1111

Performance SpecificationsPerformance Specifications

Service

Delivery SpecificationsDelivery Specifications

Physical Physical itemsitems

Sensual Sensual benefitsbenefits

Psychological Psychological benefitsbenefits

Design SpecificationsDesign Specifications Service Provider

Customer

Customer Customer requirementsrequirements

Customer Customer expectationsexpectations

ActivitiesActivities FacilityFacility Provider Provider skillsskills

Cost and time Cost and time estimatesestimates

ScheduleSchedule DeliverablesDeliverables LocationLocation

Service ConceptService Concept Service PackageService Package

Desired service Desired service experienceexperience

Targeted Targeted customercustomer

Service Design Process

Page 12: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1212

Service concept purpose of a service; it defines target

market and customer experience Service package

mixture of physical items, sensual benefits, and psychological benefits

Service specifications performance specifications design specifications delivery specifications

Service Design Process (cont.)

Page 13: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1313

Design Decision

High-Contact Service Low-Contact Service

High v. Low Contact Services

Facility location

Convenient to customer

Near labor or transportation source

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Facility layout

Must look presentable, accommodate customer needs, and facilitate interaction with customer

Designed for efficiency

Page 14: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1414

Design Decision

High-Contact Service Low-Contact Service

Quality control

More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur

Measured against established standards; testing and rework possible to correct defects

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Capacity Excess capacity required to handle peaks in demand

Planned for average demand

High v. Low Contact Services (cont.)

Page 15: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1515

Design Decision

High-Contact Service Low-Contact Service

Worker skills Must be able to interact well with customers and use judgment in decision making

Technical skills

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Scheduling Must accommodate customer schedule

Customer concerned only with completion date

High v. Low Contact Services (cont.)

Page 16: Copyright 2006 John Wiley & Sons, Inc. Products and Services Chapter 5, Part 2

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 5-5-1616

Design Decision

High-Contact Service Low-Contact Service

High v. Low Contact Services (cont.)

Service process

Mostly front-room activities; service may change during delivery in response to customer

Mostly back-room activities; planned and executed with minimal interference

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Service package

Varies with customer; includes environment as well as actual service

Fixed, less extensive