Page 1
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 1
INTRODUCTION TO QFD
This set of slides is intended to provide a basic understanding of Quality Function Deployment (QFD) as applied to Business Design
Please do not attempt to use these slides as part of a presentation until you have read and fully understood the relevant sections of ‘Managing by Design’, you know how each slide builds, and you are clear on the points you wish to make with them
This presentation is designed to be given immediately after an explanation of the Why-How Chart
(Notes are available to support the presentation)
Page 2
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 2
MAKING SENSE OF THE WHY-HOW
Address New
Market Areas
Build Customer
Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning Product
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
Address New
Market Areas
Build Customer
Loyalty
Produce Succesful Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning
Concepts
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
?
Page 3
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 3
AN ALTERNATIVE APPROACH
Address New
Market Areas
Build Customer
Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning Product
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
Address New
Market Areas
Build Customer
Loyalty
Produce Succesful Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning
Concepts
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Page 4
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 4
BUILDING THE QFD MATRIX
The matrix enables you to map out the identified relationships..
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Material Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
Address New
Market Areas
Build Customer
Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning Product
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
Address New
Market Areas
Build Customer
Loyalty
Produce Succesful Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning
Concepts
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
...to indicate those that are particularly strong ...
…and also to include some other significant factors.
Page 5
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 5
WEIGHTING THE OBJECTIVES
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
Wt.
The matrix allows for reflecting the result of front end logic through a weighting column
Address New
Market Areas
Build Customer
Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning Product
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
Address New
Market Areas
Build Customer
Loyalty
Produce Succesful Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of
Poor- Quality
Improve Economy of Mat’l Supply
Maximise Profitable Growth
Reduce Operating Cost Improve Product Value Increase Sales Volume
Design and
Develop winning
Concepts
Supply and
Distribute Product on time
Research
Novel Techn’gy
and Science
Develop People
Resource and
Capability
EfficientlyManage Facilities
and Assets
Support and
Develop Satisfied Customer
Provide and
Control Material
Efficiently
Page 6
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 6
RANKING IMPORTANCE
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54Ranking
Wt.
The result of the logic can be calculated numerically as a basis for discussion, or for setting priorities
33 x x 11+ + 55 x x 11+ + 22 x x 99+ + 44 x x 33
= = 3838
Page 7
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 7
DRIVING INSIGHT
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54Ranking
Wt.
Exploring the full potential of each strategy to make a difference, and reconciling different views
?
Page 8
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 8
RECOGNISING NEED
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54Ranking
Wt.
The grid can be used to identify poorly supported objectives…
?
Page 9
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 9
CHALLENGING APPROACH
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54Ranking
Wt.
…or poorly utilised (redundant?) processes ?
Page 10
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 10
DEPLOYING CONCLUSIONS
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54Ranking
Wt.
Providing clear direction and understanding to harness and harmonise the creative effort of separate teams
© TMS© TMS
Page 11
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 11
ESTABLISHING MEASURES AND TARGETS
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54
Overall Mkt.Share
Customer Retention
Innov. copied by Compet'n
Production Cycle
Asset Utilisation
CoNC as %T/O
Benefit / Cost Ratio
> 34%
> 85%
> 5 p.a.
< 6 Days
> 55%
< 12%
> 140%
NewSales
Growth
Deliveryon Time
NewInnov-ations
Growth in ToR (%p.a.)
Break-down Level
Sales Growth
Reduc'nas % of
T/O
>10% p.a.
>98.5% 3 p.a. >50%
avg. pa <3% >20% p.a.
4% p.a.
Measure Target
Ranking
Measure
Target
Wt.
QuantitativeQuantitativeCriteria forCriteria forDeterminingDeterminingSuccessSuccess
The discussionsshouldprovidea clearbasisforidentifyingmeasuresandsettingtargets...
Page 12
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 12
IDENTIFYINGCONFLICT AND SYNERGY
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
3
5
4
2
3
4
1
81 115 4 66 38 89 54
Overall Mkt.Share
Customer Retention
Innov. copied by Compet'n
Production Cycle
Asset Utilisation
CoNC as %T/O
Benefit / Cost Ratio
> 34%
> 85%
> 5 p.a.
< 6 Days
> 55%
< 12%
> 140%
NewSales
Growth
Deliveryon Time
NewInnov-ations
Growth in ToR (%p.a.)
Break-down Level
Sales Growth
Reduc'nas % of
T/O
>10% p.a.
>98.5% 3 p.a. >50%
avg. pa <3% >20% p.a.
4% p.a.
Measure Target
Ranking
Measure
Target
Wt.
Having establishedmeaningfultargets,theapproachcan becheckedfor conflictandsynergy.
This shouldprovide the basis of a communications/reporting strategy.
Page 13
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 13
?
?
?
?
?
?
?
Wt.
? ? ? ? ? ? ? ? ? ? ?
Ranking
VALUE OF QFD
Structured, systematic basis for reductionist thinking:
Drives exploration and shared understanding of the whole business
Establishes a basis for objective design and management of business entities
Encourages thought before action
Challenges assumptions
Prioritises effort
Consequences£10,000's
Concept£10's
Design
Process Metrics& SPC / SPD
Procedures & Manuals
Process Spec
Operation
Objective Design
Result
£100'sImplementation
£1000's
Page 14
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 14
Process Targets: Defined
objectives for process
Normally more than one
Rarely included on the chart
Correlation: Potential for
synergy/conflict between processes
Alignment or diversity of process goals
Need for communication
Ranking: Calculated
importance of process to all objectives
Leverage in achieving goals
Relative priority for mgt. time
Contribution: Potential
contribution of the process to achieving the goal
Positive or Negative
Critical, major or significant!
Processes: Patterns of
work Routes to fulfil
the objectives Flows of
activity to a defined end
Logical model
Weighting: Relative
importance Balance of
priority Comparative
value in its own right, or in supporting higher goals
Targets: Thresholds of
Pride Quantified
aspirations Specific point
which defines the edge of success
Numerical goal
Measures: Objective
indicators of success
Quantified assessment of achievement
Represent a tangible effect / impact
Clear objectives: Things to
achieve Role of your
organisation How it serves The difference
it makes What it wants
to be
QFD: A TOUR OF THE HOUSE
Address New Market Areas
Build Customer Loyalty
Develop Winning Products
Reduce Lead Times
Improve Resource Utilisation
Reduce Costs of Poor- Quality
Improve Economy of
Materiel Supply
Pro
du
ct D
esig
n
and
Dev
elo
pm
ent
Pro
du
ct S
up
ply
an
d D
istr
ibu
tio
n
No
vel R
esea
rch
an
d S
cien
ce
Peo
ple
Res
ou
rce
Dev
elo
pm
ent
Fac
iliti
es a
nd
A
sset
Man
agem
ent
Cu
sto
mer
Su
pp
ort
an
d D
evel
op
men
t
Mat
eria
l Pro
visi
on
an
d C
on
tro
l
Overall Mkt.Share
Customer Retention
Innov. copied by Compet'n
Production Cycle
Asset Utilisation
CoNC as %T/O
Benefit / Cost Ratio
Measure
> 34%
> 85%
> 5 p.a.
< 6 Days
> 55%
< 12%
> 140%
Target
81 115 4 66 38 89 54RankingNewSales
Growth
Deliveryon Time
NewInnov-ations
Growth in ToR (%p.a.)
Break-down Level
Sales Growth
Reduc'nas % of
T/O
>10% p.a.
>98.5% 3 p.a. >50%
avg. pa <3% >20% p.a.
4% p.a.
Measure
Target
3
5
4
2
3
4
1
Wt.
11
22
3344
55
66
77
77
88
88
1 Objectives
2 Approaches
3 Relationships
4 Weighting
5 Ranking
6 Correlation
7 Measures
8 Targets
Page 15
Introduction
Why-How
Matrix
How it Works
Benefits
Summary
© Tesseract Management Systems / Managing by Design / 2001 - 15
Significant Contribution
House Keys:House Keys:
Critical Contribution
Major Contribution
Roof Keys:Roof Keys:
Strong Synergy
Weak Synergy
Weak Conflict
Strong Conflict
Synergy or Conflict
Ranking
Wt.
Manage MaterialSupply Effectively 5 Manage Customer Expect-actions & Requirements 5 Effectively Plan SAE Resources 4
Improve total flexibility 4
Develop Technical &Management Skills
Manage Finances 2
Ensure Compliance 2
4
3
Develop & Improve BusinessProcesses, Tools & Systems
Leovan den Heuvel
Process Manager
Measure
Material OT @ POU
Supplier DOH (RM)
OT to CustomerRequest
Value Add PerEquivalent Head
Process improvem’t count
SkillsCoverage
Gross Profit %
ITO
Audit Plan score
Actual
Target
93%
18 Days
95%
34.5K Dfl
44
90%
13%
11.5
Leo van den Heuvel
Henk Leijten
PaulJungschläger
Hans vander Klift
JohanVerhoeven
DietmarHarteveld
JaccoGroeneveld
Leo vanden Heuvel
JohanVerhoeven
ObjectiveMeasureOwner
Owner Dietmar Harteveld
Systems Assembly EuropeBusiness System QFDP8 FY99 (09 June 99)SAE House
18.1
86%
0%
15
91%90%
13.8%15.21
68%
33.5 K
PaulJungschläger
JohanVerhoeven
Interproc. Resp. Ind.
Cust. Survey Index 75%B + 100%
Coverage 100% 100%
162
Pla
nn
ing
& In
ven
-to
ry M
anag
emen
t
HR
Pro
cess
97
DietmarHarteveld
Pro
ject
Man
agem
ent
156
PaulJung-
schläger
Pu
rch
asin
g
132
HenkLeijten
Qu
alit
y M
anag
e-m
ent
Sys
tem
106
JohanVerhoeven
Ass
emb
le &
Tes
t
88
Hansvan der
Klift
Rec
eivi
ng
&D
istr
ibu
tio
n
96
RaymondKorving
Pla
n &
Co
ntr
ol
Pla
n &
Co
ntr
ol
Fin
ance
sF
inan
ces
87
JaccoGroene-
veld
91
Man
ufa
ctu
rin
gS
up
po
rt
JelleStruijk
111
x
Dev
. of
Bu
sin
ess
Pro
c. &
Sys
tem
s
55.75 %
REAL EXAMPLE OF BUSINESS DESIGN
![Text recognition approaches for indoor robotics: a …3.2 Tesseract We use two modes of the open-source Tesseract OCR Engine 1 [Smith, 2007] as benchmarks for text recog-nition. Tesseract,](https://static.documents.pub/doc/80x56/5f4b7f8693216b444539d403/text-recognition-approaches-for-indoor-robotics-a-32-tesseract-we-use-two-modes.jpg)
