TQM - Chapter 4
House of Quality
*Building a ______ begins by identifying the voice of the customer and technical features of the design and listing them in the appropriate places in the diagram.
CUSTOMER REQUIREMENTS
- Design of a good/service should reflect customer wants & needs
SERVICE-ENCOUNTER DESIGN
- Focuses on interaction, directly or indirectly, between the service providers & the customer - Points of contact that perception of good/service is created
1. ambient condition 2. spatial layout and functionality 3. sign, symbols, & artifacts
3 principal dimensions of servicescape
1. facility location & layout 2. servicescape 3. Service process & Job design 4. technology & information support systems
4 Elements of service-delivery system design
1. facility location & layout 2. servicescape 3. service process & job design 4. technology & information support system
4 elements of service-delivery system
1. customer contact behavior and skills 2. service provider selection, development, & empowerment 3. recognition & reward 4. service recovery & guarantees
4 elements of service-encounter design
SERVICE UPSET
Any problem a customer has (real/perceived) with the service-delivery system & includes terms such as service failure, error, defect, mistake
QUALITY FUNCTION DEPLOYMENT (QFD)
Approach to guide the design, creation, & marketing of goods/services by integrating the voice o the customer into all decisions
Information
Bank of America provides an Internet search capability for the best home equity loan. A business dedicated to providing guitar music books and videos (www.ChordMelody.com) offers a telephone hotline to speak with a professional a guitarist for questions on selecting the proper instructional and performance material.
Time Place Information Entertainment Exchange Form
CBP design and configuration choices revolve around a solid understanding of customer needs and target markets, and the value that customers place on such attribute as the following:
The loss associated with a deviation of (x-T) = 0.15 from the target is L(x) = $20.To find the loss function for any value of x, we substitute these values into Equation 4.1 and solve for k: 20 = k(0.15)² k = 888.9 and thus the loss function is L(x) = 888.9(x - 1.875)²
Cassette tapes are still used in some handheld recording devices and in less expensive portable musical instrument recording devices. The desired speed of a cassette tape is 1.875 inches per second. Any deviation from this value causes a change in pitch and tempo and thus poor sound quality. Suppose that adjusting the tape speed under warranty when a customer complains and returns a device costs a manufacturer $20. Based on past information, the company knows the average customer will return a device if the tape speed is off the target by at least 0.15 inch per second; in other words, when the speed is either 2.025 or 1.725. Find the Taguchi loss function.
Step 3 - Customer Benefit Package Design and Configuration
Clearly, firms have a large variety of possible choices in configuring a customer benefit package (CBP). For example, when buying a new vehicle, an automobile dealer might include such options as leasing, free oil changes and/or maintenance, a performance driving school, free auto washes, service pickup and delivery. loaner cars, and So on
Rs = (0.98) (0.91) (0.99) = 0.883 or 88.3 percent
Consider a new laboratory blood analysis machine consisting of three major subassemblies: A, B, and C. The manufacturer is evaluating the preliminary design of this piece of equipment. The reliability of each subassembly is shown in Exhibit 4.9. To find the reliability of the proposed product design, we note that this is a series system and use Equation 4.2:
VOICE OF THE CUSTOMER
Customer requirement, as expressed in customer's own words, are called ___
DESIGN FOR ENVIRONMENT (DfE)
Explicit consideration of environmental concerns during the design of goods, services, & processes, & includes such practices as designing for recycling & disassembly
Form
For manufactured goods, form is associated with the Physical characteristics of the good and addresses the important customer need of aesthetics. An interior designer might use methods such as sketches, photographs, physical samples, or even computer-simulated renderings to show how a kitchen might be transformed.
Tolerance Design and the Taguchi Loss Function
For most manufactured goods, design blueprints specify a target dimension (called the nominal), along with a range of permissible variation (called the tolerance)
EMPOWERMENT
Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks & learn from mistakes, & promote change
Marketplace
Graveyard of missed opportunities
Step 4 - Detailed Goods, Services, and Process Design
If a proposal survives the concept stage, and many do not, each good or service in the CBP, as well as the process that creates it, must be designed in more detail.
Step 5 - Market introduction/Deployment
In this step, the final bundle of goods and services (the customer benefit package) is advertised, marketed, and offered to customers. For manufactured goods, this includes making the item in the factory and shipping it to warehouses or wholesale and retail stores For services, it might include hiring and training employees or staying open an extra hour in the evening For many services, it means building sites such as branch banks or hotels or retail stores.
Time
Many grocery stores now offer self-service checkout to reduce customer waiting time. Manufacturers such as Dell use the Internet to acquire customers information for more responsive product design
CUSTOMER-CONTACT REQUIREMENT
Measurable performance levels or expectations that define the quality of customer contact with representatives of an organization
Elaborate Servicescape Environment
More complicated designs and service systems are termed ______ Examples include hospitals, airports, and universities.
CUSTOMER CONTACT
Physical or virtual presence of the customer in the service-delivery system during a service experience
PROTOTYPE TESTING
Process by which a model (real/stimulated) is constructed to test the product's performance under actual operating conditions, as well as consumer reactions to the prototypes
SERVICE RECOVERY
Process of correcting service upset & satisfying the customer
DESIGN FOR MANUFACTURABILITY (DFM)
Process of designing a product for efficient production at the highest level of quality
PRODUCT SIMPLIFICATION
Process of trying to simplify design to reduce complexity and costs & thus improve productivity, quality, flexibility, & customer satisfaction
SERVICE GUARANTEE
Promise to reward/compensate a customer if a service upset occurs during service experience
matrix
QFD is initiated with a _____, which, because of its structure is often called the House of Quality.
HOUSE OF QUALITY
Quality Function Deployment can be applied to a specific manufactured good or service, or to the entire CBP. The process is initiated with a matrix called ___
Tolerance
Range of permissible variation
Exchange
Retail stores such as Best Buy allow customers to traveÌ to the store and buy the goods purchase goods on their websites and have them delivered, or purchase goods on their websites and have them ready to be picked up at the store.
1. Ambient conditions 2. Spatial layout and functionality 3. Signs, symbols, and artifacts
Servicescape has three principal dimensions:
Entertainment
Some Dick's Sporting Goods Stores provide a rock-climbing wall for children while other family members shop. A pianist serenades shoppers at Nordstrom's department stores. Some minivans have built-in DVD players.
Lean Servicescape Environments
Some servicescapes are very simple, Online ticket outlets and Federal Express drop-off kiosks would qualify as ______ as both provide service from one simple design.
aroma
Starbucks decided to quit serving a warm breakfast in all Starbucks stores because the egg-and-cheese breakfast sandwiches were interfering with the ____ of the coffee in stores.
1 & 2. STRATEGIC & MARKET ANALYSIS, & COMPETITIVE PRIORITIES 3. CBP DESIGN & CONFIGURATION 4. DETAILED GOODS, SERVICE, & PROCESS DESIGN 5. MARKET INTRODUCTION/DEPLOYMENT 6. MARKETPLACE EVALUATION
Steps in designing goods and services
True
Strategic directions and competitive priorities should be consistent with and support the firm's mission and vision.
the better the quality
Taguchi argued that the smaller the variation from the nominal specification, ______ In turn, products are more consístent and fail less frequently, and thus are less costly in the long run.
quality
Taguchi measured ____ as the variation from the target value of a design specification and then translated that variation into an economic "loss function" that expresses the cost variation in monetary terms. This approach can be applied to both goods and services.
Nominal
Target dimension
data and information
The _______ that result from this effort provide the key input for designing the final customer benefit package.
Customer-Focused Design
The design of a good or service should reflect customer wants and needs, which are often termed customer requirements.
True
The design of a manufactured goods focuses on its physical characteristics, dimensions, materials, color, and so on Much of this work is done by artists and engineers to translate customer requirements into physical specifications.
True
The design process must translate the voice of the customer into specific technical features that characterize a design and provide the "blueprint" for manufacturing or service delivery.
bottom
The final step or the ______ of the House is to identify those technical features that have the strongest relationships to customer requirements, have poor competitive performance or will be strong selling points. This helps prioritize those technical features that should be "deployed," or paid the most attention to during subsequent design and production or service delivery activities. This will ensure that the voice of the customer will be maintained in subsequent detailed design, manufacturing or service, and control activities.
This is where the designs of goods and services differ.
The first three steps are more strategic and conceptual in nature, whereas step 4 focuses on detailed design and implementation.
the final good or service will have difficulty in meeting customer needs.
The lack of a relationship between a customer requirement and any of the technical features would suggest that
L(x) = k(x-T)
The loss function is
Step 6 - Marketplace Evaluation
The marketplace is a graveyard of missed opportunities: poorly designed goods and services and failed execution resulting from ineffective operations The final step in designing and delivering a customer benefit package is to constantly evaluate how well the goods and services are selling, and customers' reactions to them.
interrelationships between any Pair of technical features
The roof of the House ol Quality shows the _________, and these relationships help in answering questions such as "How does a change in one Product characteristic affect others? This can help refine a design and evaluate trade-offs in design decisions.
Rp = 1 - (1 - p1) (1 — p2) (1 — p3)...(1 — pn)
The system reliability of an n-component parallel system is computed as:
Steps 1 and 2-Strategic Mission, Analysis, and Competitive Priorities Step 3-Customer Benefit Package Design and Configuration Step 4 - Detailed Goods, Services, and Process Design Step 5-Market Introduction/Deployment Step 6-Marketplace Evaluation
The typical goods and services development processes are shown in
center
The voice of the customer and the technical features create a matrix structure in the _____ of the diagram.
Steps 1 and 2 - Strategic Mission, Analysis, and Competitive Priorities
These steps require a significant amount of research and innovation involving marketing, engineering, operations, and sales functions, and should involve customers, suppliers, and employees throughout the value chain. The data and information that result from this effort provide the key input for designing the final customer benefit package
right
To the ____ of the relationship matrix is an assessment of the importance of each customer requirement and how competitors' products compare with the proposed design in terms of meeting the voice of the customer. This helps identify key "selling points" and features that would help to differentiate the good or service from competitors' products.
prototyping
Today, many companies use advanced technology to perform rapid ______ or the process of building prototypes quickly to reduce product development cost and time to market
Place
UPS (United Parcel Service) has UPS Stores strategically located for customer convenience that also provide packaging services; many companies offer day-care centers on-site to provide convenience to their employees.
1. Time 2. Place 3. Information 4. Entertainment 5. Exchange 6. Form
Value that customers place on CBP Attributes
Genichi Taguchi,
a Japanese engineer, maintained that the traditional practice of setting design specifications is inherently flawed.
Location
affects a customer's travel time and is an important competitive priority in a service business. Health clinics, rental car firms, post offices, health clubs, branch banks, libraries, hotels, emergency service facilities, retail stores, and many other types of service facilities depend on good ____ decisions.
The layout of a facility
affects process flow, costs, and customer perception and satisfaction.
Servicescape
all the physical evidence a customer might use to form an impression and provides the behavioral setting where service encounters take place
Technical features
are generally expressed in the language of designers and engineers; Examples are the type and amount of materials, size and shape of parts, strength requirements, service procedures to follow, and employee behavior during service interactions.
Hard and soft technologies
are important factors in designing services to ensure speed customization, and flexibility. Nurses, airline flight attendants, bank tellers, police, accuracy, insurance claims processors, dentists, auto mechanics and service-counter personnel, engineers, hotel room maids, financial portfolio managers, purchasing buyers, and waiters are just a few examples of job designs that are highly dependent on accurate and timely information.
Starbucks Coffee shops
are ubiquitous in many cities, airports, and shopping malls.
Customer requirements
as expressed in the customer's own words, are called the voice of the customer
system
could be a service process where each stage (work activity or station) is analogous to a component part in a manufactured good =Rs=(p1)(p2)(p3)...(pn) *system reliability (individual)
True
designers must consider these trade-offs and should use sound scientific and engineering approaches to optimizing tolerances rather than simply setting them judgmentally
Spatial layout and functionality
how furniture, equipment, and office spaces are arranged. This includes building footprints and facades, streets, and parking lots. A law firm would probably design various conference areas for conversa- tions to take place in a quiet and private setting: a children's hospital would probably include safe, enclosed play areas for kids.
Narrow tolerances
improve product functionality and performance, but tend to mise manufacturing costs because they usually require higher-precision technology.
Service-delivery system design
includes facility location and layout, the servicescape, service process and job design, technology and information support systems
Tolerance Design
involves acceptable tolerance.
k
is a constant that translates the deviation into dollars is estimated by determining the cost of repair or replacement if a certain deviation from the target occurs.
servicescape
is all the physical evidence a customer might use to form an impression. It also provides the behavioral setting where. service encounters take place.
Quality function deployment (QFD)
is an approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer Into all decisions, It can be applied to a specific manufactured good or service, or to the entire CBP.
Service process design
is the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements.
x
is the actual value of the dimension;
Design for Environment (DfE)
is the explicit consideration of environmental concerns during the design of goods, services, and processes, and includes such practices as designing for recycling and disassembly.
L(x)
is the monetary value of the loss associated with deviating from the target
Reliability
is the probability that a manufactured good, piece of equipment or system performs its intended function for a stated period of time under specified operating conditions. It applies to services as well as manufacturing;, a probability, that is, a value between 0 and 1. often expressed as a percentage simply to be more descriptive (97 percent reliable). It can be improved by using better components or by adding redundant components. In either case, costs increase; thus, trade-offs must be made
Design for manufacturability (DFM)
is the process of designing a product for efficlent production at the highest level of qually. One way of doing this is through product simplification.
T
is the target
Ambient conditions
made manifest by sight, sound, smell, touch, and temperature. These are designed into a servicescape to please the five human senses.
elaborate servicescape environments
more complicated designs and service systems are termed ___
goal-post model
nominal dimension is 0.500 but may vary anywhere in the range from 0.480 to 0.520cm assumes that any value within the tolerance range is acceptable, but those outside are not.
Prototype testing
process by which a model (real or simulated) is constructed to test the product's performance under actual operating conditions, as well as consumer reactions to the prototypes.
Wide tolerances
reduce costs, but may have a negative impact on product performance.
service delivery system service encounter
service design must be addressed from two perspectives:
Lean serviscape
simple servicescape
High-contact systems
systems in which the percentage of customer contact is high
Low-contact systems
systems in which the percentage of customer contact is low
Service process design
the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements
Signs, symbols, and artifacts
the more explicit signals that communicate an image about a firm. Examples include mission statements and diplomas on a wall, a prominently displayed company logo on company vehicles, a trophy case of awards, letterhead, and company uniforis. Luxury automobile dealers offer free food and soft drinks instead of vending machines.
Reliability
the probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions
Product simplification
the process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction. The simpler the design, the fewer opportunities for error, the faster the flow time, the better the chance of high process efficiency, and the more reliable the manufactured goods or service process.
1. tolerance design & taguchi loss function 2. design for reliability 3. design for manufacturability 4. design for sustainability
tools/techniques to support product design activities
