QFD FInal Report Upload

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Sport Ornerud, Ltd.Quality Function Deployment (QFD)

MEMBERS


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Contents

Introduction ............................................................................................................................................ 2

Objective ................................................................................................................................................. 3

Methodology ........................................................................................................................................... 3Introduction to Data Collection .......................... ................................ ...................... ............................ 3

Questionnaire .................................................................................................................................. 3

Variables .......................................................................................................................................... 4

Questionnaire sample .............................. ........................... ........................ .............................. ....... 5

Preferences Comparison .................................................................................................................. 5

Product Rating (Sport Ornerud) .......................... ................................ ....................... ....................... 6

Product Rating (Qiyam Sports) ......................................................................................................... 7

Introduction to QFD ............................................................................................................................. 8

Data Processing and Results .................................................................................................................. 10

QFD Execution ................................................................................................................................... 12

Identifying the customer requirements .................................................................................... 13

Customer requirements importance Ratings .............................................................................. 13

The voice of the Engineer ........................................................................................................... 14

Direction of improvement .......................................................................................................... 14

Relationship matrix................................................................................................................ 14

Correlation matrix...................................................................................................................... 15

Defining target quantities and technical difficulty................................................................... 16

Market Evaluation & Selling Price ....................... ................................ ....................... ..................... 16

Competitive and Technical evaluation ........................................................................................ 16

Conclusion ............................................................................................................................................. 17


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Introduction

Sport Orneruds traced its origins to 1950, when civil war in China came to an end in China.

Jesper Ornerud, an international graduate student in Tsinghua University found many Chinese

students wear poor quality glasses, glasses that were both less durable and stylish than the

glasses worn in his native Sweden.

During school vacations, Jesper traveled in rich Southern China in search of durable, high-

quality glasses. As an engineer himself, Jesper would improvise on the design to suit the needs

of Tsinghua University students, who used to be the key customers of Sport Ornerud. Jesper

designed and introduced new glasses; for example, in 1950s he made the first colored frame

glasses in China. In the 1980s he made the first mass-market big frame glasses, perhaps

inspired by Jiang Zemins signature glasses. In the 1990s he made the first frameless glasses in

China.

In 2011, the estimated sales were $600million RMB. The company held a commanding 55%

market share in China glasses market. Qiyam Sports were a lower-priced, high-volume imitator

competitor whose sales have increased dramatically since 2008. Qiyam Sports have also started

to design new glasses instead of merely copying Sport Orneruds glasses.

Sport Orneruds recent key customers are aged between 20 -28 males who have a high spending

power and relatively self-conscious in a society that still places an undeserved importance on

appearance. Sport Ornerud is conscious of customer feedback and quality control, and is using

new Tsinghua research, quality control techniques used in Tsinghua Universitys Industrial

Engineering Department to design new glasses. The Chinese market is massive and important,

and Sport Ornerud is aware that the quality of new products will be key to its future.


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Objective

y Develop the House of Quality for Sport Ornerud, Ltd.y Identify Customers requirementsy Customer survey and competitors

Methodology

Introduction to Data Collection

Questionnaire

We develop the questionnaire to ask a group of people about their quality aspects for glasses. In

this questionnaire, it is divided into 3 parts:

1. Personal information: This section gathers some information about thecustomers such as age, sex, and money spent per month. Also, it will help usfind the right market to focus on especially age and sex; this also helps us inthe design procedures to know the true specifications of our product.

2. Preferences comparison: This section ask the customers to fill up therelationship between 5 quality aspects; comfort, durable, fashionable,protection, and warranty. So later on, we can rank each quality aspect intoorders by importance given by customers. Hence we know which qualityaspect we should concerns when we design our product.

3. Product rating: This section is intended to compare quality function between 2 products from customers point of view which also divided into 5aspects as above. This will help us to know how customer rate our productand what is our product position in the market especially when we compareour product to the competitor we can focus at our weak point to improve ourproduct


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Variables

In this questionnaire we focus on 5 aspects of quality which will be our decision variables.

1. Comfort: The same glasses but wear by different people would come up withthe different feeling of the product. As this variable may depends on many

factors underneath. After our long discussion we came up with 2 major factorswhich are weight and grip.

2. Durable: The good glasses should be able to last for many years. Hencedurable is another major concerns for buying a new glasses. However,robustness of the glasses also helps the feeling of the item be more preciouswhen customers hold it in their hands. So it is important to know how eachcustomer justifies those good feelings by each material of each glasses.

3. Fashionable: Nowadays people dont only care about the price or material.Design is the first to attract people to come and then try on our products.Hence, knowing how people judge our design is very important to

improvement process.

4. Protection: The main reason to get a glasses is to correct the eyesight.However, a good glasses always come with additional feature such as UV block. This kind of protection helps our customer to lengthen their eyeslifespan.

5. Warranty: Different people may need different length of warranty. Somemay say that 1 year is enough but some may say 1 year is too short. So we need

to see how each customer would response on each length of warranty.


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Questionnaire sample

We are students from department of Industrial Engineering Tsinghua University. We are doing research

on customer preferences on glasses for Quality Management term project. Please help us take this

survey.

Please kindly provide us information about yourself.

Personal Information:

Sex: Male FemaleAge: < 16 16-22 22-28

28-35 35-45 > 45Spending:

(RMB a month)

< 1,500 1,500 3,000 3,000 4,500

4,500 6,000 6,000 7,500 > 7,500

Preferences Comparison

This table will identify your preference between 2 requirements. To complete this, please mark in the

box which requirement you think is more important.

For example, if you think Weight (Requirement A) is slightly more important than Comfort (Requirement

B), please leave your mark at A+ box.

Req.A A++ A+ 0 B+ B++ Req.BComfort Durable

Req.A A++ A+ 0 B+ B++ Req.B

Comfort Durable

Fashionable

Warranty

Protection

Durable Fashionable

Warranty


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Protection

Fashionable Warranty

Protection

Warranty Protection

Product Rating (SportOrnerud)

This questionnaire provides lists of quality aspects. Please tell us what you think about this product.

Comfort

Weight: Good Neutral Bad

Grip: Good Neutral Bad

Durable

Toughness: Good Neutral Bad

Flexibility: Good Neutral Bad

Fashionable

Design: Good Neutral Bad

Color: Good Neutral Bad

Protection

Sunlight: Good Neutral Bad

UV: Good Neutral Bad

Warranty

L

ength: Exceed expectation As expected Below expectation


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Product Rating (Qiyam Sports)

This questionnaire provides lists of quality aspects. Please tell us what you think about this product.

Comfort

Weight: Good Neutral Bad

Grip: Good Neutral Bad

Durable

Toughness: Good Neutral Bad

Flexibility: Good Neutral Bad

Fashionable

Design: Good Neutral Bad

Color: Good Neutral Bad

Protection

Sunlight: Good Neutral Bad

UV: Good Neutral Bad

Warranty

Length: Exceed expectation As expected Below expectation


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Introduction to QFD

Kahn, Kenneth B. New Product Forecasting: An Applied Perspective. M.E. Sharpe, Inc. 2006. p.

77-79.

Quality function deployment (QFD) was developed in the 1960s by the Japanese

shipyards and later implemented by both Japanese and U.S. automobile industries.QFD is now widely accepted and implemented in several industries. It is a methodologythat links customer requirements with technical specifications in purpose of creating anoptimal product configuration and it evaluates how attributes diverse from each other.The method is comprised in four stages of evaluation. Beginning at a top-level with thelinkage between the customer needs and technical specifications. The next three levelsdescribe product specifications, parts specifications and manufacturing processspecifications. (Kahn, 2006)

Fig.1- The Levels of Quality Function Deployment

In most cases companies have found the QFD process across these four stages extremelycomplex and time consuming. Therefore companies focus on the top level of evaluationalso more commonly referred to as the House of Quality. The House of Qualitydescribes the relationship between the voice of the customer and the voice of theengineer, and emphasizes on the customer requirements of the product. Meanwhile the


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voice of the engineer defines the technical characteristics of the product. For example, acustomer could state a need for a pencil not to roll easily. The engineer might describethe same pencil of its shape, as hexagonal, a word a customer not commonly would use.Then the matrix would indicate that there is a strong relationship between these twoissues, so hexagonally should be a design consideration. (Kahn, 2006)

Fig.2-The House of Quality

To collect information to get the customer voice there is three important steps for the

information. Firstly to explore the customer needs and benefits, secondly to grade theimportance of these needs or benefits to each other and last the evaluations of thecompanys and competitors

current offerings for satisfying the customer needs orbenefits. (Kahn, 2006)


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Data Processing and Results

From the questionnaire above, following method will be used to process data.

1. Data that will be processed are data that come from respondents which are keycustomers who match demographic profiles as follows.

a. Maleb. Age between 22 28 years oldc. Spending between RMB 4,500 6,000 per month

2. Preference comparison data will be processed based on the pairwise comparisonusing ordinal scale which will be filled by respondents. The pairwise comparison

data is the weighted preference of the respondents. The weight of the preference is

as follows.

Preference Weight

A++ +2

A+ +1

0 0

B+ -1

B++ -2

The weighted preference of respondents for every variable will be averaged to obtainthe customers preference. The averaged number then will be grouped andtransformed to QFD categories and values corresponding to each category which are2 for more important category, 1 for equal category and 0 for less importantcategory.

To be able to group and transform the averaged number into QFD category andcorresponding value, two-tail hypothesis test is done to know whether the mean isequal to = 0 or not with = 5%. Since is unknown, T-statistic is used. With datafrom 30 key customers (degree-of-freedom = 29), it is known that:

tleft-hand = -2.04523

tright-hand = 2.04523

and,

Hence, the result is as follows.


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Requirement Comparison s t QFD Value

Comfortable Durability 0.176470588 0.882843 1.094837 1

Comfortable Fashion 0.705882353 1.2126781 3.1882136 2

Comfortable Warranty 0.764705882 0.8313702 5.0380281 2

Comfortable Protection -0.235294118 1.0914103 -1.18082 1

Durability Fashion 0.764705882 1.0325582 4.0563975 2

Durability Warranty 0.294117647 1.1599949 1.3887549 1

Durability Protection -0.235294118 0.9701425 -1.328422 1

Fashion Warranty 0.882352941 0.9926198 4.8687785 2

Fashion Protection -0.941176471 0.8993462 -5.731982 0

Warranty Protection -1.117647059 0.9926198 -6.167119 0

3. Product rating data will be processed based on the perceived quality of each variable.The perceived quality and its weight can be seen on below table.

Perceived Quality Weight

Good +1

Neutral 0

Bad -1

With the same principle as used before, rating will be averaged and then grouped by

using t-statistic two-tail hypothesis test with = 5% and degree-of-freedom = 29.The result for Sport Ornerud product is as follows.SPORT ORNERUD Comfort Protection Durability Fashion Warranty

0.441176 0.352941 0.176471 0.323529 -0.29412

s 0.660173 0.773906 0.757611 0.767546 0.685994

t 3.660286 2.497898 1.275811 2.308714 -2.34834

QFD Value Good Good Neutral Good Bad

And the result for Qiyam Sports is as follows.

QIYAM SPORTS Comfort Protection Durability Fashion Warranty

-0.14706 0.352941 -0.29412 -0.20588 0.352941s 0.74396 0.773906 0.759961 0.844928 0.701888

t -1.08269 2.497898 -2.11978 -1.33463 2.754197

QFD Value Neutral Good Bad Neutral Good


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QFD Execution

Explanation for the House of Quality

-

12 3

5

6

9

8

4

7


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Identifying the customer requirements

The QFD process begins by identifying the requirements which the customer imposeson the product-glasses. After the marketing analysis, we summarize the customerrequirements which are:

The glasses should be comfortable. The glasses should have protective effect. The glasses should be durable. The glasses should be fashionable. The glasses should have a warranty.

Customer requirements importance Ratings

When the customer requirements have been compiled, they are divided into categories,entered in the QFD sheet and their significance for the customer is weighted accordingly.We use comparison in pairs method, and get the below table:

Table 1 Customerrequirementsimportance Ratings

Comfortable Durable Fashionable Warranty Protection SUM

QFD-

importance

Comfortable X 1 2 2 1 6 10

Durable 1 X 2 1 1 5 8.33

Fashionable 0 0 X 2 0 2 3.33

Warranty 0 1 0 X 0 1 1.67

Protection 1 1 2 2 X 6 10

Note:

More 2

Less 0

Equal 1

Then we can get the QFD importance, from which we can find the comfortable and theprotection is the most necessary feature for the customers, and then is the feature ofdurable and fashionable, the last is warranty.


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The voice of the Engineer

Then we find feed the quality characteristics and technical functions into the QFD chartfor each customer requirement until all the customer requirements have been fulfilledand in accordance with their customer weighting. We divide the quality characteristicsinto two parts, the functional characteristics and the design characteristics, as follows:

Functional characteristics:For material: Material Weight Material Strength Glass Thickness FlexibilityFor safety:

Sharp edges Chemical UsedOthers

:

Hinge Friction

Design characteristics Dimension Visibility Angle

Direction of improvement

In this part, we set the preferred direction of variation of the target parameter. There arethree directions: maximum, minimum and neutral. The maximum stands for the larger,the better, the minimum stands for the smaller, the better. The direction of each

quality characteristic is marked in the QFD chart (4).Table 2 DirectionofImprovement

Minimum Maximum Minimum Maximum Minimum Minimum Neutral Neutral Maximum

Functional Characteristics Design Characteristics

Material Safety Others

Material

Weight

Material

Strength

Glass

Thickness

Flexibility Sharp

edges

Chemical

Used

Hinge

Friction

Dimension Visibility

Angle

Relationship matrix

The correlation between customer demands and the quality characteristics isdocumented in the relation matrix of the QFD chart with three numbers, 1, 3, and 9.Rating factor 9 stands for Strong relationship, 3 stands for medium relationship, and 1stands for weak relationship. For example, to meet the customer requirement Durable,strengthen the material strength (strong relationship, rating factor 9), is accordedgreater significance than reduce the glass thickness (weak relationship, rating factor 1).


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The significance of the quality characteristics can be also estimated by multiplyingthe weighting of the customer requirement by the strength of the correlation.there aretwo important concepts: absolute importance and relative importance.

Table 3 theabsoluteimportanceandrelativeimportanceofthequalitycharacteristics

Relative importance

(%)

16.3 14.5 7.6 15.4 16.9 6.0 15.4 7.3 0.6

Absolute Importance 90 80 41.67 85 93.33 33.33 85 40 3.33

Correlation matrix

Correlation matrix is the roof of the House of Quality. The correlation between qualitycharacteristics describes requirements which interact positively or negatively with oneanother. We define the factor +9 is strong positive, +1 is weak positive, -1 is weaknegative, and -9 is strong negative. The Correlation matrix chart as follows. In the caseof glasses, an example of strong positive correlation between quality characteristicswould be the glasses thicker, the material heavier.

Table 4 Correlationmatrix


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Defining target quantities and technical difficulty

In the QFD chart, the quality characteristics are allocated target quantities. Target values are quantities and units which can be measured or estimated. E.g. materialstrength > 500 MPa. We search the relevant values from the literature and Internet.

The technical problems likely to arise in the attempt to realize a characteristic can beestimated in the field level of difficulty . The level of difficulty is decidedempirically by the QFD team member.

Market Evaluation & Selling Price

China's optical industry's size has become the world's major production base of glasses.

China is the largest eyewear consumer market, from children; even young children to

seniors can become the consumer groups. According to statistics of Chinese eyes dot

com, it is estimated that the prevalence of myopia in Chinese population rate of about

33%, means, there are 400 million people suffer from myopia. Therefore glasses in great

demand in China.

The rate of myopia has now reached 50% to 60% among Chinese youth and adolescents

more than 300 million wear glasses. 70% of them are aged 20 to 23 years old; means,

about 210 million Chinese youth wear glasses and 52% of them are male.

Our companys target is to produce and sell very good quality glasses for men who are

aged 20 to 28 years old. We want to provide to our customer glasses with safety lens and

can protect the eyes. The materials, the frame, styles, shapes, colors used for this

product were carefully studied. We consider also these characteristics: they are

comfortable, robust, and durable and we provide service and warranty to our customer,and the most important, we will give satisfaction to them. Finally, after all studies, the

reasonable selling price for each glass is 4500 to 6000 yuan.

Competitive and Technical evaluation

The planned product is analyzed in terms of how it meets customers needs and how itshapes up technically against competitors product. At these two evaluations, wechoose an existing product and make a comparison with this product in terms of twoindexes: Competitive Evaluation Index (CEI) and Technical Evaluation Index (TEI).

LinearmodelofCEI and TEI:

Competitive Evaluation Index

H is Competitive Evaluation score

c is customer importance


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Technical Evaluation Index

T is Technical Evaluation score

a is absolute importance

Conclusion

The final design of the glasses for Sport Ornerud was designed with the aid of theCustomer Requirement Planning Matrix, House of Quality. Using this developed Houseof Quality, we were able to incorporate all important customers attributes and relatedattributes in our design. Our group is quite confident that our client will be satisfiedwith this new glasses design.

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