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Quality Function Deployment

QFD is a methodology that uses customer feedback to develop products. It was developed in Japan in the 1960s and gained popularity through its use in the automotive industry. QFD structures the process of identifying and prioritizing customer expectations to ensure quality and satisfaction.

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Siva Badrinath
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80 views15 pages

Quality Function Deployment

QFD is a methodology that uses customer feedback to develop products. It was developed in Japan in the 1960s and gained popularity through its use in the automotive industry. QFD structures the process of identifying and prioritizing customer expectations to ensure quality and satisfaction.

Uploaded by

Siva Badrinath
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Quality Function Deployment

QFD is a focused methodology for carefully listening to


the voice of the customer and then effectively responding
to those needs and expectations.

First developed in Japan in the late 1960s as a form of


cause-and-effect analysis, QFD was brought to the United
States in the early 1980s. It gained its early popularity as
a result of numerous successes in the automotive
industry.

In QFD, quality is a measure of customer satisfaction with


a product or a service. QFD is a structured method that
uses the seven management and planning tools to identify
and prioritize customers’ expectations quickly and
effectively.
Customer Driven Quality cycle

As product life cycles are getting shorter,


new products have to be developed in the
shortest time in order to gain advantages
against the competitors.

Moreover, market requirements defining


new features of products should be
determined
Customer Satisfaction Measurement Techniques

• Customer Satisfaction Surveys. The customer satisfaction survey is the standard approach for

collecting data on customer happiness. ...

• Customer Satisfaction Score (CSAT) ...

• Net Promoter Score (NPS) ...

• Customer Effort Score (CES) ...

• Social Media Monitoring. ...

• Things Gone Wrong.


Customer Satisfaction Surveys
• In-App Surveys
• Post-Service Surveys
• Long Email Surveys
Customer Satisfaction Score (CSAT)

• This is the most standard customer satisfaction metric, asking your


customer to rate her satisfaction with your business, product, or
service. Your CSAT score is then the average rating of your customer
responses.

• The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger


range is not always better, due to cultural differences in how people
rate their satisfaction. An article in Psychological Science , for
example, showed that people in individualistic countries choose the
m
Net Promoter Score (NPS)

• The Net Promoter Score (NPS) measures the likeliness of a customer


referring you to someone, and it’s probably the most popular way
of measuring customer loyalty . Customer are asked how likely they are to
recommend you on a scale from 1 to 10.

• The strength from NPS is that it's not about an emotion of satisfaction, but
about your intention of referring – which is easier to answer. It cuts down
to the question of whether the product is good enough to put your own
reputation on the line.

• Calculating your NPS score is quite easy. Take the percentage of


respondents who fall within the ‘promoter’ category (10 - 9) and subtract
the percentage of ‘detractors’ (0 - 6).
Customer Effort Score (CES)

• With this method, customers aren’t asked for their satisfaction or


likeliness of referring, but for the effort it took them to have their
issue solved — generally on a scale from 1 (very low effort) to 7 (very
high effort).

• Your aim is, of course, to lower this average score. According to CEB ,
96% of customers with a high effort score showed reduced loyalty in
the future, while that was the case with only 9% of those who
reported low effort scores.
Social Media Monitoring

• Social media has had an immense impact on the relationship between business
and customer. Where before, a great or poor service experience would maybe be
shared with the closest family and friends, social media offered an outlet and
reach to potentially millions of people.
• Google Alerts . This Google service notifies you when your brand appears in a
prominent position.
• Mention . A powerful freemium tool that gives you a heads up whenever your
brand is mentioned on the web. It’s especially handy for social media tracking, for
which Google Alerts is not suitable.
• Socialmention . A free tool that analyzes social mentions of your brand on the
web. Among others, it shows the likeliness of your brand being discussed on the
web, the ratio of positive to negative mentions, the likelihood of people
mentioning your brand repeatedly and the range of influence
Things Gone Wrong

• This metric originates from the Lean Six Sigma approach , and
measures the number of complaints, or "Things Gone Wrong," per
100, 1000, or up to a 1,000,000 units of survey responses, units sold,
or other.
• The standard approach to measure TGW is through complaint
sections in customer surveys, but you could also maintain internal
metrics. In the worst case scenario your score is 1 or higher, meaning
that you get at least 1 complaint per chosen unit.
Customer relationship management
techniques
• Firms use a number of techniques to build, maintain and enhance
CRM. The techniques include the software programmes, promotional
techniques, pricing strategies, and so on. Some of the techniques
have been discussed in detail.
• Data Warehousing and Data Mining
• One-to-one Marketing
• Loyalty Programmes
• Priority Customer Programmes
Data Warehousing and Data Mining:

• CRM analysts develop data warehouses and use data-mining


techniques to develop and maintain long- lasting relationships with
the valuable customers.
1. A data warehouse is a company-wide electronic database of detailed
customer information. The purpose of data warehouse is not just to
gather information, but to place it into a central location for easy
access.
2. Once the data warehouse locates the data at a central place, the
data analysts use data mining techniques to examine the mounds of
data to find out interesting facts of the customers.
Data Warehousing and Data Mining
1. Product design and modification
2. Product pricing
3. Promotion mix
4. Selection of channels of distribution
5. Maintaining dealer relationships.
One-to-one Marketing:

• Some firms adopt one-to-one marketing strategy. Such firms treat


their customers as partners, especially in the case of firms solicit the
help of customers to design new products or to improve their
services. If the customer gets involved with the firm, then they are
more likely to remain with the firm.
Loyalty Programmes:

• Firms may use variety of loyalty programmes to retain customers. For


example, airlines may offer special discount for frequent fliers. Firms
may also provide gifts and other benefits to the loyal customers. But
it is to be noted that all loyal customers need not be profitable, and
all profitable customers need not be loyal.
• Therefore, the firm must be selective. In order to enhance marketing
efficiency, a firm has to find out which of its customers are worth
retaining and which are not, and which customers should be given
extra care and attention. In other words, the firm has to determine
the value of its customers, and focus on accordingly.
Priority Customer Programmes:

• Some firms introduce priority customer programmes. They are given


priority in after-sales service, delivery and resolving complaints. The
priority customer programmes are followed by several organizations,
especially in the banking industry.
• For example, Citibank maintains a list of priority customers and
provides them with additional facilities special offers such as free
ticket to concerts, movies, and so on. Some banks, such as Syrian
Catholic Hank provide personalized services to the important
customers.

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