Sport Ornerud, Ltd.

Quality Function Deployment (QFD)

MEMBERS

Contents
Introduction ............................................................................................................................................ 2 Objective ................................................................................................................................................. 3 Methodology ........................................................................................................................................... 3 Introduction 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 .............................................................................. 13

Customer requirements importance Ratings The voice of the Engineer Direction of improvement Relationship matrix Correlation matrix

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Defining target quantities and technical difficulty

Market Evaluation & Selling Price................................................................................................... 16 Competitive and Technical evaluation ........................................................................................ 16

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

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, highquality 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.

Objective
y y y Develop the House of Quality for Sport Ornerud, Ltd. Identify Customers requirements 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 the customers such as age, sex, and money spent per month. Also, it will help us find the right market to focus on especially age and sex; this also helps us in the design procedures to know the true specifications of our product. 2. Preferences comparison: This section ask the customers to fill up the relationship between 5 quality aspects; comfort, durable, fashionable, protection, and warranty. So later on, we can rank each quality aspect into orders by importance given by customers. Hence we know which quality aspect 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 5 aspects as above. This will help us to know how customer rate our product and what is our product position in the market especially when we compare our product to the competitor we can focus at our weak point to improve our product

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 with the different feeling of the product. As this variable may depends on many factors underneath. After our long discussion we came up with 2 major factors which are weight and grip. 2. Durable: The good glasses should be able to last for many years. Hence durable is another major concerns for buying a new glasses. However, robustness of the glasses also helps the feeling of the item be more precious when customers hold it in their hands. So it is important to know how each customer 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 eyes lifespan. 5. Warranty: Different people may need different length of warranty. Some may 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.

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: Age: Male < 16 28-35 Spending: (RMB a month) < 1,500 4,500 6,000 35-45 1,500 3,000 6,000 7,500 Female 16-22 > 45 3,000 4,500 > 7,500 22-28

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 Comfort A++ 1 A+ 0 B+ B++ Req.B Durable

Req.A Comfort

A++ 1 1 1 1

A+

B+

B++

Req.B Durable Fashionable Warranty Protection

Durable

1 1

Fashionable Warranty

6 Protection

Fashionable

Warranty 1 1 Protection

Warranty

Protection

Product Rating (Sport Ornerud)

This questionnaire provides lists of quality aspects. Please tell us what you think about this product. Comfort Weight: Grip: Durable Toughness: Flexibility: Fashionable Design: Color: Protection Sunlight: UV: Warranty Length: Exceed expectation As expected Below expectation Good Good Neutral Neutral Bad Bad Good Good Neutral Neutral Bad Bad Good Good Neutral Neutral Bad Bad Good Good Neutral Neutral Bad Bad

Product Rating (Qiyam Sports)

This questionnaire provides lists of quality aspects. Please tell us what you think about this product. Comfort Weight: Grip: Durable Toughness: Flexibility: Fashionable Design: Color: Protection Sunlight: UV: Warranty Length: Exceed expectation As expected Below expectation Good Good Neutral Neutral Bad Bad Good Good Neutral Neutral Bad Bad Good Good Neutral Neutral Bad Bad Good Good Neutral Neutral Bad Bad

Introduction to QFD
Kahn, Kenneth B. New Product Forecasting: An A pplied 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 methodology that links customer requirements with technical specifications in purpose of creating an optimal 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 the linkage between the customer needs and technical specifications. The next three levels describe product specifications, parts specifications and manufacturing process specifications. (Kahn, 2006)

Fig.1- The Levels of Quality Function Deployment

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

voice of the engineer defines the technical characteristics of the product. For example, a customer could state a need for a pencil not to roll easily. The engineer might describe the 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 two issues, 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 the importance of these needs or benefits to each other and last the evaluations of the companys and competitors current offerings for satisfying the customer needs or benefits. (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 key customers who match demographic profiles as follows. a. Male b. Age between 22 28 years old c. Spending between RMB 4,500 6,000 per month 2. Preference comparison data will be processed based on the pairwise comparison using 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 A++ A+ 0 B+ B++ Weight +2 +1 0 -1 -2

The weighted preference of respondents for every variable will be averaged to obtain the customers preference. The averaged number then will be grouped and transformed to QFD categories and values corresponding to each category which are 2 for more important category, 1 for equal category and 0 for less important category. To be able to group and transform the averaged number into QFD category and corresponding value, two-tail hypothesis test is done to know whether the mean is equal to = 0 or not with = 5%. Since is unknown, T-statistic is used. With data from 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.

11 s 0.176470588 0.705882353 0.764705882 -0.235294118 0.764705882 0.294117647 -0.235294118 0.882352941 -0.941176471 -1.117647059 0.882843 1.2126781 0.8313702 1.0914103 1.0325582 1.1599949 0.9701425 0.9926198 0.8993462 0.9926198 t 1.094837 3.1882136 5.0380281 -1.18082 4.0563975 1.3887549 -1.328422 4.8687785 -5.731982 -6.167119

Requirement Comparison Comfortable Comfortable Comfortable Comfortable Durability Durability Durability Fashion Fashion Warranty Durability Fashion Warranty Protection Fashion Warranty Protection Warranty Protection Protection

QFD Value 1 2 2 1 2 1 1 2 0 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 Good Neutral Bad Weight +1 0 -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 s t QFD Value Comfort 0.441176 0.660173 3.660286 Good Protection Durability 0.352941 0.773906 2.497898 Good 0.176471 0.757611 1.275811 Neutral Fashion 0.323529 0.767546 2.308714 Good Warranty -0.29412 0.685994 -2.34834 Bad

And the result for Qiyam Sports is as follows.

QIYAM SPORTS s t QFD Value Comfort -0.14706 0.74396 -1.08269 Neutral Protection Durability 0.352941 0.773906 2.497898 Good -0.29412 0.759961 -2.11978 Bad Fashion -0.20588 0.844928 -1.33463 Neutral Warranty 0.352941 0.701888 2.754197 Good

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QFD Execution
Explanation for the House of Quality

4 2 1 5 8 9 6
-

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Identifying the customer requirements The QFD process begins by identifying the requirements which the customer imposes on the product-glasses. After the marketing analysis, we summarize the customer requirements 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 Customer requirements importance Ratings

Comfortable Comfortable Durable Fashionable Warranty Protection Note: More 2 Less 0 X 1 0 0 1

Durable 1 X 0 1 1

Fashionable 2 2 X 0 2

Warranty 2 1 2 X 2

Protection 1 1 0 0 X

SUM 6 5 2 1 6

QFDimportance 10 8.33 3.33 1.67 10

Equal 1

Then we can get the QFD importance, from which we can find the comfortable and the protection is the most necessary feature for the customers, and then is the feature of durable 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 chart for each customer requirement until all the customer requirements have been fulfilled and in accordance with their customer weighting. We divide the quality characteristics into two parts, the functional characteristics and the design characteristics, as follows:  Functional characteristics: For material:  Material Weight  Material Strength  Glass Thickness  Flexibility For safety:  Sharp edges  Chemical Used Others:   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 are three 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 Direction of Improvement Minimum Maximum Minimum Maximum

Material Weight

Minimum Minimum Functional Characteristics Material Safety Material Glass Flexibility Sharp Chemical Strength Thickness edges Used

Neutral Others Hinge Friction

Neutral Maximum Design Characteristics Dimension Visibility Angle

Relationship matrix The correlation between customer demands and the quality characteristics is documented 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 1 stands for weak relationship. For example, to meet the customer requirement Durable, strengthen the material strength (strong relationship, rating factor 9), is accorded greater 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 multiplying the weighting of the customer requirement by the strength of the correlation .there are two important concepts: absolute importance and relative importance.

Table 3 the absolute importance and relative importance of the quality characteristics Relative importance 16.3 14.5 7.6 15.4 16.9 6.0 15.4 (%) Absolute Importance 90 80 41.67 85 93.33 33.33 85

7.3 40

0.6 3.33

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

Table 4 Correlation matrix

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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. material strength > 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 be estimated in the field level of difficulty . The level of difficulty is decided empirically 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 it shapes up technically against competitors product . At these two evaluations, we choose an existing product and make a comparison with this product in terms of two indexes: Competitive Evaluation Index (CEI) and Technical Evaluation Index (TEI).
Linear model of CEI 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 the Customer Requirement Planning Matrix, House of Quality. Using this developed House of Quality, we were able to incorporate all important customers attributes and related attributes in our design. Our group is quite confident that our client will be satisfied with this new glasses design.

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