When you develop a product, you have to consider a wide range of aspects, accept com­pro­mis­es and make critical decisions at every turn. This is the only way to create a high-quality product. You need to focus on customer sat­is­fac­tion, but you can’t ignore technical re­quire­ments and cost-ef­fec­tive­ness. You have to balance these factors if you want to develop a suc­cess­ful product. Here’s where the house of quality comes in. This matrix lets you analyze customer- and product-specific aspects in fine detail. We’ll explain how it works.

House of quality – the process explained

The house of quality process is a component of quality function de­ploy­ment (QFD). The QFD method helps you assure quality when you develop products and deliver services. QFD uses various matrices for this purpose. The first and often most important matrix in QFD is called the house of quality because it’s shaped like a house with a roof and body. In this matrix, you start by sep­a­rat­ing customer needs from technical re­quire­ments and eval­u­at­ing the two factors in­de­pen­dent­ly of each other. You then correlate two types of re­quire­ments and start planning for im­ple­men­ta­tion.

Fact

The QFD house of quality combines different aspects of product de­vel­op­ment in which different de­part­ments col­lec­tive­ly develop the matrix. Ideally, the marketing, research, and pro­duc­tion de­part­ments col­lab­o­rate on the house of quality.

The house of quality is normally built in 10 steps (sometimes 11). You start by recording the customer’s desires, eval­u­at­ing competing products, and then focus on technical at­trib­ut­es. Ratings play a major role here: You use points to rate the technical re­quire­ments and im­por­tance levels on different scales.

A house of quality example in practice

You fill in the house of quality matrix in a pre­de­ter­mined order. As you do this, a picture emerges of how you need to plan the product (or service). Since all de­part­ments col­lab­o­rate on the matrix, conflicts are avoided when the time comes to implement the plan.

Our example il­lus­trates the de­vel­op­ment process for a food processor and starts with an empty house of quality.

Step 1: Capture customer re­quire­ments

You start by focusing on the left side of the house of quality. This step involves the marketing team. You list all customer re­quire­ments that are relevant to the product. Con­duct­ing a survey is one way of finding out what customers want. You can also use other methods such as market analyses to determine re­quire­ments because even potential customers often don’t have a clear picture of what they need from a product. The list of customer needs is often referred to as the “what” versus the “how” of technical re­quire­ments.

In our example, we want the food processor to have a wide range of features, a modern design, and long-lasting quality. We enter this in­for­ma­tion in the list. The order isn’t important.

Step 2: Weigh customer re­quire­ments

You assign ratings from 1 to 5 (the more important the aspect, the higher the number) right next to the list of customer re­quire­ments. You can also create your own scale if it makes more sense for the product and the team. You can solicit the in­for­ma­tion you need for clas­si­fy­ing re­quire­ments by con­duct­ing customer surveys or com­mu­ni­cat­ing with customers. You can then figure out which re­quire­ments you should focus on in the planning process.

In our example, the range of functions is most important for customers. The other two re­quire­ments were ranked lower.

Step 3: Com­pet­i­tive analysis from the customer’s per­spec­tive

In the third step, you determine how your planned product compares to competing products. A carefully chosen, rep­re­sen­ta­tive group of customers compares your product with leading products on the market (or with several competing products). Only one aspect of the customer re­quire­ments is compared at a time. In our example, the group of customers would assess how the func­tion­al­i­ty of the new product compares to the range of functions of competing products.

Once again, you can rate them on a scale of 1 to 5. A rating of 3 equals an equiv­a­lent product. Anything below 3 means that your product performs worse than the competing product in terms of the aspect being compared. A higher value means that your product is better received by potential customers. The table for this is located at the right edge of the house of quality. For better vi­su­al­iza­tion, you can connect the in­di­vid­ual points to create a graph. You can use different colors for better clarity when comparing your product to several competing products on the market.

Step 4: Define product at­trib­ut­es

While the first three steps primarily reflect the customer’s view and concern marketing, the fourth step requires input from engineers or product designers. Now the question is how exactly to implement the customer re­quire­ments. What steps are needed to create an appealing product? Examples include features such as motor power, blade systems, housing design, and controls. You assign this list to the top of the house.

Step 5: Determine direction of im­prove­ment

This step requires technical expertise. Now you determine the extent to which the actual state of the product at­trib­ut­es must be adapted to the target state that you derived from the customer re­quire­ments. You use three symbols to indicate this:

  • Up arrow: The attribute has to be increased in order to optimize it
  • Down arrow: The attribute has to be decreased in order to optimize it
  • Circle: A target value is desired

In our example, we would expand the blade systems to achieve a wider range of functions. The motor power, on the other hand, already has the target value and is therefore marked with a circle. We would use a down arrow if the customer wanted the product to be cheaper, for example. In other words, the value of this attribute must be decreased.

Step 6: Determine re­la­tion­ships

In the sixth step in building the house of quality, you fill in the actual matrix, which is like the body of the house. We now consider how the in­di­vid­ual re­quire­ments relate to the product char­ac­ter­is­tics. You use four different values to evaluate the re­la­tion­ship:

  • If there’s no con­nec­tion at all, you specify a value of 0 or leave the field blank.
  • A weak re­la­tion­ship is given a score of 1.
  • A medium re­la­tion­ship is ranked 5.
  • A strong re­la­tion­ship is rated 9.
Note

This matrix uses a log­a­rith­mic scale instead of the linear scale used in other parts of the house of quality. This is important for the final eval­u­a­tion.

In our example, we can see that the re­la­tion­ship between the blade system and the range of functions is very strong, and so is given a score of 9. Other re­la­tion­ships (such as the re­la­tion­ship between the range of functions and the housing design) are weak or non-existent.

Step 7: Analyze in­ter­re­la­tion­ships

Now focus on the roof of the house of quality, meaning the tri­an­gu­lar area above the actual matrix. This area shows the in­ter­re­la­tion­ships between the in­di­vid­ual product at­trib­ut­es. The question is: How does one function of the product relate to the other? You decide whether the re­la­tion­ship is positive, negative, or neutral, meaning whether the at­trib­ut­es or functions support each other, block each other, or do not influence each other at all. The type of re­la­tion­ships can be rep­re­sent­ed with the “+”, “-“, and “0” markers.

A cor­re­la­tion would be negative if the expansion of one feature were to affect the func­tion­ing of another feature. This is not the case in our example. Instead, the engineers in this example find that a bigger housing design increases dura­bil­i­ty and space for the controls.

Step 8: Determine im­por­tance

You can determine the im­por­tance of each product attribute by mul­ti­ply­ing the values specified in step 6 with the weight specified in step 2 and then adding all the values. You now have an overview of the im­por­tance of each feature because you’ve already defined how closely each feature relates to customer re­quire­ments. This will help you with further product de­vel­op­ment. Enter the sum of each column in the bottom row of the matrix to build the foun­da­tion of your house of quality.

Ex­pe­ri­ence shows that it’s helpful to specify a relative value in addition to the absolute value. In this case, you record a per­cent­age, meaning you offset the possible maximum value against the actual result.

In our example, we would multiply the value 5 for the motor power by weight 5 (25). Next, multiply the value 5 by the weight 3 (15). Then add the two values to the absolute value (40). Since the maximum value in our example is 145, the resulting values in the graphic below show the relative im­por­tance of motor power, blade systems, housing design, and controls:

Step 9: Com­pet­i­tive analysis from the engineer’s per­spec­tive

You can fit another market analysis from the point of view of the product de­vel­op­ers in the lower part of the house of quality (the basement). Just like in step 3, engineers compare their product (possibly still in planning) with the competing products on the market. However, the engineers now compare each in­di­vid­ual product attribute and evaluate its per­for­mance compared to competing products. Just like the eval­u­a­tion from the customer’s per­spec­tive, you assign ratings from 1 to 5 and connect the markings to form a graph.

Step 10: Define target values

In the final step, you can start planning. Enter specific data for your target values. In our example, the blade system needs to be extended to 10 functions to meet the re­quire­ments.

Other pos­si­bil­i­ties

The house of quality can ac­com­mo­date other in­for­ma­tion in addition to the steps presented here. Some teams add a dif­fi­cul­ty level for each product attribute to their house of quality. Product de­vel­op­ers then decide how difficult it is to customize the function or aspect of the product. This in­for­ma­tion also provides important input for sub­se­quent planning. It often includes helpful comments and legends to ensure that everyone can un­der­stand the in­for­ma­tion later.

What are the benefits of the house of quality?

The house of quality offers several ad­van­tages. The first benefit comes from simply creating the diagram. Employees from different de­part­ments come together and col­lab­o­rate on the house of quality. This in­evitably leads to con­struc­tive dis­cus­sions. The input from different de­part­ments ul­ti­mate­ly ensures a high-quality, long-lasting, and suc­cess­ful product.

There are also ad­van­tages once the house of quality is fully completed. Thanks to vi­su­al­iza­tion, a lot of important in­for­ma­tion for planning and de­vel­op­ment is available at a glance. Teams can re­peat­ed­ly consult the diagram with its graphs and matrices through­out the product de­vel­op­ment.

Summary

The house of quality is an excellent starting point for product de­vel­op­ment planning. The “Kano Model” is another way to increase customer sat­is­fac­tion in future projects. The per­spec­tive of the potential customer also plays a major role in this approach.

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