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Incorporating cost and environmental factors in quality function deployment using data envelopment analysis
Authors:Ramakrishnan Ramanathan  Jiang Yunfeng
Institution:1. Nottingham University Business School, Operations Management, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UK;2. School of Mechanical Materials and Manufacturing Engineering, University of Nottingham, University Park, Nottingham NG7 2RD, UK
Abstract:Quality function deployment (QFD) is an important tool available to organizations for efficient product design and development. Traditionally, QFD rates the design requirements (DRs) with respect to customer needs, and aggregates the ratings to get relative importance scores of DRs. An increasing number of studies stress on the need to incorporate additional factors, such as cost and environmental impact, while calculating the relative importance of DRs. However, there is a paucity of methodologies for deriving the relative importance of DRs when several additional factors are considered. In this paper, data envelopment analysis (DEA) is suggested for the purpose. It is proved that the relative importance values computed by DEA coincide with traditional QFD calculations when only the ratings of DRs with respect to customer needs are considered, and when only one additional factor, namely cost, is considered. DEA provides a general framework facilitating QFD computations when more factors need to be considered. The calculations are explained using a step-by-step procedure and illustrations. The proposed QFD–DEA methodology is applied to the design of security fasteners for a Chinese company. Though traditional QFD calculations consider the ratings as cardinal numbers, DEA has the flexibility to treat the ratings as qualitative variables. This aspect is illustrated in a separate section.
Keywords:DEA  Quality function deployment  Qualitative and quantitative factors  Design of security fasteners
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