ISSN No.

113-120
Raid Al-Aomar et al., International Journal of Advanced Trends in Computer Science and Engineering, 1(4), September-October, 2278-3091
Volume 1, No.4, September – October 2012
International Journal of Advanced Trends in Computer Science and Engineering
Available Online at http://warse.org/pdfs/ijatcse02142012.pdf

Quality Function Deployment for Service: A Case Study of Enhancing the Planning
Statement of a Utility Company

Raid Al-Aomar1, Husain Al-Meer2

1
Director of MEM Program, Abu Dhabi University, UAE, [email protected]
2
MEM Program, Abu Dhabi University, UAE, [email protected]

 well as when enhancing existing ones. Quality Function

ABSTRACT Deployment (QFD) has been proven as a powerful TQM tool
for capturing the Voice of Customer (VoC) when designing
Throughout the years, the Quality Function Deployment (QFD) or improving products and services and translating that into
method has significantly developed and was widely implemented technical and non-technical features and functions in order to
for developing products and services in both industrial and service
meet or exceed customer expectations. It is a planning tool
sectors. Each new QFD application often presents an opportunity
for practitioners to think about other areas where QFD concept that helps various enterprises to listen and understand the
could be used. In this paper, a methodology is developed to wants and needs of customers and find out possible means to
facilitate a new QFD application to customer need analysis and accomplish these requirements efficiently and effectively.
quality improvement in the service industry. The objective is to
improve the quality of the 5-Year Planning Statement (5YPS) for QFD was first developed in Japan in the late 1960s by
the asset management of a major utility company. The 5YPS in
YojiAkao and Shigeru Mizuno as a tool for integrating
presented in a strategic report which the utility company develops
and delivers to stakeholders and regulators. The report outlines the quality into the development of products and services[1].
company’s asset management plan and project-based capital QFD was aimed at delivering products and services that
expenditure. Thus, the focus of improvement is on the report’s efficiently satisfy customers[2,3]. QFD applications include
technical content in terms of proposed projects and asset enhancement of products and services of companies in many
management initiatives. Quality improvement of such plan is highly industries[4]. Details of QFD application to real-world
needed to address the frequent comments raised by customers due to problems can be found in [5]. An extensive review of QFD
the multiple nonconformities in previous reports. To this end,
various enhancements are made to the conventional QFD model to literature can be found in [6].
make it more operational and workable in such service application.
In addition, several business and quality tools are used in the Nowadays, QFD application in the industry has extended to
construction of the QFD House of Quality (HoQ) including Process become a systematic process for capturing customer
Mapping, SIPOC chart, Work Breakdown Structure (WBS), Pareto requirements and translating them into process changes that
Analysis, and Brainstorming. The methodology was successfully must be met throughout the supply chain (sourcing,
used to improve the planning statement of a major utility company.
The enhancements are recommended based on a thorough review of purchasing, operations, warehousing, distribution, logistics,
the feedback received from the customers on the reports submitted support, and after sale service). QFD can also serve as a
yearly to regulators by the department of asset management from decision-making methodology that helps in modeling and
2007 to 2010. The study found that the customers were not fully making complex decisions during the process such as
satisfied by the submitted reports. Consequently, the company has sourcing decisions, resource allocation, supplier/customer
exerted significant efforts over the last 4 years in order to meet relations, etc.
customers’ expectations through costly and time-consuming
adjustments, re-work, and report changes. The proposed approach
utilizes QFD to enhance the company’s planning statement (the Moreover, QFD, when applied successfully, can lead to a
technical content of the strategic report) and to avoid these excessive significant reduction in product/service/system development
costs. The proposed procedures could be used as a framework to costs. To this end, researchers and practitioners have
improve other types of planning statements and strategic reports developed the needed software tools and techniques for
developed by other departments of the utility company as well as by turning QFD into a comprehensive system to assure quality
other similar companies in the manufacturing and service sectors.
and customer satisfaction in both products and services.
Keywords: Planning Statement, Quality Function Deployment,
Service Quality,Utility Service. As a result, QFD has become an established methodology
that is widely used to translate the Voice of Customer (VoC)
1. INTRODUCTION or customer needs (the WHATS) into its means of
Many companies are increasingly adopting Total Quality accomplishment (the HOWS). In tangible products, this often
management (TQM) tools and methods to enhance customer include the translation of desirable qualities into product
service, increase operational effectiveness, and improve technical and non-technical features and functions while in
profitability. A key principle of TQM is to be services they include process enhancements and service
customer-driven when developing new products/services as improvements. The voice of the customer contains the
declared and even hidden customers’ needs. It can be
captured through questionnaire, observation, open sessions,

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social media, and so many other ways. For cases where strategic report. The methodology selected is an enhanced
customers are professional bodies, other organizations, or version of QFD that facilitates the process of addressing
regulators questionnaire and brain storming sessions are customers’ concerns on previous reports, identifying their
highly recommended. Based on the VoC, actions are set to desires for a quality report, and specifying and prioritizing
enhance the product/service so that the new design/model report technical aspects that the company should concentrate
meets or exceeds customer needs and expectations. This can on in order to meet their expectations while continuously
be accomplished incrementally or at one step based on improving quality.
technical difficulty and the available time and cost.
2. QFD SERVICE APPLICATIONS
QFD provides a structured methodology for the
accomplishment of customer needs. To this end, a House of The QFD application to service industry is growing along
Quality (HoQ), which is the core of QFD, is developed by with the growth of service sector and more companies are
identifying the engineering requirements of the using the tool for enhancing the services provided to their
product/service that are needed to meet customers’ needs and customers as well as for designing new services. Common
specifying the relationship between them. As shown in industries include healthcare, hospitability, financial
Figure 1, the HoQ is developed using six components: (1) institutions, law enforcement, airports, utility companies, and
customers’ requirements and assessment, (2) engineering many others. Since QFD proved to be effective in product
requirements, (3) the relationship/impact of engineering development of manufactured goods, it is also expected to be
requirements on customer requirements (center), (4) the
effective in designing services and enhancing the process of
technical correlations of engineering requirements (roof), (5)
providing these services to customers. However, we need to
customer perceptions and market benchmark study, and (6)
be aware of the differences in applying QFD to
design objectives/priorities and targets.Developing the HoQ
results in providing the designers with specific information manufacturing and service sectors. In a physical product
on the set of product/service enhancements that should be context, QFD provides an interface between customer
implemented in order to meet the customers’ product needs and engineering or product characteristics. For
requirements.Further details of QFD process and HoQ the producer, these characteristics are materialized through
structuring can be found in[5] and [6]. Examples of QFD actions taken to process operations and production
applications can be found in [7] and [8]. requirements. In a service context, however, QFD provides
an interface between customer expectations from the service
and the service quality attributes such as waiting and service
time, convenience, courtesy, trust, etc.

A third in-between QFD application is in services that

provide customers with tangible items such as strategic
reports, mail, shipped items (deliveries), food services,
documents (e.g., ID and passport services), and so on. While
those represent service applications of QFD, they incorporate
both tangible and intangible quality attributes into the
provided service. Tangibles are related to the item/product
delivered and intangibles are related to the service process.
For example, when delivering a strategic report to a
stakeholder, QFD can be used to enhance the tangible aspects
of the report such as paper quality, graphics, cover, size, etc.
and can be also used to enhance the report intangible aspects
Figure 1: Components of QFD-HoQ that are related to its technical content such as usefulness,
completeness, accuracy, credibility, and so on. Typically, the
This paper presents a new QFD application to enhance the most focus is often placed on these intangible aspects of
technical content of a strategic report in a major utility quality as they form the most value of the strategic report.
company. The objective is to improve the 5-Year Planning
Other report aspects may include its delivery method, timing,
Statement(5YPS) reports that the utility company delivers to
and cost of development.
its customers (stakeholders and regulators) outlining its
future planning and capital expenditures. This report is
Relative to the conventional products QFD applications,
prepared by the Asset Management Department (AMD) of
service applications of QFD remain limited. As discussed in
the utility company. The QFD is mainly adopted as a quality
[9], this is mainly due to a lack of understanding of the
assurance tool that allows the company to respond to the
breadth and complexity of the customer needs that had to be
comments raised by customers due to multiple
integrated into product design, environment design, and
nonconformities in previous reports. The objective is to
delivery systems. Details of utilizing QFD in service industry
provide the case company (a utility company that distributes
can be found in [10] and [11]. Examples of QFD service
electrical energy) with a structured methodology for listening
applications include [12] and [8]. Anwar et al.[13] presented
to the voice of their customers and considering their needs
a QFD application to utility services with a case study of an
when developing the technical contentof such important
electricity distribution company. In terms of reports and
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documentation, QFD examples are discussed in [14] and

[15].

Although QFD was applied to many aspects of service

sectors, the work presented in this paper is a unique QFD
application that targets the enhancement of a strategic report
(i.e., the 5-year planning statement report of a major utility
company). The customers feedback on the report technical
content is used to derive technical solutions that the asset
management department of the company can adopt to
improve the overall service quality and to respond to the
needs of customers (stakeholders and regulators).

3. THE PROPOSED QFD APPROACH

The methodology implemented in this paper is a result of a
practical research project that was carried out as part of the
Figure 2: The QFD Methodology for the 5YPS
Quality Engineering course in the Master of Engineering
Management (MEM) program at Abu Dhabi University in The proposed methodology also integrates Process mapping
collaboration with a major local utility company. The (PM), Work Breakdown Structure (WBS), SIPOC
objective is to enhance the company’s 5-Year Planning (Supplier-Input-Process-Output-Customer) chart, Pareto
Statement (5YPS) report per the feedback obtained from Analysis (PA), and Brainstorming into the development of
customers (i.e., parties who receive the report). The proposed the QFD model. The objective is tofacilitate the application
methodology used in this study is an enhancement of the ofQFD to the quality improvement of the 5YPS report.
typical QFD method in order to fit the nature of this unique Process Mapping (PM) is used to better understand the
application. Figure 2 depicts the process of developing the process preparing and submitting the strategic report. SIPOC
QFD model and implementing it to enhance the chart is used to outline the overall supply chain process of the
corporate-level strategic report. product/service (report) from source (supplier) to end-user
(customer). Pareto Analysis (PA) is used to prioritize the
As shown in Figure 2, the methodology starts by utilizing elements of the strategic report and qualify them to QFD
existing information and business and quality tools to applications. The WBS is used to illustrate the content of the
develop and distribute a questionnaire, incorporate its results strategic report developed by the utility company. Finally,
into the HoQ and complete its complements as presented in brainstorming is used by the project team to identify key
Figure 1, and translate the results into enhancement to the product/report aspects, design the questionnaire, identify
technical content of the 5YPS report. technical solutions, and recommend enhancements to the
5YPS.
The implementation of the proposed methodology in Figure 2
involves 5 main steps that QFD practitioners can adopt for 4. QFD OF A PLANNING STATEMENT
report quality improvement. In the first step, the product is The proposed QFD method was applied to enhance the
identified using SIPOC chart, the report’s WBS, and Pareto planning statement report of a major utility company. The
Analysis. This includes presenting the rationale for selecting company is committed to distribute high quality water and
the 5YPS report as a target for QFD application. In the electricity services. Its core business can be summarized in
second and third steps, report customers (stakeholders) are the following:
identified and a survey is prepared and distributed to capture 1. Planning and Design of Electricity and Water
the VoC on the strategic report using stakeholders’ feedback, Infrastructure
similar reports, and a team-based brainstorming. The HoQ is 2. Construction of Water and Electricity Infrastructure
developed in the fourth step based on structure presented in 3. Operation and Maintenance of Water and Electricity
Figure 1. Finally, the results of the HoQ analysis are used to Infrastructure
recommend specific enhancements to the technical content of
the company’s strategic report so that customer requirements The Assets Management Department (AMD) is considered as
are met. a key component of business performance of the company
due to its role and function. AMD is also responsible for
communicating with external parties such as government
authorities, developers, consultants, contractors, and
suppliers. The key role of asset management stems from the
importance of managing the company’s physical asset (e.g.
cables, transformer, etc.) in a way that maximizes the
operational and financial benefits taking into considerations
technical, economical, and environmental aspects. In
addition to that, AMD is responsible for developing a robust
strategic plan that has to be aligned with the interests of
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 Raid Al-Aomar et al., International Journal of Advanced Trends in Computer Science and Engineering, 1(4), September-October, 113-120

different parties(stakeholders) as well as the company’s 4.1Product/Service identification

interest. Thus, this study is focused at enhancing the quality
of services thatAMD offers to its customers (both internal A thorough review of all strategic reports is first conducted to
and external). The 5YPS report is the main service provided develop a profound knowledge about AMD products and
by AMD to the company’s stakeholders. Figure 3 presents a their priorities. In addition to the 5YPS, AMD issues 6 other
map of the current process for report preparation and reports yearly related to asset management performance and
submission. the business cases for new projects. However, the 5YPS
report was found to be the most Critical-to-Quality (CTQ)
The study began by listing key AMD products and services report given its strategic importance to the company and its
and a matrix diagram is developed in order to have a holistic stakeholders and to the amount of comments received on the
view on interaction between AMD and its suppliers and report from the regulator. As shown in Figure 4, three tools
customers. Furthermore, all listed products were subjected to were used to identify the critical product/service that the team
evaluation in terms of their impact on AMD performance. needs to focus on in its effort for service quality
Given the limited time of the study, only one AMD output is improvement; SIPOC chart, WBS, and Pareto Analysis.
selected to undergo the QFD exercise. In this case, the 5-Year
Planning Statement (5YPS) report is selected for the QFD The SIPOC chart is used to collect the company high-level
application due to its key role in the overall performance of information, to build knowledge about the strategic report as
the utility company. The report outlines the company’s a key product, and to understand its supply chain. The
performance against its vision, mission and values. The SIPOC chart also facilitated the tracking of changes in the
report is also submitted to regulating agency as per the flow of information within the company and used to simulate
license issued to the company. The report is used by the the current behavior in developing the strategic report and
regulators to: predicting the results. The selection criteria for the strategic
- Check the performance of the company report as a QFD product include the following:
- Overview the company’s plans for expansion,  Impact on company's performance against its
rehabilitation, and upgrading vision, mission and values
- Ensure the consistency of its overall plans with  Regulator's compliance as per the license
other companies within the group (those responsible  Impact on the budget
for the generations, transmission, and distribution of  Impact on the manpower and future requirements
electricity).

Figure 4:Procedure for Product Identification

Once the product is selected, a Work Breakdown Structure

(WBS) is developed for the product (report) in order to get
Figure 3: The Processof Report Preparation and Submission familiar with its content. The WBS also helps the team in
designing the questionnaire that captures the report VoC and
The report VoCwas captured by conducting a survey and by in making later enhancements to improve the report quality.
reviewing the complaints received by AMD on the report in Figure 3 shows the WBS for the 5YPS report of the utility
the last 4 years. The HoQ is then developed using survey company. The 5YPS report consists of the following nine
results and brainstorming sessions. Finally, the outcomes of chapters:
 Executive Summary
this study are analyzed and recommendations are made to
improve the 5YPS report to meet customer requirements. The  Demand Forecasting
following is a step-by-step explanation of implementing the  Planning Criteria
proposed approach to develop and customize the QFD model.  Network Expansion/Reinforcement Proposals

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 Cost Estimates  General Questions: Questions that are related to

 Power System Studies report general formatting, language, coloring,
 Energy Consumption and Forecast figures, etc.
 Asset Data  Technical Questions: Questions that are related to
 Asset Performance technical content of each report section such as
demand forecasting methods, cost estimates,
Finally, Pareto Analysis was used to prioritize the book planning design criteria, demand side management,
chapters based on their importance to users. To this end, the etc.
team used the past practices and the feedback obtained from  Ranking Questions: Questions that are related to
different parties who used the 5YPS report. Based on past ranking customers’ needs or desirables using an
experience with previous planning statement reports issued importance scale that ranges from 1 (Lowest
by the utility company from 2007 to 2010, the number of importance) to 5 (Highest Importance).
comments received from the regulator was 64, 87, 80, and 50,  Benchmark Questions: Questions that are related to
respectively. Pareto analysis was conducted for each report comparing current report to those issued by
issued by the utility companies. competitors (i.e., 3 other local utility companies in
different cities of the same country).
As shown in Figure 5, Pareto analysis for the latest planning The survey is structured to capture the VoC of report users in
statement report (2010 submission)identified the 20% of the simplest manner possible. Customer feedback should
report chapters that need to be enhanced in order to achieve provide specific recommendation regarding their experience
the 80% improvement in report quality. Chapters 4, 5, 8, 2, with existing report chapters and content. Questions forms
and 1 form the 80% of the total impact of the report as were used in the survey to collect customer importance
indicated by the report users. Thus, the focus of the report ranking of report chapters along with benchmarking with
quality improvement effort should be directed at these 5 similar reports and details of customer dissatisfaction
chapters. experience with the report and any improvement suggestions.
4.3 Identification of customer requirements (VoC)
2011-2015 (2010 Submission)- Pareto The team has used two methods of communication media to
distribute the survey and capture the VoC of the report users:
Analysis
face-to-face interviews with reachable stakeholders and
Chapter 1: Executive Summary
Chapter 4: Network Expansion

25 100% E-mails for remote customers. In total, the team distributed

Chapter 2: Demand Forecast

Chapter 3: Planning Criteria

Consumption and Forecast
Chapter 5: Cost Estimates

35 surveys to the targeted customers but only 25 responses

Chapter 6: Power System
and Reinforcement

20 80%
Chapter 7: Energy

were qualified for the study (71.4% response rate). Male

Chapter 8: Asset Data

Chapter 9: Network

15 60% represented 80% of total respondents and female respondents

Performance

Studies

were 20 %. The information collected from the surveys was

10 40% organized and the set of customer requirements (VoC) is
Drawings
General

identified and fed into the HoQ matrix.

5 20%

0 0% Regulator comments were classified into four parts;

formatting, clarifications, suggestions, and requirements. As
# of Comments raised by RSB mentioned in the preliminary analysis, most of the
highlighted regulator’s comments were on the technical
Cumulative % content of Chapter 4(Network Expansion and
Cut off % Reinforcement). There was also comment on budgeting and
its utilization over the years. These comment and many
others indicated dissatisfaction with the overall quality of the
Figure 5:Pareto Analysis for the chapters of the 2010 5YPS report 5YPS report and verified the need for quality improvement.
4.2 Survey preparation The utilization of QFD structured methodology starting with
capturing/understanding the VoC was crucial in this regard to
This step is crucial for the success of QFD application as it incorporate the customer concerns when developing the next
captures the report VoC from the report users and drive future year’s 5YPS report. The HoQ matrix provides an excellent
directions for the quality improvement effort. Therefore, a platform for translating the VoC into specific enhancements
thorough review of the current report structure is conducted (technical solutions) of the report.
and compared to similar reports in order to prepare the
content of the user survey. The survey is then developed 4.4 HoQ development and analysis
using the information and users feedback collected in the first The HoQ is the core of QFD methodology as it integrates
step (SIPOC chart) and a brainstorming secession with the collected customer information with the engineering work
engineers responsible for developing the 5 Years Planning aimed at product/service improvement. The HoQ matrix
Statement Report (mainly from the Strategic Network translates the voice of the customer into product
Planning Section).The team agreed to divide the survey specifications by relating customer “wants” to alternative
questions into the following four parts: product/service designs (means for accomplishing these
wants) so that engineering and quality efforts can be
concentrated on the most important and valuable

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characteristics. Starting with the survey-based customer In terms of customer needs, and as indicated earlier, the
needs “WHATs” and the benchmark study, the elements of results obtained from the HoQ shows that the technical
the HoQ matrix were developed based on the structure content Chapter 4 (customer need No. 11) has received the
presented in Figure 1 and the proposed methodology in highest customer rating among other report chapters.
Figure 2. Therefore, high concentration on improving expansion
proposals is highly recommended by proposing number of
This was a team-based exercise where brainstorming sessions technical solutions. The next section outlines the technical
involved subject matter experts to specify the technical enhancements of the report that are derived from the HoQ
aspects of the reports (design features or HOWs) that can be matrix.
used to meet the customer requirements. The team has also
set the relationships between the WHATs and HOWs, the
correlation between the HOWs (the HoQ roof), the targets for
technical requirements, the priority of technical solutions,
and the recommendations for enhancing the technical content
of the 5YPS report. Figure 6presents the developed HoQ
matrix.

Figure 6:The developed HoQ in QFD application

the technical content of the 5YPS report which include

4.5 Enhancement of the 5YPS strategic report
specific projects and service improvement initiatives. Based
on the analyses of customer needs and expectation, the team
The team has used two methods of communication media to was able to identify a set of report technical requirements that
distribute the survey and capture the VoC of the report users: should fulfill these needs. As shown in the HoQ in Figure 6,
face-to-face interviews with reachable stakeholders and target values were also set to the selected technical
E-mails for remote customers. requirements (solutions) and these solutions were prioritize
for adoption and implementation in the next 5YPS report
This is a unique QFD application in which technical solutions developed by AMD of the utility company. As a result, the
are derived from the survey-based customer expectations of following report technical enhancements (solutions) were
the content of a strategic report (5YPS). QFD worked as a recommended:
chained interface between the customers and the developer of
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1. Enhancement No. 1: Install intelligent meters on implementation stage. To this end, the utility company has
low voltage and high voltage distribution system run feasibility studies and started the contracting process to
2. Enhancement No. 2: Improve assets database on install the intelligent meters and the required control devices,
Maximo, Reflection, and GIS software. improve the databases, and develop the smart grid. If time
3. Enhancement No. 3: Carry out a study to implement and budget allows, the other technical solutions are highly
the automation of 11kV and 22kV network recommended to be carried out in parallel with these four
4. Enhancement No. 4: Improve communication and technical solutions as they will also result in improving the
database for mega development overall quality of the 5YPS. In addition, it was highly
recommended to develop a strategy to develop a set of
As shown in Figure 6, the first technical solution recorded the guidelines that lead to consistency in the company's approach
highest score and weight of relative importance (10.8%). towards achieving its mission, vision and values.
Implementing this solution is expected to dramatically foster
the overall performance of the 5YPS as more data would be 5. CONCLUSION
drawn from these devices such as load and voltage profile,
Utilizing QFD in a wide spectrum of manufacturing and
power factor, and active/reactive power. In addition to the
service applications has created a robust platform to foster
strong relation between this technical solution and customer
users to adopt such systematic approach in improving the
requirements, the data expected to be collected from the
quality of any type of product/service including technical and
intelligent meters is essential for evaluating network
strategic reports. This study has presented a unique QFD
capabilities and efficiencies which facilitate making
application in which the quality of the 5-Year Planning
decisions on new customers, getting better knowledge on
Statement (5YPS) of a utility company is improved.
system utilization and losses, assets performance, and
Improvement is expressed in terms of a set of technical
consumer behavior.
solution (projects and initiatives for better asset management)
that are derived from the customer needs and expectations for
The second technical solution is also important to enhance
the content of the 5YPS report. The report is developed by
overall quality of the planning component of the 5YPS.
the department of asset management and submitted to
Updating and improving the recommended databases
stakeholders and regulators. In addition, this study has
provides an excellent source of information to planners and
proven that engaging customers, while developing the 5 YPS
facilitates the conduction of improvement analysis and future
has led to tremendous improvement in quality of the report.
predictions. Maximo database is considered as one of the
The proposed QFD methodology indicated thoroughly the
powerful tool that is common amongst many utility
process of collecting customer and product information,
companies. Reflection database provides users with
designing surveys, capturing the VoC, and developing the
information that could help in the analysis of network
HoQ. Therefore, these steps could be considered as a
expansion and reinforcement. Finally, Geographic
framework for future development and quality enhancement
Information System (GIS) database provides data related to
of technical and strategic reports in both manufacturing and
existing infrastructure, plots, cities, etc. which is an essential
service applications.
tool for strategic system planning and spatial load
forecasting.
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