Quality Functional Deployment by assessing Customer expectations in Small Car (Hatchback) segment at TATA MOTORS

Applied Management Research Project

- By Ankit Pandey Roll No. 10BM60012 In Partial Fulfilment of the Requirements for the Degree MASTER OF BUSINESS ADMINISTRATION

Faculty Guide: Dr. Kalyan Kumar Guin, Vinod Gupta School of Management, IIT Kharagpur

Vinod Gupta School of Management Indian Institute of Technology, Kharagpur 2011

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UNDERTAKING REGARDING PLAGIARISM

This is to certify that this project work is original and no plagiarism is involved in it. Quotes/figures taken from some sources have been duly referenced.

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CERTIFICATE FROM FACULTY GUIDE

1. This is to certify that the Dissertation Project, titled Quality Functional Deployment by assessing Customer expectations in Small Car (Hatchback) segment at TATA MOTORS was undertaken by Ankit Pandey (Roll No 10BM60012) in the academic year 2011. 2. The project was executed under my guidance. The work has been satisfactorily completed by him and I recommend the work as being worthy of acceptance for partial fulfillment of the requirements for the award of degree of Masters of Business Management at the Indian Institute of Technology, Kharagpur.

____________________ Dr. Kalyan Kumar Guin Professor Faculty Guide Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur Date: Nov 2011

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CERTIFICATE OF EXAMINATION
This is to certify that we have jointly examined the Project Report and hereby accord our approval of it as a study carried out and presented in a manner required for its acceptance in partial fulfilment for the Post Graduate Degree for which it has been submitted. This approval does not endorse or accept every statement made, opinion expressed or conclusion drawn, as a record in this report. It only signifies the acceptance of the report for the purpose for which it is submitted.

Examiner ________________________________________ Additional Examiner _____________________________ Supervisor ________________________________________ Date _______________________________________________

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ACKNOWLEDGEMENT
No one who achieves success does so without acknowledging the help of others. The wise and confident acknowledge this help with gratitude. It is with a sense of gratitude, I acknowledge the efforts of entire hosts of well wishers who have in some way or other contributed in their own special ways to the success and completion of this Applied Management Research Project. First of all, I express my sage sense of gratitude and indebtedness to our Dean, Prof. A. Tripathy of Vinod Gupta School of Management, IITKharagpur, from the bottom of my heart, for his immense support and faith. I would also like to thank my project guide at VGSOM Prof. Kalyan Kumar Guin who has been very helpful in the completion of this project. I would also like to thank Prof. Kunal Ghosh for his valuable guidance throughout the project. I sincerely express my thanks to our lecturers for their valuable guidance and intellectual suggestions.

(Ankit Pandey)

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Table of Contents
Abstract.. 7 About TATA Motors 8 Need of the project.11 Deliverables. 11 Literature Review.11 Origination of QFD.......................................................................................................... 12 Car Segments ............................................................................................................................. 13 Major Players ............................................................................................................................. 14 Customer expectations (in small cars) .......................................................................................... 15 Market Survey............................................................................................................................ 15 Target Audience for Survey ............................................................................................. 15 Questionnaire Design...................................................................................................... 16 Analysis of responses ...................................................................................................... 21 Cluster Analysis Output (in SPSS) ..................................................................................... 24 Hierarchical Clustering ........................................................................................ 24 K-Means Clustering............................................................................................. 30 ANOVA............................................................................................................... 36 Interpretation of the Cluster Analysis output........................................................ 37 Quality function deployment: a comprehensive literature review.................................................. 41

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Abstract
Indian automobile industry is on an inflection point of growth and every player wants a greater pie of it. With Indias booming economy comes the demanding Middle class customer with higher appetite to buy their 1st, 2nd or nth car. Value for money conscious Indian customers demands are never limiting.

This poses a greater challenge to the peoples close to heart company Tata Motors to live up to the expectations of customers and that too in Small Car Segment where every day new models are being launched by the competitors.

Need is to keep abreast with the current and future expectations of the customer and be ahead in the market in promptly satisfying the customer. In Indian scenario, not only there are lots of new customers buying their first car and so is the opportunity to business but also the existing customers needs to be retained attracted so that their chances of switching to the new players is minimised.

How, this can be achieved at Strategy and Operational level is something Tata Motors needs to ponder upon. Strategically motivated firm needs to talk to the customers and collect and comprehend their future expectations and convert it to the operational terms of their business to be ahead in the fierce competition.

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About Tata Motors

Tata Motors Limited is Indias largest automobile company, with consolidated revenues of Rs.1, 23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Company is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer. The Company's over 25,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The Company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first Company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.

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Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The Company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the Company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D. With over 4,500 engineers and scientists, the Company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The Company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT and transportation cost).

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Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. Through its subsidiaries, the Company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by worki ng on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The Company's support on education and employability is focussed on youth and women. They range from schools to tech nical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive

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and curative healthcare. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Need of the Project

In recent years, India has emerged as a leading centre for the manufacture of small cars and small car market has broadened. Tata Motors currently with only Vista and Nano models of cars in small car segment market facing stiff competition from many other players such as Maruti Suzuki , Hyundai Motor India, Nissan , General Motors, Chevrolet, Fiat , Ford, Volkswagen etc. These players are good in terms of features and quality they offer to their customers. These features are making a point to the customers and attracting them. Tata motors, known for its value for money cars, has to attract the future customers through their expected features at the right cost and right quality. So, it is important for Tata Motors to gauge the market expectations from future cars and map them into operational terms for the company to stay and grow in the highly competitive Indian small car market and thus the need of this project to assess the expectations and convert them into quality operational terms.

Deliverables
Customer expectations regarding features in a Hatchback Introduction to QFD Approach

Literature Review
In the past few years, various quality standards and quality systems have been attempted for the improvement of the products and services in our lives. One such quality tool which has the ability to generate creative and novel solutions is Quality Function Deployment (QFD). This paper presents a detailed literature review on the topic and application of QFD. This literature review is based on a reference bank of more than 400 QFDs and its allied publications, organisations, software, tools and web sources. The literature review is

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extended with thorough descriptions of the adopted methodologies, exemplified with an elaborate and categorical application analysis of its varied functional areas, namely, primary, secondary and tertiary fields, industrial, non-industrial and service applications and methodological progressions. The paper concludes with some of the insights gained from a large number of research papers, publications and other available literature. Quality function deployment is an overall concept that provides a means of translating customer requirements into the appropriate technical requirements for each stage of product development and production (i.e. marketing strategies, planning, product design and engineering, prototype evaluation, production process development, production, sales). Since its initial development in Japan in late 1960s and early 1970s, especially since its rapidly spreading to the US in the 1980s and later to many Industries in many nations, a vast literature on QFD has evolved. To suit the different needs of QFD researchers and practioners, its literature needs categorising and reviewing.

Origination of QFD
In the Foreword for J. Terninkos books step by step QFD (Terninko, 1997), B. King wrote, In the 1960s, Quality Control and Quality Improvement had a distinctively manufacturing flavour in Japan.In the late 10960s and early 1970s, Joji Akao and others went to work on improving the design process so that when the new product was introduced to manufacturing. It was high quality from the beginning. The process for improving design was called Quality Function Deployment. From 1975 to 1995, this too/process was integrated with other improvement tools to generate a mosaic of opportunities for product developers.

Small car (Hatchback) market in India

All the global auto majors are driven towards India attracted by its burgeoning demand for cars. Rising incomes, better financing for vehicles and improved roads are the combined drivers for the strong growth of automotive sector in India. (KPMG 2007). Of this huge car market in the country, the market for small cars is a whopping 80%. An expanding middle class coupled with rising fuel prices and space crunch in city roads has fuelled the demand

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for hatchbacks. With this increasing demand, the competition in this segment has grown with a rapid rate with all the domestic and global auto giants wanting a share of the pie.

Car Segments
Car segments as per SIAM (Society of Indian Automobile Manufacturers) The classification of segment is done on the basis of the length of the vehicle (Passenger car segment) A1 Segment - Mini - Up to 3400mm (M800, Nano) A2 Segment -Compact star,Swift,i20,palio,indica etc) 3401 to 4000mm (Alto, wagon r, Zen,i10,A-

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A3 Segment - Midsize - 4001 to 4500mm (City, Sx4, Dzire, Logan, Accent, Fiesta, Verna etc) A4 Segment - Executive - 4501 to 4700mm (Corolla, civic, C class, Optra, Octavia etc) A5 Segment - Premium - 4701 to 5000mm (Camry, E class, Accord, Sonata, Laura, Superb etc) A6 Segment - Luxury - Above 5000mm (Mercedes S class, 5 series etc) B1 Segment - Van - Omni, Versa, Magic etc B2 Segment - MUV/MPV - Innova, Tavera, Sumo etc SUV Segment -CRV, Vitara,etc

The A1 and A2 segment comprises the hatchback segment of cars. The hatchbacks are classified on the basis of body shape as TWO BOX (HATCHBACK) - Engine area has a separate cabin while Passenger area and luggage area are together. e.g. M800, Alto, Santro, i10, A-star, Swift etc.

Major Players
Presently the market is flourishing with cars from various auto manufacturers. Major players operating in this market are Maruti Suzuki Hyundai TATA Motors Chevrolet Honda Volkswagen Ford Fiat Nissan Toyota

In the hatchback segment, the market leader is Maruti Suzuki followed by Hyundai and Tata Motors. Volkswagen, Nissan, Honda and Chevrolet are emerging as influential players with frequent new offerings and subsequent market capturing.

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Customer expectations (in small cars)

With the high degree of competition in the market, the car companies are now offering even those features in hatchbacks which were once considered luxury and were offered only in high-end sedans and utility vehicles. The entry of global manufacturers has introduced a vast array of innovative and low cost features in the cars. On a broad basis, the features of a hatchback can be classified into four major groups Comfort Exteriors Interiors Safety

For the Quality Function Deployment (QFD) implementation in the hatchback segment of Tata Motors, we need to first know about the features in which consumers are most interested. To get this information, we conducted a market survey to gauge the preferences of consumers regarding the features of hatchbacks.

Market Survey
The market survey was conducted using following steps Selection of target audience for the survey Designing of Questionnaire Floating of questionnaire through emails and personal sessions Sort the voice of customer into major categories Conduct Cluster Analysis on data Analyse the data and provide necessary information to the QFD team for implementation

Target Audience for Survey

We conducted our survey on the people from diverse backgrounds Engineers MBAs Working Professionals

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Automotive Design Engineers & Professors Defence Personnel

All the above categories of individuals were distributed in the age brackets of 18-20 21-25 26-30 31-49 50 +

The income brackets for these groups lie in either of the following ranges 0-2.5 lacs 2.5-4.5 lacs 4.5-6.5 lacs 6.5-8.5 lacs 8.5-10.5 lacs >10.5 lacs

Questionnaire Design
In the questionnaire design process, we divided the hatchback features into 4 broad categories viz. Comfort, Exterior, Interior, and Safety. Under each of these broad categories, we explored 10 features each that are currently not offered by TATA motors in their hatchbacks but are offered by competitors in their hatchbacks in the similar price range. The questionnaire floated to gather consumer preferences is as follows

Smll

1. Age * 18-20 21-25 26-30 31-49 50-59 60 or older

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2. Family income level (per annum) *(Include incomes of all the members of family) 0 - 2.5 lacs 2.5 - 4.5 lacs 4.5 - 6.5 lacs 6.5 - 8.5 lacs 8.5 - 10.5 lacs >10.5 lacs

3. Do you or your family own a car(s)? * Yes No

4. If "yes" for previous question, which type of car(s) is it ? Small Car (Hatchback) [e.g. Alto, Santro, i10, Swift, etc] Medium Car (Sedan) [e.g. Honda City, Verna, Indigo, S X4, etc] Sports Utility Vehicle (SUV) / Multi Utility Vehicle (MUV) [e.g. Safari, CR -V, Captiva, Sumo, Scorpio, etc] Other:

5. If "yes" for question 3, what is the average mont hly run of the car(s) ? 0-100 Kms 100-250 Kms 250-500 Kms 500-1000 Kms >1000 Kms

6. Rate the following features of a small car (hatchback) in order of your preference. *

Very Important Important Comfort Exteriors Interiors Safety

Moderately Important

Of Little Unimportant Importance

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7. Rate the following comfort features (of a hatchback) as per your preference *

Very Important Dust and pollen filter Electrically Adjust Outside Rear View Mirror (EAORVM) Auto AC Remote Fuel Tank and Boot Open Distance To Empty (DTE) Display Door Ajar (open) Indicator Fuel Consumption display Power Door Mirror Headlight height adjuster Clutch foot rest

Important

Moderately Important

Of little Importance

Unimportant

8. Rate the following exterior features (of a hatchback) as per your preference *

Very Important Halogen Lights Mud Flaps Rear Micro Antenna

Important

Moderately Important

Of little Unimportant Importance

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Very Important Alloy Wheels Sporty Tail Gate Spoiler Silver & Mat Colored Headlights Body Coloured Radiator Grille Rear License Garnish Green Glass Aerodynamic Front & Rear Bumper

Important

Moderately Important

Of little Unimportant Importance

9. Rate the following interior features (of a hatchback) as per your preferenc e *

Very Important Chrome surround for instrument cluster dials Reading centre lamp at the rear Illumination of front glove box Reclining Rear Seat Retaining strip on front sun visor Illumination of luggage compartment

Important

Moderately Important

Of little Unimportant Importance

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Very Important Remote Tailgate Opener Remote Fuel Lid Opener Leather Wrapped Steering Wheel Cruise Control

Important

Moderately Important

Of little Unimportant Importance

10. Rate the following safety features (of a hatchback) as per your preference *

Very Important High level third brake light Fuel supply cutoff in a crash Child-proof rear window locking Security code for audio player Engine immobiliser with floating code system Electronic Stabilization Program (ESP) Automatic locking of doors on overrun speed Front Seatbelts Height Adjuster Rear Window

Important

Moderately Important

Of little Unimportant Importance

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Very Important Defroster Warning triangle with first-aid kit

Important

Moderately Important

Of little Unimportant Importance

11. Rate the following features (of a hatchback) as per your preference *

Very Important Power Economy (mileage) Driving Pleasure Looks

Important

Moderately Important

Of little Importance

Unimportant

Analysis of responses
We received around 110 responses from a diversified target audience. The summary of the responses are as follows

Car Features
600

500

400

300

200

100

0
Comfort Exteriors Interiors Safety

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Qualities
600

500

400

300

200

100

Power

Economy (mileage)

Driving Pleasure

Looks

Comfort Features Preference

500

450 400
350 300

250
200 150

100
50 0

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Exterior Features Preference

450 400 350
300 250 200 150 100 50 0

Interior Features Preference

390 380 370 360
350 340 330 320 310

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Safety Features Preference

500 450 400 350 300 250 200

150 100 50 0

Cluster Analysis Output (in SPSS)

Hierarchical Clustering
Case Processing Summary a
Cases Valid N 105 Percent 100.0 N 0 Missing Percent .0 N 105 Total Percent 100.0

a . Average Linkage (Between Groups )

Average Linkage (Between Groups) Agglomeration Schedule

Clus ter Combined Sta ge Clus ter 1 Clus ter 2 Coeffi cients Sta ge Clus ter Fi rs t Appea rs Clus ter 1 Clus ter 2 Next Sta ge

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

71 84 43 5 51 62 24 30 17 32 16 45 5 7 43 51 1 24 10 20 74 5 15 81 11 32 45 5 17 16 4 20 15 2 17 11

72 101 57 41 88 68 59 53 66 63 84 95 30 12 100 79 102 82 56 24 75 35 99 90 64 51 62 7 32 92 26 46 27 21 43 76

.000 13.000 15.000 17.000 18.000 18.000 22.000 22.000 23.000 23.000 24.500 25.000 26.000 26.000 26.500 27.000 28.000 28.000 28.000 28.333 29.000 29.750 30.000 30.000 30.000 31.167 32.000 32.800 32.900 33.000 33.000 33.250 34.000 34.000 34.095 35.000

0 0 0 0 0 0 0 0 0 0 0 0 4 0 3 5 0 7 0 0 0 13 0 0 0 10 12 22 9 11 0 20 23 0 29 25

0 0 0 0 0 0 0 0 0 0 2 0 8 0 0 0 0 0 0 18 0 0 0 0 0 16 6 14 26 0 0 0 0 0 15 0

68 11 15 13 16 27 18 13 29 26 30 27 22 28 35 26 42 20 45 32 60 28 33 44 36 29 39 38 35 40 49 39 47 53 38 48

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37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72

25 5 20 16 54 1 22 28 10 58 15 11 4 4 9 16 2 3 4 38 40 1 16 4 1 4 4 9 4 40 8 71 3 13 4 89

34 17 45 94 98 93 86 81 33 60 22 25 5 20 29 42 96 36 15 97 50 83 28 74 11 6 67 69 54 58 10 77 37 49 8 103

36.000 36.286 36.350 36.750 37.000 38.000 39.000 39.000 40.000 41.000 41.167 41.333 42.441 42.971 43.000 43.400 44.000 45.000 45.457 46.000 46.000 46.667 48.167 48.985 49.100 49.800 50.417 50.500 51.095 51.500 51.667 52.000 52.500 53.000 53.929 54.000

0 28 32 30 0 17 0 0 19 0 33 36 31 49 0 40 34 0 50 0 0 42 52 55 58 60 62 51 63 57 0 1 54 0 65 0

0 35 27 0 0 0 0 24 0 0 43 37 38 39 0 0 0 0 47 0 0 0 44 21 48 0 0 0 41 46 45 0 0 0 67 0

48 49 50 52 65 58 47 59 67 66 55 61 50 55 64 59 87 69 60 91 66 61 83 62 73 63 65 76 71 85 71 75 74 83 74 81

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73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104

1 3 3 9 1 3 44 55 1 3 13 3 1 3 2 3 3 1 3 1 1 3 61 1 3 1 1 1 1 1 1 1

23 4 71 39 9 47 48 65 89 31 16 78 40 13 14 44 52 55 38 87 2 91 73 85 61 3 104 80 18 19 105 70

54.778 57.124 58.225 58.667 61.050 61.286 62.000 63.000 63.500 65.220 66.278 66.824 66.844 68.028 70.000 70.746 72.862 73.500 73.955 75.136 77.087 78.647 79.000 86.630 88.703 89.711 97.172 107.680 108.188 110.539 113.660 123.221

61 69 74 64 73 75 0 0 77 78 70 82 81 84 53 86 88 85 89 90 92 91 0 93 94 96 98 99 100 101 102 103

0 71 68 0 76 0 0 0 72 0 59 0 66 83 0 79 0 80 56 0 87 0 0 0 95 97 0 0 0 0 0 0

77 75 78 77 81 82 88 90 85 84 86 86 90 88 93 89 91 92 94 93 96 97 97 98 98 99 100 101 102 103 104 0

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Dendrogram
* * * * *H I E R A R C H I C A L C L U S T E R A N A L Y S I S * * * * *

Dendrogram using Average Linkage (Between Groups) Rescaled Distance Cluster Combine C A S E Label Num 71 72 77 3 36 37 54 98 74 75 15 99 27 22 86 62 68 45 95 24 59 82 20 46 4 26 7 12 5 41 30 53 35 43 57 100 17 66 32 63 51 88 79 6 67 10 56 0 5 10 15 20 25 +---------+---------+---------+---------+---------+ -+-------------------+ -+ +-+ ---------------------+ | -------------------+-+ | -------------------+ +-+ ---------------------+ | ---------------+-----+ | ---------------+ | | -----------+-------+ | | -----------+ | | +-+ -------------+ | | | | -------------+---+ | | | | -------------+ +-+-+ | | ---------------+-+ | | | | ---------------+ | | | | -------+-----+ | | | | -------+ +-+ | | | | -----------+-+ | | | | | -----------+ | | | | | ---------+-+ +-+ | | | | ---------+ | | | | | | | -----------+-+ | | | | | | -----------+ +-+ | | | | | -------------+ +-+ | | | -------------+---+ | | | -------------+ | | | | -----------+-+ | | | | -----------+ | | | | | -------+---+ +-+ | | | | -------+ +-+ | | | | +-+ ---------+-+ | | | | | | | ---------+ | +-+ | | | | -------------+ | | | | | -------+---+ | +-+ | | -------+ +-+ | | | | -----------+ +-+ | | | ---------+---+ | | | ---------+ | | | | ---------+---+ | | | ---------+ | | | | -------+---+ | | | | -------+ +-+ | | | -----------+ | | | ---------------------+ | | ---------------------+ | | -----------+-----+ | | | -----------+ +---+ | |

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33 8 47 31 78 81 90 28 84 101 16 92 94 42 13 49 44 48 52 38 97 91 61 73 2 21 96 14 55 65 58 60 40 50 89 103 11 64 76 25 34 1 102 93 83 23 9 29 69 39 87 85 104 80 18 19 105 70

-----------------+ | | | ---------------------+ | | -------------------------+ | ---------------------------+ ---------------------------+-+ -------------+-+ | | -------------+ +---+ | | ---------------+ | | | -----+---+ | | | -----+ +---+ +-------+ | ---------+ +-+ | | | -------------+ +-+ | | | ---------------+ +-+ | | -----------------+ | | ---------------------+-----+ +-+ ---------------------+ | | -------------------------+---+ | -------------------------+ | | -----------------------------+ +---+ -------------------+-----------+ | -------------------+ | +-+ -------------------------------+ | | ---------------------------------+-+ | ---------------------------------+ | -------------+---+ | -------------+ +-----------+ | -----------------+ +-+ | -----------------------------+ | | -------------------------+---+ | | -------------------------+ | | | -----------------+---+ | | | -----------------+ +-----+ +-+ +-+ -------------------+-+ | | | | | -------------------+ | | +---+ | | ---------------------+---+ | | | | | | ---------------------+ | +-+ | | | | -------------+-+ | | | | | | -------------+ +-+ | | | | | | ---------------+ +-+ | | | | | | ---------------+-+ | +-+ | | | | ---------------+ +---+ | | | | | -----------+---+ | | | | | | +---+ -----------+ +---+ +-+ | +-+ | | ---------------+ | | | | | | | -------------------+ | | | | | | -----------------------+ | | | | | -----------------+---+ | | | | | -----------------+ +-+ | | | | | ---------------------+ +-+ | | | | -----------------------+ | | | | -------------------------------+ | | +-+ -----------------------------------+ | | | ---------------------------------------+ | +-+ -------------------------------------------+ | | -------------------------------------------+ | +-+ ---------------------------------------------+ | | -----------------------------------------------+ | -------------------------------------------------+

29 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

K-Means Clustering
Initial Cluster Centers
Clus ter 1 Dust_and_pollen_filter EAORVM Auto_AC Remote_Fuel _Tank_and_Boot_Open Dis tance_to_empty_displa y Door_Aja r_Indica tor Fuel _Consumpti on_displa y Power_Door_Mi rror Hea dlight_hei ght_adjus ter Clutch_foot_res t Halogen_Li ghts Mud_Flaps Rea r_Mi cro_Antenna Alloy_Wheels Sporty_tail_gate Spoiler_silver_a nd_mat_colored_headlights Body_colored_radiator_grille Rea r_li cense_ga rnish Green_glass Aerodyna mi c_front_and_rea r_bumper Chrome_surround_for_i nstrument_clus ter_dials Rea ding_centre_lamp_a t_the_rea r Illumina tion_of_the_front_glove_box Reclining_rea r_sea t Rea tining_s trip_on_the_front_sun_visor illumina tion_of_the_luggage_compa rtment Remote_tailga te_opener Remote_fuel _lid_opener Lea ther_wrapped_steeri ng_wheel Cruise_control 3.00 5.00 4.00 5.00 5.00 5.00 4.00 5.00 5.00 3.00 5.00 5.00 5.00 5.00 4.00 5.00 4.00 5.00 4.00 5.00 1.00 5.00 5.00 3.00 5.00 5.00 5.00 5.00 4.00 4.00 2 2.00 2.00 3.00 2.00 2.00 2.00 4.00 4.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 2.00 2.00 3.00 3 4.00 1.00 3.00 2.00 1.00 5.00 1.00 1.00 4.00 4.00 5.00 5.00 3.00 3.00 1.00 3.00 3.00 3.00 1.00 5.00 5.00 3.00 3.00 5.00 5.00 3.00 3.00 3.00 5.00 4.00

30 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

Hi gh_level _thi rd_brake_light Fuel _suppl y_cutoff_in_a _crash Chil dproof_rea r_window_locking Securi ty_code_for_audi o_pla yer Engine_immobiliser_wi th_floa ting_code_s ys tem Electronic_Stabiliza tion_Progra m Automa ti c_locking_of_doors _on_overrun_speed Front_Sea tbel ts_Height_Adjus ter Rea r_Window_Defros ter Wa rning_triangle_with_fi rs taid_ki t

5.00 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 3.00

2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00

5.00 5.00 5.00 1.00 3.00 3.00 3.00 5.00 5.00 3.00

Iteration Historya
Cha nge in Clus ter Centers Itera tion 1 2 3 4 5 6 7 1 6.757 .299 .316 .458 .403 .338 .000 2 6.313 .115 .157 .310 .243 .264 .000 3 7.284 .576 .520 .613 .402 .265 .000

a . Convergence a chieved due to no or small change in cluster centers . The ma ximum absolute coordina te change for any center is .000. The current i terati on is 7. The minimum dis tance between ini tial centers is 12.884.

Cluster Membership
Case Number 1 2 3 4 5 Clus ter 2 2 3 1 3 Dis tance 4.243 5.857 5.957 4.955 3.161

31 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

3 3 3 2 2 2 3 1 2 3 1 3 3 1 3 2 3 2 1 2 1 3 1 2 3 3 3 3 2 3 1 3 3 3 2 3

5.397 4.685 5.359 5.298 5.626 4.237 3.866 5.951 6.394 4.650 4.526 4.193 8.273 7.328 4.926 5.574 4.898 5.927 3.564 5.059 4.808 4.709 5.153 5.605 4.100 6.588 3.349 5.608 4.243 4.236 5.818 5.853 6.598 5.884 5.821 4.193

32 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77

1 3 3 1 1 3 1 1 2 3 3 2 3 2 2 3 2 1 2 2 1 3 2 2 3 3 1 2 3 3 3 3 3 3 2 1

5.239 3.598 6.219 4.718 4.260 6.153 6.348 6.292 5.408 3.704 6.459 4.145 4.930 6.030 3.957 4.033 6.020 3.747 5.424 7.507 3.796 5.035 4.353 7.224 4.833 5.346 3.892 5.730 8.944 5.760 5.760 7.054 5.147 5.295 5.397 5.938

33 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105

3 3 2 1 3 2 1 2 3 2 3 2 1 1 1 2 1 1 2 3 1 3 2 1 2 2 1 2

6.367 4.461 8.225 4.481 4.166 4.833 3.921 7.154 4.771 6.436 4.316 6.440 4.380 6.877 5.351 5.236 6.083 4.406 7.682 6.349 5.644 4.940 4.570 4.009 4.995 6.078 7.686 7.871

Final Cluster Centers

Clus ter 1 Dust_and_pollen_filter EAORVM Auto_AC Remote_Fuel _Tank_and_Boot_Open 3.70 3.74 3.52 4.22 2 3.21 2.88 3.00 3.09 3 3.70 3.23 3.50 3.61

34 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

Dis tance_to_empty_displa y Door_Aja r_Indica tor Fuel _Consumpti on_displa y Power_Door_Mi rror Hea dlight_hei ght_adjus ter Clutch_foot_res t Halogen_Li ghts Mud_Flaps Rea r_Mi cro_Antenna Alloy_Wheels Sporty_tail_gate Spoiler_silve r_a nd_mat_colored_headlights Body_colored_radiator_grille Rea r_li cense_ga rnish Green_glass Aerodyna mi c_front_and_rea r_bumper Chrome_surround_for_i nstrument_clus ter_dials Rea ding_centre_lamp_a t_the_rea r Illumina tion_of_the_front_glove_box Reclining_rea r_sea t Rea tining_s trip_on_the_front_sun_visor illumina tion_of_the_luggage_compa rtment Remote_tailga te_opener Remote_fuel _lid_opener Lea ther_wrapped_steeri ng_wheel Cruise_control Hi gh_level _thi rd_brake_light Fuel _suppl y_cutoff_in_a _crash Chil dproof_rea r_window_locking Securi ty_code_for_audi o_pla yer Engine_immobiliser_wi th_floa ting_code_s ys tem Electronic_Stabiliza tion_Progra m Automa ti c_locking_of_doors _on_overrun_speed Front_Sea tbel ts_Height_Adjus ter Rea r_Window_Defros ter Wa rning_triangle_with_fi rs taid_ki t

3.89 3.93 4.41 4.30 4.15 4.22 4.04 4.30 3.81 4.15 3.48 3.59 3.81 3.56 3.52 4.67 3.52 4.11 4.33 4.07 3.89 3.89 4.15 4.19 3.96 3.96 4.22 4.59 4.44 3.48 4.00 4.19 4.37 4.37 4.26 4.48

3.09 3.35 4.09 3.21 2.97 3.09 3.47 3.35 2.50 2.94 2.47 2.38 2.50 2.26 2.47 3.21 2.62 2.97 2.82 3.18 2.85 2.94 2.94 3.18 2.82 2.79 3.47 3.56 3.06 1.94 2.82 2.79 3.00 2.85 2.79 3.06

3.93 3.82 4.23 3.48 3.57 3.98 3.52 3.59 3.07 3.55 2.98 3.00 2.93 2.95 2.86 3.45 3.52 3.36 3.27 3.73 3.73 3.41 3.61 3.61 3.50 3.70 4.02 4.27 3.77 2.82 3.45 3.43 3.82 4.07 3.80 4.00

35 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

Distances between Final Cluster Centers

Clus ter 1 2 3 7.133 3.573 4.081 1 2 7.133 3 3.573 4.081

ANOVA
Clus ter Mean Squa re Dust_and_pollen_filter EAORVM Auto_AC Remote_Fuel _Tank_and_Boot_Open Dis tance_to_empty_displa y Door_Aja r_Indica tor Fuel _Consumpti on_displa y Power_Door_Mi rror Hea dlight_hei ght_adjus ter Clutch_foot_res t Halogen_Li ghts Mud_Flaps Rea r_Mi cro_Antenna Alloy_Wheels Sporty_tail_gate Spoiler_silver_a nd_mat_colored_headlights Body_colored_radiator_grille Rea r_li cense_ga rnish Green_glass Aerodyna mi c_front_and_rea r_bumper Chrome_surround_for_i nstrument_clus ter_dials Rea ding_centre_lamp_a t_the_rea r Illumina tion_of_the_front_glove_box Reclining_rea r_sea t Rea tining_s trip_on_the_front_sun_visor 2.855 5.560 2.958 9.683 7.882 3.043 .767 9.517 10.509 11.591 2.918 7.108 13.010 11.024 7.734 11.107 13.296 12.718 8.327 18.080 9.383 9.948 17.766 6.364 10.285 df 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Error Mean Squa re .984 .749 .703 .920 .865 .904 .716 .904 .913 .808 .730 .569 .660 .688 .904 .770 .739 .639 .769 .809 .821 .704 .663 .603 .624 df 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 F 2.902 7.419 4.206 10.526 9.116 3.368 1.071 10.533 11.504 14.352 4.000 12.494 19.698 16.019 8.557 14.423 17.994 19.898 10.835 22.363 11.429 14.128 26.779 10.551 16.480 Si g. .059 .001 .018 .000 .000 .038 .346 .000 .000 .000 .021 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000

36 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

illumina tion_of_the_luggage_compa rtment Remote_tailga te_opener Remote_fuel _lid_opener Lea ther_wrapped_steeri ng_wheel Cruise_control Hi gh_level _thi rd_brake_light Fuel _suppl y_cutoff_in_a _crash Chil dproof_rea r_window_locking Securi ty_code_for_audi o_pla yer Engine_immobiliser_wi th_floa ting_code_s ys tem Electronic_Stabiliza tion_Progra m Automa ti c_locking_of_doors _on_overrun_speed Front_Sea tbel ts_Height_Adjus ter Rea r_Window_Defros ter Wa rning_triangle_with_fi rs taid_ki t

6.788 11.206 7.657 10.148 12.255 4.867 8.881 14.576 18.340 10.570 14.567 14.703 21.103 17.744 16.469

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

.816 .644 .661 .754 .918 .805 .624 .924 1.090 1.018 .690 .695 .798 .764 .751

102 102 102 102 102 102 102 102 102 102 102 102 102 102 102

8.324 17.392 11.580 13.459 13.343 6.045 14.237 15.770 16.827 10.382 21.097 21.170 26.457 23.232 21.924

.000 .000 .000 .000 .000 .003 .000 .000 .000 .000 .000 .000 .000 .000 .000

The F tes ts should be used onl y for des cripti ve purposes because the clusters ha ve been chosen to maxi mize the di fferences among cases in di fferent clusters . The observed signi fica nce levels a re not corrected for this and thus cannot be i nterpreted as tes ts of the hypothesis that the clus ter means a re equal .

Number of Cases in e ach Cluster

Clus ter 1 2 3 Valid Missing 27.000 34.000 44.000 105.000 .000

Interpretation of the Cluster Analysis output

By looking at the Agglomeration Schedule for Hierarchical clustering output, it is evident that 3 clusters could be formed. After that K-Means clustering is conducted by taking 3 clusters. By looking at the ANOVA table, following interpretation can be derived - At a significance level of 0.05, Dust and Pollen Filter and Fuel Consumption Display are insignificant. Rest of the variables are significant.

37 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

Cluster 1
No. of cases 27 Characteristics - Important Features (Scores <=2.5) o None - Non- Important Features (Scores>2.5) o Dust_and_pollen_filter o EAORVM o Auto_AC o Remote_Fuel_Tank_and_Boot_Open o Distance_to_empty_display o Door_Ajar_Indicator o Fuel_Consumption_display o Power_Door_Mirror o Headlight_height_adjuster o Clutch_foot_rest o Halogen_Lights o Mud_Flaps o Rear_Micro_Antenna o Alloy_Wheels o Sporty_tail_gate o Spoiler_silver_and_mat_colored_headlights o Body_colored_radiator_grille o Rear_license_garnish o Green_glass o Aerodynamic_front_and_rear_bumper o Chrome_surround_for_instrument_cluster_dials o Reading_centre_lamp_at_the_rear o Illumination_of_the_front_glove_box o Reclining_rear_seat o Reatining_strip_on_the_front_sun_visor o illumination_of_the_luggage_compartment o Remote_tailgate_opener o Remote_fuel_lid_opener o Leather_wrapped_steering_wheel o Cruise_control o High_level_third_brake_light o Fuel_supply_cutoff_in_a_crash o Childproof_rear_window_locking o Security_code_for_audio_player o Engine_immobiliser_with_floating_code_system o Electronic_Stabilization_Program o Automatic_locking_of_doors_on_overrun_speed o Front_Seatbelts_Height_Adjuster o Rear_Window_Defroster o Warning_triangle_with_firstaid_kit

38 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

Cluster 2
No. of cases 34 Characteristics - Important Features (Scores <=2.5) o Rear_Micro_Antenna o Sporty_tail_gate o Spoiler_silver_and_mat_colored_headlights o Body_colored_radiator_grille o Rear_license_garnish o Green_glass o Security_code_for_audio_player - Non- Important Features (Scores>2.5) o Dust_and_pollen_filter o EAORVM o Auto_AC o Remote_Fuel_Tank_and_Boot_Open o Distance_to_empty_display o Door_Ajar_Indicator o Fuel_Consumption_display o Power_Door_Mirror o Headlight_height_adjuster o Clutch_foot_rest o Halogen_Lights o Mud_Flaps o Alloy_Wheels o Aerodynamic_front_and_rear_bumper o Chrome_surround_for_instrument_cluster_dials o Reading_centre_lamp_at_the_rear o Illumination_of_the_front_glove_box o Reclining_rear_seat o Reatining_strip_on_the_front_sun_visor o illumination_of_the_luggage_compartment o Remote_tailgate_opener o Remote_fuel_lid_opener o Leather_wrapped_steering_wheel o Cruise_control o High_level_third_brake_light o Fuel_supply_cutoff_in_a_crash o Childproof_rear_window_locking o Engine_immobiliser_with_floating_code_system o Electronic_Stabilization_Program o Automatic_locking_of_doors_on_overrun_speed o Front_Seatbelts_Height_Adjuster o Rear_Window_Defroster o Warning_triangle_with_firstaid_kit

39 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

Cluster
No. of cases 44 Characteristics - Important Features (Scores <3) o Sporty_tail_gate o Body_colored_radiator_grille o Rear_license_garnish o Green_glass o Security_code_for_audio_player - Non- Important Features (Scores>=3) o Dust_and_pollen_filter o EAORVM o Auto_AC o Remote_Fuel_Tank_and_Boot_Open o Distance_to_empty_display o Door_Ajar_Indicator o Fuel_Consumption_display o Power_Door_Mirror o Headlight_height_adjuster o Clutch_foot_rest o Halogen_Lights o Mud_Flaps o Rear_Micro_Antenna o Alloy_Wheels o Spoiler_silver_and_mat_colored_headlights o Aerodynamic_front_and_rear_bumper o Chrome_surround_for_instrument_cluster_dials o Reading_centre_lamp_at_the_rear o Illumination_of_the_front_glove_box o Reclining_rear_seat o Reatining_strip_on_the_front_sun_visor o illumination_of_the_luggage_compartment o Remote_tailgate_opener o Remote_fuel_lid_opener o Leather_wrapped_steering_wheel o Cruise_control o High_level_third_brake_light o Fuel_supply_cutoff_in_a_crash o Childproof_rear_window_locking o Engine_immobiliser_with_floating_code_system o Electronic_Stabilization_Program o Automatic_locking_of_doors_on_overrun_speed o Front_Seatbelts_Height_Adjuster o Rear_Window_Defroster o Warning_triangle_with_firstaid_kit

Based on the output of this stage, Detailed QFD implementation approach would be covered in next semester.

40 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)

References
1.
Quality function deployment: a comprehensive literature review Authors: J. R. Sharma A. M. Rawani Institute of Management Technology (IMT), Nagpur (MS), India. Department of Mechanical Engineering, National Institute of Technology (NIT), Raipur (CG), India.

Milind Barahate Department of Business Management, C.P. & Berar College, Nagpur ((MS), India Published in: Journal International Journal of Data Analysis Techniques and Strategies archive Volume 1 Issue 1, August 2008

2.

European Journal of Operational Research 143 (2002) 463-497 Quality Function Deployment: A Review, Lia KO Chan, Ming Lu Wu

41 | P a g e AMRP by Ankit Pandey, VGSoM IIT Kharagpur (2011)