Integrating preference analysis and balanced scorecard to product planning house of quality

Yanlai Li, Min Huang, Kwai-Sang Chin, Xinggang Luo, Yi Han

Abstract: Product planning house of quality (PPHOQ) is of fundamental and strategic importance in quality function deployment (QFD). Determining the aggregated priority ratings (PRs) of engineering characteristics (ECs) is a crucial step of constructing PPHOQ. A QFD team often involves a group of cross-functional team member from marketing, design, quality, plan, finance, logistics, and after service. Each member of the QFD team from different backgrounds often demonstrates significantly different behavior from the others and generates different preference assessment to the competitive products. The gross benefit of implementing the improvement goal of the performance value (IGPV) of each EC should be estimated from the short- and long-term perspectives in a comprehensive and accurate way. In this paper, we propose an extended PPHOQ by using a least deviation based approach (LDBA), and balanced scorecard (BSC), and develop a comprehensive and systematic approach to determine the aggregated PRs of ECs in the extended PPHOQ. The proposed approach is based on the presented LDBA for dealing with competition and preference information to determine the technical point of each EC, and the combination of BSC and analytic hierarchy process for estimating the gross benefit of implementing the IGPV of each EC. Finally, a case study is provided to illustrate the effectiveness of the proposed approach.