Abstract

For strategic business-management purposes, including risk analysis, there are two complementary tools: quality function deployment (QFD) and failure mode and effects analysis (FMEA). The QFD process constructs a house of quality based on the voice of the customer, as expressed in customer requirements. Individual requirements are categorized into secondary requirements and eventually into a primary or overall requirement. When used for strategic purposes, QFD can analyze, for example, product line expansion or subcontracting activities. For each specific requirement, benchmarking and other tools are used to compare performance with customer needs. Design requirements then are generated to act on unmet customer requirements. FMEA identifies potential failures and their prevention. When applied to strategic business decisions, it may identify, for example, an inadequate workforce or unsafe investments. FMEA is related to root-cause analysis, although FMEA focuses on potential and preventable rather than actual causes.