A detailed planning and design process support technique applicable to any design process, whether for services or products, aimed at translating "the voice of the customer" into comapy specifications at every stage of the product introduction process.

QFD is applied at four stages:
Stage 1 - translates customer requirements into design requirements
Stage 2 - translates design requirements into critical part characteristics
Stage 4 - translates critical parts characteristics into critical process parameters
Stage 5 - translates critical process parameters into production requirements
The elements of stage 1 are shown below. Stages 2, 3 and 4 follow a similar matrix approach.
Stage 1 - customer 'wants' versus design 'hows':

This provides the key requirements for achieving customer satisfaction and hence product success. It ensures continuous effective use of resources, by focusing on the essential areas for achieving customer satisfaction.
The first phase of QFD focuses on understanding the customer requirements, not just of the end user, but anyone who influences the form the design takes. This could be for example the service or after sales requirements, considerations for handling and packaging or the requirements for product installation etc. - all areas which should be satisfied if the product is to be completely successful.
Through this continuous focusing from one level to the next, effort is used effectively towards satisfying, or even delighting the customer!
Benefits
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QFD has a positive impact on the product, leading to increased customer satisfaction through improved designs and performance. Product quality is improved and warranty claims reduced. Intangible benefits include improved communications, conveyance of engineering know-how from generation to generation and the promotion of teamwork.
QFD is used by teams in conjunction with other tools such as FMEA and Design For Assembly (DFA). A common engineering database is required for interchanging data within the team as all the tools are utilised.