TVP – Metric 12 Product Quality and Reliability

Resource Type
Tool
Authors
Alan Fusfeld, Innovation Research Interchange
Topics
Innovation Metrics, Stage-Gate, Tools and Techniques
Associated Event
Publication

Background | User Guide | Program Contents | Stakeholders | List of Metrics

1. Metric Definition

a. Customer or Consumer Evaluation

Relative quality and reliability compared to competitive products through evaluation by customers or consumers.

b. Reliability/Defect Rate Assessment

Fraction of a firm’s output, either by individual product or by sum of all products, which meets or exceeds the established quality standards.

2. Advantages and Limitations

The advantage of this metric is that product benefits resulting from R&D activities are directly evaluated by the customer or consumer. Comparison with the competitors’ products is usually the basis for evaluation. Limitations of the metric chiefly are related to the reliability and accuracy of the survey techniques chosen as appropriate for the industry; though firms usually gain confidence in their preferred methods through repeated use and incremental improvement.

Similar to the preceding discussion, the advantage to this metric is that the direct benefit from R&D activities can be obtained through specific measurements made by the firm.

3. How to Use the Metric

For the customer or consumer evaluation metric, each firm will generally have a preferred technique for directly or indirectly obtaining data showing how well the firm’s products perform in comparison to competitive products.

Assessments result from internal quality measurements. When both metrics are utilized, the impact of product quality improvements on customer satisfaction should be demonstrated. Product quality and reliability metrics are retrospective, showing the results of past technology or product introduction to the market. 
 

4. Options and Variations

This metric fits well with the trend toward greater input to R&D planning from customers and consumers and with the “quality” protocols that have been adopted by firms of all types. Though basically a retrospective measure, product needs that arise during the data collection can be used for prospective purposes.

5. Champions and Contacts

6. References

LDS COMMENT: Likely will find references from Product Quality Groups