Product decision, product-by-value analysis and house of quality

1. What is the objective of the product decision?

The main objective of the product decision is to effectively implement a product strategy after developing one. The decision is made keeping in view the importance of the status of the demands of the market and the competitive advantages over other competitors. Different product strategies are considered during the product decision.

2. What is a product-by-value analysis, and what type of decisions does it help managers make?

Product-by-value analysis is the process of listing all products of a firm in descending order of the actual dollars they bring individually and on yearly basis. This helps the firm’s product strategist develop product strategies and product decisions. This analysis also helps in adopting to professional market standards.

3. Identify the 7 steps involved in building the house of quality.

Following are the 7 steps involved in building the house of quality:

1. List of customer requirements (What’s)
2. List of technical descriptors (How’s)
3. Development of a relational matrix between What’s and How’s
4. Development of an interrelationship Matrix between How’s
5. Competitive assessments
6. Developing prioritized customer requirements
7. Developing prioritized technical descriptors.