Product Development and Risk Management

This assignment delves into the complex relationship between product development, customer needs analysis, and effective risk management strategies. It requires students to examine various case studies, including Philips Hue Bulbs, and apply theoretical frameworks such as Failure Mode and Effects Analysis (FMEA) to assess potential risks throughout the product lifecycle. The assignment emphasizes the importance of understanding customer needs through market-driven approaches and integrating risk mitigation measures into the product development process.

Running head: QUALITY ANALYSIS REPORT
Quality Analysis Report
Name of the Student:
Name of the University:
Author Note:

1QUALITY ANALYSIS REPORT
Executive Summary
This particular report intends to shed light on the processes of quality planning as well as
analysis used by the various companies for the manufacture as well as the launch of various
new products as well as services. The product selected for the purpose of the analysis of the
concepts of quality planning as well as analysis is the hue bulbs manufactured by the
company Philips. The report takes into account several factors of the product under
consideration here. The report also provides a SWOT as well as Kano analysis of the product
under consideration here in order to understand the present market demands of the customers
and their expectations from the product manufactured by the company. The report also
provides a rough overview of the various shareholders of the company and their various
needs as well as requirements from the company. The report also takes into account the needs
as well as the requirements of the customers and how far the product under consideration
fulfills them. The report also provides quality function development as well as risk
assessment tools to clearly understand the market as well as the quality standing of the
product as well as the supplier system, which the company should. The report also provides a
statistical analysis of the product under consideration here. The report also provides a brief
overview of the various raw materials used by the company for the manufacture of the
product. Lastly, the report also provides appendices to justify the chooses of the options made
in the report.

2QUALITY ANALYSIS REPORT
Table of Contents
Introduction................................................................................................................................3
Stakeholders Analysis................................................................................................................7
Capturing the needs of the customers......................................................................................11
Customer Needs Analysis........................................................................................................14
Transforming the customer requirements into design..............................................................18
Design Risk Analysis...............................................................................................................19
Identifying the elements, components and parts......................................................................20
Developing the supplier selection criteria................................................................................21
The Construction and use of “supplier selection system”........................................................22
Statistical Process Control........................................................................................................23
Identification Process...........................................................................................................23
Assessing the Processes by the use of SPC Charts..............................................................24
Constructing and Using a SPC Chart...................................................................................26
Identifying problems and using problem solving methods......................................................31
Constructing and the use of problem solving tools..................................................................32
Conclusion................................................................................................................................34
References................................................................................................................................36

3QUALITY ANALYSIS REPORT
Introduction
Quality, can be defined, as the concept by means of which, the services or the
products manufactured by a company or organization meets the expectations as well as the
requirements of the customers (Goetsch and Davis 2014). Therefore, it forms an important
aspect of the process of production as well as development of the new products as well as
services by the various companies and organizations (Bennur and Jin 2012). It is a commonly
noticed trend among the major companies as well as organizations of the world to perform a
thorough market analysis as to the needs as the requirements and the expectations of the
customers from the products or the services which the company is going to launch in the near
future (Bloem et al. 2104). The figure below provides a rough overview of the various
aspects related to quality-
Figure 1: Concepts related to quality

4QUALITY ANALYSIS REPORT
Source: (Created by the Author)
The product chosen for the study of the process of quality planning as well as analysis
is the hue bulbs manufactured by the company Philips. The company PHILIPS had its
humble beginning in the year 1891 in Eindhoven. It was founded by Gerard Philips along
with his father Frederik (Philips 2018). The company, since then, had focused its interest in
the manufacture of electronic products and catering to the needs of thousands of global
customers worldwide. The company was ranked 42nd on the Forbes Magazine list among the
top global companies of the world (Forbes.com 2018). An overview of the financial statistics
of Philips provides the following information-
Figure 2: Philips financial statistics
Source: Factset, Bloomberg, S&P Cap IQ; Forbes.
Philips is a global leader in the healthcare industry and aims to improve the lives of
the people by providing effective services to its global customers in the field of healthy living
as well as prevention of diseases, its diagnosis, treatment and its related services in the home
care and home related products (Philips 2018). The company utilizes innovative technology
in a bid to deliver integrated solutions to the customers. The following figure provides the

5QUALITY ANALYSIS REPORT
division of the interests of the company in the manufacture of different products as well as
the services they offer-
Figure 3: Services provided by the company Philips
Source: Philips Annual Report, 2016
The company is also famous for the manufacture quality electronic products like electric
bulbs, television sets, refrigerators and various other equipments (Philips 2018). The field of
technology is a constantly changing one and thus the products manufactured by the company,
specially electric bulbs are constantly changing. The company also specializes in the
manufacture of LED bulbs (Philips 2018). The company is famous for electric Hue bulbs.
Todd Manegold, the Head of Product Marketing LED Lamps, said in a recent interview,
“Hue is what lighting can do in the future. When we talked last time (note: about six months
ago), Hue was about having lighting be part of your daily life rather than a function of on/off.
….. If you leave your house, the lights will turn off. If you are a couple of miles away, the
lights will come on and you never come home to a dark house” (Forbes.com 2018). This

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statement of the marketing head of the company clearly outlines the motto of the company
behind the launch of this new innovate product. Some of the key features of the bulb are as
follows-
 The bulb can be remotely controlled.
 The LED bulbs offer a range of colors as well as effects to the customers.
 The services provided by these bulbs are much longer than the services provided by
the other bulbs.
 These bulbs are much cheaper in comparison to the other bulbs.
 The bulbs can be controlled by an online application called Amazon Echo Plus. The
use of this application enables the users to enjoy some more fun features, which
makes the experience of the users more effective.
 The bulbs can be used through the wi-fi systems.
 Initially the bulb was designed to replace the A19 model bulbs manufactured by
Philips and they provide more than 16 million color options to the customers to
choose from (Philips 2018).
 The best part is that the customers can even adjust the temperature of the bulbs.
 The welcome kit of the product also provides the customers with a handy dimmer
switch, which enables the customers to switch off the bulbs without using their wi-fi
systems.
Therefore, it can be said that the features offered by this bulb are way ahead of the
services provided by the other bulbs manufactured by the other companies as well as the
models of the bulbs manufactured by the Philips itself. According to Todd Manegold, the sole
idea behind the manufacture of this LED bulbs was to make the lives of the people using the
services of these bulbs much easier as well as innovative than the use of the earlier versions

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of the bulbs manufactured by the same company or other companies enabled them to (Philips
2018).
Stakeholders Analysis
The company Philips, just like the other top companies of the world, had to look after
the needs as well as the requirements of the stakeholders before the planning of any new
strategies and the launch of new products (Bodie, Kane and Marcus 2014). The company
creates meaning dialogues with its stakeholders in order to provide meaningful solutions to
the customers from the different parts of the world (Grant 2016). The company even takes
into consideration the interests of the shareholders in order to meet the societal challenges,
ecosystem plans as well as building partnerships with the other companies as well as
individuals (Higgins 2012). The company considers the process of working with others as
very crucial in the process of delivering effective solutions in order to fulfill its vision
statements. The company derives significant amount of values from its various diverse
shareholders from the different parts of the world and tries to listen as well as the learn from
the suggestions provided by them (Kanig 2012). The company considers that the process of
working with its shareholders as well as the investors of the organization is very essential for
the overall growth as well as the organization itself (Kanig 2012). Therefore, when the
suggestions provided by the various diverse shareholders are relevant as well as essential to
the growth and the development of the company, the various leaders and the CEOs of the
company try to incorporate them into the framework of the organization (Philips 2018). The
figure below provides a rough overview of the different stakeholders-

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Figure 4: An overview of the various Stakeholders
Source: Philips Annual Report, 2015
The needs as well as the requirements of the various stakeholders of the company Philips
are given below-
 The primary aim of the European Work Council is to bring together the
representatives of the company along with the representatives of the other reputed
organizations as well as companies to create meaningful dialogues about the issues of
management as well as the various transnational concerns faced by the companies
concerned (Philips 2018). Secondly, the council also intends to improve the services
provided by these companies in order to create a uniform quality parameter all over
the world of the products as well as services manufactured by these organizations as
well as companies.

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 The primary aim of the stakeholders belonging to the category of the individual
employees to increase the annual profit percentage of the organization as much as
possible so that they can earn extra amount of money out of the profit percentage of
the company (Philips 2018). Secondly, the individual employees of the company also
intent to achieve substantial promotions as well as other employment opportunities by
virtue of their shares in the company
 The primary aim of the stakeholders belonging to the genre of the hospital sector is to
influence the company to launch new as well as innovate products and services in the
concerned industry, so that they can improve the quality of the lives of the people
(Philips 2018). Secondly, the shareholders belonging to the genre of the hospitals also
influence the company to invest more amount of capital in the sphere of healthcare
services.
 The primary aim of the real estate developers is to make the maximum amount of
profit by their association with the company and the amount of the capital, which they
have invested in the company in the initial days of its being (Philips 2018). Secondly,
the real estate developers also influences the company to expand its business in other
unchartered territories so that they can make more amount of profit by their venture in
those areas.
 The primary aim of the various customers who are stakeholders of the company is to
make the maximum amount of profit out of the annual revenues of the company
(Philips 2018). The customers also influences the company to launch new products as
well as services which are as per the expectations as well as the needs and
requirements of the customers.
 The primary aim of the various mainstream investors related to the company is to
make the maximum amount of profit by virtue of their investment in the company in

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the initial days of their being (Philips 2018). These shareholders also need the
company to expand the business in their areas of operation so that they can expand
their own personal businesses by virtue of their association with the company, Philips.
 The primary aim of the various ESG investors is to influence the company to develop
new as well as innovate products and services that might help in the development of
the environmental as well as social conditions (Philips 2018). They also influence the
organization to develop new campaigns, which will contribute to the development of
the social, environmental as the governmental factors in their area of operation.
 The primary aim of the various shareholders belonging to the firms like HP, Randstad
and various others is to utilize the new as well as innovative technologies developed
by the company Philips and incorporate them in a modified form for their own
products (Philips 2018). They also intent to make the maximum amount of profit both
in terms of monetary gains as well as resources, by virtue of their association with the
company Philips.
 The primary aim of the shareholders from the European Union is to create conditions
for the creation of barrier-free trade of the various products as well as services
manufactured by the company (Philips 2018). They also intent to help in the process
of the globalization of the company by manufacturing products as well as services as
per the needs and requirements of the global customers.
 The primary aim of the stakeholders from the Dutch Sustainable Trade Initiative, is to
help the company in the process of globalization of its products by heeding to the
needs as well as the requirements of the customers from the various parts of the world
(Philips 2018). They also influence the company to create conditions of free as well as
barrier less trade conditions in a bid to provide uniform as well as equal trading
opportunities to all the companies.

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Capturing the needs of the customers
The present age of technology as well as innovation has significantly improved the
lives of the people. Therefore, there is constant need of improvement on the innovation used
by the companies for the manufacture of the various products as well as services (Majava et
al. 2014). Thus, it is seen that the products as well as services that were appreciated by the
global customers a decade ago, are now considered outdated as well as obsolete by the global
customers today (Majava et al. 2014). Moreover, the companies also need to take into
consideration the needs as well as the requirements of the customers from the various parts of
the world (Majava et al. 2014). The services as well as products appreciated by the customers
of the first world countries might not be appreciated by the users of the third world countries
(Smith 2012). Therefore, the Hue bulbs manufactured by the Philip takes into consideration
the various needs as well as the requirements of its various customers from different parts of
the globe. The company, keeping in view the growing dependence of the people on the
internet services, uses the wi-fi system used by the customers to control the light bulbs. The
company also keeps in view the growing dependence of the people on the use of online
mobile applications to control as well as use its latest electric bulbs. However, the company
also keeping in view the various users from the third world countries of the world, provides
the users with the option of handy dimmer switches through which the users can also control
the use of the bulbs. The company for the manufacture of the electric also takes into account
the heating effect of the electric bulbs. Many users complain that the primary defect of the
majority of the electric bulbs manufactured by the traditional means is the overheating
process, which they utilize for the generation of light (Lechner 2014). However, the new bulb
takes into account this complaint of the users and provides the users with the option by means
of which they can control the temperature of the bulbs as well. This will help the customers
from the Equatorial as well as the area where the temperature remains very high all round the

12QUALITY ANALYSIS REPORT
year (Smith 2012). This feature will help users from such climatic regions to feel a bit more
comfortable when the electric bulbs are on. Another feature of the bulb is that it switches
itself off automatically once the wi-fi device or the mobile through which the user controls
the bulbs is out of range. This not only helps the users to conserve electricity as well as
reduce their annual electricity bills but it also provides them with option of not manually
turning off or on the bulbs every time they leave or enter their houses. This feature has been
much appreciated by the users. The company also taking into consideration, the Herculean
amount of money which many individuals end up paying for their electricity bills every year,
has designed the bulbs in such a manner that they consume comparatively lower amounts of
electricity in comparison to the other forms of bulbs manufactured using the traditional
techniques. The company, also provides the users with the choice of selecting the color of the
bulbs, as a matter of fact the company provides the users with 16 million color combinations
from which they need to choose from.
A SWOT analysis of the company will provide relevant data for the process of
capturing the various needs of the company-
Strengths
 The primary strength of the company can be said to be its emphasis on the concepts of
innovation and modern technology for the manufacture of its various products as well
as services.
 Another strength of the company can be said to be the factor of its taking into account
the various needs as well as the requirements of its customers for the manufacture of
its products as well as services (Phillips 2018). Therefore, the new electric hue bulbs
manufactured by the company takes into account the various needs of the present
generation of electronic appliance users.

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Weaknesses
 The primary weakness of the product manufactured by the company can be said to be
its overdependence on the modern innovations as well as technology for the
manufacture of its LED bulbs, which is not much appreciated by the many users of
the product who are in the higher age group.
 Another weakness of the product manufactured by the company can be the
overdependence of the product on the online application for its functioning. Many
time, it might happen that the device of the user is not in the range of the household
but the user might be inside the house. Therefore, at such times the user might face
some difficulties with the device.
Opportunities
 The innovative technology used by the company for the manufacture of its product
actually acts an opportunity to the company by means of which they can capture the
international market (Phillips 2018).
 The company can also use the process of effective advertisement to promote its
products as well as services in order to increase its sales as well as annual profit
margin.
Threats
 The company needs to take into consideration the various environmental rules as well
as regulations provided by the environmental experts as well as nations for the
manufacture of its products which might decrease the quality of the services provided
by them as well as their sales.

14QUALITY ANALYSIS REPORT
 The company also needs to take into consideration the various labor laws as well as
legislations provided by the various nations and international organization, which will
also act as a threat to the organization. Therefore, many time, it is seen that the
company fails to recruit many talented as well as skilled professionals because of the
stringent legislations.
 The increasing competitions from the other companies in the same sector also acts as
a threat to the company.
Customer Needs Analysis
The above provided SWOT analysis of the company as well as its products reveals the
strengths, weaknesses, opportunities and the threats faced by the company and its newly
launched product. The weaknesses as well as the threats which the company and its newly
launched product faces actually will act as future opportunities which if properly utilized by
the company can lead to the overall growth as well as development of the company. The
SWOT analysis of the company reveals the fact the targeted customer base of the company
and its newly launched product will be technology savvy people who depend on newly
launched innovations as well as technologies for their day-to-day activities (Healy and Palepu
2012). The company, therefore, needs to design as well as innovate its products as well as
services as per the needs and requirements of that genre of customers. Thus, the company in
order to attract the attention of that genre of customers can make the products as well as
services more technologically advanced and design them so as to attract them. The
advertising campaign of the company for the product therefore should be designed in such a
way that they appeal to the customers of that targeted base. Moreover, the company should
also innovate new means by which the design of the product is made as per the requirements
of the targeted customer base. It is often seen that the technologically savvy people, the ones

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who belong to the present generation like to get discounts as well as attractive offers during
the process of transactions. Therefore, the company should come up with new attractive plans
as well as discounted rates for the sale of their newly launched product. The technologically
savvy people also like to buy things over the internet, therefore, the company also needs to
ensure that their products are available on the various online shopping websites.
The concept of Kano analysis was developed in the 1980s by the Japanese professor,
Noriaki Kano and the model is still used by many companies to analyze the needs as well as
requirements of the customers (Puppe 2012). The following figure provides a rough overview
of the model of Kano analysis-
Figure 5: Kano Analysis Model

16QUALITY ANALYSIS REPORT
Source: (Created by the Author)
The primary aim of Kano analysis is to provide the companies the basic customer
needs as well as requirements which they need to take into consideration for the development
as well as manufacture of new products. The company, Philips, can utilize this framework for
the analysis of the needs as well as the requirements of the customers for the launch of new
products .
The top 10 WANTs of the users as well as customers from the new product. Hue electric
bulb manufactured by the company, Philips are-
1. The bulb should be an innovation as well as modification of the technologies used for
the manufacture of the earlier bulbs.
2. The services provided by these bulbs should be longer than the earlier models of
bulbs.
3. The newly manufactured bulbs should be able to control the temperature of the bulb
so that it does not gets too much heated up and cause discomfort to the users.
4. The users should be able to control the bulbs through some form of remote devices.
5. The color options available to the customers should be enhanced.
6. The users do not have to turn off as well as turn on the bulbs each time they leave
their house or enter it.
7. The bulbs should be energy efficient as many customers end up spending significant
amount of capital on their energy bills.
8. The users should be able to control the bulbs through the internet.
9. The appearance of the bulbs should be very sophisticated and not obsolete.
10. The price of the bulbs should be very affordable.
The top 10 MUSTs of the new hue bulbs manufactured by the company, Philips are-

17QUALITY ANALYSIS REPORT
1. The bulbs should be able to help the users to save them significant amount of money
on their energy bills.
2. The users must be able to control the bulbs through their smartphones.
3. The users do not have to turn off or turn on the bulbs each time they leave or enter
their house.
4. The users can control the temperature of the bulbs.
5. The design of the bulbs should be very sophisticated.
6. The services provided by the bulbs should be very long as most of the users do not
like to change their household on a regular basis.
7. The users must be able to choose the color of their bulbs from a range of diverse
options.
8. The users can use their internet or wi-fi to assess the bulbs.
9. The users, belonging to the older age should be able to use the bulbs using some other
form of controlling system.
The top 5 DESIRABLEs of the new hue bulbs manufactured by the company, Philips are
as follows-
1. The users must be able to control the bulbs using their phones and not mechanical
switches.
2. The bulbs should be very energy efficient.
3. The users do not have to replace the bulbs regular due to poor performance.
4. The users should be able to control the heat generated by the bulbs.
5. The users not have to switch on or switch off the bulbs every time they leave or enter
the house.

18QUALITY ANALYSIS REPORT
The actual data for the selection of the MUSTs , WANTs as well as the DESIRABLEs
are provided in Appendix 1
Transforming the customer requirements into design
The “Quality Function Deployment” (QFD) is a concept, which was innovated in the
year 1966 in Japan with the aim to incorporate the requirements as well as the needs of the
customers into the engineering designs of the manufacture of the actual product (Krajewski,
Ritzman and Malhotra 2013). The concept was originally developed by Yoji Akao, with the
sole intention of giving priority to the needs of the customers (Krajewski, Ritzman and
Malhotra 2013). It is seen that many companies after a thorough market analysis of the needs
as well as the expectations of the customers follow this model for the manufacture of their
products. The below given figure provides a rough overview of the concept of Quality
function deployment-
Figure 6: Quality Function Deployment Model
Source: (Created by the Author)

19QUALITY ANALYSIS REPORT
The QFD analysis of the product is provided in the Appendix 2.
The ten design requirements of the bulb manufactured by the company, Philips, as per the
QFD analysis are as follows-
1. The users should be able to control the bulbs through their phones
2. The bulb should be an innovation as well as modification of the technologies used for
the manufacture of the earlier bulbs.
3. The newly manufactured bulbs should be able to control the temperature of the bulb
so that it does not gets too much heated up and cause discomfort to the users
4. The users do not have to turn off as well as turn on the bulbs each time they leave
their house or enter it.
5. The bulb should be an innovation as well as modification of the technologies used for
the manufacture of the earlier bulbs.
6. The users should be able to control the bulbs through some form of remote devices
7. The services provided by these bulbs should be longer than the earlier models of
bulbs.
8. The bulbs should be energy efficient as many customers end up spending significant
amount of capital on their energy bills.
9. The users must be able to control the bulbs through their smart phones
10. The color options available to the customers should be enhanced.
Design Risk Analysis
The five highest scoring design requirements are as follows-
1. The users should be able to control the bulbs through their phones

20QUALITY ANALYSIS REPORT
2. The bulb should be an innovation as well as modification of the technologies used for
the manufacture of the earlier bulbs.
3. The newly manufactured bulbs should be able to control the temperature of the bulb
so that it does not gets too much heated up and cause discomfort to the users
4. The users do not have to turn off as well as turn on the bulbs each time they leave
their house or enter it.
5. The bulb should be an innovation as well as modification of the technologies used for
the manufacture of the earlier bulbs.
The risk analysis of the five highest scoring requirements have been provided in
Appendix 3 using the “Failure-Mode-and-Effect-Analysis (FMEA)” method (Colicchia and
Strozzi 2012). The key findings of the analysis reveal the fact that although these elements
have been utilized by the company to capture the customers but these actually are the areas
where the maximum amount of failure of the new might occur. Therefore, the company needs
to perform a thorough analysis of these areas and update them taking into account the needs
as well as requirements of the customers.
Identifying the elements, components and parts
The 10 major components, elements, parts or sections of the bulb, which can be sourced
from the suppliers are as follows-
1. The chief raw material, which is required for the manufacture of this bulb is the
integrated circuits which can be easily procured from the various suppliers of the
company.
2. Glass is another raw material, which is used for the manufacture of these bulbs which
can also be easily procured from the suppliers.

21QUALITY ANALYSIS REPORT
3. Most of the light bulbs use tungsten filaments for the process of generating light,
which is easily available.
4. These bulbs by virtue of their being controlled by the mobile phones of the users also
need programming, which is done by the various computer experts of the company.
5. Nitrogen is used inside the glass chambers of the bulb, which can be easily procured
or even chemically extracted.
6. Sometimes, even argon is used in the gas chambers, which again can be easily
procured or chemically extracted.
7. The hue bulbs even make use of the microchips for the purposes of storing
information of the mobile phones of the users.
8. Software is another requirement of this bulbs. They are provided with a little amount
of programming for their effective functioning, which can be provided by the
computer experts of the company.
9. Wires, are another raw material, which is utilized by the bulbs and again it can be
easily procured or even manufactured.
10. The bulbs also make use of the metals like aluminum or copper for their manufacture,
which again can be easily procured or extracted from various sources (Massari and
Ruberti 2013).
Developing the supplier selection criteria
The major requirement of the hue bulbs can be integrated circuits as well as the
microchips, which are used for the storage of information. The top ten criteria that can be
used for the selection of the supplier are as follows-
1. The integrated circuits provided by the suppliers should be of the highest as well as
the best quality possible.

22QUALITY ANALYSIS REPORT
2. The integrated circuits should be made of pure silicon, which is very difficult to
obtain.
3. The microchips should be of very light weight, therefore, the suppliers need to
procure the right size of microchips.
4. The microchips should also be made of pure silicon (Espe 2013)
5. The microchips should be properly as well as carefully programmed.
6. The integrated circuits should not be too large as it would increase the size of the
bulbs.
7. The programmer needs to provide the effort during the programming of the
microchips as that will help the users to connect to their mobile phones with the bulbs.
8. Effective programming will also enable the bulbs to switch itself off or on
automatically when the mobile phone of the user in not in proximity.
9. The suppliers need to take care that the integrated circuits as well as the microchips,
which they provide to the company are of the best kind and not faulty.
10. The various microchips as well as the integrated should match the materials used for
the manufacture of the other parts of the bulb.
The Construction and use of “supplier selection system”
The above mentioned criteria clearly indicates that the the raw materials used for the
manufacture of the bulbs should be of the highest as well as of the best kind possible.
Therefore, the company should make use of those suppliers who provides timely as well as
quality services to the company (Chai, Liu and Ngai 2013). The company can also fragment
its supplier system, wherein instead of getting all the raw materials from a single supplier
they can get the best quality products from the different experts or the best service providers
in those sectors. They can even recruit quality analysts who will check the quality of the raw

23QUALITY ANALYSIS REPORT
materials delivered to them by the various suppliers before passing them on the company for
the manufacture of bulbs from them.
This selection process can be applied to the various suppliers of the company for the effective
quality of the bulbs manufactured by the company. For example, the company can utilize this
process to screen the quality as well as the amount of integrated circuits as well as microchips
procured from the different suppliers (Xu et al. 2013). The company can even use this
method to collect the glass, which is required for the manufacture of the bulbs from its
various suppliers. The tungsten filaments, which form an essential part of the bulbs can also
be procured from the various suppliers in the same manner.
Statistical Process Control
Identification Process
1. The design method mainly is associated the process of handling of materials for the
manufacture of the Phillip Hue. The design is intended to be operatational in a
process, which will reduce the expenses considerably. This is associated with
maintaining a hold of the innovative patterns in the market with the transformations
that can transform the product further.
2. Commercialisation and Test Marketing: The idea of incorporating a model with an
intended marketing plan in such a manner that the product acceptance, upgradation
and authentication of the bulbs can be achieved by looking at the response of the
market.
3. Supplier Selection: As the product recognises several sections that can be exploited as
a section of Phillip Hue. Conversely, the company will conduct communication
sessions within the firm so that the product is replicated in the market.

24QUALITY ANALYSIS REPORT
4. Manufacturing Process: Phillip Hue requires to improve by relying on the process that
is associated. The process has an enhanced time of response, the method should
initiate with assembling every part of the product to make it operational.
5. The process of “Inspection and Quality Assurance”: The examination is undertaken in
order to safeguard the community along with the organization so that the product may
not be repudiated based on the effective assimilation nor as an effective product.
Furthermore, with the effective method, the management will keep on examining on
the extensiveness of the incorporation of the several products.
6. Packaging Process: After the product is examined, it is can be delivered on the
particular address provided. Conversely, the utilisation of the systematic compilation
comes into use where the products requires being packaged effectively with authentic
documentation n and papers related to the guarantee. Additionally, the distribution
and the sales team needs to be instructed in accordance to the same.
7. Distribution Process: The products of Phillip Hue is distributed midst the chosen
beneficiaries and an effective documentation is undertaken in order to eliminate any
errors during the process of unloading the products and thereby keeping track of the
product batches.
8. The “Invoicing Process”: The process generally covers the epitomes of the capital
with effective as well as efficient accountability and have been recorded in the
journals in order to restrict any kind of inconsistencies in the coming future.
Assessing the Processes by the use of SPC Charts
The “Statistical Process Control” is utilised in order to address the statistical process of
plotting the data in order to have an access to the process of control (Hanington and Martin
2012). Furthermore, it is utilised for systematic management of the analytical tools for the
redundant alterations of the ability of the processes concerned. Reasonably, the alteration in

25QUALITY ANALYSIS REPORT
the quality shall be documented in the SPC Charts and are incorporated in the firm among the
operational boundaries (Hollensen 2015)Furthermore, there are helpful in assessing the
variations in the improvement of the underlying mechanism in order to undertake forecasts,
minimisation of the data burden and refute, delusions and various estimations.
The process of SPC are of 7 elementary tools of quality that includes the check sheet,
flow chart, pareto chart, control charts and the “cause and effect diagram”, histogram and
“scatter diagram”. The “control chart” is administered by three basic features.
 The “control charts” assesses the various samples of data in the ascertained range of
the variation that has been presumed.
 A control chart is generally constructed by the “upper control limits (UCL)” lower
control limits (LML) that additionally differentiates from the allocated variation
source.
 When the data comes out of the control limits then the method is called “out-of-
control”.
The three statistical charts of control that can be utilised for the purpose of decisions in
the method of monitoring are:
i. Mean Control Chart (Variables) - These variables are marketed and contrasted
against the sample means. It is looked upon to be a combination with the R-Chart.
ii. Range Charts (Variables) – This is the chart that records the lowest and the
highest sample value which assists in replicating the variability process for an
average value.
iii. Range Charts (Variables) – This type of charts assists in the recording of the
percentage of the faulty items preserved in the varying size items in such a manner
that there are prospects of non-conformance and conformance. The faulty items in

26QUALITY ANALYSIS REPORT
per unit time are recorded by these charts in relation to the UCL and LCL that is
remained to the process control.
iv. C- Charts (Attributes) – The faults are taken down in this chart for a specific size
of sample and the centre line computes the aggregate defects for a specific number
of period. The value that is gathered from this chart is authentic for the company
to take actions on in order to not only confirm the data logging but even to review
the parameter processes.
Constructing and Using a SPC Chart
The chart for SPC has been generated on 25 samples over a sub-group of over n-1 to
9. The size of the sample is regarded to be 30% of all the segments that is used in Phillip Hue.
There is a difference in the variable relying upon the extent of the tools by depending on the
demand of the consumers in the market. Conversely, the mean charts and the range are
exploited to examine the products that have been dispatched over a time period. The
outcomes are for a sub-group of 9 and there have been constructed in the below laid table.
Samp
le # n = 1 n = 2 n = 3 n = 4 n = 5 n=6 n=7 n=8 n=9
Sample
Averag
e
Sampl
e
Range
R
1
46.000
0
54.000
0
58.000
0
52.000
0
48.000
0
27.000
0
88.000
0
34.000
0
40.000
0 49.6667
61.
0000
2
52.000
0
54.000
0
57.000
0
66.000
0
53.000
0
26.000
0
54.000
0
42.000
0
44.000
0 49.7778
40.
0000
3 54.000 68.000 56.000 70.000 94.000 25.000 15.000 26.000 48.000 79.

27QUALITY ANALYSIS REPORT
0 0 0 0 0 0 0 0 0 50.6667 0000
4
88.000
0
64.000
0
42.000
0
58.000
0
60.000
0
54.000
0
48.000
0
32.000
0
54.000
0 55.5556
56.
0000
5
99.000
0
82.000
0
120.00
00
148.00
00
162.00
00
113.00
00
49.000
0
88.000
0
61.000
0
102.444
4
113.
0000
6
152.00
00
54.000
0
153.00
00
144.00
00
168.00
00
120.00
00
67.000
0
83.000
0
110.00
00
116.777
8
114.
0000
7
122.00
00
160.00
00
28.000
0
68.000
0
152.00
00
55.000
0
118.00
00
122.00
00
95.000
0
102.222
2
132.
0000
8
88.000
0
75.000
0
38.000
0
47.000
0
83.000
0
61.000
0
112.00
00
118.00
00
96.000
0 79.7778
80.
0000
9
88.000
0
54.000
0
10.000
0
79.000
0
88.000
0
68.000
0
70.000
0
78.000
0
65.000
0 66.6667
78.
0000
10
72.000
0
66.000
0
121.00
00
74.000
0
88.000
0
89.000
0
69.000
0
118.00
00
92.000
0 87.6667
55.
0000
11
64.000
0
54.000
0
154.00
00
66.000
0
96.000
0
15.000
0
36.000
0
42.000
0
55.000
0 64.6667
139.
0000
12
57.000
0
49.000
0
63.000
0
39.000
0
59.000
0
56.000
0
27.000
0
55.000
0
43.000
0 49.7778
36.
0000
13
110.00
00
63.000
0
42.000
0
82.000
0
54.000
0
77.000
0
55.000
0
67.000
0
64.000
0 68.2222
68.
0000
14
71.000
0
49.000
0
74.000
0
89.000
0
79.000
0
74.000
0
18.000
0
63.000
0
45.000
0 62.4444
71.
0000
15
57.000
0
96.000
0
58.000
0
79.000
0
98.000
0
28.000
0
66.000
0
49.000
0
88.000
0 68.7778
70.
0000
16
102.00
00
95.000
0
59.000
0
93.000
0
67.000
0
60.000
0
62.000
0
78.000
0
89.000
0 78.3333
43.
0000
17
56.000
0
87.000
0
57.000
0
63.000
0
61.000
0
96.000
0
78.000
0
88.000
0
72.000
0 73.1111
40.
0000
18
60.000
0
53.000
0
64.000
0
71.000
0
85.000
0
69.000
0
54.000
0
62.000
0
48.000
0 62.8889
37.
0000
19
78.000
0
51.000
0
46.000
0
80.000
0
93.000
0
105.00
00
72.000
0
77.000
0
62.000
0 73.7778
59.
0000
20
42.000
0
85.000
0
65.000
0
72.000
0
110.00
00
93.000
0
97.000
0
72.000
0
49.000
0 76.1111
68.
0000
21
36.000
0
15.000
0
42.000
0
41.000
0
59.000
0
63.000
0
61.000
0
90.000
0
112.00
00 57.6667
97.
0000
22
78.000
0
80.000
0
78.000
0
63.000
0
88.000
0
71.000
0
58.000
0
74.000
0
106.00
00 77.3333
48.
0000
23
62.000
0
83.000
0
94.000
0
64.000
0
82.000
0
78.000
0
52.000
0
76.000
0
81.000
0 74.6667
42.
0000
24
96.000
0
85.000
0
82.000
0
78.000
0
65.000
0
48.000
0
57.000
0
71.000
0
83.000
0 73.8889
48.
0000
25 73.000 69.000 78.000 58.000 69.000 73.000 99.000 97.000 89.000 41.

28QUALITY ANALYSIS REPORT
0 0 0 0 0 0 0 0 0 78.3333 0000
Calculation
s
Chart for Picking
Constants D3 and D4
based on Sample
Size n
Variable
Excel Name Value
Interpretatio
n N D3 D4
X_2bar 72.0489
average of sample
averages 2 0
3.26
7
Sigma_X_b
ar 12.6173
standard deviation of sample
averages 3 0
2.57
5
R_bar 68.6000
average of sample
ranges 4 0
2.28
2
s Sigma 28.2132
standard deviation of
all process data 5 0
2.11
5
Number of
standard
deviations
for Control
Limits in X-
bar chart
3
Three is the default
value 6 0
2.00
4
n sample size 5 7 0.076
1.92
4
Constant
D3 0
Pick based on sample size from
chart to the right → 8 0.136
1.86
4
Constant
D4 2.115
Pick based on sample size from
chart to the right → 9 0.184
1.81
6
Xbar
Minimum
34.1
969 10 0.223
1.77
7
Xbar
Maximum
116.7
778
Rbar
Minimum
36.0
000
Rbar
Maximum
139.0
000
UCL Center LCL
Xbar
chart 109.90 72.05 34.20
R chart 145.09 68.60 0.00

29QUALITY ANALYSIS REPORT
0 5 10 15 20 25 30
0.0000
20.0000
40.0000
60.0000
80.0000
100.0000
120.0000
140.0000
Sample
X
b
a
r
Xbar Chart
0 5 10 15 20 25 30
0.0000
20.0000
40.0000
60.0000
80.0000
100.0000
120.0000
140.0000
160.0000
R
Sample
R
R Chart

30QUALITY ANALYSIS REPORT
Figure 7: X̅ and R̅ Control SPC Charts
The mean variable is represented by the X̅ and the aggregate range is presented by R̅ .
The X here is reveals the 25 observations for the 9 samples of the sub-groups. The charts that
have been displayed earlier explains the method of constructing the sections that is not
possible by making use of the sections and the tools that are utilised in this method are
controlled and monitored. Furthermore, the variables that are known for the sample has not
gone over the lower and the upper limit due to the fact that the company is on a trail run and
therefore take care of the quality by delivering the aggregate parts of the mechanisms that are
used by Phillip Hue. Conversely, according to the Nelson Rule and Rule 5 have two or three
points over the two deviations in the similar direction explaining that there can be a prospect
that the data is “out of control” furthermore, the optimistic aspect of the “mean” remains
unexplained.
It is observed that there are various values and the total number of sections of the
tools fall in the LCL and UCL limits highlighting the consistency and accuracy of the
products. Furthermore, Phillip Hue has not gone over the one level. Conversely, p-charts and
c-charts will be helpful in providing an in-depth assessment of the faults along with the faulty
items that may create problems in the difference in the process ability. P-chart is looked upon
as a reasonable process that can be utilised for the purpose of examining the defects.
Conversely, in this paper, X̅ and R̅ are effective in maintaining a stability of the delivery and
maintain a healthy relationship with the suppliers as it is a new and improved product in the
market.
Identifying problems and using problem solving methods
The newly launched hue bulbs by the company, Philips have been much appreciated by
the customers. However, there are some areas of problems that the company needs to take

31QUALITY ANALYSIS REPORT
into consideration. The chief problems that might occur during the use of the new bulbs
manufactured by the company, Philips are as follows-
1. The bulbs use the mobile phones of the users as remote controls, therefore, if the
customers are facing any problem with their phones, the bulbs might not work
effectively.
2. The second problem faced by the users can be the fact that the overdependence of the
bulbs on the latest innovations as well as technologies might deter some of the people
who are not technology savvy from taking the help of the bulbs.
3. The company promised the users that they can control the heat radiated by the bulbs.
However, it is seen that the amount of light given by the bulbs depends on the extent
to which the filament of the bulbs get heated. Therefore, if the users lower the amount
of heat generated by the bulbs below the standard limit, the bulbs might malfunction.
4. The bulbs use the mobile devices of the customers as sensors to turn itself on or off.
Sometimes, it might happen that the users are inside the house but their mobile is not
around. In such cases, they would not be able to use the bulb.
5. The bulb is designed as per the needs as well as the requirements of the customers
belonging to the first world countries and this might not be appreciated by the
customers belonging to the first world countries. Moreover, the bulbs works at
particular voltages as well as electricity level, which are the common standards of the
first world countries. This conditions might not be available in the third world
countries. Therefore, the bulbs might malfunction in those places.
Constructing and the use of problem solving tools
The problem which is selected for analysis is the use of the mobile phones as the
controlling mechanism for the use of the electric hue bulbs. The problem solving tools used

32QUALITY ANALYSIS REPORT
for the purpose of solving this problems are-root cause analysis and the casual factor charting
approach.
Root cause analysis
The concept of root cause analysis was innovated with the aim to analyze the root
cause of the problem faced by the products as well as the services developed by an
organization or company (James-Ward, Frey and Fisher 2012). This tool is often used by the
companies to find out the root cause of the problem faced by the products or the services
manufactured by them (Wilson et al. 2012). It is often seen as the tool through which the root
cause of the problem can be removed and thus the product can be made desirable for the
various customers. The product under consideration here, uses the mobile devices of the
customers as controlling mechanism. Therefore, as per the tool under discussion here, it is the
root cause of the problem. This problem can be solved by providing the users with some
additional means of control for the electric bulbs. Therefore, the company, Philips, with this
aim in view, have recently launched additional control mechanisms in the form of dynamic
switches which enable the users to control the functions of the bulbs. Thus, the customers are
provided with two options for the effective control as well as the operation of the bulbs.
Casual factor charting
The casual factor charting approach enables the various companies to depict the
various necessary as well as sufficient events along with the casual factors, which account for
the accidental events in the logical sequence (Zhou, Jiao and Linsey 2015). The primary
focus of this model is on the analysis of the factors, which are responsible for the technical
bleach. The following figure provides a rough overview of the casual factors charting
approach-

33QUALITY ANALYSIS REPORT
Figure 8: Casual factor Charting
Source: (Created by the Author)
The model of casual factor charting when applied to the device under consideration
will reveal the fact that the main cause of the operational snags for the device is the control of
the device by the cell phones of the users. Therefore, to remove this defect, the company
launched its new dynamic switches for the control of the device.
Conclusion
Therefore, it becomes clear that quality is a very important one for the various
companies as well as organizations specially during the launch of new products as well as
services. The various companies should take into consideration the needs as well as the
requirements of the customers before the launch of its new products as well as services. The
newly launched products should take into consideration the various needs as well as
requirements of the customers to make their products and services commercially and
customer wise successful. The companies should also follow the various parameters provided
by the various frameworks of Kano analysis, QFD and other frameworks in order to make
their products successful.

34QUALITY ANALYSIS REPORT

35QUALITY ANALYSIS REPORT
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