Quality Analysis Report: Philips Hue Bulbs - Business Analysis

This report provides a comprehensive quality analysis of Philips Hue bulbs, manufactured by Philips. It begins with an executive summary outlining the report's objectives, which include an examination of quality planning and analysis processes. The report delves into stakeholder analysis, identifying the needs and requirements of various stakeholders, including employees, customers, and investors. It captures customer needs, conducts a customer needs analysis, and translates these requirements into product design considerations. Furthermore, the report uses SWOT and Kano analyses to understand market demands and customer expectations. It also incorporates quality function development and risk assessment tools to evaluate the product's market position and supplier system. Statistical process control is used to analyze the product, and the report also includes an overview of raw materials and appendices to support the analysis. The report offers valuable insights into the product's quality and market performance.

Running head: QUALITY ANALYSIS REPORT
Quality Analysis Report
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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.

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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

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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