Skip to main content
Log in

Customer Value Chain Analysis

  • Original paper
  • Published:
Research in Engineering Design Aims and scope Submit manuscript

Abstract

Customer Value Chain Analysis (CVCA) is an original methodological tool that enables design teams in the product definition phase to comprehensively identify pertinent stakeholders, their relationships with each other, and their role in the product’s life cycle. By performing CVCA, design teams are better able to recognize diverse product requirements and their relative priority when undertaking Product Definition Assessment and using downstream ‘Design for X’ (DfX) tools. This paper discusses the evolution of the CVCA in response to the need for a DfX tool which is able to delineate customer needs early in the product development process. A step-by-step guide clarifies the implementation of CVCA with an example. Three case studies highlight the tool’s broad utility and important features to support design decision making, including: (1) confirmation of the product’s business model, (2) recognition of the critical stakeholders, and (3) clarification of the value proposition to be embedded in the product.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

Notes

  1. Urban and Hauser (1993) characterize the voice of the customer as “A list of customer needs, a hierarchical structure for those needs, a set of importances to prioritize those needs, and evaluations of competitors on those needs.” They add that “the voice of the customer must be heard accurately and interpreted accurately if high quality products are to be designed and marketed successfully.”

  2. See http://www.me217.stanford.edu for the Product Definition Assessment Checklist

  3. For QFD references, see Hauser and Clausing (1988), and Akao (1990). For FMEA references, see Ormsby et al. (1991), McDermott et al. (1996) and Stamatis (2003).

  4. Affinity Diagrams, also called the KJ Method, are a graphical means to distinguish themes from a list of customer needs. See Jiro (1975).

  5. End users often differ from end customers; the end user is the target user of the designed product, whereas the end customer is the ‘end’ stakeholder of a branch. In this case study, the end user is the Kenyan farmer who uses the micro-irrigation pump. The end customers are the citizens of the donor country and the farmer.

References

  • Akao Y (1990) Quality function deployment: integrating customer requirements into product design. Productivity Press, Cambridge

    Google Scholar 

  • Barkan P (1995) A road map through the ME 317 product development process. In: Ishii K (ed) ME317 dfM: product definition coursebook. Stanford Bookstore, Stanford University, pp 1.2.1–1.2.10

  • Cobb C, Shahani V, Stephan C et al (2003) Alert system for implantable cardioverter defibrillators (ICDs), Stanford University, Stanford, ME 317 Final Report

  • Hauser JR and Clausing D (1988) The house of quality. Harvard Business Rev: 63–73

  • Herrmann J, Cooper J, Gupta SK et al (2004) New directions in design for manufacturing, ASME DETC 9th design for manufacturing conference (DFM), Salt Lake City

  • Ishii K (2001) Customer value chain analysis (CVCA). In: Ishii K (ed) ME317 dfM: product definition coursebook. Stanford Bookstore, Stanford University, pp 1.3.1–1.3.8

  • Jiro K (1975) The KJ method—a scientific approach to problem solving. Kawakita Research Institute, Tokyo

    Google Scholar 

  • Kmenta S, Ishii K (2000) Scenario-based FMEA: a life cycle cost perspective, In: Proceedings of the ASME DETC2000 reliability, stress analysis, and failure prevention conference, Baltimore, MD

  • Manufacturing Modeling Laboratory (2004) Survey of ME 317 industry sites 1996–2004. Stanford University, Stanford

    Google Scholar 

  • McDermott RE, Mikulak RJ, Beauregard MR (1996) The basics of FMEA. Quality Resources, New York

    Google Scholar 

  • Ormsby A, Hunt J, Lee M (1991) Towards an automated FMEA assistant. In: Adey R (ed) Applications of artificial intelligence in engineering VI. Computational Mechanics Publications, Boston, pp 739–752

    Google Scholar 

  • Patterson ML, Lightman S (1993) Accelerating innovation: improving the process of product development. Van Nostrand Reinhold, New York

    Google Scholar 

  • Rose CM and Stevels A (2000) Lessons learned from applying environmental value chain analysis to product take-back, In: 7th CIRP—Life cycle engineering conference, Tokyo

  • Rose CM, Stevels A, Ishii K (2000) Applying environmental value chain analysis. Electronics goes green, Berlin

    Google Scholar 

  • Stamatis DH (2003) Failure mode and effect analysis: FMEA from theory to execution. ASQ Quality Press, Milwaukee

    Google Scholar 

  • Ullman DG (1992) The mechanical design process. McGraw-Hill, New York

    Google Scholar 

  • Ulrich KT, Eppinger SD (2004) Product design and development. McGraw-Hill/Irwin, Boston

    Google Scholar 

  • Urban GL, Hauser JR (1993) Design and marketing of new products. Prentice-Hall, Englewood Cliffs

    Google Scholar 

  • Wilson E (1990) Product definition factors for successful designs. Stanford University degree of engineer thesis, Stanford

  • Wilson E (1993) Product definition: factors for successful design. Design Manage J (Fall):62–68

Download references

Acknowledgments

The authors gratefully acknowledge Edith Wilson, the students and partner companies of the ME217/317 Design for Manufacturability (dfM) course at Stanford University and the staff of KickStart for their invaluable contributions to the development of the CVCA. This research was in part funded by the United States Department of Energy Manufacturing and Processing Fellowship.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Krista M. Donaldson.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Donaldson, K.M., Ishii, K. & Sheppard, S.D. Customer Value Chain Analysis. Res Eng Design 16, 174–183 (2006). https://doi.org/10.1007/s00163-006-0012-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00163-006-0012-8

Keywords

Navigation