Abstract:The aim of this paper is to improve the quality function deployment (QFD) method by utilizing requirements of both the major customer and the service provider. The QFD method was first applied to the shipbuilding industry and the main goal of the method is to improve the production processes by using customer requirements in connection with the related technical measures of the product. However, one of the critical criticisms of the QFD is based on the lack of proper budget assessment and the satisfaction of the producer (or service provider). The multi-layer QFD design is proposed to collect responses from both customer and the service provider so as to ensure satisfaction of all parties including financial feasibility of the intended improvements. Hence, the agency problem between parties will be eliminated.