Abstract

Economic development in Indonesia will not be separated from the role of Small and Medium Enterprises (SME’s). The development of SMEs is one of the solutions to sustain the rate of economic growth in Indonesia, because the development of SMEs tends to be stable and not affected by the massive economic crisis. Tenun Ikat SME is one of a collection of ikat weaving craftsmen in Kediri City, East Java. In the center of the weaving industry there are 10 weavers which can cover 270 workers. Products produced by Tenun Ikat SME are less able to compete with other products because they do not meet customer expectations. On the basis of the problems that often occur in SMEs, related to the fulfillment of customer satisfaction researchers provide solutions to the method of selecting product development strategies based on competitive advantage criteria including quality, cost, delivery, service, and morale. Thus, the purpose of research is to be able to know the priority of market competition criteria and be able to determine the right product development strategy in business competition and SMEs in Indonesia. Methods of collecting data with questionnaires for customers about the criteria for competitive advantage for Tenun Ikat Kediri. The method to be used is Quality Function Deployment (QFD) based on the criteria of competitive advantage for Tenun Ikat Kediri. Keywords: Quality function deployment, Quality cost felivery safety morale, SME

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