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The purpose of this research is to propose a new model for the integration of concurrent function deployment (CFD) and parameter (P) diagram in order to prioritize innovation factors.

Each of the approaches of CFD and P diagram and their features has been demonstrated and according to their common features, an integrated model has been designed in two phases. It has been examined in Sepahan Industrial Group, of which the major product is API gas pipeline network demanded by Isfahan Province Gas Organization. A questionnaire has been designed and delivered to four major units of Isfahan Province Gas Organization.

“Hydrostatic test” and “number of close end branch pipes” with the average values of 4.78 and 3.31 have been found as the first and last priorities of importance to customers, respectively. The output of the first phase includes “equipments” as the first priority of control factors, and “changing market or customers wants” as the first priority of noise factors. The results of the second phase show that “fault‐free product” and “successful innovation outcomes” are, respectively, recognized as first priorities of response factors. Finally, “successful innovation outcomes” has been determined as the first priority of response factors.

The matrixes of the two phases could become larger if the number of factors in the P diagram increases, and therefore, filling and analyzing the matrixes might become time consuming and difficult.

The proposed integrated model can be effective for almost all organizations that aim to meet the dynamic needs of markets and customers and intend to incorporate innovation in their products and services. By the new approach, determination and prioritization of innovation factors can be done based on customers' viewpoint, while in the traditional approaches this was done only from the viewpoint of engineers and designers.