This paper discusses the application of QFD to the selection of project initiatives using a case in the telecommunications industry. Twelve project initiatives were proposed with the purpose of improving eight attributes which are considered important in enhancing customer satisfaction. Then, a 0/1 non-linear integer programming model was developed to select a set of project initiatives among the candidates under the system and budget constrainsts. The model identified the optimal set of project initiatives which would maximize the expected incremental profit. A sensitivity analysis and its managerial implications were also discussed.