This is a Multi-Criteria Analysis Tool which is an effective tool for making
decisions because it
analyzes and assesses a number of possibilities or alternatives systematically against a set of
predetermined criteria.
Multi-Criteria Analysis is a decision-making technique that takes into account
multiple
criteria or factors when evaluating alternatives or options/scenarios. It helps decision-makers consider
various
dimensions or perspectives simultaneously, enabling a more comprehensive assessment of the available
choices.
Key steps involving in conducting a Multi-Criteria Analysis are as following -
- Identify the Decision Problem: Clearly define the decision problem and the objectives or goals
you
want to achieve. This step involves understanding the decision context, the stakeholders involved, and
the available alternatives.
- Define Evaluation Criteria: Identify the criteria or factors that are relevant to the decision
problem. These criteria should be measurable, specific, and represent the objectives or concerns of the
decision-makers. Examples of criteria include cost, time, quality, environmental impact, and stakeholder
satisfaction.
- Weight the Criteria: Assign weights or importance values to each criterion to reflect their
relative
significance in the decision-making process. The weighting process can be based on expert judgment,
surveys, or other methods that capture the preferences of the decision-makers.
- Assess Alternatives: Evaluate each alternative or option against the identified criteria. This
step
involves collecting data and information on how well each alternative satisfies each criterion. The
information can be obtained through research, surveys, experiments, or other data collection methods.
- Normalize the Data: Normalize the data to ensure that different criteria are on a comparable
scale.
This step is necessary when the criteria are measured in different units or have different ranges.
Normalization helps prevent one criterion from dominating the decision simply because it has a larger
scale.
- Evaluate Alternatives or options/scenarios: Apply a decision rule or method to assess the
performance of each alternative.
Several methods can be used, such as weighted sum models, weighted product models, or more advanced
techniques like Analytic Hierarchy Process (AHP).
- Analyze Results and Sensitivity: Analyze the results of the evaluation and identify the most
preferred
alternative(s). Conduct sensitivity analysis to examine how changes in the criteria weights or
alternative scores affect the rankings or recommendations.
- Make a Decision: Based on the analysis and results, make an informed decision or
recommendation. The
decision-makers can consider the results of the Multi-Criteria Analysis along with other relevant
information or constraints to make the final decision.
Multi-Criteria Analysis is a powerful technique that helps decision-makers handle complex decision
problems involving multiple criteria. It provides a structured and systematic approach to decision-making,
facilitating a more transparent and inclusive process.