PCT2010 - 5 Min - Analytic Hierarchy Process

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ProductCamp Toronto

Aldis Levalds talks about AHP which is a method of multi-criteria decision making

Analytic Hierarchy Process A generic multi-criteria decision making process Aldis@sharepointconsultingservices.com

Dr. Thomas Saaty (lifetime of work) Simple yet mathematically sound Uses psychology, pairwise comparisons Combines subjective and objective criteria Rational and consistent Analytic Hierarchy Process (AHP)

Choice Ranking Prioritization Resource Allocation Benchmarking Quality Mgmt Many Applications 2007 International AHP Symposium includes 90 papers from 19 countries

Recent Examples Deciding how best to reduce the impact of global climate change (Fondazione Eni Enrico Mattei)[5] Quantifying the overall quality of software systems (Microsoft Corporation)[6] Selecting university faculty (Bloomsburg University of Pennsylvania)[7] Deciding where to locate offshore manufacturing plants (University of Cambridge)[8] Assessing risk in operating cross-country petroleum pipelines (American Society of Civil Engineers)[9] Deciding how best to manage U.S. watersheds (U.S. Department of Agriculture)[4]

In 2008, The Institute for Operations Research and Management Sciences awarded Thomas L. Saaty the INFORMS Impact Prize for his development of the Analytic Hierarchy Process It’s been around for a while AND..

[object Object],Prioritize our customers and allocate R&D budgets accordingly. ,[object Object],Customers were segmented into 12 categories. ,[object Object],Five key criteria where developed for judgment ,[object Object],Pairwise comparisons using relative scale ,[object Object],Real current annual revenue and experts for subjective criteria ,[object Object],Allocate budgets according to priorities, sensitivity analysis showed new markets score low Decision Making Steps

Most accurate way for humans to judge (5-9 max) Relative Judgement Scale used These numbers and words are based on empirical research over 25 years Pairwise Comparisons ,[object Object]

7 very strong

5 strong

3 moderate

1 equal,[object Object]

Revenue Example: Quantitative Judgments Current Revenue Normalized

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Analytic Hierarchy Process (AHP) is an effective tool for dealing with complex decision making, and may aid the decision maker to set priorities and make the best decision. By reducing complex decisions to a series of pairwise comparisons, and then synthesizing the results, the AHP helps to capture both subjective and objective aspects of a decision. In addition, the AHP incorporates a useful technique for checking the consistency of the decision maker’s evaluations, thus reducing the bias in the decision making process. In this paper we give special emphasis to departure from consistency and its measurement and to the use of absolute and relative measurement, providing examples and justification for rank preservation and reversal in relative measurement.

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ICT role in 21st century education and its challenges

Why Teams call analytics are critical to your entire business

Why Teams call analytics are critical to your entire business

Why Teams call analytics are critical to your entire business

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Exploring the Future Potential of AI-Enabled Smartphone Processors

Exploring the Future Potential of AI-Enabled Smartphone Processors

Apidays Singapore 2024 - Modernizing Securities Finance by Madhu Subbu

Apidays Singapore 2024 - Modernizing Securities Finance by Madhu Subbu

Apidays Singapore 2024 - Modernizing Securities Finance by Madhu Subbu

A Beginners Guide to Building a RAG App Using Open Source Milvus

A Beginners Guide to Building a RAG App Using Open Source Milvus

A Beginners Guide to Building a RAG App Using Open Source Milvus

"I see eyes in my soup": How Delivery Hero implemented the safety system for ...

"I see eyes in my soup": How Delivery Hero implemented the safety system for ...

"I see eyes in my soup": How Delivery Hero implemented the safety system for ...

A Year of the Servo Reboot: Where Are We Now?

A Year of the Servo Reboot: Where Are We Now?

A Year of the Servo Reboot: Where Are We Now?

Navi Mumbai Call Girls 🥰 8617370543 Service Offer VIP Hot Model

Navi Mumbai Call Girls 🥰 8617370543 Service Offer VIP Hot Model

Navi Mumbai Call Girls 🥰 8617370543 Service Offer VIP Hot Model

PCT2010 - 5 Min - Analytic Hierarchy Process

1. Analytic Hierarchy Process A generic multi-criteria decision making process Aldis@sharepointconsultingservices.com

2. Dr. Thomas Saaty (lifetime of work) Simple yet mathematically sound Uses psychology, pairwise comparisons Combines subjective and objective criteria Rational and consistent Analytic Hierarchy Process (AHP)

3. Choice Ranking Prioritization Resource Allocation Benchmarking Quality Mgmt Many Applications 2007 International AHP Symposium includes 90 papers from 19 countries

4. Recent Examples Deciding how best to reduce the impact of global climate change (Fondazione Eni Enrico Mattei)[5] Quantifying the overall quality of software systems (Microsoft Corporation)[6] Selecting university faculty (Bloomsburg University of Pennsylvania)[7] Deciding where to locate offshore manufacturing plants (University of Cambridge)[8] Assessing risk in operating cross-country petroleum pipelines (American Society of Civil Engineers)[9] Deciding how best to manage U.S. watersheds (U.S. Department of Agriculture)[4]

5. In 2008, The Institute for Operations Research and Management Sciences awarded Thomas L. Saaty the INFORMS Impact Prize for his development of the Analytic Hierarchy Process It’s been around for a while AND..

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8. 7 very strong

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12. Revenue Example: Quantitative Judgments Current Revenue Normalized

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14. 8

15. 7 very strong

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22. 0 noneAbsolute Judgement Scale

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