Analytical hierarchy process approach for selecting

The success of a business depends heavily on the business 2. Various criteria affect the selection of the business site; hence decision makers will need to come to a consensus when evaluating In this literature review section, the study will discuss about the criteria that affects the selection of a business site.

Analytical hierarchy process approach for selecting

Ratings were assessed via surveys, which were distributed to subject matter experts in the areas of project management and contract procurement.

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The purpose of this analysis was to develop an effective decision-making technique and apply it to contractor qualification and final selection using certain criteria.

Questionnaire Questionnaires were used for data collection to prioritize the criteria and rate the relative importance of each criterion used in the AHP model. The survey was distributed to subject matter experts in the fields of project management, contract procurement and contractor evaluation.

A pre-determined set of qualifying criteria are used to eliminate undesirable contractors from the bidding process, thus ensuring that the project is completed within the allocated budget, on schedule, safely, and to a desired level of quality. The following criteria were used for contractor qualification.

Respondents were asked to choose the number that indicated which item in each pair of criteria was a more important qualification criterion for contractor selection. Applying the Six Criteria to All of the Alternatives Table 2 is an example in which all of the criteria were applied to three potential bidders interested in the project.

As mentioned previously, the example was used only to demonstrate the application of certain criteria to various alternatives. As discussed previously, the names of all of the bidders have been withheld, and the information provided on all of the bidders was hypothetical; the information is listed to demonstrate the application of the method to actual cases.

The average Level 1 scores for the six criteria based on a survey is shown in Table 3. The weight of each criterion at the same level was calculated as follows: Table 4 shows the new matrix after the weights were calculated.

The priority vector is usually determined by averaging the row entries in the normalization matrix. Table 5 shows the pair wise comparison and normalization matrices for each criterion.

The average Level 1 scores for the six criteria based on a survey. The Level 1 normalization matrix of Level 1 for the six criteria. The pairwise comparison and normalization matrices for each criterion.

Consistency Ratio The consistency ratio for each criterion at the same level was calculated as follows: The consistency index, CI, for two terms is as follows: Shows a pair wise comparison matrix at Level 1 for the six criteria.

The importance of project selection and prioritization

The actual pair wise and average values of the normalization matrix priority vector. The numbers divided by their priorities. The value of the consistency ratio CR is less than 0.

Overall Priority Vector The overall priorities were determined by multiplying the priority vectors of the criteria by the priorities for each alternative decision for each objective. Based on Table 10 and Table 11the best contractor was Bidder 1. Contractor selection is a critical task for ensuring that a project is completed within budget and on schedule and that the results are of good quality.

The selection of a suitable contractor is highly beneficial and avoids many risks that might be encountered if a less capable contractor was awarded the project. The AHP has emerged as a powerful tool that is applicable to all fields of decision-making to choose the best overall alternative based on selected criteria.

Additionally, because of its flexibility and efficiency, the AHP has been chosen as a reliable instrument for decision-making or problem-solving in the field of project management, particularly in contractor selection. The decision model for contractor selection examined in this study involved multiple criteria that were evaluated simultaneously by aggregating the knowledge of experts and managing uncertain information.

A model based on the AHP technique was applied to determine the order of the criteria to identify the relative importance of each criterion. This model was then used to determine the best alternative i. Priority vector for various alternatives.

Analytic hierarchy process - Wikipedia

Acknowledgements We would like to thank Eng Mohammed Maki, for data collection and follow up to carry out this work. American Journal of Industrial and Business Management,05, Journal of Civil Engineering and Management, 19, The Analytic Network Process (ANP) developed by Thomas Saaty [16], in his work on multi criteria decision making.

It is an addition of his Analytic Hierarchy Process (AHP) for decision making which involves breaking. One of the key activities of any client is contractor selection. Without a suitable and precise method for selecting the best contractor, the completion of a project will likely be affected.

Analytical hierarchy process approach for selecting

In this study, we examine the use of the analytical hierarchy process (AHP) as a decision-support model for contractor selection.

This model can assist project management teams in identifying contractors. The analytic hierarchy process (AHP), developed at the Wharton School of Business by Thomas Saaty (), allows decision makers to model a complex problem in a hierarchical structure showing the relationships of the goal, objectives (criteria), sub-objectives, and.

The multi-criteria programming made through the use of the Analytic Hierarchy Process is a technique for decision making in complex environments where many variables or criteria are considered in the prioritization and selection of alternatives or projects.

An Approach for Ready Mixed Concrete Selection for Construction Companies through Analytic Hierarchy Process Ashish H. Makwana 1, Prof. Jayeshkumar Pitroda 2 The present approach of Ready Mixed Concrete selection has following shortcomings: Need huge initial investment.

The selection process has to be as objective as possible requiring the use of a standardized process and scoring approach to guarantee transparent and assure the credibility of results [40].

Project Selection: Mustafa Akış- The Analytical Hierarchy Process (AHP)