Ahp decision making software software#
Thankfully software tools have been built which automate the mathematics intensive part.
Ahp decision making software how to#
How to Use the Analytical Hierarchy Process (AHP)Īlthough the AHP is one of the most advanced methods available in the field of management science and operations research, the complexity involved in using this tool makes it difficult to apply. The managers therefore just need to be aware of the AHP process, the calculations are automated. However, of late software tools have been developed that can perform the calculations. It is for this reason that performing the calculations pertaining to AHP on an Excel sheet are an ordeal. It is based on the concept of eigen vectors. The method involves higher level mathematics. These factors could be the ones used by the customers while evaluating a product or they could be the ones used by the management to evaluate alternative solutions. Managers use AHP to assign numerical weights to factors. However it has found large scale application in six sigma projects. In fact, it was developed many years after the Six Sigma methodology was developed. It is not a part of the standard Six Sigma methodology. The Connection Between AHP and Six SigmaĪHP is a separate technique. Managers in mega corporations like General Electric, Ford Motors, Motorola etc, use it in their six sigma projects. It is for this reason that AHP is one of the most sought after technicques in management science today.
These checks and balances, therefore ensure that you reach logically consistent solutions when you compare the relative importance of the criteria in the process of assigning weights to them. The AHP method has inbuilt checks and balances. As the number of criteria (factors) multiplies, the assignments become more and more arbitrary. In the above example, our assignment of weights was arbitrary. However, until very late management scientists have been facing issues as to how to assign weights. Hence, while evaluating alternative solutions, weights need to be attached to the criteria to ensure reaching the correct conclusion. Therefore if you assign weightage of 2 to taste and 1 to waiting time, you are more likely to arrive at a restaurant that will best meet your need. The taste may ne far more important than the waiting time and so on.
For instance if you have to choose between two restaurants, the taste and the waiting time are two factors, however both of them may not have equal importance in your perception. The AHP method understands that although there are several criteria, the magnitude of each criterion may not be equal. The third and the most important part as far as the AHP method is concerned is the criteria used to evaluate the alternative solutions.the second part are the alternate solutions that are available to solve the problem.The first part is the issue that needs to be resolved,.The AHP method looks at the problem in three parts: This structure has been explained in this article.
The AHP method has been created after understanding the structure of a problem and the real hindrance that managers face while solving it. What is Analytical Hierarchy Process (AHP) ?Īnalytical Hierarchy Process (AHP) is a mathematical tool of problem solving that has become popular amongst management personnel in the late 1990s and early 2000s.
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