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Engineering Decision Matrix Guide

A Prioritization Matrix is a decision-making tool that helps organizations systematically compare options by weighing criteria, which enhances consensus and reduces hidden agendas. The document outlines the construction of a Full Analytical Criteria Method matrix, detailing steps such as setting goals, criteria, weighing criteria, and comparing options against those criteria. It emphasizes the importance of reaching consensus and calculating relative importance to facilitate effective decision-making.

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0% found this document useful (0 votes)
12 views7 pages

Engineering Decision Matrix Guide

A Prioritization Matrix is a decision-making tool that helps organizations systematically compare options by weighing criteria, which enhances consensus and reduces hidden agendas. The document outlines the construction of a Full Analytical Criteria Method matrix, detailing steps such as setting goals, criteria, weighing criteria, and comparing options against those criteria. It emphasizes the importance of reaching consensus and calculating relative importance to facilitate effective decision-making.

Uploaded by

nhanngasau
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Prioritization Matrix

What is a Prioritization Matrix?


A Prioritization Matrix can help an organization make decisions by narrowing options down by systematically
comparing choices through the selection, weighing, and application of criteria. Prioritization Matrices:
• Quickly surface basic disagreements can be resolved openly
• Force a team to narrow down all solutions to the best solutions, which are more likely to increase
chances for successful program implementation
• Limits “hidden agendas” by bringing decision criteria to the forefront of a choice
• Increases follow-through by asking for consensus after each step of the process

How to Construct a Prioritization Matrix


There are three ways to construct prioritization matrices, but the Full Analytical Criteria Method is detailed
below. This specific method is best used in smaller groups (3-8 people), which require few options (5-10
options) and few criteria (3-6 criteria). This specific method also requires the team to reach complete
consensus on criteria and options. Stakes may be high if the plan fails.
1. Set a Goal
In order to agree on the ultimate goal, your group should produce a clear goal statement through consensus.
Example Goal: Buy a car for regular daily travel.
2. Set Criteria
Create a list of criteria by reviewing available documents or guidelines. The team must come to a consensus
on criteria and their meaning, or the process is likely to fail.
Example Criteria: Cost, Reliability, Efficiency, Desirability
Example Options: New Chevrolet, Used Mercedes, Pre-Owned Ford, Uncle Henry’s Old Clunker
3. Weigh Criteria for Importance
Use a matrix to weigh each criteria against another, in order to decide which criteria are most important.
A. Write Criteria
Write your criteria across the top of the columns. Add extra columns at the end for “Row Total” and “Relative
Decimal Value” (you’ll use those later). Write your criteria at the beginning of each row.
Cost Reliability Efficiency Desirability Row Total Relative
Decimal Value

Cost

Reliability

Efficiency

Desirability

Grand Total

B. Weigh Criteria
Begin the process of deciding which criteria are more important. (Since we can’t compare a criterion against
itself, we’ll start in the second cell of the first column).

Cost

Cost ————

Reliability

In this cell, ask yourself whether the criterion above (cost) is more or less important than the criterion to the
left (reliability). Use the following weighting system to indicate whether it’s more important, and by how
much:
10=Much more important Note: A whole number (10, 5, 1) should always represent the “desirable”
5 = More important rating. In some cases, this means “more” of something (e.g., importance,
1 = Equally important reliability, educational value), and in others it may mean “less” (e.g., cost,
0.2 = Less important travel time).
0.1= Much less important

Cost

Cost ————

Reliability 5 This indicates that cost is more important (5) than reliability.

Each time you record a weight in a row cell, you must record its reciprocal value in the corresponding col-
umn cell.

Weight of 10 Reciprocal value of 0.1


Weight of 5 Reciprocal value of 0.2
Weight of 1 Reciprocal value of 1
Weight of 0.2 Reciprocal value of 5
Weight of 0.1 Reciprocal value of 10
Cost Reliability

Cost ———— 0.2 The reciprocal value of 5 is 0.2; this shows that reliability is less

Reliability 5 ————- Important (0.2) than cost.

Continue weighting the remaining criteria and recording reciprocal values.


C. Calculate Totals
When finished, total each horizontal row and enter the sum under “Row Total.” Add all row totals to reach a
grand total.

Cost Reliability Efficiency Desirability Row Total Relative


Decimal Value

Cost ———— 0.2 0.1 5 5.3

Reliability 5 ———— 0.2 5 10.2

Efficiency 10 5 ———— 5 20

Desirability 0.2 0.2 0.2 ———— 0.6

Grand Total Grand Total 36.1

D. Calculate Criteria Weighting


Divide each row total by the grand total, and enter this under “Relative Decimal Value.”

Cost Reliability Efficiency Desirability Row Total Relative


Decimal Value

Cost ———— 0.2 0.1 5 5.3 0.15

Reliability 5 ———— 0.2 5 10.2 0.28

Efficiency 10 5 ———— 5 20 0.55

Desirability 0.2 0.2 0.2 ———— 0.6 0.02

Grand Total Grand Total 36.1

These relative decimal values indicate how relatively important each criterion is to you—they are now called
your “criteria weighting.” You will use criteria weighting to compare options at the end of the process, in
Step 6.

Criteria Weighting for All Options


Cost 0.15

Reliability 0.28

Efficiency 0.55

Desirability 0.02
4. Weigh Options against Criteria
Use a set of matrices to weigh options within given criteria, in order to start deciding which options best
meet your criteria.
A. Weigh Options
Using the same weighting and method as above, place one criterion n the upper left corner of its own matrix,
and weigh options against each other. Use weights to indicate which option better meets the matrix’s single
criterion.
Remember: A whole number (10,5,1) should always represent the “desirable” rating. In some cases, this
means “more” of something (e.g., importance, reliability, educational value), and in others it may mean
“less” (e.g., cost, travel time).
10 = Much less expensive 5 = Less expensive 1 = Same cost 0.2 = More expensive 0.1 Much more expensive

COST New Chevrolet Used Mercedes Pre-Owned Ford Uncle Henry’s Row Total Relative Decimal
Car Value
New Chevrolet ———— 0.2 5 0.1 5.3 0.12

Used Mercedes 5 ———— 10 0.2 15.2 0.33

Pre-Owned 0.2 0.1 ———— 0.1 0.4 0.01


Ford
Uncle Henry’s 10 5 10 ———— 25 0.54
Car
Grand Total 45.9

Repeat this step with each criterion (cost, reliability, efficiency, desirability) using the same options and
weighting method, until you have a matrix for each criterion. There will be as many matrices as there are
criteria.
These relative decimal values indicate how well each option meets a given criterion—they are now called
your “option ratings.”
B. Optional: Compile Option Ratings
You may find it helpful to put your option ratings from each matrix into a single table to minimize confusion.

Option Rating: Option Rating: Option Rating: Option Rating:


Reliability Efficiency Desirability
COST (Matrix not shown) (Matrix not shown) Matrix not shown)
New Chevrolet 0.12 0.24 0.40 0.65

Used Mercedes 0.33 0.37 0.10 0.22

Pre-Owned Ford 0.01 0.37 0.49 0.12

Uncle Henry’s Car 0.54 0.01 0.01 0.01


5. Compare Options
Using another L-shaped matrix, compare each option based on all combined criteria.
A. Create Summary Matrix
List your criteria at the top of each column, along with their respective criteria weighting values from Step 3.
Write each option at the beginning of a row.

SUMMARY COST Reliability Efficiency Desirability


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02)
New Chevrolet

Used Mercedes

Pre-Owned Ford

Uncle Henry’s Car

B. Multiply Criteria Weighting and Option Ratings


In each cell, multiply the criteria weighting values (found at the top of each column) by the option rating from
each matrix in Step 4.

SUMMARY COST
(Weight: 0.15)
New Chevrolet 0.12 x 0.15 New Chevrolet option rating from Step 4 cost matrix = 0.12

= 0.02
Used Mercedes 0.33 x 0.15 Used Mercedes option rating from Step 4 cost matrix = 0.33

= 0.05
Pre-Owned Ford 0.01 x 0.15 Pre-Owned Ford option rating from Step 4 cost matrix = 0.01

= 0.002
Uncle Henry’s Car 0.54 x 0.15 Uncle Henry’s Car option rating from Step 4 cost matrix = 0.54

= 0.08

In this example, the RDV specific to a New Chevrolet was 0.12 from the cost matrix (shown above), 0.07 from
the reliability matrix, 0.22 from the efficiency matrix and 0.01 from the desirability matrix (not shown in Step
4).

SUMMARY COST Reliability Efficiency Desirability


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02)
New Chevrolet 0.12 x 0.15 0.24 x 0.28 0.40 x 0.55 0.65 x 0.02

= 0.02 = 0.07 = 0.22 = 0.01


Repeat this for each option and criterion, pulling values from Steps 3 and 4.

SUMMARY COST Reliability Efficiency Desirability


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02)
New Chevrolet 0.12 x 0.15 0.24 x 0.28 0.40 x 0.55 0.65 x 0.02
= 0.02 = 0.07 = 0.22 = 0.01
Used Mercedes 0.33 x 0.15 0.37 x 0.28 0.10 x 0.55 0.22 x 0.02
= 0.05 = 0.10 = 0.06 = 0.004
Pre-Owned Ford 0.01 x 0.15 0.37 x 0.28 0.49 x 0.55 0.12 x 0.02
= 0.001 = 0.10 = 0.27 = 0.002
Uncle Henry’s Car 0.54 x 0.15 0.01 x 0.28 0.01 x 0.55 0.01 x 0.02
= 0.08 = 0.002 = 0.01 = 0.0002

C. Calculate Row Total


Add values across each row to reach a row total.

SUMMARY COST Reliability Efficiency Desirability Row Total


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02)
New Chevrolet 0.12 x 0.15 0.24 x 0.28 0.40 x 0.55 0.65 x 0.02 0.32
= 0.02 = 0.07 = 0.22 = 0.01
Used Mercedes 0.33 x 0.15 0.37 x 0.28 0.10 x 0.55 0.22 x 0.02 0.22
= 0.05 = 0.10 = 0.06 = 0.004
Pre-Owned Ford 0.01 x 0.15 0.37 x 0.28 0.49 x 0.55 0.12 x 0.02 0.37
= 0.001 = 0.10 = 0.27 = 0.002
Uncle Henry’s Car 0.54 x 0.15 0.01 x 0.28 0.01 x 0.55 0.01 x 0.02 0.09
= 0.08 = 0.002 = 0.01 = 0.0002

D. Calculate Grand Total


Add all row totals to reach a grand total.

SUMMARY COST Reliability Efficiency Desirability Row Total


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02)

New Chevrolet 0.12 x 0.15 0.24 x 0.28 0.40 x 0.55 0.65 x 0.02 0.32
= 0.02 = 0.07 = 0.22 = 0.01
Used Mercedes 0.33 x 0.15 0.37 x 0.28 0.10 x 0.55 0.22 x 0.02 0.22
= 0.05 = 0.10 = 0.06 = 0.004
Pre-Owned Ford 0.01 x 0.15 0.37 x 0.28 0.49 x 0.55 0.12 x 0.02 0.37
= 0.001 = 0.10 = 0.27 = 0.002
Uncle Henry’s Car 0.54 x 0.15 0.01 x 0.28 0.01 x 0.55 0.01 x 0.02 0.09
= 0.08 = 0.002 = 0.01 = 0.0002
Grand Total 1.0
E. Calculate Relative Decimal Value
Divide each row total by the grand total, and enter this under “Relative Decimal Value.”

SUMMARY COST Reliability Efficiency Desirability Row Total Relative


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02) Decimal
Value
New Chevrolet 0.12 x 0.15 0.24 x 0.28 0.40 x 0.55 0.65 x 0.02 0.32 0.32
= 0.02 = 0.07 = 0.22 = 0.01
Used Mercedes 0.33 x 0.15 0.37 x 0.28 0.10 x 0.55 0.22 x 0.02 0.22 0.22
= 0.05 = 0.10 = 0.06 = 0.004
Pre-Owned Ford 0.01 x 0.15 0.37 x 0.28 0.49 x 0.55 0.12 x 0.02 0.37 0.37
= 0.001 = 0.10 = 0.27 = 0.002
Uncle Henry’s Car 0.54 x 0.15 0.01 x 0.28 0.01 x 0.55 0.01 x 0.02 0.09 0.09
= 0.08 = 0.002 = 0.01 = 0.0002
Grand Total 1.0

6. Choose the Best Option Across all Criteria


Compare the relative decimal values to decide which option is highest—this is the best choice given options
and criteria.
In our example, a Pre-Owned Ford seems to best meet our criteria for a car, because its relative decimal
value is highest in our summary matrix.

SUMMARY COST Reliability Efficiency Desirability Row Total Relative


(Weight: 0.15) (Weight: 0.28) (Weight: 0.55) (Weight: 0.02) Decimal
Value
New Chevrolet 0.12 x 0.15 0.24 x 0.28 0.40 x 0.55 0.65 x 0.02 0.32 0.32
= 0.02 = 0.07 = 0.22 = 0.01
Used Mercedes 0.33 x 0.15 0.37 x 0.28 0.10 x 0.55 0.22 x 0.02 0.22 0.22
= 0.05 = 0.10 = 0.06 = 0.004
Pre-Owned Ford 0.01 x 0.15 0.37 x 0.28 0.49 x 0.55 0.12 x 0.02 0.37 0.37
= 0.001 = 0.10 = 0.27 = 0.002
Uncle Henry’s Car 0.54 x 0.15 0.01 x 0.28 0.01 x 0.55 0.01 x 0.02 0.09 0.09
= 0.08 = 0.002 = 0.01 = 0.0002
Grand Total 1.0

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