Pairwise Comparison Technique

1. Pairwise Comparison
Submitted to: Dr.Nausheen Kamran
Submitted by: Farrukh Jamshaid
MS 2nd Roll No.11974
4/16/2020

2. What is the Pairwise Comparison Method?
Pairwise Comparison Method is a handy tool for decision making; it describes
values and compares them to each other. It’s often difficult to choose the best option
when you have different ones that are far apart. All the potential options are compared
visually, leading to an overview that immediately shows the right decision. This makes it
possible to compare the relative importance of opposing criteria in a simple way. If there
is no objective data available for making the decision, Paired Comparison Method can
be a very handy tool. This method is also known as the Paired Comparison Method and
Pairwise Comparison.
Priorities
Paired Comparison Method can be used in different situations. For example,
when it’s unclear which priorities are important or when evaluation criteria are subjective
in nature. The Paired Comparison Analysis also helps when potential options are
competing with each other, because the most effective solution will be chosen in the
end. It’s easier to set priorities when there are no conflicting requirements.
6 steps
To apply Paired Comparison Method, it’s wise to use a large sheet of paper or a
flip chart. Follow the steps below one by one for the analysis to work best.
Step 1: Creating table
Make a table with rows and columns and fill out the options that will be compared
to one another in the first row and the first column (the headers of the rows and
columns). The empty cells will stay empty for now. If there are 4 options, there are 4
rows and 4 columns and 16 cells; when there are 3 options, you get 3 rows and 3
columns and 9 cells, etc.
Step 2: Assigning letters
Every option is now assigned a letter (A, B, C etcetera). The options are
mentioned in the headers of the rows and columns and each now has a letter so the
options can be properly compared to each other.
Step 3: Blocking cells
It’s important to block out the cells in the table in which the same options overlap.
Cells that contain a comparison that has been displayed earlier in the table also have to
be blocked out. Every comparison should only be made once.

3. Step 4: Comparing options
The cells that are left will now compare the options in the rows to the options in
the columns. The letter of the most important option will be noted. For example, when A
is compared to C and C is a more important option, a C will be written down in that cell.
Step 5: Rating options
The difference in importance will now get a rating that will range, for example,
from 0 (no difference) to 3 (important difference).
Step 6: Listing results
The results are now consolidated by adding all values for each of the options in
question. If necessary, these totals can be converted to percentages.
Paired Comparison in practice
To clarify the way a Paired Comparison Method works, here is an example. Take
a commercial company that has to make a choice between three different Customer
Relation Management (CRM) systems. The first option is a CRM system by a renowned
brand, the second option is a CRM system that is connected to a cloud service and the
third option is a CRM system that consists of various modules. These options are
assigned a letter and are put in the headers of rows and columns. In step 3, a few cells
are blocked and in this example, 4 cells remain open.
Filling in the scores
The table is now ready to be filled in. We have chosen a scoring system of 0-3.
Every option is compared, after which the winning option will become clear. A is
compared to B, B to C, and C to A.
In the first comparison, A turns out to be more important than B, so the letter A is
written down in the open cell. In the second comparison, C turns out to be more
important than B, so the letter C is written down in the open cell. The last comparison is
A to C, and A is also more important here. That means the letter A is written down in the
open cell.
Now we look at importance. If A is a lot more important than B, we put a 3 after
A. If A is hardly important compared to C, it will get a score of 1. Finally, option C is of
medium importance compared to B and therefore scores a 2.

4. Filling in Options
Options Renowned CRM-A Renowned CRM-B Renowned CRM-C
Renowned CRM-A - - Open
Cloud CRM-B Open - -
Modules CRM-C - Open -
Assigning Letters & Ratings
Options Renowned CRM-A Renowned CRM-B Renowned CRM-C
Renowned CRM-A - - A-1
Cloud CRM-B A-3 - -
Modules CRM-C - C-2 -
Listing Scores
Options Scores
Renowned CRM-A 4 (66%)
Cloud CRM-B 0(0%)
Modules CRM-C 2(34%)
Evaluation
Now that all cells are filled out, we can look at the results. Firstly, all scores are
added.Option A – working with a renowned CRM system – is clearly the winner. The
percentage is a simple calculation of the share of points compared to the total amount
of points available. The best option is instantly made clear by this analysis. We do need
to take into consideration that this is a tool, and it shouldn’t be as the only way to make
a decision. If it turns out that working with the Modules CRM (C) gets is preferred by the
majority in the company that can certainly be the final decision.