This paper investigates the feasibility of applying the Analytical Hierarchy Process (AHP) in dealing with complex decision problem to improve the group decision making by a more systematic and logical approach. In order to gain some preliminary understanding, we begin with going through a brief literature review of Complex Decision and how AHP address it. As an example, we use a case study of Calisto Corporation, a small enterprise co-founded by writer, in using the AHP to find their focus area for further development. We also use Expert Decision Software to solve the problem presented in the case study.

1. Analyzing Complex Decision using Analytical Hierarchy Process
and Expert Choice Software
Operation Management (BOM 7094) Assignment
Uun Ainurrofiq | 1111200141

2. Jhonny’s first
world
problem Should I choose Linda,
Mei Mei, or Nguyen?
use AHP technique
to Find Jhonny’s
Perfect Soulmate..!!
Linda : Mature, Independent but not pretty
Mei Mei : Cute, Smart but childish
Nguyen : Pretty, Rich but not so fun
Shika : Rock Star

3. This paper in brief…
Complex Analytical Improved
Expert Group
Decision Hierarchy
Choice Decision
Process
Problem
Method Tools More Systematic & Logical Approach

4. Case Study Scenario Calisto Corporation | Bandung - Indonesia
"Jack of all trades, master of none"
Goal : Find Calisto Corp Project Focus

5. The procedure for using the AHP can be summarized as below:
Comparing
Defiene the Synthesizing
Alternative Final
Goal s with Priorities
Criteria
Decompose Establish
Problem to Priorities
Make
Hierarchy of among the
Criteria and Criteria and decision
Subcriteria Sub Criteria

6. #STEP.ONE Goal
Win Paradigm.
Brad Sugar on how to find
Calisto Corp Project Focus
the perfect job

7. #STEP.ONE Goal Criteria SubCriteria Alternatives
Fun
Passion
Knowledge
#STEP.TWO
Calisto Corp Project Focus
CapexOpex
Capital Management Skill
Employee
Money
Benefit
Social
Market Growth
Potential
Business Expansion

8. Goal Calisto Corp Project Focus
Criteria 1 Passion
Management positive feelings toward the project. How much they will
Sub 1.1 Fun
enjoy and love the activity
How far will management knowledge improved by doing the project. Also
Sub 1.2 Knowledge
considering new skill, new contacts & network, new ideas etc.
Criteria 2 Capital
Sub 2.1 CapexOpex Money required to run the project
Management Management self-efficacy in handling the project. This also related to
Sub 2.2
Skill current experience and knowledge
Employee availability in the area. Low skilled employee considered easy to
Sub 2.3 Employee be found, whereas high skilled employee is harder to be found, trained and
retained
Criteria 3 Benefit
Sub 3.1 Money Profit gained in the form of money
Benefit which will be enjoyed by the community eg. Employment, better
Sub 3.2 Social
product available, satisfied needs
Criteria 4 Potential
Sub 4.1 Market Growth How big is the opportunity due to market growth, increasing demand
Business How big is Calisto capability will improve to capture the opportunity of
Sub 4.2
Expansion growing market

9. #STEP.THREE Establish Priorities among Criteria and Sub Criteria

10. #STEP.THREE
Establish Priorities among
Criteria and Sub Criteria
<< Overall Result

11. #STEP.FOUR Comparing the Alternatives with Criteria
Sub-criteria Assessment Technique Source
Sub 1.1 Fun Pairwise Management Subjective Input
Sub 1.2 Knowledge Pairwise Management Subjective Input
Sub 2.1 CapexOpex Direct Accounting Report
Sub 2.2 Management Skill Pairwise Management Subjective Input
Sub 2.3 Employee Pairwise Management Subjective Input
Sub 3.1 Money Direct Accounting Report
Sub 3.2 Social Pairwise Management Subjective Input
Sub 4.1 Market Growth Direct Accounting Report
Sub 4.2 Business Expansion Pairwise Management Subjective Input
Noted that pairwise comparison based on person judgement, therefore it is very subjective.
To minimize the subjectivity, we also use direct assessment for some known parameter.

12. #STEP.FOUR Comparing the Alternatives with Criteria
*
*used as information source for direct assessment

13. #STEP.FOUR
Comparing the Alternatives
with Criteria
<< Overall Result

14. #STEP.FIVE Synthesizing Final Priorities
Overall Result
Table 6. Project priority wth respect to criteria

15. #STEP.FIVE Make the decision
Calisto management decide to focus on café and printing project and terminate its operation in Clothing Merchandise and Event Organizer.
Because they have used the
AHP, it is easy for them to trace
their thinking and to justify the
steps along the way to their
decision. If they have second
thoughts about the final
outcome, they can revisit the
process and make changes if
appropriate. And if they choose
to, they can reveal the details of
their process to their consultants
and confidants, to the
employee, to the shareholders, or
to anyone else who might be
concerned with the decision.

16. Summary
Analytic Hierarchy Process has shown Calisto team that the Café Project best satisfies all
their criteria and judgments, followed closely by the Digital Printing Project. The other
alternatives fall short of meeting their criteria.
AHP can be used to help us address other case which requires complex decision process
Expert Choice software plays important role in this case by:
• Brings structure and measurement to Calisto planning & selecting process
• Helps Calisto determine strategic priorities and optimally allocates its resources
• Communicates priorities and builds consensus among management
• Documents and justifies Calisto strategic decisions
• Enables Calisto to move forward quickly and confidently

17. Thank You...