See how you can use statistical analysis to conduct useful and effective consumer and marketing research. These slides were used in a seminar held in the UK at The Shard. To see upcoming seminars, visit http://www.jmp.com/uk/about/events/conferences/
This presentation introduces Statistical Discovery, a process that allows you to work with data to discover new, useful, insights that drive cycles of learning. After a brief overview to introduce the concept, an example involving property prices in the US will be used to demonstrate the how the process works in practice. Through this example we also exemplify the skills and aptitudes required to exercise the process successfully.
The concepts of Alpha and Beta errors have long been documented in the statistical literature. Often, the notion of significance has been more widely promoted than statistical Power. Under and over powered tests can easily lead data analysts to draw invalid conclusions. The problem is further complicated by the boom of ‘Big Data’ where rates of automation and data collection have increased exponentially. It is not uncommon for a data set to easily run into millions of rows and, potentially, thousands of columns. This talk will start by discussing the fundamental concepts of alpha and beta error in data analysis, as well as statistical power, while discussing some of the common pitfalls. As data collection and computing power grow at alarming rates, there is a risk for some to focus on the utilizing standard data analysis tools and be lured into making false conclusions. Newer analytic techniques have been developed to complement the wave of Big Data. Some of these newer methods will be briefly introduced as tools for modern day data analysts to consider in their quest for managing risk via proper data analysis.
These slides were presented during a live webinar titled "The Power of Data: Harnessing Ethanol Plant Information for Increased Profitability" on Jan. 22, 2015.
THE 5 DIMENSIONS OF PROBLEM SOLVING USING DINNA: CASE STUDY IN THE ELECTRONIC...IJDKP
Based on the principle that perfection is a divine criterion, process management exists on the one hand to
achieve excellence (near perfection) and on the other hand to avoid imperfection. In other words,
Operational Excellence (EO) is one of the approaches, when used rigorously, aims to maximize
performance. Therefore, the mastery of problem solving remains necessary to achieve such performance
level.
There are many tools that we can use whether in continuous improvement for the resolution of chronic
problems (KAIZEN, DMAIC, Lean six sigma…) or in resolution of sporadic defects (8D, PDCA, QRQC
...). However, these methodologies often use the same basic tools (Ishikawa diagram, 5 why, tree of
causes…) to identify potential causes and root causes. This result in three levels of causes: occurrence, no
detection and system.
The research presents the development of DINNA diagram [1] as an effective and efficient process that
links the Ishikawa diagram and the 5 why method to identify the root causes and avoid recurrence. The
ultimate objective is to achieve the same result if two working groups with similar skills analyse the same
problem separately, to achieve this, the consistent application of a robust methodology is required.
Therefore, we are talking about 5 dimensions; occurrence, non-detection, system, effectiveness and
efficiency.
As such, the paper offers a solution that is both effective and efficient to help practitioners of industrial
problem solving avoid missing the real root cause and save costs following a wrong decision.
See how you can use statistical analysis to conduct useful and effective consumer and marketing research. These slides were used in a seminar held in the UK at The Shard. To see upcoming seminars, visit http://www.jmp.com/uk/about/events/conferences/
This presentation introduces Statistical Discovery, a process that allows you to work with data to discover new, useful, insights that drive cycles of learning. After a brief overview to introduce the concept, an example involving property prices in the US will be used to demonstrate the how the process works in practice. Through this example we also exemplify the skills and aptitudes required to exercise the process successfully.
The concepts of Alpha and Beta errors have long been documented in the statistical literature. Often, the notion of significance has been more widely promoted than statistical Power. Under and over powered tests can easily lead data analysts to draw invalid conclusions. The problem is further complicated by the boom of ‘Big Data’ where rates of automation and data collection have increased exponentially. It is not uncommon for a data set to easily run into millions of rows and, potentially, thousands of columns. This talk will start by discussing the fundamental concepts of alpha and beta error in data analysis, as well as statistical power, while discussing some of the common pitfalls. As data collection and computing power grow at alarming rates, there is a risk for some to focus on the utilizing standard data analysis tools and be lured into making false conclusions. Newer analytic techniques have been developed to complement the wave of Big Data. Some of these newer methods will be briefly introduced as tools for modern day data analysts to consider in their quest for managing risk via proper data analysis.
These slides were presented during a live webinar titled "The Power of Data: Harnessing Ethanol Plant Information for Increased Profitability" on Jan. 22, 2015.
THE 5 DIMENSIONS OF PROBLEM SOLVING USING DINNA: CASE STUDY IN THE ELECTRONIC...IJDKP
Based on the principle that perfection is a divine criterion, process management exists on the one hand to
achieve excellence (near perfection) and on the other hand to avoid imperfection. In other words,
Operational Excellence (EO) is one of the approaches, when used rigorously, aims to maximize
performance. Therefore, the mastery of problem solving remains necessary to achieve such performance
level.
There are many tools that we can use whether in continuous improvement for the resolution of chronic
problems (KAIZEN, DMAIC, Lean six sigma…) or in resolution of sporadic defects (8D, PDCA, QRQC
...). However, these methodologies often use the same basic tools (Ishikawa diagram, 5 why, tree of
causes…) to identify potential causes and root causes. This result in three levels of causes: occurrence, no
detection and system.
The research presents the development of DINNA diagram [1] as an effective and efficient process that
links the Ishikawa diagram and the 5 why method to identify the root causes and avoid recurrence. The
ultimate objective is to achieve the same result if two working groups with similar skills analyse the same
problem separately, to achieve this, the consistent application of a robust methodology is required.
Therefore, we are talking about 5 dimensions; occurrence, non-detection, system, effectiveness and
efficiency.
As such, the paper offers a solution that is both effective and efficient to help practitioners of industrial
problem solving avoid missing the real root cause and save costs following a wrong decision.
In software engineering, effective development phase can only takes place if the requirements
gathering from client side are clearly defined and should be approachable. Client’s requirements play
a crucial role for completion of the successful software projects in all of the development all the
software methodologies. If requirements from the client are not properly defined it can lead to failure
of the project. Now a day’s some information technology organization are not aware about the proper
way to collect the requirement from the clients and fulfill the requirements of the clients. Effective
Software development can only takes place if the requirements are properly defined and modeled.
Most of the Clients have difficulty in explaining what they need exactly, and the problems increases
when software developers failed to convert the client’s requirements into working code. The role of
the business analyst to effectively communicate with clients to understand the requirements .Many of
project fail due to inappropriate information gathering process
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)Matt Hansen
An extension on a series about hypothesis testing, this lesson reviews the ANOVA test as a central tendency measurement for normal distributions. It also explains what residuals and boxplots are and how to use them with the ANOVA test.
An extension on hypothesis testing, this lesson introduces the concepts of a correlation and regression as part of measuring statistical relationships.
Hypothesis Testing: Central Tendency – Normal (Compare 1:1)Matt Hansen
An extension on a series about hypothesis testing, this lesson reviews the 2 Sample T & Paired T tests as central tendency measurements for normal distributions.
Explain why it is important to use KT Problem Analysis to quickly get to a precise problem description and to avoid building biases into problem-solving processes.
Building Engaging Games for Learning AND AssessmentSeriousGamesAssoc
This session will describe findings and lessons learned from a research program investigating the use of games as both learning and assessment tools. Key questions around process, such as who are the right people to have on the team and how to balance conflicting views from engagement, learning, and assessment perspectives will be discussed. In addition, research-based examples will be provided of: specification of learning progressions, task design to align with learning progression stages, identification and summarization of evidence from log files, and reporting to inform instructional decision-making.
Top Brainnovation to boost Workplace Productivity and ResilienceSharpBrains
The three Finalists were:
*Beam Riders — pitch by Jafar Sabbah, Founder & CEO
*MyCognition — pitch by Martina Ratto, Cognitive Scientist
*The Touchpoint Solution (WINNER) — pitch by Dr. Amy Serin, Neuropsychologist & Co-Founder
*Judged by: Ariel Garten, Founder and Chief Evangelism Officer at InteraXon; Charlie Hartwell, Operating Partner at Bridge Builders Collaborative; Kathleen Herath, Associate Vice President Health & Productivity at Nationwide Insurance; Lisa Neuberger, Managing Director of Strategy + Innovation at Accenture Corporate Citizenship
*Álvaro Fernández, CEO and Editor-in-Chief of SharpBrains
*Sarah Lenz Lock, Senior Vice President for Policy at AARP and Executive Director of the Global Council on Brain Health (GCBH)
*Dr. April Benasich, Director of the Baby Lab at the Rutgers Center for Molecular and Behavioral Neuroscience
*Chaired by: Dr. Cori Lathan, Co-Chair of the World Economic Forum’s Council on the Future of Human Enhancement
Slidedeck supporting session held during the 2017 SharpBrains Virtual Summit: Brain Health & Enhancement in the Digital Age (December 5-7th). Learn more at: https://sharpbrains.com/summit-2017/
Hypothesis Testing: Central Tendency – Non-Normal (Compare 2+ Factors)Matt Hansen
An extension on hypothesis testing, this lesson reviews the Mood’s Median & Kruskal-Wallis tests as central tendency measurements for non-normal distributions.
In software engineering, effective development phase can only takes place if the requirements
gathering from client side are clearly defined and should be approachable. Client’s requirements play
a crucial role for completion of the successful software projects in all of the development all the
software methodologies. If requirements from the client are not properly defined it can lead to failure
of the project. Now a day’s some information technology organization are not aware about the proper
way to collect the requirement from the clients and fulfill the requirements of the clients. Effective
Software development can only takes place if the requirements are properly defined and modeled.
Most of the Clients have difficulty in explaining what they need exactly, and the problems increases
when software developers failed to convert the client’s requirements into working code. The role of
the business analyst to effectively communicate with clients to understand the requirements .Many of
project fail due to inappropriate information gathering process
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)Matt Hansen
An extension on a series about hypothesis testing, this lesson reviews the ANOVA test as a central tendency measurement for normal distributions. It also explains what residuals and boxplots are and how to use them with the ANOVA test.
An extension on hypothesis testing, this lesson introduces the concepts of a correlation and regression as part of measuring statistical relationships.
Hypothesis Testing: Central Tendency – Normal (Compare 1:1)Matt Hansen
An extension on a series about hypothesis testing, this lesson reviews the 2 Sample T & Paired T tests as central tendency measurements for normal distributions.
Explain why it is important to use KT Problem Analysis to quickly get to a precise problem description and to avoid building biases into problem-solving processes.
Building Engaging Games for Learning AND AssessmentSeriousGamesAssoc
This session will describe findings and lessons learned from a research program investigating the use of games as both learning and assessment tools. Key questions around process, such as who are the right people to have on the team and how to balance conflicting views from engagement, learning, and assessment perspectives will be discussed. In addition, research-based examples will be provided of: specification of learning progressions, task design to align with learning progression stages, identification and summarization of evidence from log files, and reporting to inform instructional decision-making.
Top Brainnovation to boost Workplace Productivity and ResilienceSharpBrains
The three Finalists were:
*Beam Riders — pitch by Jafar Sabbah, Founder & CEO
*MyCognition — pitch by Martina Ratto, Cognitive Scientist
*The Touchpoint Solution (WINNER) — pitch by Dr. Amy Serin, Neuropsychologist & Co-Founder
*Judged by: Ariel Garten, Founder and Chief Evangelism Officer at InteraXon; Charlie Hartwell, Operating Partner at Bridge Builders Collaborative; Kathleen Herath, Associate Vice President Health & Productivity at Nationwide Insurance; Lisa Neuberger, Managing Director of Strategy + Innovation at Accenture Corporate Citizenship
*Álvaro Fernández, CEO and Editor-in-Chief of SharpBrains
*Sarah Lenz Lock, Senior Vice President for Policy at AARP and Executive Director of the Global Council on Brain Health (GCBH)
*Dr. April Benasich, Director of the Baby Lab at the Rutgers Center for Molecular and Behavioral Neuroscience
*Chaired by: Dr. Cori Lathan, Co-Chair of the World Economic Forum’s Council on the Future of Human Enhancement
Slidedeck supporting session held during the 2017 SharpBrains Virtual Summit: Brain Health & Enhancement in the Digital Age (December 5-7th). Learn more at: https://sharpbrains.com/summit-2017/
Hypothesis Testing: Central Tendency – Non-Normal (Compare 2+ Factors)Matt Hansen
An extension on hypothesis testing, this lesson reviews the Mood’s Median & Kruskal-Wallis tests as central tendency measurements for non-normal distributions.
Data Science for Business Managers - An intro to ROI for predictive analyticsAkin Osman Kazakci
This module addresses critical business aspects related to launching a predictive analytics project. How to establish the relationship with business KPIs is discussed. A notion of data hunt, for planning & acquiring external data for better predictions is introduced. Model quality and it's role for ROI of data and prediction tasks are explained. The module is concluded with a glimpse on how collaborative data challenges can improve predictive model quality in no time.
Better Living Through Analytics - Strategies for Data DecisionsProduct School
Data is king! Get ready to understand how a successful analytics team can empower managers from product, marketing, and other areas to make effective, data-driven decisions.
Louis Cialdella, a data scientist at ZipRecruiter, shared some case studies and successful strategies that he has used at ZipRecruiter as well as previous experiences. The purpose of this data talk was to enlighten people on how to make sure that analysts can successfully partner with other departments and get them the information they need to do great things.
[Agile Portugal 2014] - Agile Decision Support System for Upper Management - ...Pedro Henriques
The "life" of a company is the sum of its decisions. Hasty decisions can be disastrous, late decisions could mean loss of opportunity, but these decisions have to be made. Therefore it is important to have a tool that assists in decision making.
The main focus of this talk is to show the importance of support to decision making, understand the importance of risk and impediment management in agile environments and to present an approach to identify actions to mitigate risks and solve impediments based on Agile Community Knowledge.
This talk includes an example of a simple tool from the company SCRAIM. You can also check the video goo.gl/SBqAW4
Strategy Deployment: Accelerating Improvement Through Focus and AlignmentTKMG, Inc.
Recorded webinar: http://slidesha.re/18ouqPy
Subscribe: http://www.ksmartin.com/subscribe
Karen’s Books: http://ksmartin.com/books
Businesses routinely attempt to accomplish too much and quickly lose focus when the next fire erupts or a new "shiny ball" appears.
Strategy Deployment (also known as hoshin kanri and policy deployment) is a highly effective means for creating and maintaining focus on the projects and improvement activities that lead to outstanding business performance.
Though Strategy Deployment (SD) was developed in the 1950's, it's experiencing a resurgence due to the growing popularity of Lean practices and SD's vital role in creating the climate for success.
In this webinar, you'll learn how to:
• Prioritize the laundry list of what you COULD focus on as an organization and create a "must do, can't fail" list of what you WILL focus on.
• Gain organization-wide alignment, the key to successful plan execution.
• Manage the plan to keep distractions at bay and generate the level of results all organizations are capable of.
In short, you'll learn how to accomplish meaningful improvement in a way that aligns rather than divides, and puts improvement in its rightful place as an integral part of achieving overarching business goals.
Are you ready for Data science? A 12 point testBertil Hatt
Presentation for the MancML on data readiness.
If you are considering starting to invest in Data science, this is a helpful guide to understand:
- what you need *before* you start looking for a Data scientist
- the skillset and experience that you should be looking for when you do.
Why is Test Driven Development for Analytics or Data Projects so Hard?Phil Watt
Preview of research results for my Master's thesis on Test-Driven Development in Analytics. Prepared for my Term 4 assignment, oral thesis presentation
Propagating Data Policies - A User StudyEnrico Daga
When publishing data, data licences are used to specify the actions that are permitted or prohibited, and the duties that target data consumers must comply with. However, in com- plex environments such as a smart city data portal, multiple data sources are constantly being combined, processed and redistributed. In such a scenario, deciding which policies ap- ply to the output of a process based on the licences attached to its input data is a difficult, knowledge-intensive task. In this paper, we evaluate how automatic reasoning upon se- mantic representations of policies and of data flows could support decision making on policy propagation. We report on the results of a user study designed to assess both the accuracy and the utility of such a policy-propagation tool, in comparison to a manual approach.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
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Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
1. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 1
MGT610
Lecture 8
Stakeholder Perspective:
Prioritizing Needs
2. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 2
Project Value Network
Shareholder
Value
Outcome
Value
Stakeholder
Value
Effort
Value
AHP
3. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 3
Topics and Objectives
• Strategic Thinking: Focusing on what creates
most value for the stakeholders
• Prioritize Customer Needs with AHP
• Deploy Prioritized Customer Needs
• Analyze [only] important relationships in detail
4. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 4
Session Agenda
Stakeholder Perspective:
Identifying Needs for Requirement Definition
1. Perceptions of value lead to expectations
2. Compatibility of expectations as segmentation basis
3. Stable needs but dynamic expectations
4. Describing expectation as a tolerance
5. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 5
3. Project Blitz QFD: The 7 Steps of Blitz QFD
0. Identify the Customers (Previous lecture)
1. Go to Gemba (Previous lecture)
2. Discover Customer Needs (Previous lecture)
3. Structure Customer Needs (Previous lecture)
4. Analyze Customer Needs Structure (Previous lecture)
5. Prioritize Customer Needs (AHP)
6. Deploy Prioritized Customer Needs (MVT)
7. Analyze Essential Tasks in Detail (WBS, FMEA)
6. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 6
Project Blitz QFD: Step 5-7
Analytic
Hierarchy
Process
What needs are
most important?
Hierarchy
diagram Maximum Value
table
How to meet
their needs?
items
tasks
needsneeds
high-value
customer
needs
7MP
tools
high-value
tasks
tasks
Project Task
table
How will we
do it?
FMEA
table
risks
What could
go wrong?
What needs
weren't stated?
high-risk
items
high-value itemspriorities
a
b
c
?
[House of
Quality]
What details
should we know?
7. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 7
AHP: Priorities - Filtering / Selecting / Sorting
Should we focus on all identified customer needs?
We need a method for
– deciding which customer needs to focus on
by using a set of decision criteria
– deciding which to do now (priorities), and
which to do later (posteriorities)
But what are we looking for in a “priority”?
8. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 8
AHP: Different Types of Measurement Scales
scale
empirical
observations example
mathematical
structure
nominal determination of
equality
numbers on
football players
mayinterchange
values
ordinal determination of
rank order
team standings maysquare or
cube values
interval equalityofintervals
or differences
temperature in ° F
or ° C
mayadd a
constantto values
ratio equalityofratios temperature in
° Kelvin
maymultiplyvalues
bya constant
source: S.S. Stevens, Science 103:678
For accurate selection, and for weights you can
multiply by, you must have ratio scale priorities
9. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 9
AHP: Direction to a Solution
What is the simplest way to get ratio scale
priorities?
Even though we don’t have ratio scale
judgments?
inputs AHP outputs
ratio
scale
results
judgments
10. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 10
AHP: The Analytical Hierarchy Process
Developed by Dr. Thomas L. Saaty
– well-tested, with excellent track record
• does not require consensus from participants
– works with quantitative and qualitative data
• produces ratio scale results in all cases
– psychologically “user friendly”
• uses relative judgment (pairwise evaluation)
– forces a detailed understanding of issues
• leads to a common understanding of the decision, and the
rationale for it
11. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 11
AHP: Inputs
How do we get our inputs?
– Pairwise evaluation
“Which one is more?
– Using a relative
judgment scale
“How much more?”
A pairwise evaluation on a
single dimension is the most
accurate judgment you make
Scale
– 9 extreme
– 8
– 7 very strong
– 6
– 5 strong
– 4
– 3 moderate
– 2
– 1 equal
12. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 12
AHP: Basic Template
13. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 13
AHP: Example: Apples with Oranges
Comparing apples and oranges, and other fruit, on
one characteristic: juiciness
– Additional characteristics can be handled the
same way…
14. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 14
AHP: Example: Apples with Oranges - Step1
For a single criteria (at a time)
Compare each pair
1 2 3 4
juiciness rmelon orange pear apple
1 watermelon 1
2 orange 1
3 pear 1
4 apple 1
15. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 15
AHP: Example: Apples with Oranges – Step1
After our first step the matrix looks like the following,
but with different numbers.
1 2 3 4
juiciness rmelon orange pear apple
watermelon 1 2 4 6
orange 1 2 4
pear 1 2
apple 1
16. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 16
AHP: Example: Apples with Oranges – Step2
The second step completes the matrix.
After the second step the matrix looks like the
following, just with different numbers.
1 2 3 4
juiciness rmelon orange pear apple
1 watermelon 1 2 4 6
2 orange 1/2 1 2 4
3 pear 1/4 1/2 1 2
4 apple 1/6 1/4 1/2 1
17. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 17
AHP: Example: Apples with Oranges – Step3
1 2 3 4
juiciness rmelon orange pear apple
1 watermelon 1 2 4 6
2 orange 1/2 1 2 4
3 pear 1/4 1/2 1 2
4 apple 1/6 1/4 1/2 1
1.92 3.75 7.50 13.0
18. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 18
AHP: Example: Apples with Oranges – Step4
1 2 3 4 1 2 3 4 row row
juiciness rmelon orange pear apple normalized columns total avg.
1 watermelon 1 2.0 4 6 0.52 0.53 0.53 0.46
2 orange 1/2 1 2 4 0.26 0.27 0.27 0.31
3 pear 1/4 1/2 1 2 0.13 0.13 0.13 0.15
4 apple 1/6 1/4 1/2 1 0.09 0.07 0.07 0.08
1.92 3.75 7.50 13.00 1.00 1.00 1.00 1.00 4.00 1.000
relative judgment scale:
extreme 9.0 1/9 0.111
8.0 1/8 0.125
very strong 7.0 1/7 0.143
6.0 1/6 0.167
strong 5.0 1/5 0.200
4.0 1/4 0.250
moderate 3.0 1/3 0.333
2.0 1/2 0.500
equal 1.0 1/1 1.000
the
Row
Average of
Normalized
Columns
approximation
19. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 19
AHP: Example: Apples with Oranges – Step5 and
6
1 2 3 4 1 2 3 4 row row
juiciness rmelon orange pear apple normalized columns total avg.
1 watermelon 1 2.0 4 6 0.52 0.53 0.53 0.46 2.049 0.512
2 orange 1/2 1 2 4 0.26 0.27 0.27 0.31 1.101 0.275
3 pear 1/4 1/2 1 2 0.13 0.13 0.13 0.15 0.551 0.138
4 apple 1/6 1/4 1/2 1 0.09 0.07 0.07 0.08 0.299 0.075
1.92 3.75 7.50 13.00 1.00 1.00 1.00 1.00 4.00 1.000
relative judgment scale:
extreme 9.0 1/9 0.111
8.0 1/8 0.125
very strong 7.0 1/7 0.143
6.0 1/6 0.167
strong 5.0 1/5 0.200
4.0 1/4 0.250
moderate 3.0 1/3 0.333
2.0 1/2 0.500
equal 1.0 1/1 1.000
the
Row
Average of
Normalized
Columns
approximation
20. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 20
AHP: Example: Apples with Oranges – Output
• The results:
– accurate
– ratio-scale
– Priorities
– This can be proven
mathematically to be a
ratio scale
ratio-scale
juiciness priorities
1 watermelon 0.512
2 orange 0.275
3 pear 0.138
4 apple 0.075
1.000
What are your fruit ratios?
21. Mgt 610 Strategic Perspectives on Project Management
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AHP: Example: Apples with Oranges – Checking
•How do we know it’s right?
– Sensitivity analysis
• visible process
• “what-if” scenarios
– Judgment consistency
• the inconsistency ratio
(.10 < IR)
• revisit the most
inconsistent judgments
Expert
Choice
ratio-scale exact
priorities calc.
0.512 0.542
0.275 0.303
0.138 0.110
0.075 0.045
1.000 1.000
IR=
0.06
22. Mgt 610 Strategic Perspectives on Project Management
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AHP: Types of Evaluation Criteria
1. Relative judgments (Nominal Scale)
– the most generally applicable
– the most accurate judgment
2. Absolute judgments (Ordinal Scale)
– ranking against a standard scale
– requires experience and expertise
3. Quantitative judgments (Interval Scale)
Measurements or Estimates (numeric quantities)
– bigger is better
– smaller is better
23. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Selecting Projects
Many projects, and a few criteria
– Define the evaluation criteria
• And the values they may take on
– Prioritize the values
– For each criteria, assign values
• And plug in the priority of that value
– Add the priorities, normalize, and rank
24. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 24
AHP: Case 1: Rating projects
Criteria
Risk Reward
Uncertainty
Complexity
Pace
Success
Projects S % rank
Project 1
Project 2
Project 3
Project 4
25. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Criteria Uncertainty
Technological Uncertainty
Uncertainty
low
medium
high
super-high
normalized columns S %
low 1 2 3 5 0.49 0.46 0.55 0.45 1.95 0.49
medium 1/2 1 1 3 0.25 0.23 0.18 0.27 0.93 0.23
high 1/3 1/1 1 2 0.16 0.23 0.18 0.18 0.76 0.19
super-high 1/5 1/3 1/2 1 0.10 0.08 0.09 0.09 0.36 0.09
2.03 4.33 5.50 11.00 1.00 1.00 1.00 1.00 4.00 1.00
Take each criteria,
Define the values it can take on
Prioritize those values, with pairwise evaluation
26. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Criteria Complexity
System Complexity (scope)
Complexity
assembly
system
array
normalized columns S %
assembly 1 4 6 0.71 0.75 0.60 2.06 0.69
system 1/4 1 3 0.18 0.19 0.30 0.66 0.22
array 1/6 1/3 1 0.12 0.06 0.10 0.28 0.09
1.42 5.33 10.00 1.00 1.00 1.00 3.00 1.00
Continue for each criteria, and all values
27. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Criteria Pace
And additional criteria would be handled the
same way…
Time frame available for completion
Pace
regular
fast
blitz
normalized columns S %
regular 1 2 4 0.57 0.60 0.50 1.67 0.56
fast 1/2 1 3 0.29 0.30 0.38 0.96 0.32
blitz 1/4 1/3 1 0.14 0.10 0.13 0.37 0.12
1.75 3.33 8.00 1.00 1.00 1.00 3.00 1.00
28. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Criteria Success
Primary success dimension impact (expected)
Success
efficiency
customer
business
future
normalized columns S %
efficiency 1 3 5 7 0.60 0.58 0.68 0.44 2.29 0.57
customer 1/3 1 1 5 0.20 0.19 0.14 0.31 0.84 0.21
business 1/5 1/1 1 3 0.12 0.19 0.14 0.19 0.64 0.16
future 1/7 1/5 1/3 1 0.09 0.04 0.05 0.06 0.23 0.06
1.68 5.20 7.33 16.00 1.00 1.00 1.00 1.00 4.00 1.00
After the “risk” or “cost” criteria,
Here is a “reward” or “benefit” criteria…
Now fill the the appropriate values in the table
29. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Rating projects
Criteria
Risk Reward
Uncertainty
Complexity
Pace
Success
Projects S % rank
medium system blitz customer
Project 1
low array fast business
Project 2
super assembly regular future
Project 3
high system blitz efficiency
Project 4
0.00
30. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Project Priorities
Criteria
Risk Reward
Uncertainty
Complexity
Pace
Success
Projects S % rank
medium system blitz customer
Project 1 0.23 0.22 0.12 0.21 0.79 0.18 4
low array fast business
Project 2 0.49 0.09 0.32 0.16 1.06 0.24 3
super assembly regular future
Project 3 0.09 0.69 0.56 0.06 1.39 0.32 1
high system blitz efficiency
Project 4 0.19 0.22 0.12 0.57 1.11 0.25 2
4.34 1.00
31. Mgt 610 Strategic Perspectives on Project Management
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AHP: Case 1: Many ways to apply …
Criteria
Risk Reward
Uncertainty
Complexity
Pace
Success
Projects S % rank S % rank
medium system blitz customer
Project 1 0.23 0.22 0.12 0.58 0.17 3 0.21 0.21 0.21 2
low array fast business
Project 2 0.49 0.09 0.32 0.90 0.27 2 0.16 0.16 0.16 3
super assembly regular future
Project 3 0.09 0.69 0.56 1.33 0.40 1 0.06 0.06 0.06 4
high system blitz efficiency
Project 4 0.19 0.22 0.12 0.53 0.16 4 0.57 0.57 0.57 1
3.34 1.00 1.00 1.00
Risk Reward
May separate risk and reward… and add more
criteria
32. Mgt 610 Strategic Perspectives on Project Management
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Case 2: Prioritizing in a Hierarchy
• Many criteria, and few alternatives
– Define the criteria
• Organize into a hierarchy
– Prioritize the criteria hierarchy top-down
• By what method?
– Apply the most important criteria first
• No need to continue once an alternative
dominates the rest
– Check the analysis for sensitivity
33. Mgt 610 Strategic Perspectives on Project Management
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Case 2: Prioritizing in a Hierarchy
alternatives
businessasusual
shutofftheiroxygen
embraceandextend
radicalreengineering
criteria % wt.
SA1
SA2
SA3
SA4
revenue
cost
risk
fun
%
¶
·
¸
¹Î
What project strategy
is to prefer?
What are the criteria?
Here we have an
example of each type
of criteria
(mathematically)
34. Mgt 610 Strategic Perspectives on Project Management
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Case 2: Step 1 Prioritizing the Decision Criteria
Are the decision criteria equal in importance? No!
So prioritize the criteria… by the same method:
Pair wise Evaluation
(importance of criteria to strategy selection) row row
criteria revenu cost risk fun normalized columns total avg.
revenue 1 3 5 7 0.597 0.662 0.536 0.438 2.232 0.558
cost 1/3 1 3 5 0.199 0.221 0.321 0.313 1.053 0.263
risk 1/5 1/3 1 3 0.119 0.074 0.107 0.188 0.487 0.122
fun 1/7 1/5 1/3 1 0.085 0.044 0.036 0.063 0.228 0.057
1.676 4.533 9.333 16.000 1 1 1 1 4 1
Î
35. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 35
Case 2: Step 2 Prioritizing the Alternatives
revenue (projected revenue for alternative) totals
estimated value 100 60 120 80 360
normalized 0.278 0.167 0.333 0.222 1.000
¶
cost (relative cost of alternative) totals
estimated value $100 $120 $110 $140 470
the inverse 0.010 0.008 0.009 0.007 0.035
normalized 0.289 0.241 0.263 0.207 1.000
·
Bigger is Better!
Smaller is Better! => Inverse!
36. Mgt 610 Strategic Perspectives on Project Management
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Case 2: Step 2 Prioritizing the Alternatives
risk (the degreeof strategic risk)
absolute judgment 2 5 3 4 no. of arrows
weight 0.260 0.035 0.134 0.068 0.4969
normalized 0.523 0.070 0.270 0.136 1.000
¸
risk (the degree of risk for alternative) row row
absolute judgment scale: safe some risk bold fool normalized columns total avg.
ô 1 safe 1 3 5 7 9 0.560 0.642 0.524 0.429 0.360 2.514 0.503
ôô 2 some risk 1/3 1 3 5 7 0.187 0.214 0.315 0.306 0.280 1.301 0.260
ôôô 3 risky 1/5 1/3 1 3 5 0.112 0.071 0.105 0.184 0.200 0.672 0.134
ôôôô 4 bold 1/7 1/5 1/3 1 3 0.080 0.043 0.035 0.061 0.120 0.339 0.068
ôôôôô 5 foolhardy 1/9 1/7 1/5 1/3 1 0.062 0.031 0.021 0.020 0.040 0.174 0.035
1.79 4.68 9.53 16.33 25.00 1.000 1.000 1.000 1.000 1.000 5.000 1.000
The absolute judgment requires expertise
37. Mgt 610 Strategic Perspectives on Project Management
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Case 2: Step 2 Prioritizing the Alternatives
(amount of enjoyment in doing alternative) row row
fun busine shut o embrac radica normalized columns total avg.
business as usual 1 1/3 1/5 5 0.109 0.074 0.122 0.227 0.532 0.133
shut off their oxygen 3/1 1 1/3 7 0.326 0.223 0.203 0.318 1.070 0.268
embrace and extend 5/1 3/1 1 9 0.543 0.670 0.608 0.409 2.231 0.558
radical reengineering 1/5 1/7 1/9 1 0.022 0.032 0.068 0.045 0.167 0.042
9.200 4.476 1.644 22.000 1 1 1 1 4 1
¹
38. Mgt 610 Strategic Perspectives on Project Management
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Case 2: Step 3 Final Alternatives Evaluated
businessasusual
shutofftheiroxygen
embraceandextend
radicalreengineering
criteria % wt
SA1
SA2
SA3
SA4
100 60 120 80
0.278 0.167 0.333 0.222
revenue 0.558 0.155 0.093 0.186 0.124
cost
risk
fun
% priorities
count or estimate
local priorities
global priorities
39. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 39
Case 2: Step 3 Final Alternatives Evaluated
businessasusual
shutofftheiroxygen
embraceandextend
radicalreengineering
criteria % wt
SA1
SA2
SA3
SA4
100 60 120 80
0.278 0.167 0.333 0.222
revenue 0.558 0.155 0.093 0.186 0.124
100 120 110 140
0.289 0.241 0.263 0.207
cost 0.263 0.076 0.063 0.069 0.054
2 5 3 4
0.523 0.07 0.27 0.136
risk 0.122 0.064 0.009 0.033 0.017
0.133 0.268 0.558 0.042
fun 0.057 0.008 0.015 0.032 0.002
% 0.303 0.18 0.32 0.197 priorities
count or estimate
local priorities
global priorities
40. Mgt 610 Strategic Perspectives on Project Management
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AHP: More criteria?
important
criteria
applied first
hierarchyof
criteria
alternatives
priorities
priorities
For a large number of
criteria…
We must organize the
Criteria
• Pairwise evaluation
would be too time
consuming…
41. Mgt 610 Strategic Perspectives on Project Management
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AHP: Complex criteria REQUIRE A HIERARCHY
primary secondary tertiary
Secondary 1.1
1.2.1
1.2.2
Secondary 1.2 1.2.3
1.2.4
PRIMARY 2 Secondary 2.1 1.2.4
2.1.1
2.1.2
2.1.3
Secondary 2.2
– Several goals?
– Several
objectives for
each goal?
– Several sub-
objectives for
each objective?
•Three levels is all you
need…
42. Mgt 610 Strategic Perspectives on Project Management
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AHP: Work top down
• First, compare
the primaries
• Then, compare
the secondaries
for the most
important
primary…
primary secondary tertiary
Secondary 1.1
local global
0.09 0.04 1.2.1
1.2.2
Secondary 1.2 1.2.3
local global 1.2.4
0.54 0.27
PRIMARY 2 Secondary 2.1 1.2.4
0.50 local global 2.1.1
0.32 0.16 2.1.2
2.1.3
Secondary 2.2
local global
0.06 0.03
1.00 0.50
43. Mgt 610 Strategic Perspectives on Project Management
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AHP: Branch by branch
primary secondary tertiary local global
Secondary 1.1
local global
0.09 0.04 1.2.1 0.47 0.13
1.2.2 0.32 0.09
Secondary 1.2 1.2.3 0.17 0.05
local global 1.2.4 0.04 0.01
0.54 0.27 1.00
PRIMARY 2 Secondary 2.1 1.2.4
0.50 local global 2.1.1
0.32 0.16 2.1.2
2.1.3
Secondary 2.2
local global
0.06 0.03
1.00 0.50
Then compare the tertiaries for the most
important secondary…
44. Mgt 610 Strategic Perspectives on Project Management
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AHP: Most important criteria
primary secondary tertiary local global rank ?
Secondary 1.1 0.04 5
local global
0.09 0.04 1.2.1 0.47 0.13 1
1.2.2 0.32 0.09 3
Secondary 1.2 1.2.3 0.17 0.05 4
local global 1.2.4 0.04 0.01 9
0.54 0.27 1.00
PRIMARY 2 Secondary 2.1 1.2.4 0.64 0.10 2
0.50 local global 2.1.1 0.21 0.03 6
0.32 0.16 2.1.2 0.10 0.02 8
2.1.3 0.05 0.01 10
Secondary 2.2 1.00
local global
0.06 0.03 0.03 7
1.00 0.50 0.50
45. Mgt 610 Strategic Perspectives on Project Management
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AHP: Results
•We can identify and prioritize the most important criteria
first
– Before all the criteria are prioritized,
or even identified
– Efficient prioritization!
•Apply those most important criteria to the alternatives
– And stop if one alternative is dominant
– Efficient selection!
46. Mgt 610 Strategic Perspectives on Project Management
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AHP: Focusing on Few Criteria
• Exhaustive evaluation is unnecessary
Requirements Priority
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Requirements
Priority
High value
Requirements
BEST EFFORTS
Low value
Requirements
USUAL EFFORTS
47. Mgt 610 Strategic Perspectives on Project Management
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AHP: Don’t make this mistake
– Criteria not at same
level of detail?
– Priorities on ordinal
or interval scale?
– All criteria applied,
inconsistently, with
an ordinal scale?
• Ordinal x
ordinal = “error:
invalid
operation”
– Add table entries
– Result = garbage
all criteria
applied
alternatives
ordinalpriorities
big list
of
criteria
garbage
48. Mgt 610 Strategic Perspectives on Project Management
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AHP: Summary
• The Analytic Hierarchy Process (AHP)
– How are priority/selection decisions made in
your organization?
– Is the process well-defined and visible?
• is it checked? improved? taught?
– Is it done efficiently?
• Is the math legitimate?
• Is it important, and useful, to be good at rapid,
accurate priorities?
49. Mgt 610 Strategic Perspectives on Project Management
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AHP: Software
• There are several packages available to do the
calculations (including Excel).
– Expert Choice 2000 (www.expertchoice.com)
• Trial version available for free download
• Limited to three levels (you don’t need more for
most analyses)
• Excellent inconsistency and sensitivity analysis
• Good manual and tutorial in full version
• Many decision analysis tools include AHP
50. Mgt 610 Strategic Perspectives on Project Management
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Step 6: Deploy Prioritized Customer Needs
• Now that you know the most important customer needs, you
know:
– What you must do to deliver them?
– How to find the most important contributors
in the other columns on the CVT
• or add them...
• Define the Maximum Value Table
51. Mgt 610 Strategic Perspectives on Project Management
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Step 6: Maximum Value Table
customer voice table customer voice table customer voice table
c us t om er c onc er ns t ec hnic al c onc er ns des ign c onc er ns
customer customer customer technical
segments problems needs requirements functions technology reliability safety
home owner "slips out of my can hold easily dimensions illuminate objectspower saving works in cold no sparks
hand and breaks" switch weather (gas leak)
driver "always dead charges quickly weight protect adjustable focus switch doesn't bright color,
when I need it" components stick glow-in-the-dark
camper "don't bring can carry easily stability transform energyadjustable lens doesn't crackstill works
when I need it" headband when dropped when dropped
On the MVT,
those items that contribute most to satisfying the most
important customer needs, are the maximum value items
52. Mgt 610 Strategic Perspectives on Project Management
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Step 7. Analyze Essential Tasks in Detail
•Analyze Important Relationships in Detail and only to the extent
that is warranted!
– keep the focus on high-value items
– explore [only] to the depth necessary,
• the details of one column, or
• the interactions between two columns
•Redefine the WBS if necessary
•Modify the project risk analysis with FMEA
53. Mgt 610 Strategic Perspectives on Project Management
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Doing Project Blitz QFD
• Don’t stagnate!
– continually improve at QFD, and product development
• get better at the tools & techniques
• refine your process
• become more sophisticated, more comprehensive
– graduate from Blitz QFD, to Comprehensive QFD
54. Mgt 610 Strategic Perspectives on Project Management
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Doing Project Blitz QFD
• Any negative effects?
– Is there any downside to
doing Blitz QFD?
– Will anything else be
worse because you are
doing Blitz?
• Plan how to deal with
negative effects and
anticipated obstacles!
Any anticipated obstacles?
– If you can’t do Blitz QFD,
you can’t do QFD…
• easier, faster, cheaper
– Management may need a
professional overview of
QFD
• benefits
• who’s doing it
55. Mgt 610 Strategic Perspectives on Project Management
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Doing Project Blitz QFD
• Preparation (offline)
– one day: sort out our inputs; clarify what we have; what
we are doing; goals
• Workshop (with full team)
– one day: do Blitz
• Follow up (with selected team members)
– one day: how to fill in the holes we found
56. Mgt 610 Strategic Perspectives on Project Management
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Doing Project Blitz QFD
• Blitz QFD:
– emphasizes on all the basic themes of QFD
– develops good QFD habits,
and avoids bad QFD habits
– demonstrates the power of QFD quickly
– fully upwards compatible with high-powered comprehensive
QFD
– encourages development to a more sophisticated QFD
process
57. Mgt 610 Strategic Perspectives on Project Management
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AHP Homework example: Where to go on
vacation?
• Alternatives?
– Bora Bora
– Orlando
– Paris
– New York
• Criteria?
– Relaxation
– Things to Do
– Cost
– Memories
• Take four alternatives, and apply four weighted
• criteria to them (as a minimum)
58. Mgt 610 Strategic Perspectives on Project Management
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AHP: Example
Vacation Destinations
BoraBora
Orlando
Paris
NewYork
Critieria priority
0.62 0.12 0.20 0.06 local priorities
Relaxation 0.16 0.10 0.02 0.03 0.01 global priorities
0.05 0.21 0.32 0.42 local priorities
Things to Do 0.09 0.00 0.02 0.03 0.04 global priorities
0.06 0.24 0.13 0.57 local priorities
Cost 0.34 0.02 0.08 0.04 0.20 global priorities
0.57 0.10 0.29 0.04 local priorities
Memories 0.41 0.23 0.04 0.12 0.02 global priorities
1.00 0.36 0.16 0.22 0.26 priority 1.000
1 4 3 2 rank
59. Mgt 610 Strategic Perspectives on Project Management
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AHP: Example
Criteria Weight
Relaxation
ThingstoDo
Cost
Memories
normalized columns S
priority
rank
Relaxation 1 3 1/2 1/5 0.120 0.273 0.182 0.079 0.653 0.163 3
Things to Do 1/3 1 1/4 1/3 0.040 0.091 0.091 0.132 0.353 0.088 4
Cost 2 4 1 1 0.240 0.364 0.364 0.395 1.362 0.341 2
Memories 5 3 1/1 1 0.600 0.273 0.364 0.395 1.631 0.408 1
8.333 11.000 2.750 2.533 1.000 1.000 1.000 1.000 4.000 1.000
Relaxation
BoraBora
Orlando
Paris
NewYork
normalized columns S
priority
rank
Bora Bora 1 6 4 8 0.649 0.643 0.696 0.500 2.487 0.622 1
Orlando 1/6 1 1/2 3 0.108 0.107 0.087 0.188 0.490 0.122 3
Paris 1/4 2 1 4 0.162 0.214 0.174 0.250 0.800 0.200 2
New York 1/8 1/3 1/4 1 0.081 0.036 0.043 0.063 0.223 0.056 4
1.542 9.333 5.750 16.000 1.000 1.000 1.000 1.000 4.000 1.000
60. Mgt 610 Strategic Perspectives on Project Management
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AHP: Example
Things to Do
BoraBora
Orlando
Paris
NewYork
totals
estimated number 10 40 60 80 190
normalized 0.053 0.211 0.316 0.421 1.000
4 3 2 1 rank
Cost
BoraBora
Orlando
Paris
NewYork
totals
estimated cost $5,000 $1,200 $2,200 $500 $8,900
the inverse 0.000 0.001 0.000 0.002 0.003
normalized 0.057 0.239 0.130 0.573 1.000
4 2 3 1 rank
61. Mgt 610 Strategic Perspectives on Project Management
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AHP: Example
Now go and construct your own AHP example
using Excel (or download Expert Choice 2000)
Memories
weeks
months
years
lifetime
normalized columns S
priority
values weeks 1 1/4 1/7 1/9 0.048 0.019 0.033 0.070 0.169 0.042
months 4 1 1/5 1/7 0.190 0.075 0.046 0.090 0.402 0.101
years 7 5 1 1/3 0.333 0.377 0.230 0.210 1.151 0.288
lifetime 9 7 3 1 0.429 0.528 0.691 0.630 2.278 0.569
21.000 13.250 4.343 1.587 1.000 1.000 1.000 1.000 4.000 1.000
values applied
BoraBora
Orlando
Paris
NewYork
value lifetime months years weeks
priority 0.569 0.101 0.288 0.042
1 3 2 4 rank