W4_YE_Multiattributes Compensatory Model_revise on ranking

1.    Problem recognition

As required by PDG last week that I need to revise the rank of the paper topic, put the overhead allocation as the very high rank. Therefore I prepare the revision in this week. The problem recognition is the same, how to select paper topic for AACE, which need to submit 2,500 minimum word technical paper to AACE as part of requirement for registration to CCC exam.

2.  Feasible Alternatives

There are three alternatives of topic that I would like to choose:

1. Risk management process in entire project stage of offshore oil and gas project.
2. Implementation of overhead cost allocation method in Project Department of oil and gas company.
3. Cost Controlling Using Earned Value Analysis in Oil and gas company

3.  Development the outcomes of each alternatives

To decide which paper topic should be choosed I use Compensatory models. In this method, the values for all attributes must be converted to a common measurement scale such as dollars or utilities¹. Compensatory models consist of 2 model, as follow:

• Nondimensional Scaling:
  • Nondimensional scaling converts all attribute values to a scale with a common range (e.g., 0 to 1, 0 to 100).  Otherwise, attributes will contain implicit weights.
  • All attributes should follow the same trend with respect to desirability; most preferred values should be either all small, or all large.
  • Assessing each alternative can be as simple as adding the individual scaled attribute values.

• The Additive Weighting Technique, allows some attributes to be more “important” than others:
  • An ordinal ranking of the problem attributes yields attribute weights that can be multiplied by the nondimensional attribute values to produce a partial contribution to the overall score, for a particular alternative.
  • Summing the partial contributions results in a total score for each alternative, which are then compared to select the “best” one.

4.  Criteria Selection

There are 5 criterias/attributes as per below table:

5.  Analysis and comparison of the alternatives

1. Nondimenional Scaling

First, converting original data to nondimensional ratings and then select the highest total nondimensional value.

Tabel 1. Nondimensional Scaling

The results would be shown in Table 2 below, the selected paper topic is the highest value is 4.5 for overhead allocation topic.

2. The Additive Weighting Technique

First, relative weights are assigned to each attribute according to its ordinal ranking and then multiplied by the nondimensional attribute values, below table represent the calculation and the result of this model.

The highest value is 0.90 represent of Overhead Allocation topic, therefore Overhead Allocation topic is determined as the best topic.

6. Selection of the preferred alternatives

By applying two tools and techniques in the paper selection by using Compensatory model of multi attribute decision, the preferred  alternative is Overhead Allocation topic.

7. Monitoring and evaluation of the result

After select the preferred alternative, I very confident to choose Overhead Allocation as paper topic, and then continue to prepare Table of content, bibliography and introduction. The first draft is ready to submit Dr. Paul soon.

References:

Sullivan, William G., Wicks, Elin M. & Koelling, C. Patrick (2012), Engineering Economy 15th Edition, 560-566, Singapore: Prentice Hall, Inc.

Bassard, M. & Riter, D. (2010), The Memory Jogger 2nd Edition, Canada, GOAL/QPC.

Multiple Criteria Decision making, retrieved Feb 2013 from http://www.eolss.net/Sample-Chapters/C02/E6-05-06-05.pdf

Noncompensatory method, retrieved Feb 2013 from http://srmo.sagepub.com/view/multiple-attribute-decision-making/n3.xml