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W4_Eman_Using Multiattribute Decision Making with Compensatory and Non-Compensatory Model for Supply OF TARIFF METERS.




1.    Problem Definition

In our sector, the Electrical Energy meters are very important, because it is the basis of our payment to the Power Plant (Generators). To insure it is the right meter to be installed in the plant. I will use Non-Compensatory Model and compare which one is better and fit.

2.    Identify the Feasible Alternative

We are looking at 3 alternatives in the supply of tariff meters for the Energy in Oman market:

1.    Endress+Hauser

2.    SIEMENS

3.    EMERSON

Multiattribute Decision Making with Non-Compensatory Model will be made to choose the meters supply option in one of our Power Plant. 

3.    Development of the Outcome for Alternative

Comparative analysis is conducted for each proposed alternative to see the impact of cost, reliability, efficiency, and availability.

Below on Tabel-1 is the comparison for alternative:


Tabel-1 Data Alternative

Parameters
Energy Meters Alternatives
Endress+Hauser
(Alternative A)
SIEMENS
(Alternative B)
EMERSON
(Alternative C)
Reliability
Medium
High
Medium
Cost
2600,13 USD
4420,22 USD
3900,20 USD
Efficiency
Low
High
Medium
Availability
Within 4 months
Within 3 months or less
Within 2 months



to summary information on table-1 and make a paired comparison all attributes must be inspected, it shown and describe on tabel-2

Tabel-2 Checking Pairwise Comparisons of each attributes

Parameters
Energy Meters Alternatives
Endress+Hauser
(Alternative A)
SIEMENS
(Alternative B)
EMERSON
(Alternative C)
Reliability
Medium
High
Medium
Cost
2600,13 USD
4420,22 USD
3900,20 USD
Efficiency
Low
High
Medium
Availability
Within 4 months
Within 3 months or less
Within 2 months
    
Best Value
Worst Value
 We decided: High › Medium › Low, it means High is more preferred. (only for Efficiency and Reliability.
We decided: Low › Medium › High, it means Low is more preferred. (only for Availability and Cost)

After that we do satisficing for checking dominance among alternatives, it shown on tabel-2.

Tabel-3 Check for Dominance Among Alternatives

Attribute
Check for Dominance Among Alternatives
Alt. A vs Alt. B
Alt. A vs Alt. C
Alt. B vs Alt. C
Reliability
Worst
Equal  
Better
Cost
Better
Better
Worst
Efficiency
Worst
Worst
Better
Availability
Worst
Worst
Worst
Dominance
No
No
Yes



4.    Selection Criteria


Alternative with highest dimensionless value will be selected 


5.    Analysis and Comparison of the Alternative



Next step is analyzing by ordinal ranking of attributes, it shown on tabel-4

Tabel-4 Ordinal Ranking of Attributes

Result of Pairwise Comparisons

Reliability › Availability
Reliability is more impotent than Availability
Cost › Efficiency
Cost is more important than Efficiency
Efficiency › Reliability
Efficiency is more important than Reliability
Efficiency › Availability
Efficiency is more important than Availability



Attributes
Ranking
Reliability
3
Cost
2
Efficiency
4
Availability
1



By using Lexicography technic, we can define which selection is the best and fit, it shown on Tabel-5.



Tabel-5 Application of Lexicography

Attributes
Ranking
Alternative Ranking
Reliability
3
B › C › A
Cost
2
A › C › B
Efficiency
4
B › C › A
Availability
1
C › B › A



Regarding to Tabel-5 it can explain alternative B (SIEMENS) can be choose as the best option as Efficiency basis. if alternative C can enhance Efficiency, it can be chosen because Cost as basis.



6.    Selection of the Preferred Alternative

By using 2 technics Compensatory and Non-Compensatory Model it’s shown Alternative B or Using SIEMENS is preferred to choose.



7.     Performance Monitoring and the Post Evaluation of Result

It is recommended to see the market and the updates in technology very often and do the same analysis and see the result.



References



1.    Sullivan, G. W., Wicks, M. E., &Koelling, C. P.(2014). Engineering economy 16th Edition. Chapter 14 – Decision Making Considering Multiattributes., pp.559-608.



2.    Decision Making Considering MultiAttributes (2015, March). Retrived from : https://garudaaace2015.wordpress.com/2015/03/10/w3_hi_decision-making-considering-multi-attributes/







Comments

  1. Dr. PDGNovember 21, 2017 at 5:20 AM

    AWESOME Eman... (But are you SURE that "Reliability is more impotent than Availability"??) Better check that one out again..... ;-)

    Really you did a great job on this analysis. Looking forward to seeing your COMPENSATORY example, with the note to be sure to compare what kinds of SCALES each of these methods produces http://www.mnestudies.com/research/types-measurement-scales and what does that mean about how you can use each method to the fullest?

    BR,
    Dr. PDG Jakarta

    ReplyDelete

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