W5_Eman_Using Decision Making to compare which better hiring engineers or train the exisiting engineers.
1. Problem
Definition
One
of the clauses in our contract with the Power Plant (Generators), is to demonstrate
black start test, which is running the Gas Turbine on emergency diesel
generator (EDG). Some of the generators hires engineers from outside Oman only
to do this kind of test for short term agreement. This study will be on hiring
engineers or training the existing engineers.
2. Identify the
Feasible Alternative
These
are the 2 alternatives:
1- Hires engineers from outside Oman
2- Training the existing engineers
3.
Development of the Outcome for Alternative
I am
going to apply Multi Attribute Decision Making (MADM) technique to see
which one is better hiring engineers from outside Oman or training the existing
engineers.
Figure1:
Decision Making Process
4.
Selection Criteria
The following criteria will be considered:
1- Salary
2- Time to bring Engineers
3- Cost of hotel
4- Cost of food
5- Duration
6- Experience
7- Quality
|
Hires engineers from outside Oman
|
Training the existing engineers
|
Salary
|
1500 RO per person
|
800 RO per person
|
Time to bring Engineers
|
One month
|
They are in the Plant
|
Cost of hotel
|
90 RO per night
|
Added in his ⁄ her salary
|
Cost of food
|
Lunch ⁄ Diner (20 RO) per day
|
Added in his ⁄ her salary
|
Experience
|
High
|
Low
|
Duration
|
Three days
|
Term of the contract
|
Quality
|
High
|
Medium
|
Table1: Criteria Analysis Comparison
5. Analysis and
Comparison of the Alternative
I
will use Grid Analysis, it is a useful technique for making a decision and
most effective when you have a number of good alternatives, the comparison
of the above criteria are ranked (2=best &/or Yes & 1=worst &/or
No) as shown below:
|
Hires engineers from outside Oman
|
Training the existing engineers
|
Salary
|
1
|
2
|
Time to bring Engineers
|
1
|
2
|
Cost of hotel
|
1
|
2
|
Cost of food
|
1
|
2
|
Experience
|
2
|
1
|
Duration
|
1
|
2
|
Quality
|
2
|
1
|
Total
|
9
|
12
|
Table 2: Weight Assessment
6. Selection of the
Preferred Alternative
The result from
the analysis above show us that, training the existing engineers is preferred. And
it is true because if the operation employees from the plant trained and get knowledge
about this kind of test which happen annually, they add value to the company
and training them will be one time investment. Training can be by bringing
expert.
7. Performance Monitoring and the Post Evaluation
of Result
It is recommended
to maintain the knowledge of the operation employees and update them with technical
issues.
References
1.
Multi-Attribute Decision Making from the GPCCAR http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective
Figures 8-14
2.
Multiple Attribute Decision Making Based on Cross-Evaluation
with Uncertain Decision Parameters https://www.hindawi.com/journals/mpe/2016/4313247/
3.
Grid Analysis. (n.d.). Retrieved
from http://www.mbatools.co.uk/Toolbox/DecisionMaking/gridanalysis.htm
Good job Eman but my challenge to you is did you explore ALL the "Feasible Alternatives"? What about OUTSOURCING the entire O&M to a local contractor?
ReplyDeleteThe biggest risk (and the major weakness) of using the MADM process is if you only look at SOME of the "feasible alternatives" rather than ALL of them, you risk introducing significant bias into your findings or decision.
Other than that, great job using a very useful and powerful tool.
BR,
Dr. PDG, Jakarta
Thank you Dr. PDG
ReplyDelete