Multi-Criteria Decision Analysis is a decision-making technique that is used to identify the best possible option in a set of choices. It helps organizations make decisions by using both qualitative and quantitative data. It helps to decide which alternative is the best in a set of alternatives.
It is applied by using a set of criteria to rank alternatives and then selecting the alternative that best meets those criteria. The criteria may be weighted as well, which can lead to different preferences for different people. Multi-Criteria Decision Analysis helps organizations make better and more informed decisions. It helps them understand the different options and then identify the best one among them.
It is generally used in the planning phase of projects. Especially for;
- Scope Definition
- Requirements Elicitation
- Optimizing Risk Responses
- Planning Quality Management
- Integrated Change Control
In this type of decision-making, the alternatives are rated on different criteria, and then a ranking is done on these criteria. This technique aims to make an objective comparison between different alternatives and find out the best one among them. This technique has been used for many years in various fields such as engineering, economics, finance, and operations research. It can be applied to any situation where there are more than one factor that needs to be evaluated before taking an action or making a choice.
A basic example of a Multi-Criteria Decision Analysis approach would be if you are considering two products, A and B, and need to decide which one to purchase. You might take into account cost, reliability, availability, and other variables when making your decision. By taking possibilities into consideration, you take a statistical calculation that will bring you to the most feasible decision.
See also: Decision Tree Analysis