W3_A_Using Multiattribute Decision Making with Compensatory and Non-Compensatory Model for Supply of Electricity Tanjung Uban

  1. Problem Definition

From my previous blog posting on Week-2, we using Compensatory Model for select the best choice for Tanjung Uban Electricity Supply. Dr. PDG suggest to use other technic to select a decision by using Non-Compensatory Model and compare which one is better and fit.

  1. Develop the Feasible Alternative

There are 3 alternatives in the supply of electricity at oil and gas storage facilities in Tanjung Uban, among others :

  1. Using direct electricity produced by PLN (State Own Electricity Company).
  2. Using gas turbine with feed from gas flare utilization.
  3. Using power generator with diesel fuel

Multiattribute Decision Making with Non-Compensatory Model will be made to choose the electricity supply option in Tanjung Uban. 

  1. Development of The Outcome for Alternative

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

Below on Tabel-1 is the comparison for alternative :

Tabel-1 Data Alternative

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

Tabel-2 Checking Pairwise Comparisons of each attibuttes

After that we do satisficing for checking dominance among alternatives, it shown on tabel-3.

Tabel-3 Check for Dominance Among Alternatives

4. Selection Criteria

Alternative with highest dimensionless value will be selected

  1. Analysis and Comparison of the Alternative.

Next step is analyzing by orinal ranking of attibutes, it shown on tabel-4

Tabel-4 Ordinal Ranking of Attributes

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

Tabel-5 Application of Lexicography

Regarding to Tabel-5 it can explain alternative B (Using Gas Turbine for Electricity Generation) can be choose as the best option as Cost basis. if alternative A can reduce cost/tariff electricity per kWh it can be choosed because Reliability as basis.

Compare with my previous blog posting by using Compensatory Model it same result with Non-Compensatory Model because Alternative B or using Gas Turbine selected for the best and fit decision.

  1. Selection of the Preferred Alternative.

By using 2 technic Compensatory and Non-Compensatory Model it’s shown Alternative B or Using Gas Turbine is prefered to choose. But Compensatory Model more prefered to used, because it calculated with quantitative technic, it’s different with Non-compensatory using qualitative. People with high level management more comfortable to make a decission by using numbers because qualitative result it’s hard to explain and near to be subjective.

  1. Performance Monitoring and the Post Evaluation of Result.

For sharp the result, people with high experience on Electricity Generation must be involve to make more independece opinion put in this decission proses step by step.


  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. W11_AL_Platform Decommissioning(2014, May). Retrieved from : https://kristalaace2014.wordpress.com/2014/05/06/w11_al_platform-decommissioning/#more-1340
  3. W3_HI_Decision Making Considering MultiAttributes (2015, March). Retrived from : https://garudaaace2015.wordpress.com/2015/03/10/w3_hi_decision-making-considering-multi-attributes/
  4. MODULE 10-3 – MANAGING CHANGE – THE OWNER’S PEREPCTIVE(2015, December). Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective



2 thoughts on “W3_A_Using Multiattribute Decision Making with Compensatory and Non-Compensatory Model for Supply of Electricity Tanjung Uban”

  1. OUTSTANDING posting, Pak Ardi!!! Looks like you’ve started to master how to use our 7 step process. Step 4 was perfect this week as were the rest of the steps.

    Cannot ask for anything more from you than this. Great job!!

    Just remember that because you used both Non-compensatory and compensatory models, you are now entitled to claim credit for both problems from Chapter 14 in Engineering Economy. In other words, by working smart and showing me that you know how to use the tools/techniques from Engineering Economy, instead of doing the problems that were assigned to you from the book, you can SUBSTITUTE these two blog postings in place of those problems and claim credit for them.

    Just be careful how you allocate your hours charged against both the Blog Project and the Questions project, otherwise you will end up with incorrect SPI and CPI values showing up.

    Keep up the really great work and looking forward to your W4 blog posting PLUS don’t forget that the INTRODUCTION to your PAPER is due this week as well.

    Dr. PDG, Jakarta


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