W3_AI_Selecting The Best Gas Supply Scheme for X Project Using Non-Dimensional Scaling Technique

  1. Problem Definition

My Company in initiation stage to fulfill gas needs of x area. There are 3 (three) alternative gas supply scheme, which can be analyzed to meet the company objective. Board of Director has been develop 7 (seven) mandatory parameter to select the best gas supply scheme. Hence a method is needed to accommodate all mandatory parameter, Multi-Attribute Decision Making method would be applied.

 

  1. Identify the Possible Alternative

3 (three) alternative gas supply facility to fulfill gas needed of x area, as follow:

  1. Offshore regasification facility
  2. Gas pipeline
  3. Landbase regasification facility

Because of the selected facility must be accommodating all the parameter that have been determined by Board of Director, then non-compensatory approach shall be chosen to select the best alternative in view of the full dimensionality.

 

  1. Development of The Outcome for Alternative

Non-compensatory approach consists of 4 different techniques:

  1. Dominance
  2. Satisficing
  3. Disjunctive Reasoning
  4. Lexicography

This technique is use to select the best alternative by comparing an attribute –by-attribute.

Table 1. Parameter Objective

Using non-compensatory approach, all of 3 (three) alternative gas supply will be ranked to get the most optimal alternative.

 

  1. Selection Criteria
  • Dominance

Table 2. Alternative Dominance

From table (2) above, Offshore Regasification Facility dominates for all categories, with the only contenders would be Pipeline A. While, Landbase Regasification Facility cannot compete in all an attributes with offshore Regasification and pipeline A.

  • Satisficing

Table 3. Alternative Satisficing

The minimum and maximum acceptable value for alternative has been described in table (3) above. Maximum acceptable value was adjusted by the company target, with baseline MARR 10% and project on-stream Q2 2019.

This step to weed out any outliers, and also serves to look at only the alternative are marginally acceptable, eliminating the ability to look extremes which may prove to be acceptable trade off.

  • Disjunctive Reasoning

Table 4. Attribute Disjunctive

The attribute ranking base on importance scale are Social Risk > Permit Duration > Capex > Location > Delay Potential > Project Duration > Optimize Existing Asset.

This step is serves to determine attribute ranked in order of importance, by means of compare between each possible attribute combination.

  • Lexicography

Table 5. Alternative Lexicography

Using the ordinal ranking of attribute, in terms of social risk (1st rank) the best alternative is Offshore Regasification Facility, with another alternative which is even close would be Pipeline A and follow by Landbase Regasification Facility as the last alternative rank.

 

  1. Analysis & Comparison of Alternative

Base on the attribute, comparison for all alternatives would be defined, as follow:

Table 6. Alternative Comparison

  1. Selection of the Preferred Alternative

The best alternative was described in the analysis above, offshore regasification facility would be the best supply gas scheme to be proposed to Board of Director.

This alternative has considered all parameter objective required by BoD, while the only one cons should be mitigated by the planning team.

 

  1. Performance Monitoring and The Post Evaluation of Result

The cons condition shall be monitor and manage on the planning and execute stage to reduce the risk. Planning and project team must be identifying the activity which will give impact to offshore regasification facility construction.

Reference:

  1. Planning Planet (2017). Multi Attribute Decision Making.

Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective

  1. Sullivan, G. W. (2014). Engineering Economy 16th Chapter 14 – Decision Making Considering Multiattributes, pp. 603-608.
  2. Dhanu, H. U. (2017). 1_UDS_Choosing a New Fuel Terminal Location in Dumai Using Additive Weighting Technique in Multi-Attribute Decision Making.

Retrieved from http://emeraldaace2017.com/2017/08/09/w2-1_uds_choosing-a-new-fuel-terminal-location-in-dumai-using-additive-weighting-technique-in-multi-attribute-decision-making/

 

 

5 thoughts on “W3_AI_Selecting The Best Gas Supply Scheme for X Project Using Non-Dimensional Scaling Technique”

  1. Good job, Bu Irene, you did really great on steps 1, 2, 3, 6 and 7, but you are still confusing Steps 4 and 5. Step 4 should only contain a simple statement that “The option which scores the highest using Non-compensatory Multi Attribute Decision Making will be selected”.

    Then what you’ve show in Step 4 should be MOVED to step 5. From that point on, you did a great job.

    Remember that because you are working SMART, not HARD, by showing us that you know how to use non-dimensional Multi-Attribute Decision Making models, you can now claim credit for ONE problem from Chapter 14 in Engineering Economy. Just be careful to think through how you should allocate your TIME ALLOCATION. You need to SPLIT your hours between the Blog Project and the Questions Project otherwise you are going to get strange looking SPI and CPI values.

    Keep up the good work and remember that your INTRODUCTION to your paper is due this week….

    BR,
    Dr. PDG Jakarta

     
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