- 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.
- Identify the Possible Alternative
3 (three) alternative gas supply facility to fulfill gas needed of x area, as follow:
- Offshore regasification facility
- Gas pipeline
- 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.
- Development of The Outcome for Alternative
Non-compensatory approach consists of 4 different techniques:
- Disjunctive Reasoning
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.
- Selection Criteria
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.
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.
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.
- Analysis & Comparison of Alternative
Base on the attribute, comparison for all alternatives would be defined, as follow:
Table 6. Alternative Comparison
- 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.
- 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.
- Planning Planet (2017). Multi Attribute Decision Making.
- Sullivan, G. W. (2014). Engineering Economy 16th Chapter 14 – Decision Making Considering Multiattributes, pp. 603-608.
- Dhanu, H. U. (2017). 1_UDS_Choosing a New Fuel Terminal Location in Dumai Using Additive Weighting Technique in Multi-Attribute Decision Making.