W4_UDS_ Non-Compensatory Method for Tank Truck Builder Selection

  1. Problem Evaluation

There are 5000 tank trucks operated around Indonesia, this tank truck are bought in each region or area. We have a new strategy to buy it centrally because it would be cheaper if we buy more and it would easier in procurement processing and after sales service guarantee. So to do this strategy we have to choose one tank truck builder.   

  1. Development of feasible alternatives

There are three tank truck builders in our vendor list as a candidate to run this plan:

  • PT Meco Inoxprima (Meco)
  • PT Aweco Indosteel Perkasa (Aweco)
  • PT Patria Focal (Patria)
  1. Development the outcome for each alternative

To choose the best tank truck builder I am using Non-Compensatory Method. This method can be implemented for select the best alternative with certain attribute that are independent and the one attribute cannot predict any of the others. Four Non-compensatory methods will be analyzed:

  • Dominance
  • Satisficing
  • Disjunctive resolution
  • Lexicography

Each model is prepared to decide on the best alternative. 

  1. Selection of criteria

There are four attribute to compare in each method to get best alternative:

  • Product Price
  • Product Endurance
  • Pant Location
  • After sales service

We will choose alternative in the highest rank of all method to get the best one. 

  1. Analysis and comparison of the alternative

Each alternative are compared with four attribute are show below:

5.1 Dominance Method

We compare all alternatives each other based on four attributes

Table 1. Dominance Result

5.2 Satisficing Method

Based on minimum to maximum range acceptable value there is no unacceptable alternative because they come from vendor list. All vendor list have been selected before.

Table 2. Satisficing Result

5.3 Disjunctive Reasoning Method

We compare all attribute each other based on important value to determine what is the most important attribute. Price and Plant location have same important score, but based on pair wise comparison price more important so it put in the higher rank.

Table 3. Disjunctive Reasoning Result

5.4 Lexicography Method

Based on attribute rank ordering all alternative compare each other.

Table 4. Lexicography Result

  1. Alternative selection

All the methods show Meco is dominating over other alternative, so we will run the plan with Meco as tank truck builder.

  1. Performance monitoring & Post Evaluation Result

Each method is showing possible alternative with different ways and maybe different result. If there is no dominant alternative among all method, we can choose the optimum one or do the next level comparison method like Compensatory Method.

References

  1. Planning Planet. (2017). Multi-Attribute Decision Making. Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective Figures 8-14
  2. Sullivan, G. W., Wicks, M. E., & Koelling, C. P.(2014). Engineering economy 16th Edition. Chapter 14 – Decision Making Considering Multiattributes., pp.559-608.
  3. Norris, G. A., & Marshall, H. E. (1995). Multiattribute decision analysis method for evaluating buildings and building systems. National Institute of Standards and Technology.
 

1 thought on “W4_UDS_ Non-Compensatory Method for Tank Truck Builder Selection”

  1. Awesome case study Pak Dhanu and you did a great job following our 7 step process.
    Just doesn’t get any better than this!!!

    Just be sure to take credit for BOTH your Blog AND 1 question from Engineering Economy, Chapter 14. The big challenge is going to be how to fairly allocate or distribute your time over two projects. It is not fair to charge only ONE project for the time you spent on this, so you are going to have to figure out some way to charge your time to both projects.

    Keep up the good work and looking forward to seeing more real case studies like this one.

    BR,
    Dr. PDG, Perth Airport

     

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