Analytic Hierarchy Process

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The Analytic Hierarchy Process (AHP) is an advanced technique for dealing with complex decisions. It provides a comprehensive and rational framework for structuring a problem, for representing its tangible and intangible elements, for relating those elements to overall goals, and for evaluating alternative solutions.

While AHP can be used by individuals working on straightforward problems, it is best suited to situations where teams of people are working on problems that are highly complex, particularly where some of the elements are difficult to quantify.

Developed in the 1970s by mathematician Thomas Saaty, it has been applied worldwide, in a wide variety of decision situations, by government, business and industry, and in other situations such as healthcare and education.

Uses of AHP

The applications of AHP to complex decision situations number in the thousands.[1] It finds its widest use where problems are important and complex, and where a number of competing factors demand consideration. Because many such uses take place at high levels of governments, institutions, and corporations, security and privacy considerations prevent them from being published or publicized. Fortunately, many other uses are reported in the literature. Recent publications have included these, among dozens or hundreds of others:

  • Deciding how best to reduce the impact of global climate change (Fondazione Eni Enrico Mattei)[2]
  • Quantifying the overall quality of software systems (Microsoft Corporation)[3]
  • Selecting university faculty (Bloomsburg University of Pennsylvania) [4]
  • Deciding where to locate offshore manufacturing plants (University of Cambridge)[5]
  • Assessing risk in operating cross-country petroleum pipelines (American Society of Civil Engineers)[6]
  • Deciding how best to manage U.S. watersheds (U.S. Department of Agriculture)[1]

AHP was recently applied to a project that uses video footage to assess the condition of highways in Virginia. Highway engineers first used it to determine the optimum scope of the project, and then to justify its budget to lawmakers.[7]

The process is widely used in countries around the world. At a recent conference on AHP, papers were presented from 19 countries, including the U.S., Germany, Japan, Chile, Malaysia, and Nepal. Topics covered ranged from Establishing Payment Standards for Surgical Specialists, to Raw Materials Procurement in Industry, to Infrastructure Reconstruction in Devastated Countries.[8] AHP was introduced in China in 1982, and its study and use have expanded greatly since then—its methods are highly compatible with the traditional Chinese decision making framework, and it has been used for many decisions in the fields of economics, energy, management, environment, traffic, agriculture, industry, and the military.[9]

How AHP works

Under Construction

Teaching AHP

Though using AHP requires no specialized academic training, leaders and decision makers are often taught about its uses, power, and benefits. AHP is considered an important subject in many academic institutions, including schools of engineering[10] and graduate schools of business.[11] One AHP software company lists over 100 colleges and universities among its clients.[12] AHP is also an important subject in the quality field, and is taught in many specialized courses including Six Sigma and QFD.[13][14][15]

In China, nearly a hundred schools offer courses in AHP, and many doctoral students choose AHP as the subject of their research and dissertations. Over 900 papers have been published on the subject in that country, and there is at least one Chinese scholarly journal devoted exclusively to AHP.[9]

References

  1. ↑ 1.0 1.1 de Steiguer, J.E. (October, 2003), The Analytic Hierarchy Process as a Means for Integrated Watershed Management, in Renard, Kenneth G., First Interagency Conference on Research on the Watersheds, Benson, Arizona: U.S. Department of Agriculture, Agricultural Research Service, at 736-740
  2. ↑ Berrittella, M. (January, 2007), An Analytic Hierarchy Process for the Evaluation of Transport Policies to Reduce Climate Change Impacts, Fondazione Eni Enrico Mattei (Milano)
  3. ↑ McCaffrey, James (June, 2005). "Test Run: The Analytic Hierarchy Process". MSDN Magazine. Retrieved on 2007-08-21.
  4. ↑ Grandzol, John R. (August, 2005). "Improving the Faculty Selection Process in Higher Education: A Case for the Analytic Hierarchy Process". IR Applications 6. Retrieved on 2007-08-21.
  5. ↑ Atthirawong, Walailak (September, 2002), An Application of the Analytical Hierarchy Process to International Location Decision-Making, in Gregory, Mike, Proceedings of The 7th Annual Cambridge International Manufacturing Symposium: Restructuring Global Manufacturing, Cambridge, England: University of Cambridge, at 1-18
  6. ↑ Dey, Prasanta Kumar (November, 2003). "Analytic Hierarchy Process Analyzes Risk of Operating Cross-Country Petroleum Pipelines in India". Natural Hazards Review 4 (4): 213-221. Retrieved on 2007-08-20.
  7. ↑ Larson, Charles D. (January, 2007), Application of the Analytic Hierarchy Process to Select Project Scope for Videologging and Pavement Condition Data Collection, 86th Annual Meeting Compendium of Papers CD-ROM, Transportation Research Board of the National Academies
  8. ↑ Participant Names and Papers, ISAHP 2005, Honolulu, Hawaii (July, 2005). Retrieved on 2007-08-22.
  9. ↑ 9.0 9.1 Sun, Hongkai (July, 2005), AHP in China, in Levy, Jason, Proceedings of the 8th International Symposium on the Analytic Hierarchy Process, Honolulu, Hawaii
  10. ↑ Drake, P.R. (1998). "Using the Analytic Hierarchy Process in Engineering Education". International Journal of Engineering Education 14 (3): 191-196. Retrieved on 2007-08-20.
  11. ↑ Bodin, Lawrence; Saul I. Gass (January, 2004). "Exercises for Teaching the Analytic Hierarchy Process". INFORMS Transactions on Education 4 (2). Retrieved on 2007-08-20.
  12. ↑ List of Expert Choice educational clients. Retrieved on 2007-08-23.
  13. ↑ Hallowell, David L. (January, 2005). "Analytical Hierarchy Process (AHP) -- Getting Oriented". iSixSigma.com. Retrieved on 2007-08-21.
  14. ↑ "Analytic Hierarchy Process (AHP)". QFD Institute. Retrieved on 2007-08-21.
  15. ↑ "Analytical Hierarchy Process: Overview". TheQualityPortal.com. Retrieved on 2007-08-21.

External links

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