W9_Khalid Almamari_Non Compensatory Model


1. Problem Definition:

This blog has a reference of the previous W6 blog in which Grid Analysis had been chosen to figure out the alternative in investment. Using the same tender evaluation, Non Compensatory models is examined to select the best alternative and compare with previous blog’s result.

2. Development of Feasible Alternatives:

Based on the tender applicants, we have identified the three companies which meet the Mandatory Requirements in our technical evaluation criteria provided by our company tender prime document. The three companies are A Company, B Company and C Company.

3. Development of the outcome for alternative:

Attributes:

  1. Experience in Oil & Gas.
  2. Experience in same assignment.
  3. Key personnel.
  4. Methodology.
  5. Schedule.
  6. In-country value.
  7. Office in Oman or not.

 4. Selection Criteria

These 3 consultants will be again evaluated as per set criteria in item 3 above; Experience in Oil & Gas, Experience in same assignment, Key personnel, Methodology, Schedule, In-country value and finally their office either in Oman or not.

There are four Non-compensatory models to be tested as following:

  1. Dominance
 A Company  vs B Company A company vs C Company B Company vs C Company
Experience in Oil & Gas Better Better Better
Experience in same assignment Worse Worse Worse
Key personnel Better Better Better
Methodology Better Equal Worse
Schedule Better Better Equal
In-country value. Better Better Equal
Office in Oman or not Better Better Better
Dominance NO NO NO

 

From the table above, we know that each attribute has no dominance among another. So, we can move on to Satisfying (method of feasible range).

 

  1. Satisfying
Minimum Acceptable Maximum Acceptable Unacceptable Alternative
Experience in Oil & Gas 10 years C Company taken-out
Experience in same assignment 5 years None
Key personnel All engineers with degree and more than 10 years experience. C Company
Methodology Very good approach needs to be clarified
Schedule With plan (6 months) C Company
In-country value. Only staff C Company
Office in Oman or not Oman + India C Company

Feasible Ranges for Satisfying.

 

  1. Disjunctive Resolution:
Attribute Rank
Experience in Oil & Gas 6
Experience in same assignment 5
Key personnel 4
Methodology 3
Schedule 2
In-country value. 1
Office in Oman or not 0

Attributes Ranking.

 

  1. Lexicography
Attribute Rank Alternative
Experience in Oil & Gas 6 A Company > B Company> C Company
Experience in same assignment 5 A Company< B Company > C Company
Key personnel 4 A Company >B Company > C Company
Methodology 3 A Company > B Company > C Company
Schedule 2 A Company > C Company > B Company
In-country value. 1 A Company > B Company > C Company
Office in Oman or not 0 A Company > B Company > C Company

Illustrates the application of Lexicography.

5. Analysis and Comparison of the Alternative:

  1. Dominance: In this situation it’s not good enough for decision making purpose as there isn’t any option that dominates another option fully.
  2. Satisfying: Based on the Table, C Company is eliminated from the tender alternatives.
  3. Disjunctive Solution: According to the tender prime document, those are the weights of the attributes.
  4. Lexicography: Using Lexicography model, A Company is selected because of experience that is the top ranked attribute in the tender prime document.

6. Selection of the Preferred Alternative:

A Company is the best alternative among the three alterative companies. It is selected according to the Lexicography model and Experience in Oil and Gas is the top ranked attribute in the tender prime document. If same model have a similar experience, then will go with the second ranked attribute which is Experience in same assignment.

7. Performance Monitoring:

Non-Compensatory Model has proved that it’s a valuable model to be using in the decision making process, beside the Grid Analysis that was used in W6 Blog which supporting the results.

References:

  1. ca, u. (n.d). Non-Compensatory . Retrieved september 2, 2014, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&cad=rja&uact=8&ved=0CGQQFjAJ&url=https%3A%2F%2Fbusiness.ualberta.ca%2F-%2Fmedia%2Fbusiness%2Fdepartments%2Fmbel%2Fdocuments%2Fmarketingseminars%2F2005-06%2Fejw.pdf&ei=XjwHVPX8OY7lauDTgOgB&usg=AFQjCNGDQF1TjSGh8XA3-xbfUyTp9w8CyA&bvm=bv.74115972,d.d2s
  2. edu, e. (n.d). Decision Making method. Retrieved september 2, 2014, from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0CDgQFjAC&url=http%3A%2F%2Fwww.evergreen.edu%2Fbdei%2Fdocuments%2Fdecisionmakingmethods.pdf&ei=1zsHVJKHEsfhaOmmgaAH&usg=AFQjCNHxCw6TDUxrYYdKNisaZThmtwYc2w&bvm=bv.74115972,d.d2s
  3. org, s. (n.d). Non Compensatory Model. Retrieved september 2, 2014, from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0CDkQFjAD&url=http%3A%2F%2Fjournal.sjdm.org%2F81008%2Fjdm81008.html&ei=TjsHVPiyNMjjaOHsgIgG&usg=AFQjCNHG07JIw9lRxJx6toM3Q1jMEmKLBQ&bvm=bv.74115972,d.d2s
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