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A. Wahyudi + 1 AHP ANALYTICAL HIERARCHY PROCESS AHP ANALYTICAL HIERARCHY PROCESS Rediscussed by A. Wahyudi Atmoko

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A. Wahyudi + 2 Question when Using AHP? 1.What is the problem fitting for AHP? 2.What is the AHP model? 3.How to collect & analysis data? 4.What’s the AHP result? 5.Overview. 6.Case exercise.

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A. Wahyudi + 3 Thomas L. Saaty

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A. Wahyudi + 4 Did you ever find these problem? Planning & Strategy Development Planning & Strategy Development Resources Allocation Resources Allocation Conflict Resolution Conflict Resolution Cost & Benefit Analysis Cost & Benefit Analysis Group Decision Making Group Decision Making Forecasting Forecasting Etc. Etc.

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A. Wahyudi + 5 When you face those problems, what factors do you have to look before deciding a decision? How many alternatives are available in your decision making? How do you choose an alternative among others?

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A. Wahyudi + 6 AHP Synthesis Deductive & Inductive Thinking Synthesis qualitative information & numerical processing using matrix manipulation from ordinal scale.

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A. Wahyudi + 7 AHP Synthesis Deductive & Inductive Thinking Synthesis qualitative information & numerical processing using matrix manipulation from ordinal scale. and

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A. Wahyudi + 8 Case XYZ University plans to develop organization strategy. Few factors are believed will affect the organization strategy, namely: 1)Purchasing power for post graduate declines. 2)Skilled labors are more needed. 3)The best of brand name & campus location. 4)High competition in D3 program Which strategy should be choose among these alternative, namely: 1)Cost Leadership 2)Focus 3)Differentiation

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A. Wahyudi + 9 Hierarchy Purchasing Power 0.29 Skilled Labors 0.55 Brand Name & Location 0.10 High Competition 0.06 Cost Lead. 0.43 Focus 0.33 Differentiation 0.24 XYZ UNIVERSITY STRATEGY DEV. FOCUS: CRITERIA: ALTERNATIVES:

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A. Wahyudi + 10 Focus: Fakcor: Akcor: Goal: Alternatives: STRATEGI PENGEMBANGAN SDM MELALUI PELATIHAN SDMteknologimanajemen pemilikTenaga kerjapimpinandepnaker Peningkatan produktivitas Peningkatan omzet Pengemb. karir Agen pembangunan materimetodapelaksanaan Tindak lanjut konsultan (Sumber: Syamsul Maarif, 2005) Hierarchy

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A. Wahyudi + 11 Focus: Scenario: Factor: Alternatives: KEPUTUSAN KEUANGAN PesimistikStatus QuoOptimistik Peningkatan Diversivikasi Potensi Pertumbuhan Posisi Pasar Yg Kuat Kebebasan dr Ekonomi Internl Proyek AProyek BProyek CProyek D Fiskal Hierarchy

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A. Wahyudi + 12 Steps in AHP Focus System Identification Deductive Inductive Design Hierarchy Survey: (Individual Matrix) CR fit Calculate Aggregate Matrix Vertical Calculation Horizontal Calculation Choose Priority Yes A Revision No A

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A. Wahyudi + 13 Value Remarks 1 3 5 7 9 2, 4, 6, 8 reciprocal A is as important as B A is more important than B A is clearly more important than B A is almost absolutely more important than B A is absolutely more important than B Value in between If i element has a value (one among values above) when compared with j element, so j element has the opposite values of i element. Ordinal Scale

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A. Wahyudi + 14 Individual Matrix USDPPSLBLHC PP11/346 SL3157 BL1/41/512 HC1/61/71/21 Interpretation: PP = 4 x BLSL = 3 x PP PP = 6 x HCSL = 5 x BL, etc. Questionnaire: Seberapa penting (kali lebih... ) Pk dibandingkan Pm dalam pengembangan universitas? PP = Purchasing Power SL = Skilled Labors BL = Brand Name & Location HC = High Competition USD = XYZ UNIVERSITY STRATEGY DEV.

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A. Wahyudi + 15 Horizontal Calculation Priority Value USDPPSLBLHC VEVPVAVB PP 10.33461.680.29 1.21 4.15 SL 31573.200.55 2.32 4.18 BL 0.250.2120.560.10 0.40 4.06 HC 0.170.140.510.330.06 0.23 4.08 5.78 16.47

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A. Wahyudi + 16 Step: VE 1 = √ ∏ a ij n J=1 n VE 1 = √(1 x 1/3 x 4 x 6) = 1.68 4 1. Row calculation (VE): Exp.: VP 1 = 1.68/5.78 = 0.29 Exp.: 2. Priority Vector calculation (VP): VP = VE ∑VE Horizontal Calculation

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A. Wahyudi + 17 Find CI & CR 3. Calculate maximum eigen value: Exp.: VA & VB = Intermediary Vector VA = a ij x VP VA 1 = 1(0.29) + 1/3(0.55) + 4(0.10) + 6(0.06) = 1.21 VB = VB 1 = 1.21/0.29 = 4.15 VA VP ð max = a) b) Horizontal Calculation

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A. Wahyudi + 18 ð max = ∑VB n c) ð max = 16.47/4 = 4.12 Exp.: 4. Calculate Consistency Index (CI) CI = ð max - n n-1 Exp.: CI = (4.12-4)/(4-1) = 0.04 a) Horizontal Calculation

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A. Wahyudi + 19 TABLE RI (THOMAS L. SAATY) nRIn 1234567812345678 0.00 0.58 0.90 1.12 1.24 1.32 1.41 9 10 11 12 13 14 15 1.45 1.49 1.51 1.48 1.56 1.59 CR = CI RI b) CR = 0.04/0.90 = 0.04 Exp.: Formulation CR > 10% = Not Consistent Horizontal Calculation

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A. Wahyudi + 20 How if CR ‘s not consistent Exp. : Sa Si Su Sa 1 8 6 0.75 W1 matrix X = Si 1/8 1 1/4 0.07 W2 Su 1/6 4 1 0.18 W3 CR = 11.69 % matrix x needs revision CR > 10% = Not Consistent

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A. Wahyudi + 21 a12 Sa Si Su Sa 1 8 6 0.75 W1 matrix X = Si 1/8 1 1/4 0.07 W2 Su 1/6 4 1 0.18 W3 Vector Priority (W1, W2, W3) = (0.75, 0.07, 0.18) Difference between two absolute values a12 & w1/w2 aij wi/wj a12 w1/w2 = 0.75 = 12 0.07 How if CR ‘s not consistent

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A. Wahyudi + 22 a12 Sa Si Su Sa 1 12 6 0.78 Si 1/12 1 1/4 0.05 Su 1/6 4 1 0.16 Revision CR = 5% Consistent How if CR ‘s not consistent

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A. Wahyudi + 23 Vertical Calculation PPCLFCDFVEVPVAVBdMaxCIRICR CL10.2520.790.19 0.58 3.01 0.00530.01 FC4162.880.70 2.11 3.010.58 Consist ent DF0.50.1710.440.11 0.32 3.01 4.119.03 SLCLFCDFVEVPVAVBdMaxCIRICR CL1532.470.65 1.95 3.00 0.00230.00 FC0.210.50.460.12 0.37 3.000.58 Consist ent DF0.33210.870.23 0.69 3.00 3.809.01 Prioritas Lokal CL = Cost Leadership; FC = Focus; DF = Differentiation

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A. Wahyudi + 24 BLCLFCDFVEVPVAVBdMaxCIRICR CL10.330.130.350.08 0.24 3.02 0.00930.02 FC310.250.910.21 0.62 3.020.58 Consist ent DF8413.170.72 2.16 3.02 4.439.05 HCCLFCDFVEVPVAVBdMaxCIRICR CL10.170.250.350.09 0.26 3.05 0.02730.05 FC6132.620.64 1.97 3.050.58 Consist ent DF40.3311.100.27 0.83 3.05 4.079.16 Local Priority CL = Cost Leadership; FC = Focus; DF = Differentiation Vertical Calculation

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A. Wahyudi + 25 PPSLBLHC CL 0.190.650.080.09PP0.29 CL 0.43 FC 0.700.120.210.64SL0.55 FC 0.33 DF 0.110.230.720.27BL0.10 DF 0.24 HC0.06 Local Priority Global Priority X = Vertical Calculation

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A. Wahyudi + 26 Calculate Aggregate Matrix Respondent 1Respondent 3 X1NaNiNuX1NaNiNu Na10.252Na10.330.13 Ni416 310.25 Nu0.50.171Nu841 Respondent 2Respondent 4 X1NaNiNuX1NaNiNu Na153Ni10.170.25 Ni0.210.5Nu613 0.3321CSR40.331

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A. Wahyudi + 27 Aggregate Matrix X1NaNiNu Na10.510.66 Ni1.9511.22 Nu1.520.821 Aggregate Matrix Formulation: g ij = √ ∏ a ij Remarks: Before calculating aggregate matrix, be sure that individual matrix per respondent is consistent. g ij = √ (0.25 x 0.33 x 5 x 0.17) = 0.51 Exp.: n 4 Calculate Aggregate Matrix

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A. Wahyudi + 28

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