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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 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 , 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 SL BL HC

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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) = 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 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 W1 matrix X = Si 1/8 1 1/ W2 Su 1/ W3 CR = % matrix x needs revision CR > 10% = Not Consistent

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A. Wahyudi + 21 a12 Sa Si Su Sa W1 matrix X = Si 1/8 1 1/ W2 Su 1/ 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 = How if CR ‘s not consistent

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

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A. Wahyudi + 23 Vertical Calculation PPCLFCDFVEVPVAVBdMaxCIRICR CL FC Consist ent DF SLCLFCDFVEVPVAVBdMaxCIRICR CL FC Consist ent DF Prioritas Lokal CL = Cost Leadership; FC = Focus; DF = Differentiation

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A. Wahyudi + 24 BLCLFCDFVEVPVAVBdMaxCIRICR CL FC Consist ent DF HCCLFCDFVEVPVAVBdMaxCIRICR CL FC Consist ent DF Local Priority CL = Cost Leadership; FC = Focus; DF = Differentiation Vertical Calculation

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A. Wahyudi + 25 PPSLBLHC CL PP0.29 CL 0.43 FC SL0.55 FC 0.33 DF BL0.10 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 Na10.252Na Ni Nu Nu841 Respondent 2Respondent 4 X1NaNiNuX1NaNiNu Na153Ni Ni Nu CSR40.331

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A. Wahyudi + 27 Aggregate Matrix X1NaNiNu Na Ni Nu 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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