Q 504. What are the advantages of using Analytic Hierarchy Process (AHP) over the Pugh Matrix? Are there situations where Pugh Matrix is preferred over AHP? 

 

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The disadvantages of Pugh matrix is following

 

1) First off, it is impossible to determine whether the list of criteria options is exhaustive because it is arbitrary. More likely, some crucial requirements are not met.

2)Additionally, the inclusion of some less crucial criteria may prevent decision-makers from making the best choice. Even with weighing, scoring methodologies have a tendency to equalise all requirements.

3)Finally, you don't base the values you give to your guesses on precise measurements. The decision matrix conveys a sense of objectivity and science without providing any quantitative measurements.

 

The above problems can be largely solved by the Analytic Hierarchy Process (AHP)

1) The consistency of the decision can be checked by AHP

2) By determining weights and priorities with the help of informed judgments, it is possible to compare both qualitative and quantitative data.

3) It can be used for group decision making environments

 

When Pugh Matrix is preferred over AHP?

The Pugh matrix is very fast method over AHP, and it can be easily calculated manually and the AHP is much lengthy process than Pugh matrix. So it can be preferred over AHP where simple decision making is required rather than complex multi criteria decision making.

AHP	Pugh Matrix
AHP enables decision makers to represent simultaneous interaction of many factors in complex unstructured situations.	Pugh matrix is a decision matrix for the comparison of alternatives..
It is multi-criteria decision making tool with wide range of applications.	It compares alternative solutions against the Datum (the current situation) as per the defined criteria.
	It is used to rank multi-dimensional options of an option set.
The basic steps of the AHP Concept Selection Process are:	The basic steps of the Pugh matrix Concept Selection Process are:
1. Brainstorm criteria that is important to the customer. List them down rows of sheet along with their weightages.	1. Brainstorm criteria that is important to the customer. List them down rows of sheet along with their weightages.
2. List the alternatives across columns of sheet Identify the Datum or status quo choice.	2. List the alternatives across columns of sheet Identify the Datum or status quo choice.
3. Begin filling in 1 or 0 or ‘or 1 or ratings in the main area of sheet, based on whether that alternative is better, equivalent, or worse than the datum for that criteria.	3. Begin filling in 1 or 0 or ‘or 1 or ratings in the main area of sheet, based on whether that alternative is better, equivalent, or worse than the datum for that criteria.
4. Prepare the prioritization matrix for each attribute.	4. Look at what the spreadsheet tells is the best choice. We need to do our and the group feel good about that decision? If ok means done and if not then need to look again to verify that something has missed from the set of criteria.
5. Calculate and check the CR, if the CR is equal to or less than it is 10% is ok, CR closer to the zero means better the result.
6. Create the summary table and choose the best alternative.
	Pugh matrix may not a long term strategic decision making like AHP as it selects baseline from the alternatives.
AHP is a long term strategic decision making and gives the best result as per the consistency Ratio.
AHP works on the basis of quantitative and qualitative data (Nominal, Ordinal, Interval and Ratio) and Ratio data is the best for AHP.	Pugh matrix gives alternatives only because it uses discrete data not continuous data so unable to give the logical output as compare to AHP
AHP develops a hierarchy of decision criteria and define the alternative courses of actions.
AHP gives the logical output because it uses continuous data,  It also uses discrete data.
As we must use continuous data for critical matrix and continuous data is always preferred for best decision making.
AHP algorithm is basically having two steps:
1. Determine the relative weights of the decision criteria.
2. Determine the relative rankings (priorities) of alternatives.
AHP is used in complex decision making and group decision making also.
We can check the best alternative by using a single chart (RADAR chart)

 

*Finally AHP is the better than Pugh matrix for comparison and choosing the best alternatives.

 

Pugh matrix can be preferred over AHP in small projects where there is no use of continuous data and discrete data is enough for choosing the alternatives.

Analytic Hierarchy Process (AHP) & Pugh Matrix are two common methods that are leveraged for decision making in situations having multiple alternatives to be compared basis the multiple criteria. Both these methods incorporate quantifiable comparisons amongst alternatives & rely on establishment of a criteria based on subjective comparison.

 

While Pugh Matrix is good at optimizing & eliminating low quality alternatives, AHP gets an edge as it performs better when it comes to forcing a decision in cases where there is lot of uncertainty & disagreement. 

 

Below are some limitations of Pugh Matrix which can be mitigated through AHP:-

 

• The only comparison that is happening is with the datum or the base alternative, however there is no pairwise comparison happening between different criteria which is being done in AHP where we performing a pairwise comparison amongst the criteria.
• Also when evaluating alternatives we are only using a 3 point scale i.e. +, -, s which provides limited granularity as it is leveraging attribute data while AHP leverages ratio scale data i.e. 1,2,3,4,5,6,7,8,9,1/2,1/3,1/4,1/5,1/6,1/7,1/8,1/9 which provides a much granular pairwise comparison amongst the criteria.
• There is an element of bias when it comes to assigning the importance ratings (usually on a scale of 1-5) as these tend to change basis how the people feel on a particular day while AHP enforces a consistency ratio (CR) threshold which ensures optimum degree of consistency in terms of agreement amongst the people involved in decision making.

 

Now the choice between using AHP & Pugh Matrix depends on situations. Let us try to understand some of these situations:-

 

• For organizations who are mature in terms of adopting best practices such as lean six sigma can leverage Pugh matrix for their decision making as the decision makers are not aligned in terms of thought process thus less probability of disagreements.
• For organizations that have a higher leverage (i.e. organizations that thrive on external investments rather than equity) have to take into considerations the relative importance of different criteria that are being leveraged for decision making, thus they tend to use AHP for making decisions, however for less leveraged organizations since investment is coming through equity they have much more flexibility in terms of investing for future, thus they can use Pugh Matrix for making decisions.

 

Thus using AHP or Pugh Matrix depends on the organizational maturity & complexity of the situation. I hope you all agree with this..!!

Pugh Matrix:

Pugh matrix was developed by British mechanical engineer and Product designer Mr. Stuart Pugh. It is a quantitative decision making tool which normally used within DFSS/ DMADV Six sigma projects. Its objective is to validate multiple concepts and come to an agreement for the final design to robust solution. Pugh analysis is a decision matrix where alternatives or solutions are being listed on one axis and evaluation criteria are being listed on the other axis. The objective of Pugh matrix is to evaluate and prioritize the alternatives. 

An effective output from Pugh Matrix required a team that is familiar with the concepts and weighting criteria. It is also significant that they remain unbiased towards a particular design to allow this method to do its job. Its results will be considered as good or bad based up on its inputs. 

Any decision matrix is intended to remove bias and opinions with the intent of making it more objective rather than subjective. the most time consuming part of this whole exercise is create the matrix and scoring criteria. Rest of the steps in this method is quick and simple. 

We must took time to establish the matrix properly and with the help of qualified assessors review the design concepts along with team and this should lead to the most meaningful outcomes. 

This is similar to other decision matrix that are quantitative based same as CORRELATION matrix and FMEA where the RPN is calculated by using the severity, occurrence and detection score and which are being used to make improvement decisions. These tools are most commonly used in the DMAIC process to make strategic decisions on existing processes where the Pugh Matrix is being used for a new design.  

 

 

 

Main strengths of the Pugh Matrix: 

Pugh Matrix is easy to use and relies up on a data set of pairwise comparisons between design evaluators against a number of criteria. One of its key advantage over the other decision making tools such as Decision matrix is its ability to manage a large number of decision criteria.  

The advantage of Pugh Matrix is that subjective opinion about one alternative versus another can be made more objective and meaningful. Sensitivity studies also can be performed with the help of this method. 

 

Reason to use of Pugh Matrix over other Multi- criteria Decision Making processes; 

• Allow the analyst to organize various criteria of a solution in a structured way for easy comparison 
• Facilitates a team based process for disciplined concept generation and selection 
• Allows the analyst to develop a optimal solution which is a hybrid of other strong solutions 

 

Analytic Hierarchy Process: 

 

 

The AHP method is a robust and flexible multi- criteria decision making tool for dealing with complex decision problems. This method divides a complex or complicated system into a hierarchical system of elements which usually includes purposes, evaluation criteria and alternatives. 

There is a limitation in AHP like AHP permits irregularity and as result of absence of data about criteria and preference and absence of fixation amid pairwise examinations. There is inconsistency in positioning when including or erasing options utilized as a part of the information group.  

Advantage of AHP over Pugh Matrix: 

AHP resolved the complex decision problems and being used and recognized worldwide. 

No special knowledge is needed to apply the technique unlike some other methods of MCDM- Multi- criteria- decision - making. 

Quantative pairwise comparisons are relatively simple and acceptable to decision makers 

Dis-advantage of AHP over Pugh Matrix: 

Need pairwise comparisons for AHP 

Use of nine point scale which is not easy for all decision makers 

AHP has a major disadvantage if the decision maker uses the technique to produce the results, but decides to add a new alternative to the model or remove the old alternatives; the preferential order of alternatives can change without changing the values of pair wise comparisons with regards to individual criteria or their choices. 

 

Why AHP is the Best Method ? 

AHP is simple and powerful method for making decisions. It is commonly used for project prioritization and selection. AHP capture all our strategic goals as a set of weighted criteria that we have and then use to score projects. 

Managers uses the AHP to assign quantitative weights to factors. these factors could be the ones used by our customers while evaluating a product or they could be the ones used by our management to evaluate alternative solutions. 

 

 

AHP is used to develop hierarchy of decision making criteria and alternative courses of actions. It gives relative weightage and rankings(Priorities) of alternatives through structured approach in both qualitative and quantitively situations.

 

Advantages of AHP :

 

1. Single and flexible model for complex problems

2. It can handle interdependence

3. Hierarchical structure and provide scales

4. Logically consistent 

5. Provide desirability of each alternatives

6.Allows for trade-offs

7.Multi decision criteria making 

8. Useful for group decision making environments

 

Situations where PUGH matrix is preferable over AHP:

 

1. In situations where cumbersome process of calculations of consistency can be eliminated and do not make much impact on decision making 

2. Difficult to use when number of criteria or alternatives are high , it becomes very cumbersome and complex process

3. New criteria addition or deletion is difficult as it will differ the decision previously taken

 

Regards,

Hirak

The Pugh Matrix is a criteria- grounded decision matrix which uses criteria scoring to determine which of several implicit results or options should be named. The fashion gets its name from Stuart Pugh and has come a standard part of Six Sigma methodology. It's generally used after the development of the VOC( Voice of the client) and after the creation of a QFD( Quality Function Design).

  The Pugh Matrix has some of other names as well, including

 Decision matrix/ grid

 Selection matrix/ grid

 Problem matrix

 occasion analysis

Criteria standing form

 Criteria- grounded matrix

The Pugh Matrix

Allows the critic to organize colorful criteria( or features) of a result in a structured way for easy comparison

 Facilitates a team- based process for chastened conception generation and selection

 Allows the critic to develop a optimal result which is a mongrel of other strong results

 

Sample Pugh Matrix

 

 

The way for creating a Pugh Matrix are as follows

·        Identify applicable user demand or criteria. The illustration shows veritably general criteria.

·        Develop weights for each of the conditions. This is voluntary for weighting the scores. colorful weighting strategies can be used.

·        Induce several feasible options for a result.

·        Elect one of the options as a base. This is frequently a current state result.

·        Estimate each volition against the baseline scoring it as positive, negative or equal in meeting the criteria.

·        Total the values from each volition, multiplying each value by its weight if the voluntary scoring medium was used.

·        Combine the best candidates of each volition to produce an optimal hybrid result.

 

Analytic Hierarchy Process

The multi- criteria programming made through the use of the logical scale process is a fashion for decision making in complex surroundings in which numerous variables or criteria are considered in the prioritization and selection of preferences or systems.

  AHP was chased in the 1970s by T. Saaty and has been Extensively studied and is presently used in decision making for complex scripts, where people work together to make opinions when mortal comprehensions, judgments, and consequences have long- term impacts.

 The operation of AHP begins with a problem being perished into a scale of criteria to be more fluently anatomized and compared in an independent manner. After this logical scale is constructed, the decision makers can fully assess the preferences by making quintet comparisons for each of the chosen conditions. This comparison may use concrete data from the options or mortal judgments to input subjacent information (Saaty, 2008).

 

 

 Illustration of a Hierarchy of Criteria/ objects exhibition 2 – illustration of a Hierarchy of Criteria/ objects

 AHP transforms the comparisons, which are most constantly empirical, into numerical values that are farther reused and compared. The weight of each factor allows the assessment of each one of the principles inside the defined scale. This capability of converting empirical data into fine models is the main distinctive donation of the AHP fashion when varied with other comparing ways.

 After all the comparisons have been made, and the relative weights between each of the criteria to be estimated have been established, the numerical probability of each volition is calculated. This probability determines the liability that the volition must fulfill the awaited thing. The more advanced the probability, the better the chances the volition must satisfy the final thing of the portfolio.

The fine computation involved in the AHP process may at first feel simple, but when dealing with further complex cases, the analyses and computations become deeper and more total.

 

 

 

Advantages Of using AHP over Pugh Matrix

Ø  Pugh Matrix need Baseline (Datum) to compare with other alternative and AHP doesn’t require Datum

Ø  AHP can provide a comparison between each alternate for decision and Pugh only compares alternate with Datum, which does provide a full landscape to make a decision

Ø  Criteria weightage is an estimate in Pugh Matrix based on input from VOC or from survey. AHP arrive weightage can be arrived same calculation using the pairing method

Ø  Pugh Matrix is discrete data for comparison and AHP uses both Discrete and continuous data for comparison, so precision is better in decision making

AHP has better advantage on comparing the alternate for decision making and will best choice for strategic decision making for critical solution, It has its own de-merit due to paring & scale. Scale allows only 1-9 and user can’t choose in-between value in some which is cases in muti attribute which has minor difference. Also user provide scale of 1-9 and person ranking need to consider the distance between attribute to be consistent, else CI will be higher and will be difficult make people understand make this correct.

AHP need multiple calculation and data point to get required result arrive consistent ratio & index to perform comparison. Some time this become difficult for some simple selection. In such cases Pugh Matrix can be preferred.

When there is criteria provide more of person experience considered as rating and rational is not important, in such cases Pugh Matrix is preferred than AHP

AHP  refers to solving complex problems by using maths and in psychological way to ressolve them by organising and analysing the decision. 

 

AHP provides a framework which os rational and quantifies it's criteria with different options for achieving the final goal relating those elements achieved. 

 

The main benefit of AHP is that it removes any bais in the decision making process to ensure that the decision is purely bases on the values and priorities. 

 

AHP process 

1. Defining the decision problems. 

2. Developing a conceptual framework

3. Setting up the decision hierachy

4. Collecting data from experts 

5. Employing the pairwise comparison

6. Estimating relative weights of elements

7.Calculating the degree of consistency

8.Calculatomg the mean relative weight

 

Other benefits 

1. AHP is a very simple and practical process

2. AHP is used for decision making of a complex problem

3. AHP is actively turture intellectual discussion, debates and research in various studies and field. 

 

Pugh matrix is a decision matrix method is a qualitative method to rang thr multi dimensional option of a given option set. 

 

A weighed decision matrix operates in the same way as any other basic decision matrix and introduces the concept of the weighing the criteria in the importance order. By doing this the importance of the criterion is considered high when the weighed number is on the higher end. 

 

The advantages are it encourages self reflection amongst the members of a design team to analyse each criteria with minimum bias. 

The disadvantage is that there are high Possibility that yur weightage get similar to many criteria and it would make it difficult to prioritise

 

Pugh matrix vs Analytical Heirarchy process

 

Pugh matrix and AHP the more commonly used. They are both decision making methods to incorporate semi objective input and attempts to make quatifiable comparison between alternative solutions. Both the methods reply on establishong criteria based on attributed customer ratio and subjective comparison. 

 

Though there are inchangeable. AHp is more simpler and complusive to use. It is better at forcing a decision when there is lots of disaggreement and uncertainty. But Pugh matrix is good at optimising and eliminating bad alternatives

 

There are many situations where Pugh matrix is preferred than AHP and the main is that Pugh matrix has the ability to handle large no of decision criteria. 

Analytic Hierarchy Process (AHP) is an organized decision-making method that enables analysis around a problem, needed for making a choice between available alternatives by determining the criteria basis which selection or prioritization will be done.  It is a process of quantifying criteria and alternatives and relating each element to the desired outcome.

Pugh Matrix is most popular decision making six sigma tool that uses scores awarded to criteria and scoring them for each alternative. It is a qualitative technique which allows stakeholders to make a choice between alternatives basis scores.

While both are used for the same purpose but preference and usage are largely driven by the stakeholder approach, problem in hand and proof of concept needed. Let’s look at some of the differences.

AHP		PUGH Matrix
1.	Pair wised Matching – compare two criteria at a time and amongst alternatives	1.	Each alternative is independently awarded a score and compared with DATUM and against the weightage decided for each criteria
2.	Quantitative method used for evaluation	2.	Qualitative method by awarding scores
3.	Complex Statistical Method	3.	Simple Method based of Ranking
4.	Enables a direct comparison between alternatives and via defined criteria	4.	Each Alternative is not compared with each other
5.	Consistency Index (<10%) aids validation of the comparison outcome. Improving a decision is possible	5.	No such validation and standard are possible
6.	Based on Continuous Data – Ratio	6.	Based on Discrete Data – Ordinal Data Type
7.	Is not LEAN SIX SIGMA QUALITY Tool	7.	Is integral part of the LEAN SIX SIGMA QUALITY Playbook
8.	Very difficult and time-consuming process especially with more criteria	8.	Preferred tool to handle several criteria’s
9.	Based on stimulus – response, a mathematical numeric relationship is established	9.	Based on Logical thinking, experience and willingness of stakeholders.
10.	Individual and Group decisions can be combined. Everyone has a strong reason to believe in the outcome	10.	Stays Subjective to a great extent, enables understanding of each alternative compared to existing one

 

The complexity involved and the ability to run AHP, differentiates the choice to be made in comparison with Pugh. AHP is more time consuming and requires complex calculations to reach towards conclusion, ability to handle data and using the method is the key. Hence, AHP is less preferred compared to Pugh and mostly due to simplicity factor.

Example scoring movies to judge the most preferred for annual reward compared to a preference of IT Software involving investments. In first case Experience and Knowledge of stakeholders in reference to the problem in hand, governs the success and accuracy of Pugh Matrix outcome. Hence Pugh Matrix can handle sensitive analysis better and where quantitative data is available in abundant. Where as the client would want to have more statistical proof concept for deciding which Software to install and WHY, AHP will be the preference.  

 

Pugh Matrix

Pugh is a kind of prioritization or decision matrix that allows us to choose between a list of alternatives based on certain criteria. The ultimate aim is to narrow down the option to one choice, normally employed after we have captured the voice of the customer. Pugh matrix developed by “ Stuart Pugh” Pugh matrix basically helps to determine which items or potential solutions are more important or better than other options. Several concepts are evaluated against Datum. Datum is the best current concept that the team has to date.

                                                                                 Example

Step involved for constructing Pugh Matrix

Step#1 : List important criteria

Step #2  Select datum /Base line

Step# 3  list of alternative

Step# 4  Rank ( +Ve , -Ve , S )

+Ve = Better then datum

-Ve = Bad then datum

 S = equal to datum

 

Analytic Hierarchy Process (AHP)

AHP is a technique is multiple criteria decision-making base on mathematics and psychology.  It’s developed by Dr. Thomas L saaty developed this process in the 1970

 

Applications:-

-       Decision regarding the selection of the best alternative ( eg selecting the best suitable vendor based on certain criteria

-       Prioritize factors that may influence some phenomena ( e.g factor influencing on ROI due to high taxation)

-       Comparison while taking strategic decisions.

 

 

 

Advantages of using the Analytic Hierarchy Process (AHP) over the Pugh Matrix?

-       Pugh matrix we are dealing with discrete data but in the case of AHP we are dealing with continuous data. Continuous data gives better and more accurate results compared to discrete data.

-       Chances of a decision may be biased while using Pugh matrix depend on the criteria selection and judgment but in the case of AHP we can find the best solution among the alternatives.

-       While using Pugh matrix we have a high chance to get two optimal solutions that have the same score, in that case, difficult to get one of the best solutions. While using AHP we will get the best solution. As well as we will get each criterion which is the best option available.

-       APH is having importance

-       Pugh matrix scaling Points are 5 but APH matrix total scaling points are 17. if scaling points are more It magnifies the result.

-       Criteria & Importance in AHP different company to company. 

 

 

Are there situations where Pugh Matrix is preferred over AHP?

A company’s production PPE requirement has been increased due to the number of operators increased. The company was not sure whether its current vendor is the best in the marketplace. They have identified the criteria and their weightage to compare three vendors with the current one. Higher weightage was given to the most important criteria and lower weightage was given to the least important.

 

Using the Pugh matrix, decision-makers can decide what most satisfied their criteria.

 

In this case Reason for use of Pugh matrix over the AHP is I have an existing vendor who is providing PPE to the company due to demand increase I am looking for some alternate option that can provide me better solution in terms of selected criteria

The Pugh Matrix and AHP are both decision making methods using semi-objective input and attempt to make quantifiable comparisons between alternative solutions. The two methods rely on creation of criteria based on attributed customer value and subjective comparison and best framework for making choices ultimately depends on the demands of the situation and the preferences of the people involved. They both involves multicriteria evaluation using alternatives, wherein each alternative are given a rating, define the importance and criteria evaluation and commonly used for project prioritization and selection.

AHP is a structured means of modelling the decision at hand. It consists of an overall goal, a group of options or alternatives for reaching the goal, and a group of factors or criteria that relate the alternatives to the goal. The disadvantage of it is the hidden assumptions made like consistency, difficult to use when number of criteria or alternatives are high (>7) and difficult to add new or remove existing criterion/alternative. The Pugh Matrix is easy to use and relies upon a series of pairwise comparisons between design candidates against a number of criteria or requirements. One advantage it has over other similar tools is its ability to handle multiple different decision criteria.

This was a slightly tricky question as it is well known that AHP edges over Pugh Matrix. 

 

There are a few answers worth reading - Piyush Jain, Rahul Arora, Ashish Kumar Sharma and Rakesh Chandra.

 

Winner for this question is Ashish Kumar Sharma for accurately summarizing the differences between the two tools and providing an example where Pugh Matrix can be used over AHP.