1. Problem Recognition, Definition and Evaluation
The electricity load in Onyx Suburb, close to Blackberry Substation is increasing. To deal with the increasing load, electricity supply in Onyx Suburb needs to be increased. I also would like to use this blog to claim for Problem Solving Work for Engineering Economic Chapter 14 Decision making Considering Multiattributes.
2. Development of Feasible Alternatives
Several transmission types of projects were proposed. The project sponsor needs to decide which project to be carried out.
The list of alternative projects is as follow:
- Project A: Install 2 x 50MVA transformers at Blackberry Substation and 1 x 50MVA at iPhone Substation
- Project B: Build Docomo Substation with 1 x 50MVA Transformer and install 2x 50MVA Transformer at BlackBerry Substation and install 1x 50MVA Transformer at iPhone Substation
- Project C: Install 2x 100MVA transformers at BlackBerry Substation and 1x 50MVA transformers at iPhone Substation
- Project D: Build Docomo Substation with 2 x 100MVA Transformer and install 1x 50MVA Transformer at iPhone Substation
- Project E: Install 2x 100MVA transformers at BlackBerry Substation and relocate 1x 50MVA from BlackBerry Substation to iPhone Substation
In this blog I am using Non Compensatory Model to select which project should be carried out to overcome the load issue at Onyx Suburb.
3. Development of the Alternative Outcomes
Based on the data which has been collected, the parameters that may impact the projects are listed in Table 1.
Table 1. Projects’ parameters
4. Selection of Criterion
There are 4 Non Compensatory Models which will be used to analyst the project. They are:
- Disjunctive Resolution, and
These models will be used to analyst the data.
5. Analysis and Comparison of the Alternatives
To check the dominance level of one project to another project, Table 2 is created. To quantify the dominance level, a score is assigned to each status. Statut “better” is assigned with 1, “similar” with 0, and worse with “-1”. With this a range can be calculated from the result which can help to determine the level of dominance. Table 2 shows the calculation result.
Table 2. Dominance Model Analyst
Table 2 shows that there is no project that really dominance against the other. But, the table also shows the project A is slightly dominance compare to project B.
The satisficing and disjunctive resolution models are similar. They are based on comparing the parameter data with pre-determine acceptable range. In satificing model, for a project to be kept in the list, all of its parameter should at least meet the range. In disjunctive resolution, the project will be kick out of the list when none of its parameters meet the range. Table 3 shows the acceptable ranges and analysis result for each project parameters,
Table 3. Satisficing and disjunctive resolution model analysis
Table 3 shows that every project has at least one unacceptable parameter. Because of that for this case, the satisficing and disjunctive resolution model can not be used for project selection.
The lexicography model requires each parameter to be ranked based on its importance to each other. Table 4 shows how each project parameter ranked to each other.
Table 4. Project Parameter rank
Table 4 shows that Development Cost > Maintenance Cost > Environmental Issue > Project Finishing Year > Project Staging. Based on that, Table 5 shows how the projects are ranked according to lexicography model.
Table 5. Project Ranks according to Lexicography Model
6. Selection of the Preferred Alternative
Table 5 shows Development Cost is the most important project parameter. It also shows that Project E is the best on that parameter compare to other projects. Based on that, Project E should become the selected project.
7. Performance Monitoring and the Post Evaluation of Result
The lexicography model also shows that Project E is quite dominance compare to other projects, because Project E is also at the highest position (shared with Project C) for Maintenance Cost and Environmental Issue. If the development cost of Project E and C are similar, then the assessment will have a tie, as Project C and E both are having the same value. These can be meant that either Non Compensatory Model cannot be used for selection method, or the current project selection parameters are not enough for selection purpose and project sponsor should identify different project selection parameters.
- Edward, T. (Oct 4, 2013). W5_TOM_ Choosing MBA Program by Using Multi-Attribute Decision Making Non-Compensatory Models. Retrieved from: https://simatupangaace2014.wordpress.com/2013/10/04/w5_tom_-choosing-mba-program-by-using-multi-attribute-decision-making-non-compensatory-models/
- Wibisono, H. (Sept 19, 2013). W5_HWB_ Multiattributes Decision Non Compensatory Model – Selecting Motorbike. Retrieved from: https://simatupangaace2014.wordpress.com/2013/09/19/w5_hwb_-multiattributes-decision-non-compensatory-model-selecting-motorbike/
- Sullivan, W. G., Wicks, E. M., & Koelling, C. P. (2012). Engineering Economy (15th ed.) (pp.551-569). Boston: Prentice Hall.