W7_SSD_Multiattributes Decision Compensatory Model – Selecting Solution for Network Issues

1. Problem Definition

In previous blog, I use Non Compensatory Model to make decision on selecting a project to fix a network issue. In this blog I will use Compensatory Model for my decision making selection process using the same problem as per in blog week 6. 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

As per in Blog week 6, there are 5 project options for this issues. The list is as follow:

  1. Project A: Install 2 x 50MVA transformers at Blackberry Substation and 1 x 50MVA at iPhone Substation
  2. 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
  3. Project C: Install 2x 100MVA transformers at BlackBerry Substation and 1x 50MVA transformers at iPhone Substation
  4. Project D: Build Docomo Substation with 2 x 100MVA Transformer and install 1x 50MVA Transformer at iPhone Substation
  5. Project E: Install 2x 100MVA transformers at BlackBerry Substation and relocate 1x 50MVA from BlackBerry Substation to iPhone Substation

 3. Development of the Alternative Outcomes

The parameters that may impact the projects are listed in Table 1.


Develop. Cost

Maint. Cost

Environmental Issue

# of Staging

Finish Year




vegetation clearing






vegetation clearing, possible native artefact






vegetation clearing






vegetation clearing, possible native artefact






vegetation clearing



Table 1. Project to Parameter Matrix

4. Selection of Criterion

The selection will be based on the project parameters. The parameter is ranked according to its importance to the project. Table 2 shows the parameter ranking and its normalized weight.

Table 2. Parameters ranking

The parameters are also quantified accordingly. Parameter which does not represent a number (i.e. environmental issue) is assigned to a value. The assignment is as follow:

Vegetation clearing                =    2

Vegetation clearing, possible native artefact     =    1

The result is shown in Table 3.

Table 3. Result of value assignment.

5. Analysis of the Alternatives

The parameters are normalized by converting them into non dimensional form. As in this case higher value is undesirable, then Equation 1 is used to calculate the dimensionless rating.

Rating = (worst outcome – outcome to be made dimensionless) / (worst outcome – best outcome)

Equation 1. Dimensionless rating formula

The result is shown in Table 4.

Table 4. Project parameter with dimensionless rating.

Multiplying the projects dimensionless rating with the parameter normalized weight will provide how the project scores. Table 5 shows the result.

Table 5. Project’s score.

6. Selection of Preferred Alternative

Based on total project scoring as shown in Table 5, Project E is having the biggest score. It means Project E should be selected as preferred options.

7. Performance Monitoring & Post Evaluation of Results

The Compensatory Model result is similar to the Non Compensatory Model. This is understandable, because Project E in general is dominance compare to other projects. Other evaluation method may be applied to make sure that the Project E is the best solution for this network issue.


Wibisono, H. (Sept 11, 2013). W3_HWB_Multiattributes Decision Making – Compensatory Models. Retrieved from: https://simatupangaace2014.wordpress.com/2013/09/11/w3_hwb_multiattributes-decision-making-compensatory-models/

Sullivan, W. G., Wicks, E. M., & Koelling, C. P. (2012). Engineering Economy (15th ed.)  (pp.551-569). Boston: Prentice Hall.

Marks, R. (n.d). Multi attribute Decision Making [PDF document]. Retrieved from http://www.agsm.edu.au/bobm/teaching/EIA/lect15-3.pdf

Daroeso, S. S., (Oct 9, 2013). W6_SSD_Non Compensatory Decision Making – Selecting Transmission Projects. Retrieved from: https://simatupangaace2014.wordpress.com/2013/10/09/w6_ssd_non-compensatory-decision-making-selecting-transmission-projects/


1 Comment

Filed under Sadat SD, Week 07

One response to “W7_SSD_Multiattributes Decision Compensatory Model – Selecting Solution for Network Issues

  1. Again great case study and your analysis was perfect…….

    You can claim credit for ALL of Chapter 14 questions…… Just be sure to charge SOME of your time against the Question project and not all of it against your Blog project……

    How much you will have to figure out what makes sense….. (Look at the CPI for your Blog and the CPI for your Questions and try to balance the hours)

    Dr. PDG, Jakarta

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