A Modified Analytic Hierarchy Process for Automated Manufacturing Decisions

Stephen F. Weber
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Stephen F. Weber: United States Department of Commerce, National Institute of Standards and Technology, Office of Applied Economics, Computing and Applied Mathematics Laboratory, Gaithersburg, Maryland 20899

Interfaces, 1993, vol. 23, issue 4, 75-84

Abstract: Decisions on adopting new manufacturing technologies are often biased because they are based only on those impacts that can be expressed in financial terms. Multi-criteria decision tools that include nonfinancial impacts avoid this bias. One such tool, the analytic hierarchy process (AHP), has been modified for the manufacturing environment and incorporated into AutoMan, decision support software for microcomputers. The modified AHP is used here to decide on the best way to automate a machine shop. The four steps are: (1) specify criteria and alternatives; (2) weight criteria using pairwise comparison judgments; (3) rate alternatives with respect to criteria; and (4) compute the overall weighted score for each alternative. This approach preserves existing reliable financial information and integrates it with both nonfinancial quantitative performance data and qualitative informed judgments. Judgments are made explicit and checked for consistency. Over 800 industrial managers have purchased AutoMan to improve their automation decisions.

Keywords: decision analysis: multiple criteria; analytic hierarchy process (search for similar items in EconPapers)
Date: 1993
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