An advantage is a benefit, gain, improvement, or betterment. Specifically, an advantage is a difference between the attributes of two alternatives. Note that an attribute is something we need to know about just ONE alternative. An advantage is a difference between the attributes of just TWO alternatives. A decision must always be based only on advantages.
An alternative could be two or more people, things, or plans from which one is to be chosen.
The analytic hierarchy process (AHP) is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. It was developed by Thomas L. Saaty in the 1970s and it is a type of value-based method that measures relative importance of factors and preferences for alternatives through pairwise comparison matrices, which are recombined into an overall rating of alternatives by using the eigenvalue method.
Principle §3 in CBA is the principle of anchoring: Decisions must be based on the relevant facts.
An attribute is a characteristic, quality, or consequence of just one alternative. An attribute can either be objective or subjective. If an attribute of an alternative does not satisfy the 'must criterion', if you have defined such, it will not be considered in the subsequent steps of the decision-making process, and the alternative will be removed.
Different types of decisions will require different types of decision-making methods. Choosing is classified as one of the decisions types: Select one and only one alternative (or a combination), the best of all.
Choosing By Advantages (CBA) is a decision-making system that supports transparent and collaborative decision-making using comparisons among advantages of alternatives. CBA was developed by Jim Suhr while working in the U.S. Forest Service. The CBA Decision-Making System is based on the idea that decisions should be based on comparative advantages among the alternatives.
The cost is the price that must be paid in order to obtain an alternative and can be broken into several categories. CBA Tabular Method considers cost separately from other factors. Cost is considered when two alternatives have different costs and the cheapest alternative does not have the highest total importance of advantages. This is because money is described in the CBA system as “an official message that serves as a medium of exchange”.
A criterion (in plural: criteria) is a decision rule or a standard on which a decision can be based on. A ‘want’ criterion represents preferences of one or multiple decision makers that is desired but not mandatory. A ‘must’ criterion represents mandatory conditions.
Different types of decisions will require different types of decision-making methods. Describing is classified as one of the decisions types: Description of each alternative and its main consequences.
Different types of decisions will require different types of decision-making methods. Designing is classified as one of the decisions types: To research for, identify or create new decision alternatives to meet the goals and aspirations revealed though the decision process.
A factor is an element, part, or component of a decision.
Principle §1 in CBA is the foundation principle of sound decision-making: Decisions must be based on the importance of prospective differences among the alternatives.
Principle §2 in CBA is the fundamental rule of sound decision-making: Decisions must be based on the importance of advantages.
Instant CBA is a CBA decision-making method used for simple decisions involving two mutually exclusive alternatives
Application of lean thinking to the designing and making (delivery) of capital projects (or projects in general).
Production system management based on the integration and balancing of the transformation-, flow-, and value theory conceptualizations.
Lean philosophy is about maximizing customer ‘value’ while minimizing waste
Principle §5 in CBA is the Methods principle: Different types of decisions call for different types of methods.
Multiple-criteria decision-making (MCDM) or multiple-criteria decision analysis (MCDA) is an advanced field of operations research and management science, devoted to the development of decision support tools methodologies to address complex decision problems involving multiple criteria goals or objectives of conflicting nature. We can categorize MCDM methods under four categories: 1) Goal-programming and multi-objective optimization methods (linear optimization), 2) Value-based methods (e.g., AHP and WSM), 3) Outranking methods (e.g., ELECTRE) and 4) Choosing by advantages (e.g., CBA Tabular Method).
A criterion (in plural: criteria) is a decision rule or a standard on which a decision can be based on. A ‘must’ criterion represents mandatory conditions.
The Paramount Advantage is the most important of the most-important advantages. CBA Tabular Method requires a common scale of importance to be used to minimize the likelihood of ambiguity in the decision-making process; the paramount advantage is used for this matter. The paramount advantage takes the highest spot on the importance scale (usually 100 points) relative to the underlined attributes, each of which get assigned 0 points. Determining the paramount advantage is done by comparing the most-important advantages in each factor and selecting the most-important of these most-important advantages. The importance of the most-important advantage in each factor needs to be weighted and compared to the paramount advantage.
The CBA Decision-making process comprise five phases: (1) the stage-setting phase, (2) the innovation phase, (3) the decision-making phase, (4) the reconsideration phase, and (5) the implementation phase.
Principle §4 in CBA is the pivotal (critically important) sound decision-making principal: Decision makers must learn and skillfully use sound methods of decision-making.
Different types of decisions will require different types of decision-making methods. Ranking is classified as one of the decisions types: Constructing a ranking of all admissible alternatives.
Different types of decisions will require different types of decision-making methods. Selecting a Portfolio is classified as one of the decisions types: To choose a subset of alternatives from a larger set of possibilities.
Different types of decisions will require different types of decision-making methods. Sorting is classified as one of the decisions types: Sorting all the alternatives into classes or categories.
Internal stakeholders, such the decision team, owner, users etc. External Stakeholders, such as community, regulatory agencies etc.
Tabular method is a CBA decision-making method for moderately complex decisions involving more than two mutually exclusive alternatives. The Tabular Method can be described in 7 steps.
Two-list method is a CBA decision-making method for two mutually exclusive alternatives of equal cost.
Decision-making methods that construct numerical scores for each factor, and then preferences are synthesized using an aggregation model based on the relevance (weights) of different factors.
A criterion (in plural: criteria) is a decision rule or a standard on which a decision can be based on. A ‘want’ criterion represents preferences of one or multiple decision makers that is desired but not mandatory. A ‘must’ criterion represents mandatory conditions.
Weighting Rating Calculating is a simplified version of AHP in which factors are weighted, alternatives are ranked according their attributes and then the final score of each alternative is calculated.