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Analytic Hierarchy Process (AHP)

The Analytic Hierarchy Process (AHP) is a method used to support decision-making in complex situations. It breaks down a problem into a hierarchy of goals, criteria, and alternatives. Using pairwise comparisons, participants assess the relevance of individual elements to set priorities and make well-informed decisions.

Organisation

  • Duration
    Long (more than 1 hour)
  • Complexity
    Difficult
  • Group size
    5 to 50 persons

This activity is suitable online.

Description Long

The Analytic Hierarchy Process (AHP) is based on mathematics and psychology. Thomas L. Saaty developed the method in the 1980s with the idea of making decisions based on multiple criteria. AHP helps solve complex decision-making problems by breaking them down into a hierarchy: an overall goal, criteria (factors that influence the goal), and alternatives (options to choose from). Participants evaluate the criteria and alternatives using pairwise comparisons on a scale (e.g., from 1 to 9). These comparisons are compiled into a matrix to calculate weights and priorities. This enables transparent and well-structured decisions, even when subjective judgments are involved. AHP is used in group decision-making across fields such as politics, business, and education.

Illustration

Preparation

  • Formulate a clear goal for the decision and gather criteria that are relevant to it.
  • Prepare flipcharts or printouts of the hierarchy structure and comparison matrix.
  • Online: Use a platform that allows for pairwise comparisons and weighting (e.g., Excel, Miro, AHP software).

Execution

  1. Define the problem and determine which solutions are to be explored.
  2. Structure the hierarchy: organizational goals, relevant criteria, and alternatives.
  3. Participants evaluate, in pairs, the relative contribution or impact that an element may have on the corresponding goals or criteria at the higher level. A scale (e.g., from 1 to 9) can be used for this purpose.
  4. This comparison is carried out for all levels and groups within the matrix.
  5. The evaluations are compiled into a matrix, and the weights and priorities are calculated (e.g., using software or a preconfigured Excel spreadsheet).

Hints from experience

  • Criteria may contrast with one another; it is important to select those that stand out.

References

B. Llamas, M. Arribas, E. Hernandez and L.F. Mazadiego (2014). Pre-Injection Phase: Site Selection and Characterization. CO2 Sequestration and Valorization, Mr. Victor Esteves (Ed.), ISBN: 978-953-51-1225-9, InTech, DOI: 10.5772/57405. Retrieved 5 August 2015 from, http://www.intechopen.com/books/co2-sequestration-and-valorization/pre-injection-phase-site-selection-and-characterization

Saaty, T. (1980). The analytic hierarchy process. New York: McGraw-Hill International Book Co.

Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International journal of services sciences, 1(1), 83-98. DOI: 10.1504/IJSSCI.2008.017590

Triantaphyllou, E., & Mann, S. H. (1995). Using the analytic hierarchy process for decision making in engineering applications: some challenges. International Journal of Industrial Engineering: Applications and Practice, 2(1), 35-44. Retrieved 6 August 2015 from, http://bit.csc.lsu.edu/trianta/Journal_PAPERS1/AHPapls1.pdf

Wollmann, D., Steiner, M. T. A., Vieira, G. E., & Steiner, P. A. (2014). Details of the analytic hierarchy process technique for the evaluation of health insurance companies. Production, 24(3), 583-593. Retrieved 5 August 2015 from, http://www.scielo.br/scielo.php?pid=S0103-65132014000300008&script=sci_arttext