Weighted scoring 101 -Learn quickly decision making matrix, ranking & prioritization matrix (long)

Do you have to evaluate completely different alternatives? Do you have to accommodate distinct needs in one solution? Do you have to find consensus on conflicting ideas? For sure, you need to learn
the weighted scoring method My name is Americo Cunha. Welcome, and let’s start learning the weighted scoring method The Weighted Scoring method is a tool: – to rank completely different alternatives for a problem – to choose the best suitable technology for an application – to select the most critical problem,
among several others First, let’s see how the method works in a simple example John needs to buy a new car. But he is very confused with so many options. he thinks about a cheaper and fuel efficient model, but, his family is asking
for a big and fancy car. His decision involves contrary interests
that are difficult to accommodate. The question is
how to find the most suitable alternative that better accommodates all family needs and desires? Who is involved in the decision? John, his wife, a 10 years old boy, a 7 years old daughter, and a dog. John drives every day to work,
and monthly Davis relatives that lives 100 kilometers away
it is just a day trip the first step is to create a table with the requirements and possible alternatives the requirements are listed in the first column as you can see we summarized Jones needs into four major requirements passengers comfort, fuel efficiency
monthly payments and cargo capacity secondly we need to indentify alternatives
in this case the car models John can buy to be more illustrative we
decided to present alternatives manufactured by Ford company The four models are fiesta, focus, Edge, and Explorer fiesta is the smallest cheapest
and most fuel-efficient car on the other side we include the Ford Explorer a large utility vehicle in the middle range we have Ford Focus and Edge Now, the weighting and scoring table is ready for the analysis,
requirements in the lines and alternatives in the columns. The next step we need to define which requirement is the most important which one is the least important
the challenge is to translate the requirement importance into a numeric weight the most important requirement receives weight five, high importance the least important receives weight one low importance. Let’s make some assumptions for John :
John uses his car every day to work the vehicle must be fuel efficient
and therefore the requirement for fuel efficiency receives weight five
John considers that cargo capacity is not that important and gave weight one
for this requirement the remaining requirements receive
intermediate weights ranging from two to four in this example: passengers comfort and
monthly payments are graded as three that means that they have intermediate importance
in the final decision In the following step, we need to evaluate
each alternative on each requirement. Let’s start with the Ford Fiesta,
John thinks that this car satisfies partly the requirement comfort therefore fiesta
receives score one i n terms of fuel efficiency and payment fiesta receives
the highest score five because it is the cheapest and has the better fuel efficiency For cargo capacity, Fiesta does not satisfy the needs , and it received score zero on this requirement after finishing the scoring for the
Fiesta alternative John needs to give scores for the remaining models
once the scoring for all alternatives is finished it is time to calculate the weighted score
the weighted score is calculated by multiplying the alternative score by
the requirement weight, for instance in terms of passengers comfort model fiesta
received scored one and the weighted score will be 3 x 1 that is 3
four full efficiency the weighted score is 5 x 5 that comes to 25
after calculating or weighted scores for the alternative it’s possible to the
determine its total weighted score the total weighted score is obtained by adding up
the weighted score for each requirement. for the alternative fiesta
the weighted score is 3 + 25 + 15 + 0 that comes to 43
now we can repeat the calculation for the remaining alternatives. It’s now possible to have
an idea how suitable the alternatives are for Jonh requirements
in fact the weighting scoring method translated needs and opinions into weights and score
which helps to compare alternatives using numerical values
let’s recap the needs and interests were translated into requirements the requirements received weights based on the importance level then the total weighted score was calculated This made possible to compare and ranked alternatives
in this case, we may assume that the alternative focus is the most suitable for
Jonh’s needs the way to the scoring The weighting and scoring method can be explained in five easy steps: first define the objective and requirements; second grade each
requirement importance with weight; three indentify alternatives to achieve the objective Four, give scores to each alternative and calculate the total
weight score. Finally rank alternatives and interpret the results let’s see the details of each step in the next slides in the first step it is crucial to
define clearly the goal and then choose requirements or criteria that are
important to achieve the objective the requirement or criteria can be
qualitative or quantitative. Here you can see some examples for business scenarios. In step 2, it’s time to the determine the requirements importance. Here you have two examples of scale you can use A scale of high to low importance in which
y ou give numerical values 5 to high importance and 1 to low-importance
another weight scale, you can evaluate if the requirement is mandatory, desirable or optional You may give scale 5 to mandatory requirements 3 to “desirables” and
one for the optionals during the step 3, you should focus on
one alternative of the columns each time and evaluate it on each requirement
of the lines, for instance, you may ask does the alternative satisfy the requirement? in our example we could have said Does Fiesta satisfy comfort requirements? the answer will naturally conduct to a score in the step 4, it’s time to calculate
the weighted score for each alternative by multiplying the score
and each respective weight after determine all alternatives weighted scores we will be able to calculate the total weighted score for each alternative
this can be done by adding up the values in the weighted scores’ column This is a simple math as you could see in the example In the last step we can
compare the total weight scores for all alternatives and discuss the results
within the team and stakeholders in some situations it can be useful to repeat
the method just considering the 3 best ranked alternatives
by doing this you will narrow down the focus and increase consistency
let’s check now some practical business applications this example shows how to select a technology
you can see technological alternatives in the columns and
business requirements in the lines you can evaluate each technology against
each requirement and then indentify the most suitable for a specific application
this example shows how to approach a supplier selection problem
the suppliers are placed in the columns and the company business requirements in the lines by providing ratings scores for each supplier you can find out the best supplier
to provide the resources required here you have another very common application the buy or make decision in the column we have the two alternatives buy or make
in the lines the business requirements by scoring the pros and cons of each
alternative you can find what is better for the company
as you could see the weighted scoring method h as several advantages: – it provides a quick, easy,
and consistent method for evaluating distinct alternatives it quantifies requirements and alternatives with numerical values, simplifying the assessment it facilitates agreement on priorities it establishes common ground
for the decision-making process thanks for watching I wish you the best
as you lapply the weighted scoring in your course assignments
and professionally.

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