The Decision Matrix
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===The basic concept=== | ===The basic concept=== | ||
| − | The Decision Matrix (DM) is a decision-making tool invented by Stuart Pugh in 1990 [Source: Product Design and Development] and hence the method is also known as the Pugh-Method. Initially the Pugh-Method was based upon qualitative assessment using only “+” and “-” but has later on evolved to also use a quantitative assessment and hence a grading system. By using the DM a quick overview of different alternative solutions (candidates) is formed. | + | The Decision Matrix (DM) is a decision-making tool invented by Stuart Pugh in 1990 [Source: Product Design and Development] and hence the method is also known as the Pugh-Method. Initially the Pugh-Method was based upon qualitative assessment using only “+” and “-” but has later on evolved to also use a quantitative assessment and hence a grading system. By using the DM a quick overview of different alternative solutions (candidates) is formed.<ref>Ulrich, Karl T.; Eppinger, Steven D. , ''Product Design and Development'', (2013) |
The DM contains a list of candidates. Each of the candidates are judged and evaluated based on a row of different criteria. The candidates with the highest score is chosen as the final candidate and the decision is made. However, if two candidates score the same, a new iteration is performed. Moreover, if the external environment changes and influences the criteria, a new DM needs to be formed etc. Hence, the DM should be perceived as an iterative tool. Table 1 shows the basic DM without any ranking: | The DM contains a list of candidates. Each of the candidates are judged and evaluated based on a row of different criteria. The candidates with the highest score is chosen as the final candidate and the decision is made. However, if two candidates score the same, a new iteration is performed. Moreover, if the external environment changes and influences the criteria, a new DM needs to be formed etc. Hence, the DM should be perceived as an iterative tool. Table 1 shows the basic DM without any ranking: | ||
Revision as of 09:44, 26 September 2016
Innovation within technology is moving faster than ever. Companies are forced to keep innovate new products or improve exsisting products. Due to strict time frames and many different competitors on the technological market, decision-making within product-development/innovation have to be credible and solid. However, in the decision making process in product-development/innovation, low knowledge and many uncertainties are dominating. By using the so-called ”Decision Matrix” (DM), the former can be increased and the latter can be decreased and will be elaborated further. Hence, in product-development/innovation the DM is extremely relevant and may create more knowledge and turn these uncertainties into measurable quantities.
This wiki-article wishes to give a deeper insight and background description of the DM e.g. The Concept Screening Matrix and examine both the quantitative and qualitative approches (Stuart Pugh's approach). In addition the application procces will also be examined by focusing on innovation-projects, –programs and –portfolios including a ”Six Steps”-process description. Moreover, it will contain which parameters/criterion are key and appropriate in order to obtain an realistic and solid output when applying the DM, e.g. define the end-goal and stakeholders (customers), reflect on output and list the weight of parameters/criterion.
Challenges and difficulties when using the DM will also be examined focusing on how to chose the DM parameters/criterion and their weights and how to relate objectively to the outcome and how to use the DM as an iterative tool. Finally, suggestions are identified in order to accomodate and improve the challenges and difficulties and to identify for what the tool is applicable, for when the DM is applicable, how the DM is applicable and for who it is applicable and who can benefit from the DM.
The structure of the article is as follows:
- Concept desription of the tool, the DM (both quantitative and qualitative approaches
- Application in innovation-projects, –programs and –portfolios and choice of approriate parameters/criterion when using the DM
- Challenge and limitations in the DM
- Suggestions for improving the challenges and limitations of the DM
Introduction
The following wiki-article focus on the tool the Decision Matrix (DM). The DM is based a set of different candidates and criteria in order to make the right decision. The Decision Matrix (DM) is a tool which can be used in many relations. Both everyday-problems like “What should we have for dinner?” and the list is end-less. However, the DM can also be conducted in more complex situations as a management tool. E.g. in innovation and development projects, where problems like “Which product should we improve?” and in bid-situations where many criteria are influencing the final candidate of the bid.
Hence, the DM is a very relevant tool for both Programs, Projects and Portfolios since decision making, no matter the complexity, is an inevitable factor in all perspectives of achieving an end-goal.
The article will elaborate on the concept of the DM, application of the DM, challenges in relation to the DM, suggestions to improvements of the DM and finally a personal review of the tool is conducted.
Big Idea
The basic concept
The Decision Matrix (DM) is a decision-making tool invented by Stuart Pugh in 1990 [Source: Product Design and Development] and hence the method is also known as the Pugh-Method. Initially the Pugh-Method was based upon qualitative assessment using only “+” and “-” but has later on evolved to also use a quantitative assessment and hence a grading system. By using the DM a quick overview of different alternative solutions (candidates) is formed.[1]
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