W7_Stella_
Using Multiattribute Decision to choose a hospital for my Nanny
December
24, 2012
Drawing reference from challenges I faced recently, in
which my Nanny was knocked down by a motorbike. The plan to move her to a best
hospital became a decision problem because she had a deep cut in the leg and a severe
fracture on her right arm. I spent quite some time with my spouse ironing out
the best decision in terms of proper and immediate medical attention with all
factors as a guide.
My aim this week is to explain how the decision was
narrowed down and the factors that were considered
before making the final decision on the choice of hospital are listed below.
i.
The quality of the hospital’s services
ii.
Cost
iii.
Distance (considering traffic and my office location)
iv.
Confidence (assurance based on my previous experience and
other people’s opinion)
v.
Environment (the cleanliness of the environment)
Tab.
1 Summary information for choice of hospital
Alternatives
|
|||
Attributes
|
Private Hospital A
|
General Hospital B
|
Military Hospital
|
Quality
|
fair
|
good
|
Excellent
|
cost (estimated in NGN)
|
500,000
|
120,000
|
130,000
|
Distance (m)
|
10
|
80
|
40
|
confidence
|
weak
|
fair
|
strong
|
Duration (estimated)
|
3months
|
2months
|
1month
|
Environment
|
Excellent
|
fair
|
good
|
In this decision making, one of the compensatory model was applied, the Nondimensional
scaling which requires all the attributes values to be converted to
nondimesional form.
The procedure for converting the original data is explained in the formula
below
Rating = (worst outcome – outcome being made dimensionless)/ (worst outcome
–best outcome): this is used for large values e.g. cost
Rating = (outcome being made dimensionless – worst outcome)/ (best outcome –worst
outcome): this is the relationship for converting original data to their dimensionless
rating. The’ highest nondimensional value’ after the summation is the ‘best
choice’.
2.
Feasible Alternatives.
From the application of nondimensional scaling shown in
Tab.2 and nondimensionless data in Tab. 3, the feasible alternatives are
General hospital and the Military hospital. Specifically Tab.3 shows that the
best choice is military hospital because it has the highest nondimensional
value.
Tab.2
Nondimensional scaling
|
||
Attribute
|
Value / Relative rank
|
Dimensionless value
|
Quality
|
fair
1
|
0
|
good
2
|
0.5
|
|
excellent 3
|
0.67
|
|
Cost
|
120000
|
1
|
130000
|
0.97
|
|
500000
|
0
|
|
Distance
|
10
|
1
|
40
|
0.57
|
|
80
|
0
|
|
Confidence
|
weak
1
|
0
|
fair
2
|
0.5
|
|
strong
3
|
0.67
|
|
Duration (months)
|
1
|
0
|
2
|
0.5
|
|
3
|
0.67
|
|
Environment
|
fair
1
|
0
|
|
good
2
|
0.5
|
|
excellent 3
|
0.67
|
Tab.3
Non Dimensionless Data
|
|||
Attributes
|
Private Hospital A
|
General Hospital B
|
Military Hospital
|
Quality
|
0
|
0.5
|
0.67
|
cost (estimated )
|
0
|
1
|
0.97
|
Distance
|
1
|
0.57
|
0
|
confidence
|
0
|
0.5
|
0.67
|
Duration (estimated)
|
0
|
0.5
|
0.67
|
Environment
|
0
|
0.5
|
0.67
|
Total
|
1
|
3.57
|
3.65
|
Best Alternative
|
3. Develop the outcomes for
each alternative
From
the feasible ranges for satisficing explained in the Tab. 4 shows that the
unacceptable value (no go option) was the private hospital, therefore
satisficing was used to eliminate that option from our plans.
Tab.
3 explained critically that General hospital has a closer or nearer option to
the best choice looking at their total values 3.57 for General hospital and
3.65 for Military hospital.
Tab.4
Feasible Ranges for Satisficing
|
|||
Attributes
|
minimum acceptable value
|
maximum acceptable value
|
unacceptable alternative
|
Quality
|
fair
|
excellent
|
private hospital
|
cost (estimated )
|
|
160000
|
private hospital
|
Distance
|
|
80
|
none
|
confidence
|
|
strong
|
private hospital
|
Duration (estimated)
|
fair
|
strong
|
private hospital
|
Environment
|
|
excellent
|
general hospital
|
4. Selection of Criteria
The use of Nondimensionless
model was adopted in Tab. 2 to get to the best choice.
Looking
closely at the two total values of General hospital and Military hospital, you
would observe that the values are too close. Nevertheless the best choice was
the Military hospital because it has the highest value.
In addition, if quality was not our main
criteria for this decision, then the General hospital would have been our best
choice or alternative option.
5. Analysis and comparison of the alternatives
As I explained above in
other words, if (maybe) quality was not considered in this selection, then
General hospital would have been the best option.
Similarly if cost was our ulterior criteria,
then General hospital would have still been the best alternative.
6. Select the preferred alternative
From the nondimensionless data in Tab.1
“Military Hospital” has the highest value , so it was the best choice for this
decision.
7. Performance Monitoring & Post Evaluation of Result
The
application of Nondimensionless model is a really a good performance monitoring
tool in that it gives right choice considering all the attributes all the same
time.
8. References:
i. Sullivan W., Wicks E., Koelling P.,
(2012) .Chapter 14 Decision making Considering Multiattributes (pp577 – 590) Engineering Economy (15th
Edition).England: Pearson Education Limited.
ii. Fred A., (2000) Multiattribute
Decision-Making: Use of Three Scoring Methods to Compare the Performance of
Imaging Techniques for Breast Cancer Detection, Retrieved from: repository.upenn.edu/cgi/viewcontent.cgi?article=1121...Share
iii. Giammalvo,
P.D (2012, October 22). Integrated portfolio (asset), program (operations) and
project management methodology course (An AACE methodology course). Day 1 (pp 92-96) LONADEK Lagos,
Nigeria.
iv.
Hauser J., Ding M., Gaskin P., (2009). Non-compensatory (and Compensatory) Models of
Consideration-Set Decisions; Proceedings of
the Sawtooth Software Conference: Delray Beach FL. Retrieved from: www.researchgate.net/...compensatory...compensatory)_model...Share.
AWESOME, Stella!!! Loved your case study..... It just doesn't get any more "real" than that......
ReplyDeleteSo now instead of going on "gut feel" (which may or may not be valid) you now have developed a systematic approach to making those very tough life decisions we are all faced with......
And while purely financial decisions are appropriate both in our personal and working world, we increasingly find that most decisions have some elements that are not purely financial- which require a different decision making model.
What I would love to see is you take this same case study but for your next blog posting, apply two of the COMPENSATORY models..... Note the differences between them.......
Keep up the good work!!!
Hope you enjoyed a Merry Christmas and hope your Nanny recovers.....
BR,
Dr. PDG, Jakarta