Tuesday, December 25, 2012

W7_Stella_Using Multiattribute Decision to choose a hospital for my Nanny


W7_Stella_ Using Multiattribute Decision to choose a hospital for my Nanny

December  24, 2012


1. Problem Definition and Recognition

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


You +1'd this publiciii. 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.

 

 

1 comment:

  1. AWESOME, Stella!!! Loved your case study..... It just doesn't get any more "real" than that......

    So 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

    ReplyDelete