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AHP approach of making decisions in an Automotive Company

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AHP approach of making decisions in an Automotive Company

This paper will consider the AHP approach of making decisions in an Automotive Company, especially in the selection of goods trolley fabrication material depending on cost for the content, material strength, and fabrication process. The analysis will consider such factors in making a viable decision by breaking the entire process into phases that bring a better understanding of the issue. It will also find the relationship between this study and the learning course in consideration for evidence-based learning and how it applies to one’s real-life situation. Finally, a rationale about this study will be necessary for concluding the use of this approach in decision making.

According to past researchers, the importance of material selection comes up, especially during the initial stages of developing the product. Automotive companies employed an appropriate decision-making channel and evaded extra expenses in determining and selecting fabrication material for tools trolley—objective similarity among the participants in decision making and the best content chosen through quickly coming into agreement. Factors under consideration are in participants’ awareness, and they propose the use of the AHP approach that selected square tube material for fabrication in the review of its strength, cost, procurement lead time, and fabrication process (Yadav & Sharma, 2018). APH implementation in decision making for selection and evaluation reduced multi-criteria associated decision-making problems, reduced time for making decisions, and raise arguments related to experts’ skills and experience that could lead to arguments.

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AHP is a multi-criteria tool for decision-making, incorporates the behaviour of decision-makers in the decision model, therefore, catering for flexibility by following an approach that is systematic in entailing both tangible and intangible factors to give structured resolution to problems in Automotive Company. APH innovation in the year 1970s mainly was to strengthen and bring improvements in multiple criteria involved in decision making. Since its development, it is applications for it in a wide variety of fields, refining its efficiency and examined by many parties to ensure that many organizations and decision-makers knew its use and benefits gained from its use. It became one of the approaches popularly employed for multi-criteria decision models in making decisions (Kaya et al., 2020). Many preferred it due to its technique of analyzing both qualitative data gathered from judgments values that correspond to experience and perception but not quantitative data related to such a problem. Furthermore, its application enables breaking down the determined problem hierarchically, having a set of criteria arrangement depending on their scores.

This model caters to triple major phases that comprise of the structuring of the problem, comparison of the verdicts, and priorities analysis. When structuring the problem, the development of decision making is essential, followed by transposition to a hierarchy style that evaluates each identified possible alternative according to its criterion judgment’s weight. These weights categorize the level of priorities in making decisions for ensuring that the most viable decision-making in the organization. It is essential to prefer this model since it provides achievement of the best choice among other alternatives by carrying out the judgment phase for such purpose. It also utilizes hierarchical style building components interactions that give out impacts concerning the entire system that distinguishes reality concerned with human thinking by making it appear into various collections and subcategories (Brunnhofer et al., 2020). The use of hierarchy creates abstraction form and representation structure of the system; hence the results given by the model best suits the company. Evidence of clarity for the effects presented by this model is notable in the expert comparison of assigning weights in the judgment scaling ranging from 1 to 7 that are numerical values indicating alternatives’ intensity in contrast to criteria.

However, AHP’s use of mathematical elements must make researchers alert in adopting the technique in considering its suitability in solving decision problems through the use of multi-level goals, principles, sub-principles, and substitute properties. Purpose of comparison pairwise obtaining of records is by use of importance weightage in the criteria and replacements in terms of every criterion decision. Its application in task selection is not only intended for getting a solution but also assisting decision-makers in identifying the best solution, exploration of best strategies for use, and identification of competitors in the business environment. Therefore, AHP is recommendable for decision-makers in groups sharing common goals, working within a cooperative environment and with similar status.

From this study, it is essential to make the best approaches in making decisions whenever implementing an idea, selecting material that positively affects and triggers new product production and other processes within the manufacturing industry. This method seems to solve the challenges of incurring extra costs that arise from poor decision making. Also, the process of making decisions must cater to possible alternatives in making sure that the best decision making made. Participants of decision making must have equal contribution to high-quality decision making (Mitchell & Sutherland, 2020). AHP illustrates these things clearly, especially for organizations where teamwork is a must for decision making when it comes to outdoing their competitors.

Learners in this course can notice that there is a lot to do before achieving better decision making when it comes to real-life situations. Therefore, this study equips knowledge to learners about the vital factors considered in making decisions (Gargiulo & Bouck, 2019). The study also provides the importance of applying class knowledge into real-life situations, revealing that most of the institutions offering this course must expose learners to practicals that will bring more light on what they have acquired from learning.

From the study, I have learned that there are essential phases of decision making that enlighten decision-makers about expectations in regards to their objectives and thus must take time to make firm decisions by putting every factor into consideration. Furthermore, we have acknowledged the use of the AHP approach in decision making whenever to have to decide with a long-lasting impact. It is my preference whenever I have to make a decision that brings no solution but also helps in identifying possible competitors within the business environment. Finally, it will employ knowledge gained to make the right selection for materials needed for creating new products. At the early stages of production to evade additional expenses that can arise in the process leading to additional cost for another replacement material because of a poor decision made.

About the discussion, it is only through ethical decision making that many organizations will maintain good quality for their products. Successful decision making will avoid extra costs incurred from carelessness made by the workforce and wrong utilization of resources (Yadav & Sharma, 2016). Therefore, decision making in organizations should not aim at the positive impacts alone but also look at how adverse effects will affect their progress in strategic management.

 

 

 

 

 

References

Brunnhofer, M., Gabriella, N., Schöggl, J. P., Stern, T., & Posch, A. (2020). The biorefinery transition in the European pulp and paper industry–A three-phase Delphi study including a SWOT-AHP analysis. Forest policy and economics, 110, 101882.

Gargiulo, R. M., & Bouck, E. C. (2019). Special education in contemporary society: An introduction to exceptionality. Sage Publications, Incorporated.

Kaya, Ö., Tortum, A., Alemdar, K. D., & Çodur, M. Y. (2020). Site selection for EVCS in Istanbul by GIS and multi-criteria decision-making. Transportation Research Part D: Transport and Environment, 80, 102271.

Mitchell, D., & Sutherland, D. (2020). What works in special and inclusive education: Using evidence-based teaching strategies. Routledge.

Yadav, V., & Sharma, M. K. (2016). Multi-criteria supplier selection model using the analytic hierarchy process approach. Journal of Modelling in Management.

Zarghami, E., Azemati, H., Fatourehchi, D., & Karamloo, M. (2018). Customizing well-known sustainability assessment tools for Iranian residential buildings using the Fuzzy Analytic Hierarchy Process. Building and Environment, 128, 107-128.

 

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