Multi Criteria Analysis
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Multi Criteria Analysis
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Introduction to Multi Criteria Analysis
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Definition
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Multi Criteria Analysis (MCA) is a tool that has been developed for complex multi criteria problem(s) within decision making. The method(s) include qualitative as well as quantitative aspects of the problem(s) in the decision making process.
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The decision making process
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The following simplified process might, for example, constitute the framework for the development of a policy or a project:
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1) Identifying priority problems & targets;
2) Identifying possible actions for achieving the targets;
3) Identifying the criteria to be used to compare the various actions;
4) Analysis of the possible actions;
5) Making choices and implementation;
6) Evaluation & Feedback.
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In most decision making situations multiple criteria are involved. As a consequence confusion can arise if there is no logical and well structured decision making process in place. MCA constitute a tool that can help evaluate the relative importance of all criteria involved, and reflect on their importance in the final decision making process.
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MCA methods can be used to identify a single most preferred option, to rank options, to shortlist a limited number of options for subsequent detailed appraisal, or simply to distinguish acceptable from unacceptable possibilities.
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However, there are many available MCA methods and their number is still rising. The reasons for this are as following:
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- there are many different types of decision which fit the broad circumstances of MCA;
- the time available to undertake the analysis may vary;
- the amount or nature of data available to support the analysis may vary;
- the analytical skills of those supporting the decision may vary; and
- the administrative culture and requirements of organisations vary.
Nevertheless, MCA’s diversity and ability to separate the decision elements and track down the decision making process make it ideally suited to communicate the basis of all decisions.
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Applying MCA
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MCA establishes preferences between options by reference to a clear set of targets that the decision making team has identified. This also requires the establishment of measurable criteria to evaluate the possible actions and the extent to which the targets have been accomplished. Under uncomplicated circumstances, the process of identifying targets and criteria may provide enough information for decision makers. However, where a level of detail generally similar to a Cost Benefit Analysis is required, MCA may offer a number of ways of aggregating the data on individual criteria to provide indicators of the overall performance of options.
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An important feature of MCA is its emphasis on the judgment of the decision making team. This in terms of establishing targets and criteria, estimating relative importance weights and, to some extent, in judging the contribution of each option to each performance criterion. Overall, MCA relies heavily on input from experts and stakeholders, these inputs are solicited and synthesized to arrive at a collective decision, or choice.
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However, the subjectivity that pervades this can be a matter of concern. In principle, each member of the decision making team enters his or her own choices of objectives, criteria, weights and assessments of achieving the objectives, to jointly reach a conclusion. On the other hand objective data, such as observed prices, can also be included. Nevertheless, MCA can bring a degree of structure, analysis and openness to the decision making process.
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Advantages of MCA
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MCA has many advantages over informal judgement unsupported by analysis:
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- it is open and explicit;
- the choice of objectives and criteria that any decision making group may make are open to analysis and to change if they are felt to be inappropriate;
- scores and weights, when used, are also explicit and are developed according to established techniques. They can also be crossreferenced to other sources of information on relative values, and amended if necessary;
- performance measurement can be subcontracted to experts, so need not necessarily be left in the hands of the decision making team itself;
- it can provide an important means of communication, within the decision making team and
sometimes, later, between that team and the wider community; and
- scores and weights are used, it provides an audit trail.
Further Readings, References, Links
http://www.cifor.cgiar.org/acm/methods/toolbox9.html
http://www.unescap.org/DRPAD/VC/orientation/M5_10.htm
http://www3.interscience.wiley.com/cgi-bin/jhome/5725?CRETRY=1&SRETRY=0
O'Hara, S. (1996) Discursive ethics in ecosystems valuation and environmental policy. Ecological Economics, 16, 95-107
Rauchmayer, F. (2001) Reflections on Ethics and MCA in Environmental Decisions. J. Multi-Crit. Decis. Anal., 10, 65-74
