Multi-Objective Decision Analysis

Challenge

A US military client was looking for the best approach to maintain and sustain weapons systems over a 30-year lifespan and contracted Guidehouse to perform a Business Case Analysis (BCA).

Solution

Guidehouse approached the challenge based on our mission statement, to work side-by-side with our clients to solve big problems, build trust, and empower our clients to shape the future. By using a Multi-Objective Decision Analysis (MODA) 11-step process we were able to add perspective to a subjective decision through the development of a graphical representation of the cost and benefit tradeoffs between multiple alternatives. The results inform affordability decisions based upon data, objectives analysis, and expert input, while balancing cost, benefit, and risk tradeoffs. At Guidehouse, we pioneered the tailored MODA methodology for BCAs, which became the preferred method of analysis when the client updated its guidance in 2017.

Impact

In our ongoing quest for innovation, we have developed an additional step to be included within the 11-step MODA process. This additional step allows for the client to choose an impact variable to be considered along with the benefits analysis. This impact variable may be cost (most preferred), schedule, or any other dependent variable.

The main difference between our tailored MODA methodology for BCAs and the baseline MODA methodology is the use of importance weightings rather than a swing matrix for weightings. Importance weighting is used for BCAs due to the inherent nature and requirements of the BCA process. Swing matrix weighting can be used for other multi-objective problems, especially those in which values and requirements are the preferred measures.