Analytic hierarchy process application to project selection in printing industry

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Kulchytska Kh. B., Predko L. S. № 1 (75) 51-60 Image Image

Printing enterprise project selection methodology (according to the criteria given by a client) using Saaty’s method has been reviewed. When choosing a project for investment, the customers do not have enough designing experience. They want to compare the projects quantitatively, which allows to confirm the choice and reduce the cost and time for detailed pre-project analysis of other projects (technical, environmental, commercial, economic, financial, social and institutional). The hierarchy analysis method meets this requirement and gives exact results.

Projects of three companies have been compared: book printing, advertising and pac­kaging label printing companies. The criteria for comparison were the necessary funds for project implementation, the products demand, the project payback period, profit and risk. The research has been conducted in three stages: determining the impact of the criteria on the common goal and the impact of alternatives on the criteria, and evaluating the impact of alternatives on a common goal. According to the results of pair comparisons, square reverse symmetric matrices have been formed, for which the normalized eigenvectors and eigenvalues have been determined by the Saaty’s fourth algorithm, and then the consistency of the results have been checked.

The largest component of the global priorities vector has been obtained (0.558) for the project, which involves the production of advertising products. For this project, the highest priorities of the alternatives vector are the criteria for the payback period and risk. The book publishing project is not recommended for the implementation (the component of the global priorities vector is 0.176 per unit).

The hierarchy analysis method allows you to compare various quantitative and qualitative criteria of evaluating the projects. Using the hierarchy analysis method, the optimal project of printing production has been chosen among the project proposals which involve the release of various products in the conditions of multi-criteria uncer­tainty, taking into account the requirements of the customer.

Keywords: method of decision making, analytic hierarchy process, hierarchical mo­del, matrix, choice, project.


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