Applications of Process Analytical Hierarchy (AHP)

in Various Field of Work

Topic: Decision Analysis
Presented by Group 2:
Ady Akbar (2301982706)
Andriyansyah (2301982725)
Phoebe Cathlya Ismanto Putri (2301982694)
 PAPER 1

“Decision Support System for Head of Warehouse Selection

Recommendation Using Analytic Hierarchy Process (AHP)
Method”
 Introduction

• In making a decision it is indeed very difficult because it must be based on something that can
support making the right decision that is needed in a company because if the wrong decision is
made, the course of the company will be very dangerous and can make the company go
bankrupt, therefore making decisions must be made.

• Using something very important such as advice from the leader and some people who have an
interest in making decisions, for example, managers, with the advice from the leader, the
selection to determine the selection of the head of the warehouse will be very precise and
assisted by the AHP algorithm will be even more maximal.
 Case Description

A company wants to select a warehouse manager to get the best and most accurate
selection results. Potential candidates are forwarded from the company's HR department
to the company's management so that they can select the right candidate. The selection
data is processed using AHP. There are 5 evaluators, 5 parameters and 5 candidates. The
value of the decision rating scale is as follows:
Framework & Method
 Framework & Method

The data analysis technique used is the AHP

(Analytical Hierarki Process) weighting method final results:
 Potential Research

Potential research is with the development of a system that has begun to be

programmed by making applications so in decision making, it only remains to fill in the
application by the leaders appointed by the HRD in making a decision in choosing
employees who are considered important also it has the potential to develop the method
into a more detailed method.
 PAPER 2

“Ranking factors affecting public transport mode choice of

commuters in an urban city of a developing country using
analytic hierarchy process: The case of Metro Cebu,
Philippines”
 Introduction
• Understanding the factors that impact commuter's transport mode choice is one of the important key
aspects to consider when aiming for a sustainable transportation system, especially in developing
countries where this is still a relatively new concept. This study aims to examine and rank the factors
that commuters in selected urban cities in the Philippines perceive to significantly affect their transport
mode choice.
• Data collected from three urban cities in Metro Cebu are used to determine which factors and
transport mode choice are prioritized based on demographic and socioeconomic segments as well as
reasons for travelling. Factors and modes of transportation are ranked using analytic hierarchy process.
• The results can be used by policymakers to evaluate and develop relevant transport policies that
complement a sustainable transport system.
 Case Description

One of the Sustainable Development Goals (SDG) developed by the United Nations
pertains to sustainable transportation. For a developing country such as the Philippines
with numerous transport options, a sustainable transport system would prove to be a
challenge. In this regard, this study aims to determine factors that significantly affect
transport mode choice based on various socio-demographic segment and how they are
ranked by commuters. The results can help identify the factors that need to be prioritized
to contribute to the realization of a sustainable transport system. It can also help in
assessing current government policies implemented towards transportation systems and
management in the city
 Framework & Method

• Based on review of relevant literature, a structured questionnaire was developed.

• It consisted of three sections which comprised of closeended questions. The first
section was a consent form that indicated the purpose of the survey, procedure,
and confidentiality of the study. The second section prompted the respondents to
indicate their personal details such as age, gender, occupational status, monthly
income, city of residence, city of destination, and purpose of travel.
• The questionnaire was written in local dialect (Bisayan) with English translation.
• Data collection was conducted from November to December 2018 in the three
cities of Metro Cebu: Cebu City, Lapu-Lapu City and Mandaue City. A total of 300
questionnaires were distributed; 191 were returned and considered useable for
analysis.
Framework & Method

In this whole study, analytic

hierarchy process (AHP) was used to
rank each factor and modes of
transportation. The overall objective
was the most preferred mode of
transportation for each
demographic group. The criteria
were the five factors, while the
alternatives were the different
modes of transportation.
 Framework & Method

1. Determining local priority weight of the five factors

2. Determining local priority weights of transport modes per factor
3. Determining global priority weights of transport modes
4. Determining overall ranking of factors and transport modes
Framework & Method
Factors
Framework & Method
Result of Ranking and Overall Rank of Factors
Framework & Method
Modes of Transportation
 Framework & Method
Result of Ranking and Overall Rank of Modes of Transportation
 Potential Research

One possible research is to apply such a system to certain countries, e.g.

Indonesia, so that they can develop public transport using AHP calculations.
 PAPER 3

“Environment Identification of Plantation Plant Development

for Competitive in Sukoharjo Districts, Indonesia”
 Introduction

• Development of identical plantations with large industrial components

and sources of state revenue to make plantation products for export.
• The selection of priority commodities to be developed can contribute to
regional development.
• This research aimed to determine priority plantation crops to be
developed in Sukoharjo districts, Indonesia.
 Case Description
The results indicate the direction of the development of plantation crops is productivity. The
priority plantation crops developed in Sukoharjo districts are :
Cane (Saccharum officinarum L.) (0.2929),
Coconut (Cocos nucifera L.) (0.2017),
Tobaco (Nicotiana tabacum L.) (0.1650),
Herb and Spices (0.1283),
Cashew (Anacardium occidentale L.) (0.1259),
Cotton (Ceiba pentandra L.) (0.0085).

Sugarcane has the potential to be developed in Sukoharjo, Indonesia. Environmental factors

are an important concern for developing sugarcane. The internal factors can also influence the
development of sugarcane. Therefore, biotechnology as the application of technology is very
important to be able to develop sugarcane varieties. Increasing the number of varieties, sugar
cane plants can increase competitiveness in the market

The internal factors
Strengths
• designed available land,
• farmer the association,
• social culture,
• availability of human
resources, .
Weaknesses
• low farmer education,
• lack of farmer coaching,
• expensive labor.
SWOT
The external factors
strengths Opportunities
Opportunities
• availability of seeds from the government,
• mechanization assistance for land,
• market demand,
• expansion of land
• the presence of sugarcane processing factories.
Weaknesses Threats
threats
• aland use change,
• sugarcane farmers competition,
• pest and disease attacks,
• farmers moving to other sectors.
Framework & Method
The data analysis technique used is the AHP
(Analytical Hierarki Process) method
 Potential Research

Indonesia is the biggest agricultural country, bio-diversity land in Indonesia is the

second largest in the world after Brazil, this can be seen with various kinds of
commodities for food crops, horticulture, plantations and farms who have long cultivated
as a source of food and society income. But why our ‘rich country’ still not able to
provide welfare for the state, for Indonesian people and for the farmers themselves?
Based on the journal "Environmental Identification of Plantation Plant Development
for Competitiveness in Sukoharjo Regency, Indonesia" we can also identify Plantation
Plant Development Environments in various other cities in Indonesia
 PAPER 4

“An application of analytical hierarchy process (AHP) in

formulating priority strategy for enhancing creative industry
competitiveness”
 Introduction
• The contribution of the creative economy sector to Indonesia's gross domestic product
(GDP) in 2018 was 7.28% (BPS, 2019). This contribution value is more than economic
growth of Indonesia at the same year, i.e 5.2%. In addition, the existence of cretaive
industry can reduce income inequality especially in emerging countries (El-Gohary,
2010; Suryana, 2013).
• Based on the description above, the purpose of this study is to determine the
implementation level and condition of external environmental, organizational
resources, organizational capabilities, and competitiveness of creative sector SMEs.
Then, to formulate priority strategy in enhancing SMEs's competitiveness primarily at
creative economy sector in Indonesia.
 Case Description
• This study is aimed to analyze the variables of external environment,
organizational resources, organizational capabilities, and business
competitiveness.
• The study priorities strategy and programs as basic for developing the
competitiveness of creative industry in Indonesia
• The number of respondents who participated in this survey was 200, while
the key informants were 10 people.
• Method of analysis involved descriptive statistics, and analytical hierarchy
process (AHP). Then, data were processed by using both IBM SPSS 24, and
Expert Choice 11.
 Framework & Method

• Method of analysis involved descriptive statistics, and analytical hierarchy process

(AHP). Then, data were processed by using both IBM SPSS 24, and Expert Choice 11.
• This study was conducted in two center areas of creative industry sector in Indonesia,
namely South Sulawesi Province and East Java Province. The unit analysis of this study
was owners or managers of creative industry. Sampling method used simple random
sampling technique, while determination of minimum sample size was used by SLOVIN
formula at error rate of 10%. Based on this formula, the minimum sample size was 99
business units. However, to obtain a high level of population representation, the
number of samples was 200 business units. It included 100 samples from South
Sulawesi area, and 100 samples from East Java.
Framework & Method
Framework & Method
Framework & Method
 Potential Research

• The findings of this study have indicated that value of creative industry competitiveness
has relatively declined during covid-19 pandemic. The results of this study provide
some guidance for managers and owners of creative industry sector in formulating
strategies, policies, programs and competitiveness recovery actions during the Covid-
19 pandemic.

• This research can inspire us to conduct research on priority strategies that must be
carried out by considering the dynamics of external environmental factors and the
capacity of internal resources for various other business fields
 PAPER 5

“Maintenance Heavy Equipment Management Through

Contract Models or Company it Self”
 Introduction
• PT. Vale Indonesia is mining companies that produce nickel in Indonesia at Sorowako, South Sulawesi

• The operation using a variety of equipment

1. Haul truck to transport mined rock to the processing area

2. Dozer for push or dig soil or rocks

3. Wheel Loader to move or lift rock into trucks

4. Excavator to dig soil or rock

5. Grader to level the ground

• Total unit is 347 units with various type & brands

• PT. Vale needs the best maintenance strategy to operates optimally with compare by self or maintenance contract

• AHP method is often used in previous studies related to suppliers/contractors to determine supplier performance, determine supplier selection.
Previous studies have used AHP to determine the type of contract awarded, previous research on grocery stores
 Case Description

• Marc Contract / Full Maintenance Contract

Will be carried out by contractors for the service and spare part with lump sum payment per month.
Currenty this company carried out this type contract

• SSA Contract

The contractor will perform maintenance for services and PT. Vale provide spare part needed by
maintenance

• On Call Contract

The contractor will provide work package or several activity

 Framework & Method
A. AHP
This research use AHP for 3 following steps.
1. Construct Hierarchy (Figure 1)
Creating hierarchical forms of various elements as
principle objectives
2. Pair-Wise Comparison
The comparison matrix between factors is the nxn
dimension box matrix
3. Consistency in Factor Comparisons was Calculated
The comparison matrix between factors is the nxn
dimension box matrix
 Framework & Method
B. Fuzzy AHP
Chang (1996) defines AHP intensity values into triangular fuzzy scales.
The fuzzy triangle scale used by Chang can be seen in Table 3. Fuzzy
AHP step in research as following:
1. Calculate the Average Value of Fuzzy Geometric

2. Calculate the Value of Fuzzy Weights

3. Perform the Fuzzy Element Defuzzification Process

4. Normalization of Mi Values
 Framework & Method
Results

Research shows that the method can be used to choose strategy maintenance in company and as the result is MARC
alternative is the best strategy of maintenance that company should use with high score in quality aspect.
Framework & Method
Results
Framework & Method
Results
 Potential Research

• Can be applied in the workplace

• The case in this study is the same as the case in my current workplace with the
different data
Thank You