Also known as the Pugh method, decision matrix method, decision matrix, decision grid, selection grid, selection matrix, problem matrix, problem selection matrix, problem selection grid, solution matrix, criteria rating form, criteria-based matrix, and opportunity analysis.
Overview
Pugh Analysis is a decision-making model used to evaluate various alternatives against a baseline. It provides a structured approach for comparing options based on multiple criteria and assigning weighted scores to facilitate objective decision-making.
How Pugh Analysis Works
Identify Alternatives: List the options or solutions to be evaluated.
Define Evaluation Criteria: Determine the factors that will be used to compare the alternatives.
Assign Weights to Criteria: Give each criterion a weight based on its importance.
Select a Baseline: Choose an existing solution or a neutral reference as the baseline (usually given a score of 0).
Rate Each Alternative: Compare each alternative against the baseline, assigning values such as:
+1
: Better than the baseline0
: Same as the baseline-1
: Worse than the baseline
Compute Weighted Scores: Multiply each rating by the corresponding weight and sum the results for each alternative.
Make a Decision: Select the alternative with the highest overall score.
Example Decision Matrix
| Weight | Baseline | Alt1 | Alt2 | Alt3 |
Criteria 1 | 1 | 0 | | | |
Criteria2 | 2 | 0 | | | |
Criteria3 | 3 | 0 | | |
Advantages of Pugh Analysis
Helps compare multiple alternatives in an objective manner.
Reduces bias by structuring decision-making.
Can be customized with different criteria and weights.
Provides a clear justification for the chosen alternative.
Limitations of Pugh Analysis
Relies on subjective scoring, which may vary between evaluators.
Does not account for dependencies between criteria.
May require sensitivity analysis to verify robustness of the decision.
By using the Pugh Analysis method, organizations can make informed and structured decisions, ensuring that the best alternative is selected based on predefined criteria.
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