Posted in Operations and Supply Chain Terms, Total Reads: 345
Definition: Weight-Point Plan
Weight point plan is an evaluation method that includes assignment of weights to various non monetary parameter or key performance indicators (KPIs) in order to evaluate a project. It’s a form of multi attribute or multi criterion analysis. It can be applied to evaluate different option and find out the most suitable one.
The process of weight point plan can be written as follows:
• Identification of the relevant non-monetary parameters
• Defining the scale of evaluation (say, 5 point scale or 10 point scale)
• Weigh the parameters in the order of their relative importance
• Score the options against each parameter
• Calculate the weighted score
• Test the robustness of result
• Interpret the outcomes
Such calculations are liable to influence from individual view of expert. More number of views can be taken to remove any bias. The weigh point plan gives just an analysis. Its importance can’t be overstressed for decision making. This analysis for one case can’t be replicated for another case because of the subjectivity involved. However, attributes can be considered for different cases with different relative weights.
Example, the implementation of weight point plan can be understood from the diagram below. All indicators are weighed relative to one another (all weights shown in brackets) and each option is evaluated against each indicator on a scale of 20 points.