HKSM
Multicriteria Decision Analysis
A method that uses a decision matrix to define and weigh criteria (such as risk, uncertainty, and value) so multiple options can be scored, compared, and ranked in a consistent, transparent way.
Key Points
- Uses a decision matrix to score alternatives against agreed criteria.
- Criteria can include risk exposure, uncertainty, cost, benefit, feasibility, and strategic fit.
- Supports objective, repeatable prioritization by applying weights to each criterion.
- Useful for evaluating many ideas, vendors, requirements, or solution options.
Example
A project team must choose among five software vendors. They build a matrix with criteria such as total cost of ownership (30%), security compliance (25%), implementation risk (20%), scalability (15%), and user experience (10%). Each vendor is scored 1–5 per criterion, multiplied by the weights, and summed. The highest total score identifies the preferred vendor, with a clear rationale for stakeholders.
PMP Example Question
A project manager needs a structured way to compare several design options using weighted criteria like risk, cost, and business value. Which tool should be used?
- Decision tree analysis
- Multicriteria decision analysis
- Affinity diagram
- Delphi technique
Correct Answer: B — Multicriteria decision analysis
Explanation: It applies a decision matrix with weighted criteria to score and rank multiple alternatives objectively.
