ANALYTIC HIERARCHY PROCESS MATRIX

ABOUT AHP

The AHP Matrix

CTQ'S RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP COL. TOTAL RESPONSE 1 0.142857143 0.142857143 0.125 0.125 1.535714286 QUALITY 7 1 0.142857143 0.125 0.125 8.392857143 PACKING 7 7 1 0.125 0.2 15.325 DELIVERY 8 8 8 1 0.111111111 25.11111111 RELATIONSHIP 8 8 5 9 1 31

The Normalized Score Matrix

CTQ'S NORMALIZED SCORE RESPONSE NORMALIZED SCORE QUALITY NORMALIZED NORMALIZED SCORE SCORE PACKING DELIVERY NORMALIZED SCORE RELATIONSHIP NORMALIZED CUMULATIVE PERCENTAGE OR NORMALIZED PERCENT RATIO SCORE OR ROW SCALE OF SUM PRIORITY 2.518623915 1.245590763 0.655171781 0.434591162 0.14602238 50.37247829 24.91181525 13.10343561 8.691823244 2.920447602

RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP

0.651162791 0.093023256 0.093023256 0.081395349 0.081395349

0.834042553 0.119148936 0.017021277 0.014893617 0.014893617

0.456769984 0.456769984 0.065252855 0.008156607 0.013050571

0.318584071 0.318584071 0.318584071 0.039823009 0.004424779

0.258064516 0.258064516 0.161290323 0.290322581 0.032258065

COL. TOTAL

Customer Satisfaction Index Survey Form

The Customer Satisfaction Index Form Looks Like This:- (GATHERING VOC)

CUSTOMER SATISFACTION INDEX SURVEY FORM

Please Tick any one of the ranks for the following Variables in the check box

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Excellent [ Very Good [ Good [ ] Average [ Poor [ ]

] ] ]

1 2 3 4 5 1 2 3 4 5

Excellent [ Very Good [ Good [ ] Average [ Poor [ ] Excellent [ Very Good [ Good [ ] Average [ Poor [ ]

] ] ]

DELIVERY
Excellent [ ] Very Good [ ] Good [ ] Average [ ] Poor [ ] RELATIONSHIP Excellent [ ] Very Good [ ] Good [ ] Average [ ] Poor [ ]

PACKING
] ] ]

REMARKS EXCELLENT VERY GOOD GOOD AVERAGE POOR

SCORES 5 4 3 2 1

VOC GATHERING

RESPONSE

QUALITY

Use Of AHP Template

AHP or Analytic Hierarchy Process Matrix Template is used for evaluating the Customer Satisfaction Index (CSI) or to know Customer Preferences called Percent Ratio Scale Of Priority of the Customer.

Example
Five CTQ's for VOITH Paper Fabrics India Ltd Marketing Department is used. These CTQ'S are: (1) Response:- Of the Supplier or the manufacturer delivering its products. (2) Quality: The Value entitlement of the Product for the customer or the Quality of the product. (3) Delivery Time: The Time taken to deliver the Product to Customer's Premises. (4) Packing: How's the robustness of the Packing of the Product and (5) Relationship: The actual relationship with the customer.

Example
CUSTOMER NO. 1 RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP COL. TOTAL RESPONSE 1 0.142857143 QUALITY PACKING DELIVERY RELATIONSHIP 7 1 7 7 1 0.125 8 8 8 1 8 8 5 9 1 31 0.142857143 0.142857 0.125 0.125 0.125 0.125

0.2 0.11111111 15.325 25.1111111

1.535714286 8.392857

Normalized Score Table

RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP COL. TOTAL 0.651162791 0.834043 0.45677 0.31858407 0.093023256 0.119149 0.45677 0.31858407 0.093023256 0.017021 0.065253 0.31858407 0.081395349 0.014894 0.008157 0.03982301 0.081395349 0.014894 0.013051 0.00442478 1 1 1 1 0.258064516 2.518624 0.258064516 1.245591 0.161290323 0.655172 0.290322581 0.434591 0.032258065 0.146022 1 5

50.4 24.9 13.1 8.7 2.9

AHP Results
RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP

50% 25% 13% 9% 3%

This is the Percent ratio Scale of Priority Column. This is also called Customer Preference. Here it can be clearly seen that for This Particular Customer Response from VOITH carries the greatest preference. The customer rates Response from us at the highest priority and is implying that the Marketing Deptt. or the sales backup team is giving maximum response.

How To Proceed?
As the Maximum Score is 5, when your customer rates these important parameters the total score is multiplied by five(5). First add all the scores for Response; Quality; Delivery; Packing and Relationship for a particular customer of the particular sales/marketing executive.Then multiply the total by five(5)/ This will be the customer satisfaction index for that particular customer. Now these scores of the individual CTQ's e.g. Response;Quality; Delivery etc. are to be converted to AHP score and plugged into the AHP Matrix in the AHP Template provided to calculate the % Ratio Scale Of Priority for each of the CTQ's of Marketing. The greatest % score is what your customer's preference is and that's the priority through which he/she judges about the manufacturing organization.
CONVERTING THE CSI SCORES TO AHP SCORES

About AHP
ABOUT AHP
AHP (Analytic Hierarchy Process Matrix) is a Matrix in which the Rows and Columns have the same parameters. For e.g. here If First Row is Response the First Column is also Response; If the second Row is Quality the Second Column is also Quality likewise. Now once the matrix is arranged a score range of 1 to 9 is selected and allocated where a maximum score implies that the row is more important than the column. The diagonal of the matrix is allocated a score of 1. Now proceeding rowise the value in the corresponding column just below the diagonal is just inverse of the scores in the corresponding row. Likewise calculate all the columns. Add the columns. Now create a table for normalizing the scores. Divide each value of a cell of a column by the column total. Likewise do for all columns. Add the rows of this new table. This will be the Normalized score for each CTQ. Convert into percentage by dividing the normalized score for a CTQ with the column total of the Normalized Score Column and multiplying by 100. This will be the Percent Ratio Scale Of Priority for each CTQ and will also be the priority of your customer.

Converting The Scores

Here in this case convert the scores of 1 to 9 to the scores allocated in the customer satisfaction index Survey Form and then take the geometric mean of AHP Score to match with the CSI form score. The table to allocate the actual scores is given below:CONVERTING THE SCORES

Scoring The Matrix

CSI RATING EXCELLENT VERY GOOD GOOD AVERAGE POOR CSI SCORE AHP SCORE GEOMETRIC MEAN

5 4 3 2 1

9 7-8 5-6 3-4 1-2

9 7.5 5.5 3.5 1.5

Interpreting AHP Results

Plug the data of the converted score (Geometric Mean) into the AHP Matrix Template. An automatic data will be generated into the columns of the Normalized Score Table. You have to just look at the last column of the Normalized Score table called Percent(%) Ratio Scale Of Priority of the Customer or the Customer Preference. A Histogram can be then made starting with the Least % ratio scale of priority to the maximum % ratio scale of priority. The Least score value will indicate that which problem is to be attacked first (as ranked lowest by the customer). Alternately we can draw a Pareto chart by first subtracting each % Ratio Scale Of Priority Score from 100% and after subtracting the greatest value of % Ratio Scale Of Priority will become the least value. To Draw a Pareto Chart we can arrange the subtracted values from greatest to the least and plot the pareto Histogram. The Maximum value as per the pareto chart is the CTQ to be most attended first and ultimately improve our internal and external processes to increase the Customer's Value entitlement.

Studying Variance & Paired Comparison through AHP

MULTIVARI CHARTS

We can also make Multi - Vari Charts for a months data executivewise and actually observe the variance in the CTQ's executivewise and can judge the relative performance of the executives in the field and can further back up the marketing team by analyzing and solving the problems faced by the executives in the field.

AHP & CSI Data Chart

% RATIO SCALE OF PRIORITY FOR THE MONTH
CR CR1 CR2 CR3 CR4 CR5 CR6 CR7 CR8 CR9 CR10 CR11 CR12 CR13 CR14 CR15 CR16 CR17 CR18 CR19 CR20 CR21 CR22 CR23 CR24 CR25 CR26 CR27 CR28 CR29 CR30 EXEC. RESPONSE QUALITY DELIVERY PACKING RELATIONSHIP

Normalized Score Revisited

CTQ'S NORMALIZED SCORE RESPONSE NORMALIZED SCORE QUALITY NORMALIZED SCORE PACKING NORMALIZED SCORE DELIVERY NORMALIZED SCORE RELATIONSHIP NORMALIZED CUMULATIVE PERCENTAGE OR NORMALIZED PERCENT RATIO SCORE OR ROW SCALE OF SUM PRIORITY 2.518623915 1.245590763 0.655171781 0.434591162 0.14602238 50.37247829 24.91181525 13.10343561 8.691823244 2.920447602

RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP

0.651162791 0.093023256 0.093023256 0.081395349 0.081395349

0.834042553 0.119148936 0.017021277 0.014893617 0.014893617

0.456769984 0.456769984 0.065252855 0.008156607 0.013050571

0.318584071 0.318584071 0.318584071 0.039823009 0.004424779

0.258064516 0.258064516 0.161290323 0.290322581 0.032258065

COL. TOTAL

This is the Percent Ratio Scale of Priority or the customer preferences prioritywise. Higher score mens high priority for that particular parameter

Pareto Chart & AHP

100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
De l iv er y Pa ck in g hip Re la tio ns Re sp on se ua li ty

From the AHP Example the Pareto Chart Drawn Indicates that Relationship is to be improved for this customer.