Integrated project evaluation and selection using multiple-attribute decision-making technique

Prasanta K. Dey*

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

The evaluation and selection of industrial projects before investment decision is customarily done using marketing, technical and financial information. Subsequently, environmental impact assessment and social impact assessment are carried out mainly to satisfy the statutory agencies. Because of stricter environment regulations in developed and developing countries, quite often impact assessment suggests alternate sites, technologies, designs, and implementation methods as mitigating measures. This causes considerable delay to complete project feasibility analysis and selection as complete analysis requires to be taken up again and again till the statutory regulatory authority approves the project. Moreover, project analysis through above process often results sub-optimal project as financial analysis may eliminate better options, as more environment friendly alternative will always be cost intensive. In this circumstance, this study proposes a decision support system, which analyses projects with respect to market, technicalities, and social and environmental impact in an integrated framework using analytic hierarchy process, a multiple-attribute decision-making technique. This not only reduces duration of project evaluation and selection, but also helps select optimal project for the organization for sustainable development. The entire methodology has been applied to a cross-country oil pipeline project in India and its effectiveness has been demonstrated. © 2005 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)90-103
Number of pages14
JournalInternational Journal of Production Economics
Volume103
Issue number1
DOIs
Publication statusPublished - Sep 2006

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Environmental impact assessments
Analytic hierarchy process
Decision support systems
Developing countries
Environmental impact
Marketing
Sustainable development
Pipelines
Decision making
Costs
Oils
Multiple attribute decision making
Project selection
Impact assessment
Integrated
Authority
Investment decision
Methodology
Environmental impact assessment
Financial analysis

Keywords

  • analytic hierarchy process
  • decision support system
  • oil pipelines
  • project analysis

Cite this

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title = "Integrated project evaluation and selection using multiple-attribute decision-making technique",
abstract = "The evaluation and selection of industrial projects before investment decision is customarily done using marketing, technical and financial information. Subsequently, environmental impact assessment and social impact assessment are carried out mainly to satisfy the statutory agencies. Because of stricter environment regulations in developed and developing countries, quite often impact assessment suggests alternate sites, technologies, designs, and implementation methods as mitigating measures. This causes considerable delay to complete project feasibility analysis and selection as complete analysis requires to be taken up again and again till the statutory regulatory authority approves the project. Moreover, project analysis through above process often results sub-optimal project as financial analysis may eliminate better options, as more environment friendly alternative will always be cost intensive. In this circumstance, this study proposes a decision support system, which analyses projects with respect to market, technicalities, and social and environmental impact in an integrated framework using analytic hierarchy process, a multiple-attribute decision-making technique. This not only reduces duration of project evaluation and selection, but also helps select optimal project for the organization for sustainable development. The entire methodology has been applied to a cross-country oil pipeline project in India and its effectiveness has been demonstrated. {\circledC} 2005 Elsevier B.V. All rights reserved.",
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