Document Type

Closed Project

Publication Date

Spring 2004


Dundar Kocaoglu

Course Title

Decision Making in Engineering and Technology Management

Course Number

EMGT 530/630


Mineral industries -- Management, Hierarchical decision model, Decision making, Technology -- Management, Strategic management


ABC, a division of BHPBilliton Corporation, specializes in extracting nickel. Its parent company, BHPBilliton, and ABC need to create a decision model that should be implemented and customized to its corporate culture and specific needs.

ABC has never practiced formal decision-making. They are currently improving their decision-making processes. The senior management has requested that we create a decision model to help improve their project portfolio. The main objective of the model is to help ABC achieve a less biased, more standardized and efficient method for selecting projects.

When creating the project portfolio selection model, the following attributes are considered:

  • Safety – Employees safety, Citizens Safety, Environment safety, Wild life safety.
  • Business Impact – Overall impact on the business internally and externally in terms of added values.
  • Customer Impact – Overall meeting expectations of customers and stakeholders.
  • Urgency to management – Meets with corporate mission and goals.
  • Standardization – Allows information and data flow easily company wide.
  • Data Availability – Data to help in project execution is available

These attributes are the links between the proposed projects and the strategies of the corporation. The focus is on the creation of a project portfolio selection model in terms of its relationship with ABC’s above-mentioned goal, the strategies and the proposed projects.

The targeted outcome of the model is to simply present this report with the basis of facts collected through literature search and ABC’s data on project portfolio selection systems. The research process started with determining ABC’s management goals and current project portfolio selection method (or lack there of). The data collected from ABC were analyzed using pair wise comparison software and then evaluated in our AHP (Analytical Hierarchy Process) MOGSA-type (Mission, Objective, Goal, Strategy, Action) model [1]. After the data were entered into the model, it produced meaningful results for analysis and interpretation. These results produced a solution for the current situation at ABC.

This report also recommends the next steps for ABC to achieve superior project portfolio selection with respect to their strategies by offering alternatives and additions to the decision model.


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