Denis Joseph Nexum Hardware.

Itb External

Bid Decision Matrix Definition FROM POME BY GAUTAM KOPPALA VT

Bid Decision Matrix Definition:

""YES" and "NO" are small words that produce great things."

 

The Decision Matrix is also called Bid Decision Matrix, Comparison Matrix, Decision Alternative Matrix, Evaluation Matrix, Government Decision Matrix, Importance vs. Performance Matrix, Measured Criteria technique, Opportunity Analysis, Performance Matrix, Rating Grid, Scoring Matrix, vendor comparison decision Matrix, Weighted criteria Matrix.

A Bid decision matrix allows decision makers to structure, and then solves their problem by:

1. specifying and prioritizing their needs with a list a criteria; then
2. evaluating, rating, and comparing the different solutions; and
3. Selecting the best matching solution.

POME Case Study:

Assessing Investment Choices

"Koppala, we've been looking at some new office space in town. The mortgage rates the bank offered were 6.00 percent for 15 years, 6.25 percent for 30 years, and a quarter of a point less if we put up more than 20 percent. I feel I can make excellent contributions in the area of space and functionality, but I don't understand why we're being offered different rates or which deal is the best one for us."

"That's a good question. Let's see if anyone else in the group has any ideas."

"I think the difference in rates relates to risk and return. We're growing rapidly and we expect that to continue, but my parents still talk about the economic downturn in the early 1990s. Plenty of firms downsized and the residential real estate market collapsed. It's hard to predict the business cycle, and if we had a severe recession, our market demand might dry up overnight."

"The farther out you go in the future, the harder it is to predict, so the more return you have to demand."

"I agree with Les, Koppala, but I think there's more to it than that. I think risk and return are also related to the amount we'd have to put up as a down payment. Bankers want buyers to have some of their own money at risk—they figure people will be more careful with their own money than with the bank's. But the difference in rates for different terms reflects the time value of money. We can calculate net present value to see which rates are better for us."

"Those are both good answers. This kind of thinking helps you make better decisions about Projects finances and about your own finances. You shouldn't finance any purchases without considering risk and return and the time value of money."

 

As is, a decision matrix is a decision tool used by decision makers as part of their Decision-Support Systems (DSS).

 

The decision Matrix is called by several names in several Organizations, POME accumulated through the brains storming techniques which it used with several sales Operation employees in different areas of expertise.

In the context of procurement or fixing a bid, which is the solicitation and selection process enabling the acquisition of goods or services from an external source, the decision matrix, also called scoring matrix, helps determine the winning bid or proposal amid all those sent in response to an invitation to do so that, depending of the best-suited solicitation process, could either be a:

• Request for Proposals (RFP),
• Invitation for Bids (IFB),
• Invitation to Bid (ITB), or
• Invitation to Tender (ITT).

A decision matrix is basically an array presenting on one axis a list of alternatives, also called options or solutions that are evaluated regarding, on the other axis, a list of criteria, which are weighted dependently of their respective importance in the final decision to be taken. The decision matrix is, therefore, a variation of the 2-dimension, L-shaped matrix.

The decision matrix is an elaborated version of the measured criteria technique in which options are given, for each criterion, satisfactory or compliance points up to a maximum (usually from 0 to 100) that is predefined per criterion and may vary between criteria depending on its relative importance in the final decision.

 

Decision Matrix Activity:

"Decision matrix philosophy lies in two words- SUSTAIN AND ABSTAIN"

Should you be involved in creating a decision matrix, here is the activity you will be engaged in. Use the COWS method elucidated by POME, shown below, that describes all the information you should come up with in order to make an impartial decision:

C

 

Criteria.
Develop a hierarchy of decision criteria,
also known as decision model.

O

 

Options.
Identify options, also called
solutions or alternatives.

W

 

Weights.
Assign a weight to each criterion
based on its importance in the final decision.

S

 

Scores.
Rate each option on a ratio scale by assigning it
a score or rating against each criterion.

Decision Matrix Example:

For our decision matrix example, let's consider the information below. Let's say we've identified criteria C1, C2, and C3 playing a role in the final decision, with a respective weight of 1, 2, and 3. Moreover, we've found 3 prospective providers A, B, and C, whose offer may constitute a good solution.

Creating a decision matrix:

It's critical to rate solutions based on a ratio scale and not on a point scale. For instance, the ratio scale could be 0-5, 0-10, or 0-100. Should you feel you must use a point scale (for instance, maximum speed, temperatures, etc.), you must then convert rating values on a ratio scale by assigning the maximum ratio to the estimated maximum value, which could be, for instance, 5 (for a 0-5 scale), 10 (0-10), or 100 (0-100). Indeed, a point scale with high values introduces a bias even if it's of less importance in the final decision.

POME laid out the information into a 2-dimension, L-shaped decision matrix as shown below, and then compute the scores for each solution regarding the criteria with the formulas below:

Score = Rating x Weight

and then

Total Score = SUM (Scores)

The result is the following:

So, be careful in your interpretation of the result you get using a decision matrix. Indeed, you have to question the validity of the path you took to reach the conclusion you found. To challenge each step of your decision cycle, some features like sensitivity analysis and robustness analysis are helpful.

 

The discussion of these related topics provides a basis and a setting for much of the material. Project Managerial decisions, whether they are investment or financing choices, are often made by applying the principles of the risk-return relationship. This discussion demonstrates that most people, regardless of their responsibility, understand and apply these principles in their daily activities. However, it is also important to understand how these principles apply in financial management and how to measure the risk-return trade-off to permit sound decision making. Therefore, POME focuses on application and measurement. This material leads directly into the capital investment decision-making discussion.

 

Gautam Koppala,

POME Author

 

 

 

 

 

About the Author

Gautam Koppala, with over ten years, track record of successful leadership, excellent results through strategic skills in driving revenue and profit growth. Demonstrated ability to identify and trouble shoot critical issues impacting productivity, cost, distribution, marketing, Strategic positioning, sales and financial operations, with innate ability to build and maintain strong client relationships in operations. Expert in distilling and managing processes, enhancing internal structures, and promoting multi-skilled team competencies via nurturing mentorship and inspirational leadership. Engagements have spanned operational, strategic, technological and change management roles. Academically, I am a cum laude graduate with a Bachelor of Technology degree in Electrical and Electronics Engineering (B-Tech E.E.E.) and a post graduate in Masters in Human Resources Management (M.H.R.M.) and Masters of Foreign Trade (M.F.T.). As you will see my Post Graduation's were been studied part-time, as well as working full-time as an Engineer. I feel that this demonstrates my ability to maintain dedication, motivation and enthusiasm for a project management over a long period of time. In addition, balancing full-time work with study has perfected my time-management and organizational skills. I believe that my college degrees and gamut certifications in combination with my extensive broad-based work experience along with my drive, resourcefulness and determination, would make me an excellent candidate for a senior management position with any company. Highlights of my background include Operations related Commercial, Supply chain, Sales with a magnificent experience in Project management, technically oriented towards Automation and Security Systems in Industrial and Building sectors. Presently, writing a book on Projects and Operations Management (comprise of 12 volumes, 6K pages), and awaited for the reputed publications. These books can be checked in Google books and scribd websites too.

Hewlett Packard CC46867927 HP ITB Service Kit 150K Yield $735.24 150 000 Yield. Compatibility: HP Color LJ CP3525 (CC468A) CP3525dn (CC470A) CP3525n (CC469A) CP3525x (CC471A) CM3530 mfp (CC519A). Size: 6.5 x 15.5 x 22.

Iogear External Sound Box - USB - External GUADT51 $36.73 Iogear External Sound Box - USB - External GUADT51

External Readout $139 The Summit External Readout Thermometer for all Summit Refrigerators Freezers and Wine Coolers

EXTERNAL DVD DRIVE - BLACK $45.99 EXTERNAL DVD DRIVE - BLACK

EXTERNAL ALUMINUM DRIVE KIT FOR $37.99 EXTERNAL ALUMINUM DRIVE KIT FOR

Single External Cache Battery $209.63 Single External Cache Battery

Transcend 320GB - External TS320GSJ25M $90.48 Transcend 320GB - External TS320GSJ25M

Buslink 160GB - External DSC160U2 $130.78 Buslink 160GB - External DSC160U2

Transition Networks External 25025 $29.53 Transition Networks External 25025

Verbatim USB - External 97449 $142.12 Verbatim USB - External 97449

Verbatim USB - External 97549 $15.39 Verbatim USB - External 97549

Verbatim USB - External 97550 $15.76 Verbatim USB - External 97550

Verbatim USB - External 97551 $15.39 Verbatim USB - External 97551

Verbatim USB - External 97556 $15.39 Verbatim USB - External 97556

PNY USB - External PFD4GBHP165REDEF $20.05 PNY USB - External PFD4GBHP165REDEF

Sandisk USB - External SDCZ50002GA11 $15.42 Sandisk USB - External SDCZ50002GA11

SteelSeries USB - External 51001SS $50.8 SteelSeries USB - External 51001SS

Hitachi For External HDD 0G00075 $20.52 Hitachi For External HDD 0G00075

StarTech.com USB - External ICUSBAUDIO7 $28.1 StarTech.com USB - External ICUSBAUDIO7

Cabletron ST500 Transceiver External $277 Cabletron ST500 Transceiver External

Microphone,External,Spkr $54.99 MICROPHONE,EXTERNAL,SPKR

320gb External Leather Hdd $93.99 320GB EXTERNAL LEATHER HDD

Samsung Bixolon External Buzzer $2.99 SAMSUNG BIXOLON EXTERNAL BUZZER

EXTERNAL SPEAKER ATTACHMENT SPKR $372.11 EXTERNAL SPEAKER ATTACHMENT SPKR

Arm with External Fixation $59.99 Arm with External Fixation - Wall Decal

Hospital of the Innocents External $24.99 Hospital of the Innocents External - Photographic Print

External Ear Hearing $39.99 External Ear Hearing - Giclee Print

External Microphone $34.99 Focus on the road while handling your phone calls with this external microphone and your compatible Xplōd™ Bluetooth® CD receiver.

External speaker with 12/24-volt adapter cable $32.99 CABLE, EXTERNAL SPEAKER W/12/24V

SCSI external terminator $38.99 C2G - SCSI external terminator - HD-68 (M) - black

GUC2020DW6 - external video adapter $66.99 IOGEAR GUC2020DW6 - External video adapter - USB 2.0

external video adapter $48.99 SIIG - External video adapter - USB 2.0