Multiple criteria decision making in industrial project management

Abstract

Project Management in entrepreneurial economics is mainly a uni-criterion decision making process viz. the consideration of Net Present Value or Internal Rate of Return. When an industrial project however is brought at the level of government it is no more a uni-criterion decision making process. Indeed at that moment, certainly in developing countries, a lot of criteria have to be fulfilled.

As succesful applications of MCDM in this field are scarce, we present a proposal which was accepted by a government of a developing country. The proposal could be generalized for some other projects and it will be shown how multiple criteria decision making was involved. It also will be shown how the calculations were made to fulfill the criteria.

Some cost-effectiveness studies however concern several competing projects. At that moment the problem of optimization of several non-transitive targets is posited.