Application Of Multi Criteria Decision Making As An Alternative Of Project Selection In The Case Of Adama City Public Projects

Abstract

Resources For Pursuing And Funding New Projects Are Limited, Which Presents A Challenge In Prioritizing, Selecting, And Allocating Optimally. Ethiopian Public Projects Have Faced Difficulties In Selecting The Best Projects, Finishing On Time, And Within Budget. The City Adama Is One Of A Rapidly Growing City With An Extensive Development Plan Aimed At Modernizing The City. The Project Selection Methods Commonly Used Are Quantitative In Nature And They Lack To Account For Intangible Factors Which Can Affect The Outcome Of Project Appraisals. . The Aim Of This Study Is To Identify And Provide A Simple Frame Work For The Criteria That Make The Most Use Of Resources By Weighing Multiple Decision Criteria. An Analytic Hierarchy Process Is Applied That Considers Both Quantitative And Qualitative Factors In Choosing Capital Project In Adama City Adminstration. Research Surveys Were Conducted In The Representative Organizations And Secondary Documents Were Used For The Analysis Among The Three Basic Categorical Factors Related To Project Characteristics Are Weighted 0.5; Related To Owner (Firm) Characteristics Are 0.33, And Related To External Factors Are Weighted Only 0.17 The Study Shows That The Most Important Project Selection Sub-Criteria Found To Be Project Risk, Measure Of Worth, Profit, Financial Standing, And Resources With The Overall Weight Of 0.16, 0.12, 0.11, 0.08 And 0.09 Respectively.. Others Are Economic Factors, Experience, Technical Ability, Size & Complexity, Duration, Organization Culture, Environmental, Location Factors, Social Responsibility, And Political Factors With Weights Of 0.07, 0.07, 0.06, 0.06, 0.05, 0.03, 0.03, 0.03, 0.03, And 0.02. Four Projects Out Of Five Gravel Road Projects Were Selected To Have The Most Use Of Resources Under The Available Resource Constraints. The Study Provides A Simple Framework That Can Be Used By Organizations To Help Them Make Challenging Decisions. The Integrated Model Is Recommended For Its Ability To Capture All Possible Factors, Optimality Advantage And Applicability In Different Situations With Optimizing The Selection Criteria.