Using Delphi, AHP and TOPSIS Methods for Evaluating and Ranking Investment Projects in Multiple Portfolio
Subject Areas :
Industrial Management
Vahid Baradaran
1
,
Ahmad Borjy
2
,
Peyman Zandi
3
,
Alamdar Davoodabadi
4
1 - Assistant Professor, Industrial Engineering, North Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Industrial Engineering department, North Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Industrial Management department, Allameh Tabatabai University, Tehran, Iran
4 - Industrial Engineering department, Shomal University, Mazandaran, Iran
Received: 2015-11-28
Accepted : 2016-07-18
Published : 2016-08-25
Keywords:
Abstract :
Because of importance and complexity of portfolio management issue, there have been many articles and books on the subject of project evaluation and selection, discussing over one hundred different techniques and tools. This tools and techniques specify a prioritized projects list that should be selected for final allocation. Usually, using financial approaches can’t create an optimal portfolio especially in projects that have more uncertainty, this approaches can make wrong results. In these cases, these financial approaches should be combined with other approaches (such as strategic approaches) in order to make a balanced portfolio that is aligned with organization’s strategies and increase profitability and strategic adaption of projects. Besides, various investments are evaluated and selected differently and classification of projects in different portfolio allows organizations to evaluate, prioritize and select similar projects in the same portfolio by using similar tools and techniques. In this paper, we selected agriculture field as the case study and the manner of evaluating, ranking and conducting of projects by using investment projects categorizations and Delphi, AHP, and TOPSIS method has been discussed. By determining the type of business and investment and local criteria for each categorization, the results of this paper can be used in similar cases.
References:
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Liesio, J., Mild, P., Salo, A., (2007). Preference programming for robust portfolio modeling and project selection. Eur. J. Oper. Res. 181, 1488–1505.
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28 Rajegopal, S. McGuin, P. and Waller J. (2007). Project Portfolio Management Leading the corporate vision " , First published by Palgrave Macmillan
Saaty, Thomas L., Rogers, Paul C., & Pell, Ricardo. (1980). Portfolio selection through hierarchies, The Journal of Portfolio Management, 6(3), 16-21.
Skaf M.A. (1999). Portfolio Management in an Upstream Oil and Gas Organization, Interfaces, 29/6, pp. 84-104.
Summer, R. j. (1999). Portfolio Management for Projects: A New Paradigm. In Dye, L.d.
Verbano, C., Nosella, A., 2010. Addressing R&D investment decisions: a cross analysis of R&D project selection methods. Eur. J. Innov. Manag. 13 (3), 355–380.
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Azar, A., Rajabzadeh, A. (2012). Applied decision making, MADM approach. Negahe Danesh. Press, 230P.
Archer, N.P., Ghasemzadeh, F. (2007). Project portfolio selection and management In The Wiley Guide to Managing Projects. Edited by Peter W. G. Morris and Jeffrey K. Pinto.
Baker, N. R., & Freeland, J. (1975). Recent advances in R&D benefit measurement and project selection methods. Management Science, 21, 1164-1 175.
Cooper, Robert G. (1993). Winning At New Products (Second Ed.), Reading, MA: Addison-Wesley.
Cooper, R.G., Edgett, S.J. and Kleinschmidt, E.J. (1997). R&D Portfolio Management Best Practices Study, Industrial Research Institute (IRI), Washington, DC.,
Cooper, R.G., Edgett, S.J. & Kleinschmidt, E. (1998). J. Portfolio Management for New Products. Reading, Mass: Perseus Publishing,.
Cooper, R.G., Edgett, S.J., Kleinschmidt, E.J. (1999). New product portfolio management: practices and performance. J. Prod. Innov. Manag. 16 (4), 333–351.
Cooper, R.G., Edgett, S.J., Kleinschmidt, E.J. (2000). New problems, new solutions: making portfolio management more effective. Res. Technol. Manag. 43 (2), 18–33.
Cooper, R.G., Edgett, S.J., Kleinschmidt, E.J. (2001). Portfolio management for new product development: results of an industry practices study. R&D Manag. 31 (4), 361–380.
Cooper ,R.G., Edgett S.J., Kleinschmidt E.J. (2002). Optimizing the stage-Gate process, What best practice companies are doing, Research Technology Management, Volume 45, Number 5.
Cooper , R. G. 2006 . Managing technology development projects: Different than traditional development projects. Research Technology Management 49 (6):23 – 3.
Dutra, C.C., Ribeiro,J.L.D., de Carvalho, M.M., 2014. An economic–probabilistic model for project selection and prioritization, Int. J. Proj. Manag. http://dx.doi.org/10.1016/j.ijproman.2013.12.004.
Ghasemzadeh, F., Archer, N. (2000). Project portfolio selection through decision support. Decis. Support. Syst. 29, 73–88.
Henriksen, A., Traynor, A. (1999). J.A practical R&D project-selection scoring tool. IEEE Trans. Eng. Manag. 46, 158–170.
Hwang, C.L., & Yoon, K. (1981). Multiple attribute decision making methods and applications. New York:Springer-Verilog.
Levine, H. A. (2005). Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolio and Maximizing Benefit. USA: Pfeiffer Wiley.
Martikainen, J., Portfolio Management of Strategic Investments in Metal Products Industry, Helsinki University of Technology, 17th of January, 2002.
Martino, Joseph P. (1995). R&D Project Selection, New York, NY: Wiley.
Mehregan, M.R. (2013). Advanced operation research. Ketabe daneshgahi. Press, 280P.
Meade, L.M., Presley, A. (2002). R&D project selection using the analytic network process. IEEE Trans. Eng. Manag. 49, 59–66.
Meredith, J.R., Mantel Jr., S.J., 2008. Project Management: A Managerial Approach, 7th edition. John Wiley& Sons, Inc., EUA.
Kerzner, H. (2006). Gestao de projetos: as melhores praticas, 2a Ediçao. Bookman, Porto Alegre.
Kester, L., Griffin, A., Hultink, E.J., Lauche, K. (2011). Exploring portfolio decision-making processes. Journal of Product Innovation Management 28 (5), 641–661.
Lawson, C.P., Longhurst, P.J., Ivey, P.C. (2006). The application of a new research and development project selection model in SMEs. Technovation, 26 (2), 242–250.
Liesio, J., Mild, P., Salo, A., (2007). Preference programming for robust portfolio modeling and project selection. Eur. J. Oper. Res. 181, 1488–1505.
Padovani, M., Carvalho, M.M., Muscat, A.R.N. (2010). Seleçao e alocaçao de recursos em portfolio de projetos: estudo de caso no setor quimico. Gest. Prod. 17, 157–180.
Poh, K., Ang, B., Bai, F., (2001). A comparative analysis of R&D project evaluation methods. R&D Manag. 31 (1), 63–75.
28 Rajegopal, S. McGuin, P. and Waller J. (2007). Project Portfolio Management Leading the corporate vision " , First published by Palgrave Macmillan
Saaty, Thomas L., Rogers, Paul C., & Pell, Ricardo. (1980). Portfolio selection through hierarchies, The Journal of Portfolio Management, 6(3), 16-21.
Skaf M.A. (1999). Portfolio Management in an Upstream Oil and Gas Organization, Interfaces, 29/6, pp. 84-104.
Summer, R. j. (1999). Portfolio Management for Projects: A New Paradigm. In Dye, L.d.
Verbano, C., Nosella, A., 2010. Addressing R&D investment decisions: a cross analysis of R&D project selection methods. Eur. J. Innov. Manag. 13 (3), 355–380.
