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Edited by C.A. Bana e Costa
Springer-Verlag, 1990, 660 p.
http://link.springer.com/book/10.1007/978-3-642-75935-2/page/1
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About this book:
This book gives an up-to-date overview of Multiple Criteria Decision Aid. It covers the different trends in MCDA Research, not only in terms of "methods" but also in discussion of fundamental methodological aspects, basic theoretical concepts and conditions and problems embodying a robust real-world decision aid practice. Emphasis is also given on MCDA software descriptions, which are significant tools for aiding "analysts" in aiding "decision-makers". The book constitutes also a good textbook for MCDM teaching and includes references for a deeper study of the various multicriteria approaches. |
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A Socio-technical Approach for Group Decision Support in Public Strategic Planning: The Pernambuco PPA Case
Bana e Costa, C.A., Lourenço, J.C., Oliveira, M.D., Bana e Costa, J.C. (2013)
Group Decision and Negotiation, DOI 10.1007/s10726-012-9326-2.
Abstract:
This article describes a socio-technical approach to public strategic planning. A multi-methodological framework with decision support systems (DSS) of problem structuring, multi-criteria decision analysis and strategic thinking was used in a decision conferencing process to support the key-players of the Pernambuco State Department of Social Development and Human Rights, in Brazil, to elaborate its 2008–2011 Multi-Annual Plan (PPA). This interactive process took place in June 2007, with thirty technical and political actors meeting in 5 consecutive days to discuss what should be the fundamental objectives/development axes of the PPA and to generate, assess and classify intervention programmes to achieve the objectives. Structuring objectives and programmes started by a group causal mapping session supported by the Decision Explorer DSS. Then, a multi-criteria group value model, created on-the-spot by means of the M-MACBETH DSS, helped the politicians in evaluating the overall benefit of each programme. The doability of the programmes was also appraised with MACBETH and, finally, the programmes were classified into four benefit versus doability categories defined in a 2×2 strategic graph: “pearls” (programmes with high benefit value and easy to implement), “oysters” (high benefit but difficult to implement), “bread and butter” (easy to implement but of low added value) and “white elephants” (low benefit and difficult to implement). The group agreed that at least all pearls and oysters should be selected. The programmes were prioritised based on their value-for-effort and the robustness of the selection was analysed with the PROBE DSS a posteriori. |
PROBE – A multicriteria decision support system for portfolio robustness evaluation
Lourenço, J.C., Bana e Costa, C.A. (2012)
Decision Support Systems, 54, 1, p.p.534-550.
Abstract:
This paper deals with the problem of selecting a robust portfolio of projects in the presence of limited resources, multiple criteria, different project interactions and several types of uncertainty. We present a new decision support system, PROBE – Portfolio Robustness Evaluation, and the algorithms it implements. PROBE identifies all efficient portfolios, either convex or non-convex efficient, depicting the respective Pareto frontier, within a given portfolio cost range, and allows performing in-depth interactive analysis of the robustness of selecting a proposed portfolio. |
The MACBETH approach for multi-criteria evaluation of development projects on cross-cutting issues
Sanchez-Lopez Ramiro, Bana e Costa C.A., De Corte J.-M., De Baets Bernard (2012)
Annals of Operational Research, 199, 1, pp. 339-408
Abstract:
The European Union's efforts for poverty reduction are based on the principle of Sustainable Human Development. Meeting the terms of this principle entails the consideration of aspects of general interest, known as "cross-cutting issues", at all levels of intervention. Cross-cutting issues comprise issues like human rights, gender equity, environmental concern, democracy as a social value, or the participation and empowerment of the beneficiaries of development. These issues concern social phenomena that are difficult to isolate in time or capture empirically, causing operational difficulties when projects are subjected to evaluation. Traditional methods of project evaluation, such as Cost Benefit Analysis or the Logic Framework, struggle to incorporate impacts that are difficult to measure or estimate in terms of indicators or monetary value. Therefore, in the field work at a rural development programme located in Bolivia, a need arose spontaneously to find and implement an approach that, complementary to traditional methods of project evaluation, could allow project managers to keep an eye on project performances in terms of cross-cutting issues. |
MACBETH
Bana e Costa, C.A., De Corte, J.-M., Vansnick, J.-C.(2012)
International Journal of Information Technology and Decision Making, 11, 2, pp. 359-387
http://www.worldscinet.com/ijitdm/11/1102/S0219622012400068.html
Abstract:
This paper presents an up-to-date comprehensive overview of MACBETH (Measuring Attractiveness by a Categorical Based Evaluation TecHnique). MACBETH is a multicriteria decision analysis approach that requires only qualitative judgements about differences of value to help a decision maker, or a decision-advising group, quantify the relative attractiveness of options. The approach, based on the additive value model, aims to support interactive learning about the evaluation problem and the elaboration of recommendations to prioritise and select options in individual or group decision making processes. We revise in detail the theoretical foundations of MACBETH and present a simple example that illustrates the use of the M-MACBETH decision support system (). It permits the structuring of value trees, the construction of criteria descriptors, the scoring of options against criteria, the development of value functions, the weighting of criteria, and extensive sensitivity and robustness analyses about the relative and intrinsic value of options. Reference is also made to some successful real-world consulting applications and a historical survey is also included, which describes the key stages, with their corresponding publications, in the development of MACBETH since early the 1990's. |
A multicriteria decision analysis model for faculty evaluation
Bana e Costa, C.A., Oliveira, M.D. (2012)
OMEGA: The International Journal of Management Science, 40, 4, pp. 424-436.
Abstract:
In the context of increasing demands for social and financial accountability of universities, the required implementation of transparent faculty evaluation systems constitutes a challenge and an opportunity for universities strategically aligning the activity of academic staff with the university goals. However, despite growing interest in the performance appraisal of faculty, only a few reported studies propose models that cover the full range of academic activities and the models in use are typically based on ad hoc scoring systems that lack theoretical soundness. This article approaches faculty evaluation from an innovative comprehensive perspective. Based on the concepts and methods of multiple criteria value measurement, it proposes a new faculty evaluation model that addresses the whole range of academic activities and can be applied within and across distinct scientific areas, while respecting their specificities. Constructed through a socio-technical process, the model was designed for and adopted by the Instituto Superior Técnico, the engineering school of the Technical University of Lisbon. The model has a two-level hierarchical additive structure, with top-level evaluation areas specified by second-level evaluation criteria. A bottom non-additive third level accounts for the quantitative and qualitative dimensions of academic activity related to each evaluation criterion. The model allows (a) the comparison of the performance of academic staff with performance targets reflecting the strategic policy concerns of university management; (b)the definition of the multicriteria value profile of each faculty member at the top level of the evaluation areas; (c)the computation of an overall value score for each faculty member, through an optimization procedure that makes use of a flexible system of weights and (d)the assignment of faculty members to rating categories. |
A Multi-Criteria Model for Auditing a Predictive Maintenance Programme
Bana e Costa, C.A., Carnero, M.C., Oliveira, M.D. (2012)
European Journal of Operational Research, 217, 2, pp. 381-393.
Abstract:
Auditing tools can play a key role in the continuous improvement of maintenance policies, in particular to enhance predictive maintenance (PM). This paper proposes a multi-criteria model for auditing a Predictive Maintenance Programme (PMP) developed and implemented in the General Hospital of Ciudad Real (GHCR) in Spain. The model has a two-level structure, with top level auditing areas specified by second level auditing criteria on which the performance of the PMP should be appraised. This structure resulted from the analysis and discussion of an internal questionnaire to the management, technical and consulting staff of GHCR. This also guided the association of a performance scale with each criterion, describing several reference levels of accomplishment. Using the MACBETH (Measuring Attractiveness by a Categorical Based Evaluation Technique) approach, a hierarchical additive value model was constructed, with criteria weights and value scales derived from staff judgments of comparison of different reference levels and profiles of performance. This model enables managers to measure the performance of the PMP and its added value for the hospital, not only against each audit criterion individually, but also on each area and in overall terms. Integrated in a management "tableau de bord", the model outputs permit the identification of PMP deficiencies requiring urgent intervention and corrective measures for its continuous improvement. |
Prioritizing Health Care Interventions: A Multicriteria Resource Allocation Model to Inform the Choice of Community Care Programmes
Oliveira, M.D., Rodrigues, T.C., Bana e Costa, C.A., Brito de Sá, A. (2011)
Proceedings of the Conference “Operational Research Applied to Health Services: Operational Research Informing National Health Policy, Cardiff (255-265).
Abstract:
Many countries, including Portugal, are currently dealing with budget cuts and a shortage of resources in the health sector, while the demand for health care services is increasing. The Group of Health Centres (GHC) of Northern Lisbon faces the challenge of prioritizing community care programmes in order to decide which programmes to fund. We describe the development with the GHC of a Multi-criteria model to allocate human resources in community care programmes (MARCCO). Building MARCCO was a socio-technical process using multi-criteria decision analysis (MCDA) in a decision conferencing environment. The GHC used the results obtained by MARCCO to select programmes and to redesign its information system. MARCCO contributes to the literature by showing how a constructive approach using MCDA methods and decision conferencing is an alternative to conventional approaches used in the prioritization of interventions in the health care sector. |
MACBETH (Measuring Attractiveness by a Categorical-Based Evaluation Technique)
Bana e Costa, C.A., De Corte, J.M., Vansnick, J.C. (2011)
J.J. Cochrane (ed.), Wiley Encyclopedia in Operational Research and Management Science, Vol. 4, Wiley, New York (2945-2950).
Abstract:
MACBETH (measuring attractiveness by a categorical based evaluation technique) is an interactive multicriteria decision aid approach used to build a quantitative (numerical) value model, based on qualitative (nonnumerical) pairwise comparison judgments. The MACBETH value-elicitation procedure described in this article is composed of an input stage aimed at eliciting a consistent set of qualitative judgments of difference in attractiveness between options, and an output stage aimed at constructing an interval value scale from the set of judgments, which numerically measures the relative attractiveness of options for the person or group that made the judgments. |
Procurement Decision Support for the Portuguese MoD: The MACBETH Approach and the Acquisition of 8x8 AWV
Bana e Costa, C.A., Marques, M.S. (2009)
in Papers presented at the Systems Analysis and Studies Panel (SAS) Specialists Meeting held in Brussels, Belgium on 22 and 23 October 2009, RTO-MP-SAS-080 AC/323(SAS-080)TP/298, NATO Research and Technology Organisation, Brussels, pp. 1-1, 1-14 (on-line edition).
URL: http://www.rto.nato.int/Pubs/RDP.asp?RDP=RTO-MP-SAS-080 |
Software Packages for MultiCriteria Resource Allocation
Lourenço, J.C., Bana e Costa, C.A., Morton, A. (2008)
Working Paper CEG-IST 8/2008
Abstract:
In this paper four commercial software packages for multi-criteria resource allocation are analyzed: Equity, HiPriority, Logical Decisions Portfolio and Expert Choice Resource Aligner. The key technical distinction concerns the type of resource allocation procedure used: Equity uses the benefit-to cost ratio approach, HiPriority also uses the benefit-to-cost ratio approach and an exhaustive enumeration approach, whereas Logical Decisions Portfolio and Expert Choice Resource Aligner use a mathematical programming approach. |
Development of reusable bid evaluation models for the Portuguese Electric Transmission Company
Bana e Costa, C.A., Lourenço, J.C., Chagas, M.P., Bana e Costa, J.C. (2008)
, vol. 5, nº 1, pp 22-42. (Pre-print: Working Paper LSEOR 07-98, London School of Economics, London.)
Abstract:
Bid evaluation is the process of selecting a contractor from a number of bidders. The decision analysis models currently in use at the Portuguese Electric Transmission Company (REN) to evaluate bids were developed through a decision-conferencing process supported by the MACBETH multicriteria approach and software. This paper presents the various components of this interactive sociotechnical process. Given the number of contracts awarded by REN each year, it was crucial that the models be reusable in similar calls for tenders; this required substantial care in structuring the criteria, with a focus on constructed scales, and building value function models based on qualitative pairwise comparison judgments of difference in attractiveness. Also of particular interest is the approach for weighing benefits against costs. |
Prioritization of bridges and tunnels in earthquake risk mitigation using multicriteria decision analysis: Application to Lisbon
Bana e Costa, C.A., Oliveira, C.S., Vieira, V. (2008)
OMEGA: The International Journal of Management Science,vol. 36, no. 3, pp. 442-450, doi: 0.1016/j.omega.2006.05.008.
Abstract:
This paper presents the development of a multicriteria value model enabling the prioritization of bridges and tunnels according to their structural vulnerability and strategic importance for the formulation and implementation of civil protection policies, both for retrofitting and emergency management, in face of seismic events. An interactive structuring process was developed with a group of key-players to carefully define the evaluation criteria and the MACBETH approach was extensively used (i) to facilitate the assessment from the group of the judgmental information necessary to build value functions and (ii) to establish relative weights for the criteria. The model was subsequently explored to prioritize the bridges and tunnels of a zone in Lisbon with high seismic hazard.
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Key quality dimensions from the customer’s point of view: a case study in two Portuguese hotels
João, I.M., Bana e Costa, C.A. (2008)
Abstract:
This paper analyses the strengths and weaknesses of the critical incident technique (CIT) when applied as a tool to identify the key quality dimensions to be used as criteria to generate and evaluate intervention strategies. Using CIT, a total of 679 incidents were gathered from two Portuguese hotels, regarding satisfying or dissatisfying episodes with the provided service. The incidents were categorized and the service quality dimensions identified. The scores reflecting the extent to which the quality dimensions are achieved are useful to establish and prioritize improvement actions. |
Bana e Costa, C.A., Lourenço, J.C., Soares, J.O. (2007)
, vol. 3, no. 2, pp. 1-9.
Abstract:
This paper revisits the problem of building a multicriteria hierarchical additive model for credit analysis. The precise objective of the model is to assist a commercial bank in the analysis and assignment of credit applications (specifically corresponding to medium and long-term corporate loans) to different risk categories. Two basic forms of the model are discussed: one is based on fixed criteria weights, while the other allows for intervals of variation for the weights, from which different assignment rules are derived. The paper shows that the flexibility of the interval weighting model may be an important contribution for the success of its implementation within financial institutions.
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Phillips, L.D., Bana e Costa, C.A. (2007)
, vol. 154, no. 1, pp. 51-68. (Pre-print: Working Paper LSEOR 05-75, London School of Economics, London.)
Abstract:
Managers in both for-profit and not-for-profit organisations continually face the task of allocating resources by balancing costs, benefits and risks and gaining commitment by a wide constituency of stakeholders to those decisions. This task is complex and difficult because many options are present, benefits and risks are rarely expressed as single objectives, multiple stakeholders with different agendas compete for limited resources, individually optimal resource allocations to organisational units are rarely collectively optimal, and those dissatisfied with the decisions taken may resist implementation. We first explain three current approaches to resource allocation taken from corporate finance, operational research and decision analysis, and we identify a common mistake organisations make in allocating resources. The paper then presents a technical process, multi-criteria portfolio analysis, for balancing the conflicting elements of the problem, and a social process, decision conferencing, which engages all the key players during the modelling process, ensuring their ownership of the model and the subsequent implementation. This socio-technical process improves communication within the organisation, develops shared understanding of the portfolio and generates a sense of common purpose about those projects that will best realise the organisation’s objectives. The paper concludes with lessons we have learned from actual practice.
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A critical analysis of the eigenvalue method used to derive priorities in AHP
Bana e Costa, C.A., Vansnick, J.C. (2007)
, vol. 187, no. 3, pp. 1422-1428, doi10.1016/j.ejor.2006.09.022. Abstract:
A lot of research has been devoted to the critical analysis of the Analytic Hierarchy Process (AHP), from various perspectives. However, as far as we know, no one has addressed a fundamental problem, discussed in this paper, concerning the meaning of the priority vector derived from the principal eigenvalue method used in AHP. The role of AHP’s consistency ratio is also analysed. |
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On the mathematical foundations of MACBETH
Bana e Costa C.A., De Corte J.-M., Vansnick J.-C.
In , J. Figueira, S. Greco, M. Ehrgott (eds.), 2005, Springer, Book Series: International Series in Operations Research & Management Science, vol. 76, pp. 409-442. (Preprint: Working Paper LSEOR 03.61 2003, London School of Economics)
Abstract:
MACBETH (Measuring Attractiveness by a Categorical Based Evaluation Technique) is a multicriteria decision analysis approach that requires only qualitative judgements about differences of value to help an individual or a group quantify the relative attractiveness of options. This chapter presents an up-to-date survey of the mathematical foundations of MACBETH. Reference is also made to real-world applications and an extensive bibliography, spanning back to the early 1990's, is provided. |
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Prioritisation of public investments in social infrastructures using multicriteria value analysis and decision conferencing: a case study
Bana e Costa, C.A., Fernandes, Tânia G., Correia, Paulo V.D.
, 2006, vol. 13, no. 4, pp. 279-297.
Abstract:
Not-for-profit private organisations that provide social services to children, the elderly and the disabled apply for financial support to develop or to renew their social infrastructures, through the Portuguese Institute for Social Welfare. In the context of scarce financial resources, the Institute decision-makers felt the need to adopt an improved "rationality" in resource allocation, in order to increase transparency and to ensure that the collective best use is made of a limited budget. This paper describes the socio-technical process followed in building a multicriteria value model, under a decision conferencing framework in which participation and interaction among decision-actors were key features in the development of the three main phases of problem structuring, evaluation and prioritisation. |
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Model-structuring in public decision-aiding
Bana e Costa, C.A., Beinat, E. (2005)
London School of Economics, Londres
Abstract:
This paper addresses structuring of multicriteria decision aid models. Structuring provides the actors involved in a decision context with a common language for debating and arguing about their preferences and facilitates the identification of decision opportunities and the construction of new alternatives. Structuring is decomposed into (1) problem-definition, (2) model structuring and (3) impact assessment and analysis. The concept of policy unit is used to generalise the concept of decision actor and to introduce group, individual and mixed structuring frameworks. The notion of concern is central to structuring activities and is extensively discussed. Descriptors are then defined and classified in terms of natural, proxy and constructed descriptors. Several methods that can be used to select or construct descriptors are presented. The paper also provides extensive examples of goog practice and operational tips for the structuring phase. |
Multicriteria evaluation of flood control measures: the case of Ribeira do Livramento
Bana e Costa C.A., Antão da Silva P., Correia F.N.
, 2004, vol. 18, no. 3, pp. 263-283.
Abstract:
This paper describes the multicriteria process used to evaluate flood control options for the catchment of Livramento creek in the peninsula of Setúbal, in Portugal. In the structuring phase, the environmental, social, and technical dimensions were identified. The MACBETH approach – Measuring Attractiveness by a Categorical Based Evaluation Technique – was then used to construct a quantitative evaluation model based on qualitative value judgments formulated by a group of experts from different technical and scientific fields. The model enabled the overall benefit associated with each option to be appraised, and extensive sensitivity analyses to be performed.
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A career choice problem: an example of how to use MACBETH to build a quantitative value model based on qualitative value judgments
Bana e Costa C.A., Chagas M.P.
, 2004, vol. 153, no. 2, pp. 323-331. (Preprint: , 2002, London School of Economics)
Abstract:
MACBETH (Measuring Attractiveness by a Categorical Based Evaluation TecHnique) is an approach designed to build a quantitative model of values, developed in a way that enables facilitators to avoid forcing decision makers to produce direct numerical representations of their preferences. MACBETH employs a non-numerical interactive questioning procedure that compares two stimuli at a time, requesting only a qualitative judgment about their difference of attractiveness. As the answers are given, their consistency is verified, and a numerical scale that is representative of the decision maker's judgments is subsequently generated and discussed. This paper makes use of the MACBETH approach and software to help an individual select his future career from a number of self-imposed possibilities. A comparison is made with the direct numerical technique SMART, previously used with the same intent. |
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An interval weighting assignment model applied to credit risk assessment
Bana e Costa C.A., Lourenço J.C., Soares J.O.
In Aide Multicritère à la Décision - Multiple Criteria Decision Aiding, C.H. Antunes, J. Figueira, J. Clímaco (eds.), 2004, CCDRC, pp. 175-184.
Abstract:
This paper presents a multicriteria hierarchical additive model developed to assist a commercial bank assign credit applications (specifically medium and long-term corporate loans) to risk categories. Two basic forms of the model are discussed, one is based on fixed criteria weights while the other allows for intervals of variation for the weights, from which different systems of assignment rules are derived. |
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A Multicriteria model for portfolio management
Bana e Costa C.A., Soares J.O.
, 2004, vol. 10, no. 3, pp. 198-211. (Preprint: , 2001, London School of Economics)
Abstract:
The paper presents a new model to support the selection of a portfolio of stocks based on the results of the fieldwork undertaken with fund managers and using direct rating, MACBETH and optimisation techniques. The model consists of defining a benchmark portfolio (in this case, the Dow Jones Eurostoxx50) and scoring its different stocks according to several expected return criteria. Based on this multicriteria value analysis, a procedure is proposed to suggest adjustments to the proportions of the stocks in the portfolio. Finally, the risk of this modified portfolio is taken into consideration in an optimization module that includes constraints concerning the limits of variation for the proportion of each stock. |
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Facilitating bid evaluation in public call for tenders: a socio-technical approach
Bana e Costa C.A., Corrêa E.C., De Corte J.-M., Vansnick J.-C.
– The International Journal of Management Science, 2002, vol. 30, no. 3, pp. 227-242.
Abstract:
A specific multicriteria socio-technical approach to facilitating bid evaluation processes is presented and several issues that warrant its use are discussed. Some real-world interventions in international public call for tenders illustrate practical aspects of structuring criteria and creating a computer-based additive value model in direct interaction with Evaluation Committees responsible for bid evaluation, supported by the MACBETH approach. |
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Multicriteria approach for strategic town planning: the case of Barcelos
Bana e Costa C.A., Costa-Lobo M.L., Ramos I.A.J., Vansnick J.-C.
In , D. Bouyssou, E. Jacquet-Lagrèze, P. Perny, R. Slowinsky, D. Vanderpooten, P. Vincke (eds.), 2002, Kluwer Academic Publishers, Book Series: International Series in Operations Research & Management Science, vol. 44, pp. 429-456.
Abstract:
Barcelos was one of the medium sized Portuguese towns selected to be included in a governmental program aiming at restructuring the country urban network. Each town had to prepare a "City Strategic Plan" as a previous condition to get financial support for the implementation of its strategy. This paper describes how a multicriteria methodology, enhanced with problem structuring techniques, supported the construction of a strategy for Barcelos in direct interaction with planners and the local elected politicians in a decision-conferencing framework. This was a socio-technical and learning process that successfully implemented, in a strategic town-planning context, what Bernard Roy defined as "decision aiding". |
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Assigning priorities for maintenance, repair and refurbishment in managing a municipal housing stock
Bana e Costa C.A., Oliveira R.C.
, 2002, vol. 138, no. 2, pp. 380-391.
Abstract:
The municipality of Lisbon owns a large housing stock that requires maintenance, repair and refurbishment. Taken together, these activities imply a financial effort each year that clearly exceeds the available budget, and therefore it is critical that the decisions on which sub-set of potential activities should be carried out in each coming year are based on sound analysis and evaluation. The design and construction process of a model to assist the Lisbon Municipality to assign priorities to these activities is described. The MACBETH approach was extensively used, in an interactive and constructive process, to derive the value functions associated with each criterion and their respective weights, reflecting municipal policies and their officials preferences and attitudes. The paper also presents the procedure used to determine multidimensional reference-profiles that define urgency categories, enabling to assign each potential action to one of these categories. Finally, a specific model was defined to aggregate elemental building jobs in "packages", when there are arguments (in terms of cost reduction, action coherence, urban environment impact synergies, etc.) that favour their joint execution under a single contract. |
Issues in Facilitating Bid Evaluation in Public Call for Tenders
Bana e Costa, C.A. (2002)
Proceedings of the 3rd International Conference on Decision Making in Urban and Civil Engineering, London, UK, 6-8 November 2002
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Qualitative modelling of credit scoring: a case study in banking
Bana e Costa C.A., Barroso, L.A., Soares, J.O.
, 2002, vol. 5, no. 1, pp. 37-51.
Abstract:
Several modelling procedures have been suggested in the literature that aim to help credit granting decisions. Most of these utilize statistical, operational research and artificial intelligence techniques to identify patterns among past applications, in order to enable a more well-informed assessment of risk as well as the automation of credit scoring. For some types of loans, we find that the modelling procedure must permit the consideration of qualitative expert judgements concerning the performance attractiveness of the applications. In this paper, we describe in detail the various steps taken to build such a model in the context of the banking sector, using the MACBETH interactive approach. The model addresses the scoring of medium and long term loans to firms, to enable the multicriteria assignment of each application to a category which may range from rejection to acceptance with different spreads. |
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The Many Dimensions of an R&D Project: Multi-Criteria Analysis. A Tutorial
Bana e Costa C.A., Thore S.A.
In , S.A. Thore (ed.), 2002, Kluwer Academic Publishers, pp. 23-44.
Abstract:
The need to evaluate a series of R&D projects may arise in many instances: in a commercial corporation upgrading new technology or developing new one, in a business incubator, in a venture capitalist firm, or in the management of government research programs. From each of these applications, some elementary concepts and procedures of Multi-Criteria Analysis are explained and discussed. |
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The use of multi-criteria decision analysis to support the search for less conflicting policy options in a multi-actor context: case study
Bana e Costa C.A.
, 2001, vol. 10, Issue 2, pp. 111-125.
Abstract:
Public resource allocation often requires the management of conflicting objectives of multiple policy actors at different spatial levels. An example is the case study on which this paper is based: the definition of an investment policy in new inter-municipal road-links in the Lisbon Metropolitan Region (LMR) for the period 1999-2004. The key regional (inter-municipal) objective is to choose the sub-set of proposed road projects that maximizes the quality of LMR's road network for a fixed available budget. Conflict arises, however, if environmental, social and economic impacts at the level of the 18 municipalities involved are significantly unbalanced. This paper describes how multi-criteria decision analysis' concepts, techniques and software tools were used to analyse spatial conflicts in the LMR case. The study provided the decision-making body formed by all the municipal mayors with useful information about how much it is necessary to negotiate to reach an agreement on a specific investment policy option. |
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Conflict dissolution in the public sector: A case-study
Bana e Costa C.A., Nunes da Silva F., Vansnick J.-C.
, 2001, vol. 130, no. 2, pp. 388-401.
Abstract:
The construction of a new railway link to the port of Lisbon has been postponed many times as a result of a conflict of different viewpoints held by various public stakeholders, namely between the municipality of Lisbon and the Lisbon Railway Node Bureau, while the Portuguese Railway Company has assumed a more flexible attitude. Over recent years, three groups of solutions, totalling nine alternative projects, have been proposed by each of these three actors, but none has been simultaneously accepted by all the three. The development of the urbanisation plan for Alcântara (the zone of the city where the railway line links to the port) has presented an opportunity to try to dissolve the conflict. This paper describes the multicriteria approach followed to support the creation of a new "good" (win-win) compromise solution by the planning team based on the study of the consequences of the existing alternatives. In particular, we describe the structuring phase of the study and the use of a disaggregation-aggregation approach to take into account the different value systems of the stakeholders. |
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Multicriteria approaches for portfolio selection: an overview
Bana e Costa C.A., Soares J.O.
Review of Financial Markets, 2001, vol. IV, no. 1, pp. 19-26.
Abstract:
This paper seeks to overview the contribution of Multicriteria Decision Analysis (MCDA) to the portfolio selection problem. In the context of a multi-dimensional approach to this problem, we begin by establishing the difference between the MCDA methods and multi-factor models. After this, we summarise the main characteristics of the different classes of methods belonging to the MCDA field. We conclude by illustrating the usage of these different types of methods to select and rank portfolios and securities, pointing out some of the pitfalls found in the literature. |
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Locating Centres of Information and Recruitment of volunteers for the Portuguese Armed Forces: A decision analysis case study
Bana e Costa C.A., Thomaz J.P.C.F.
In Proceedings of the 42 nd Annual Conference of the International Military Testing Association, Edinburgh, UK, 7-9 November 2000, IMTA (173-180) (CD-ROM edition). (Preprint: , March 2001, London School of Economics)
Abstract:
The end of conscript military service in Portugal and the option for a volunteer based military service require a different personnel recruitment and selection system for the Portuguese Armed Forces. In order to attract as many candidates as possible, it was decided to implement Centres of Information and Recruitment (CIR) in the Portuguese territory. This paper describes the decision analysis intervention that helped locate ten CIR. Developed in a Decision Conferencing framework, the study made use of several interactive Decision Support Systems, namely Decision Explorer to support the group cognitive mapping model-structuring process of identifying key location aspects, and macbeth (Measuring Attractiveness by a Categorical Based Evaluation Technique) to develop a simple additive value model for evaluating CIR location options. |
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Cardinal value measurement with MACBETH
Bana e Costa C.A., Vansnick J-C.
In , S.H. Zanakis, G. Doukidis, C. Zapounidis (eds.), 2000, Kluwer Academic Publishers, Book Series: Applied Optimization, vol. 45, pp. 317-329.
Abstract:
Decision-making is above all a human activity in which value judgments about the attractiveness of options play a key role. The integration of technology and human decisions by means of the design and use of tools for the representation of value judgments that are simultaneously semantically meaningful, practically operational (user-friendly) and theoretically well founded is therefore an important research challenge. The MACBETH approach (Measuring Attractiveness by a Categorical Based Evaluation TecHnique) overviewed in this paper is a contribution in that direction. MACBETH is an approach designed for building a cardinal scale measuring the attractiveness of options, throughout a learning process supported by a visual interactive software. This is interesting for decision-making when one wants to measure by how much an option is better than another one. Moreover, cardinal preference information is required to meaningfully perform operations with numerical scales, such as comparison of average sums, as required by multi-attribute value theory. |
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Decision Support Systems in action: Integrated application in a multicriteria decision aid process
Bana e Costa C.A., Ensslin L., Corrêa E.C., Vansnick J.-C.
, 1999, vol. 113, no. 2, pp. 315-335.
Abstract:
We describe a real application of Multi-Criteria Decision Analysis (MCDA) in which several Decision Support Systems (DSSs) were harmoniously integrated in the interactive learning process of tackling the complex strategic problematic situation faced by the Santa Catarina textile industry, in the south of Brazil. We feel that two significant conclusions can be drawn from our conjoint use of Graphics COPE, MACBETH, V.I.S.A, and EQUITY in building a model of values: (1) Providing decision-support is much more than merely applying a technical tool to solve a well-defined decision problem; it is, at least it was in our case, a complex (but exciting) activity of someone (the facilitator) who, with the support of adequate methodological and technical tools, progressively tried to shed light on an initially ill-structured decision-making process. (2) Under a constructive attitude in decision-aid, DSSs became effective tools for helping the facilitators to help the decision-actors, both in the structuring and evaluation phases of the process, and in creating new decision opportunities. In particular, visual man-machine interaction greatly contributed to the actors' learning about their problem and values. Moreover, visually appealing sensitivity analyses increased the problem-owners' trust in the recommendations elaborated from the model. |
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Mapping critical factors for the survival of firms: A case-study in the Brazilian textile industry
Bana e Costa C.A., Corrêa E.C., Ensslin L., Vansnick J.-C.
In , G. Kersten, Z. Mikolajuk, A. Yeh (eds.), 1999, Kluwer Academic Publishers, pp. 197-213.
Introduction:
The textile industry is one of the most important economic sectors in the Brazilian State of Santa Catarina. It comprises more than 3 000 registered firms, most of which are small (some very small) or medium-sized enterprises (SMEs), and employs about 100 000 in all. The Brazilian textile industry is currently in crisis, as a consequence of Brazil 's entry into the process of economic globalization. According to official state data, employment in the textile sector has decreased by 25% over the last six years. Although all enterprises have been affected, SMEs in particular are facing severe commercial and financial problems or even going bankrupt. Their financial, technological, and managerial structures (inadequate equipment, old-fashioned management, and rigid — or complete lack of — planning) have kept them from being competitive on world markets. This chapter describes a project conducted at the Federal University of Santa Catarina, aimed at helping SMEs in the textile industry to implement strategies to prevent failure, and ensure sustainable survival. An earlier study (Bana e Costa et al., 1999) has addressed this problem already, and shown how useful decision support methods and systems developed by problem structuring and multicriteria approaches can be for strategic management. Here, the discussion will focus on the cognitive mapping process of identifying critical (or key) success factors (C(K)SFs). Identifying C(K)SFs is a crucial step in the process of developing sustainable survival strategies for a firm in today's rapidly changing socioeconomic environments. In this chapter, Section 2 briefly presents the basic concepts relevant to the study, in particular the concept of C(K)SFs, as they appear in management literature. Section 3 introduces a constructive perspective for the identification of C(K)SFs and posits the Kelly-based version of cognitive mapping as a means of putting it into practice. Finally, the process of identifying C(K)SFs for Santa Catarina textile SMEs is described in detail and a list of 11 C(K)SFs is provided. A brief conclusion ends the chapter. |
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The MACBETH approach: Basic ideas, software, and an application
Bana e Costa C.A., Vansnick J-C.
In , N. Meskens , M. Roubens (eds.), 1999, Kluwer Academic Publishers, Book Series: Mathematical Modelling: Theory and Applications, vol. 4, pp. 131-157.
Abstract:
MACBETH (Measuring Attractiveness by a Categorical Based Evaluation TecHnique) is an interactive approach to guide the construction, on a set S of stimuli, of an interval scale which quantifies the attractiveness of the elements of S in the opinion of an evaluator. The aim of this paper is to present the main ideas on which this new decision-aid approach is based, and its software. MACBETH has already been applied in several complex cases. One such case was in the first application of multicriteria analysis to the evaluation of a European structural programme, the Hainaut case, which is used to illustrate the presentation in this paper. |
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Preference relations and MCDM
Bana e Costa C.A., Vansnick J-C.
In , T. Gal, T. Stewart, T. Hanne (eds.), 1999, Kluwer Academic Publishers, Book Series: International Series in Operations Research & Management Science, vol. 21, pp. 4-1 4-23.
Abstract:
Multicriteria decision aid is above all a human activity in which value judgements of involved actors play a crucial role. Therefore, "how to represent such judgements?" is a key question in MCDM. This chapter is devoted to this subject. Depending on the particular paradigm adopted for preference modelling, different questioning procedures can be conceived which lead to different preference structures. We present a few questioning procedures related to three basic paradigms, together with some preference structures that are useful for MCDM. First, the classical preference-indifference structure is discussed, followed by the introduction of the ideas of "incomparability" and "hesitation". Finally, we present some complementary questioning procedures particularly relevant for cardinal modelling of value judgements. |
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Structuring the process of choosing rice varieties at the south of Brazil
Bana e Costa C.A., Ensslin L., Costa A.P.
In , E. Beinat, P. Nijkamp (eds.), 1998, Kluwer Academic Publishers, Book Series: Environment & Management, vol. 9, pp. 33-45.
Abstract:
Today many varieties of rice seed can be found all over the world. This paper describes the structuring phase of the decision-aid study conducted by the authors, in strict interaction with rice producers in the south of Brazil, in order to help them solving the complex problem of choosing the most adequate rice variety to be seeded in a specific farming property. The paper illustrates the usefulness of integrating cognitive mapping and multicriteria structuring concepts when practising decision-aid. In particular, cognitive mapping very much facilitated the learning process of identifying the fundamental points of view that, after being adequately made operational by the definition or construction of descriptors of their impact levels, were later taken as the evaluation axes for a multicriteria comparison of alternative rice varieties. |
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A real-world MCDA application in cellular telephony systems
Bana e Costa C.A., Ensslin L., Zanella I.J.
In Trends in Multicriteria Decision Making, T.J. Stewart, R.C. van der Honert (eds.), 1998, Springer-Verlag, Series: Lecture Notes in Economics and Mathematical Systems, vol. 465, pp. 412-423.
Abstract:
This paper addresses important issues which were present in the Structuring and Evaluation phases of the constructive learning process of municipality selection for expanding the cellular phone system in the State of Santa Catarina, in southern Brazil. In particular, we discuss questions such as "what is the problem?" and "how to approach it?", "how to identify and make operational the fundamental points of view for municipality evaluation?", and "how to deal with context and judgemental dependencies?". |
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Thoughts on the future of the multicriteria field: Basic convictions and outline for a general methodology
Bana e Costa C.A., Pirlot M.
In , J. Clímaco (ed.), 1997, Springer-Verlag, pp. 562-568.
Abstract:
In this paper we develop some thoughts on the future of the multicriteria field. We defend the need of theoretical robustness and practical validation of the multicriteria tools, and we state two methodological convictions as pillars for the re-orientation of the future of MCDA: the conviction of the interconnection and inseparability of the objective and subjective elements of a decision context, and the conviction of constructivism and learning. Finally, we call for a collective effort to build a general methodology that can embrace the different practices and plurality of valid multicriteria methods. |
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A theoretical framework for Measuring Attractiveness by a Categorical Based Evaluation TecHnique (MACBETH)
Bana e Costa C.A., Vansnick J-C.
In , J. Clímaco (ed.), 1997, Springer-Verlag, pp. 15-24.
Abstract:
This paper presents a theoretical framework for the MACBETH approach. Taking as a starting point the measurement rules used for numerically representing the qualitative (categorical) preference information assessed by the questioning procedure of MACBETH, we study the existence of a solution for our particular representation problem and we briefly discuss its unicity. |
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Multicriteria decision analysis: Some thoughts based on the tutorial and discussion sessions of the ESIGMA meetings
Bana e Costa C.A., Stewart T.J., Vansnick J.-C.
, 1997, vol. 99, no. 1, pp. 28-37.
Abstract:
This paper seeks to offer an overview of the streams of thought in the field of multicriteria decision analysis or aid (MCDA) presented and discussed in the sessions of the annual meeting of the EURO Special Interest Group on Multicriteria Analysis (ESIGMA). Our main purpose is to emphasize some of the most important and original contributions made by the prominent scientists invited to those meetings and to reflect on the conclusions of the discussions held along the ten years of existence of ESIGMA, without attempting to review the broad multicriteria field in detail. |
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Applications of the MACBETH approach in the framework of an additive aggregation model
Bana e Costa C.A., Stewart T.J., Vansnick J.-C.
, 1997, vol. 6, Issue 2, pp. 107-114.
Abstract:
In measurement theory terminology, MACBETH is an interactive approach for mapping into a real scale the various degrees to which the elements of a finite set possess a property P. The originality of MACBETH's questioning procedure is the possibility of establishing a constructive path towards cardinal measurement in both quantitative and substantive meaningful terms, avoiding the operational problems recognized as a weakness of other procedures. The use of the notion of semantic absolute judgements plays a key role here and the simplicity, interactivity and constructiveness of our approach insert it in the modern paradigms of decision aid. This article illustrates the usefulness of MACBETH as a tool to facilitate decision support, by describing its application in two real public decision situations where we acted as facilitators. Although the cases correspond to quite different decision contexts and problematics and our interventions have addressed diverse issues, they have in common the fact that we conducted both evaluation processes in the framework of an additive multicriteria aggregation procedure. In the first case MACBETH has been used to support the construction of (local) cardinal value functions, while the second illustrates how our approach can serve as a weighting procedure to determine the scaling constants of an additive aggregation model. |
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General overview of the MACBETH approach
Bana e Costa C.A., Vansnick J-C.
In , P.M. Pardalos, Y. Siskos, C. Zopounidis (eds.), 1995, Kluwer Academic Publishers, Book Series: Nonconvex Optimization and its Applications, pp. 93-100.
Introduction:
MACBETH is an interactive approach for cardinal measurement of judgments about the degrees to which the elements of a finite set A possess a property P. The name MACBETH, Measuring Attractiveness by a Categorical Based Evaluation Technique, comes from the fact that we conceived our approach with the aim of facilitating the measurement of (degrees of) attractiveness in decision processes. Nevertheless, MACBETH can also be applied to measure other properties in domains of knowledge others than Decision Sciences, such as in Psychophysics or in Social Sciences. In this article we offer a general overview of MACBETH where we introduce some modifications improving the initial technical formulation of [Bana e Costa and Vansnick, 1993 and 1994a], although the basic conceptual ideas remain the same. |
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Measuring credibility of compensatory preference statements when trade-offs are interval determined
Bana e Costa C.A., Vincke P.
, 1995, vol. 39, no. 2, 127-155.
Abstract:
The purpose of this paper is to study how a fuzzy overall preference relation can be constructed in the compensatory context of the simple additive difference model, when imprecision on the trade-offs has to be taken into account. Three credibility indices of preference are analysed and illustrated by a numerical example. Arguments are presented showing the relevance of using the third index, for which an interesting transitivity property (which was an open problem) is proved. |
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MACBETH - An interactive path towards the construction of cardinal value functions
Bana e Costa C.A., Vansnick J-C.
, 1994, vol. 1, no. 4, pp. 489-500.
Abstract:
The application of classical models and techniques for cardinal measurement of values usually requires a person (D) to answer very difficult questions. The MACBETH approach, presented in this paper, proposes a simple questioning procedure to ‘drive' the interactive quantification of values through pairwise verbal judgements of difference of attractiveness between valuable elements of a set A. Technically, MACBETH uses a chain of four linear programs for assigning numbers to the elements of set A based upon the qualitative judgements expressed by D and to reveal possible sources of incoherence. In practice, this information is to be used as a basis for discussion and learning. MACBETH stands for Measuring Attractiveness by a Categorical Based Evaluation TecHnique. |
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Absolute and relative evaluation problematiques: the concept of neutral level and the MCDA robot technique
Bana e Costa C.A.
In Multicriteria Decision Making: Methods, Algorithms, Applications, M. Cerný, D. Glückaufová, D. Loula (eds.), 1992, Czechoslovak Academy of Sciences, pp. 7-15.
Abstract:
In our presentation of a real-world MCDA application during the International Workshop on Multicriteria Decision Making several topics were discussed concerning the structuring phase of the decision aid activity. For reasons of length constraints we will not describe the case in this article and we will concentrate only on the fundamental topic of problem formulation. We distinguish between relative and absolute evaluation contexts and we will show how the concepts of 'neutral level' and 'robot' introduced in the article can be useful for decision aiding. |
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MCDS under poor weighting information: The Outweigh Approach
Bana e Costa C.A.
In , P. Korhonen, A. Lewandowski, J. Wallenius (eds.), 1991, Springer-Verlag, Series: Lecture Notes in Economics and Mathematical Systems, vol. 356, pp. 87-93.
Abstract:
Situations involving poor inter-criteria preference information are very common in the practice of decision aid. Nevertheless, there exists a significant lack of operational MCDA approaches explicitly devoted to support decision making under those circumstances. This paper shows how to overcome this drawback, in the context of a cardinal additive multicriteria value function model. |
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An additive value function technique with a fuzzy outranking relation for dealing with poor intercriteria preference information
Bana e Costa C.A.
In , C.A. Bana e Costa (ed.), 1990, Springer-Verlag, pp. 351-382.
Introduction:
{…} In this paper an additive value function technique combined with a fuzzy outranking relation is developed for aiding decision making in situations involving "poor" (incomplete, partly available) inter-criteria preference information. We call it the "Outweigh Approach" and we confine the model to the case of certainty. |
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Describing and formalizing the evaluation process of Portuguese Navy officers
Bana e Costa C.A., Neves C.D.
In , A.G. Lockett, G. Islei (eds.), 1989, Springer-Verlag, Series: Lecture Notes in Economics and Mathematical Systems, vol. 335, pp. 355-369.
Abstract:
During his carrier each officer of the Portuguese Navy is evaluated on average twice each year by his superior commander, always according t the same set of military attributes. This information will be taken into account when considering officers for promotion. In this paper we try to formalize a methodology for aggregating the information for each officer and for ranking officers according to their performances. It has the peculiarity of combining MAUT and Outranking MCDA approaches and it is suitable for dealing with situations of incomplete inter-attribute preference information. {…} |
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A methodology for sensitivity analysis in three-criteria problems: a case study in municipal management
Bana e Costa C.A.
, 1988, vol. 33, no. 2, pp. 159-173.
Abstract:
This paper describes part of an on-going research project studying the issues of the application of Multicriteria Decision Aid Methodologies in real case-studies at the local level of the Portuguese Public Administration. In a first part, it address the complexity of decision situations in municipal management in general and the significance of decision analysis, namely multicriteria evaluation procedures, in conducting decision aid processes in that environment (Section 1). In a second part, a case study is described (Section 2), followed by its discussion in the "space of the weights" in the context of different particular types of possible problem formulations (Section 3). For this purpose, an extension of Triangular Decision Technique is first proposed, followed by the presentation of a new Outranking approach, designated by "OUTWEIGH" analysis, which will permit the enrichment of the discussion. |
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