Combining cost and performance assessments for decision support
Multi-attribute Utility (MAU) Models
This model should be used when there are relatively few performance measures. Although, in principle, complex situations can be analyzed using a MAU model, for best results a complex MAU analysis should be done in consultation with an expert. A sample MAU model is described below (for an example with numbers, please refer to Figure 16, page 35 and Figure 17, page 35).
Figure 7. Sample Multi-attribute Utility Model
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Alternatives
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Rank
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Weight
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Criteria
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No Investment
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Modest
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Moderate
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Elaborate
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Total Utility:
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Typically, each performance criterion is evaluated separately. The "utility" associated with each of the multiple criterion is scored on a simple, 100-point rating scale. The same 100 point scale is used to assess the alternatives on every performance measure.
Multi-attribute utility models differ from benefit-cost analysis and resource allocation methods in that project cost is treated as just one more performance measure. In particular, a ratio of benefit to cost is not formed. Web-based services that cost the agency more of its resources (moderate and elaborate versions) are rated as having less "utility." Here, the elaborate version of Web- based services anchors the lower end of the scale (i.e., 0: most cost), while the "no investment-- no Web service" alternative anchors the upper end (i.e., 100: least cost).
Typically, some of these performance criterion is more important to the agency than others and are given more weight. Each performance criterion is given a weight. A final overall rating for each of the (now four) options is obtained by computing a weighted sum of the ratings on each individual utility. Utility associated with less cost is merely added to utility associated with more benefit on other performance measures.