IMPLEMENTATION OF MULTI-OBJECTIVE DECISION ANALYSIS AND VALUE FOCUSED THINKING TO IMPROVE DECISION QUALITY IN COMPLEX PROJECT

• Main Author: Gunawan Rimbualam, Hans
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/54708
• Institution: Institut Teknologi Bandung

Multiple Objective Decision Analysis (MODA) and Value Focused Thinking (VFT) are well suited for projects that have multiple stakeholders and objectives with considerations across different domains and factors that commonly only being considered qualitatively, such as in an environmental project. This tool is able to provide structured, transparent and logical process that helps to get buy-ins from stakeholders, eventually to get high quality decision. When PT MINYAK MERAH was evaluating its Produced Water Management (PWM) program for the marginal fields, its project team found the project to be challenging. There was disconnect between corporate campaign, local regulations, and partner’s expectations for the produced water management strategy. In Phase 2 of the project, project team initially only evaluated several tried-and-true, facility-focused alternatives, based on past experiences with more profitable fields. However, the decision makers decided the project to be recycled as there were insufficient quality in 3 main Decision Quality (DQ) aspects: (1) creative, feasible alternatives, (2) clarity in values and trade-offs, and (3) logically correct analysis. By implementing MODA-VFT, project team has generated many more creative (and feasible) alternatives and evaluated them based on decision maker and stakeholder’s values and priorities. The project team recommends Produced Water Discharge Elimination (PWDE) at 2 locations and efforts to improve discharge quality at other locations, with estimated total cost of 41.6 million USD. Decision Executive agreed to advance the project to Phase 3, based on the observation that more creative and feasible alternatives have been comprehensively assessed and the implementation of MODA-VFT has enabled the decision maker to clearly see the connection to the values and prioritize trade-offs, which eventually enabled decision maker to have clear reasoning/justification for the preferred alternative and make logical decision.