APPLICATION OF THE ANALYTICAL HIERARCHY PROCESS (AHP) FOR INNOVATIVE TECHNOLOGICAL WAREHOUSE PROJECTS EVALUATION AND PRIORITIZATION IN AN FMCG COMPANY

• Main Author: Claus, Gregorious
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84004
• Institution: Institut Teknologi Bandung

The FMCG industry is known for its dynamic and competitive nature. To thrive in this business sector, companies must possess the ability to swiftly adapt to the market changes and continuously enhance operational efficiency. Over the past few decades, technology along with its advancement has emerged as a factor that disrupts the ecosystem of various industries by reshaping the way businesses operate and interact with the customers. Since 2019, PT Kepak Bersama has undertaken and completed various technology advancement projects. Although it offers various benefits for the companies, the execution process has encountered various challenges. Consequently, the management of the companies has urged the project management team to seek swift resolution. By performing root cause analysis, it has been discovered that diverse perspective, lack of clear prioritization criteria and an unorganized decisionmaking process are the primary factors contributing to the delay of the projects. In order to address the business issues, this research aims to implement a decision making framework for project evaluation and prioritization at PT Kepak Bersama through the application of the Multi Criteria Decision Making (MCDM) approach using the Analytical Hierarchy Process (AHP) framework. There are three technology innovation projects to be analyzed and assessed in this research. The literature review process involves an in-depth examination MCDM methodologies, and AHP applications to gain insights about the best practices and potential challenges that could emerged. To gather valuable insights from the key stakeholder about the criteria relevancy, along with its relative importance and quantitative threshold, a data collection process involving questionnaires and focus group discussion was employed. Based on the discussion, four main criteria that are divided into 18 sub criteria will be utilized. The primary stages of the data analysis process in this study include: constructing pairwise comparison matrices, deriving priority vectors, calculating consistency ratios, and aggregating global priorities. This study yields two primary outcomes: a structured decision-making framework and a project prioritization scheme PT Kepak Bersama. The findings of the research highlight the critical role of structured decision-making in navigating the complexities of evaluating and prioritizing innovative technological projects while also proposing a scalable model that can be repeatedly utilized by the company.