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[TUTORIAL 1]
Replacing Pugh Concept Selection with the
Analytic Hierarchy Process (AHP):
On the FBI's 'Ten Most Wanted' criminals list, "Does the FBI search
harder for number three than they do for number seven? I would.
Otherwise why have the numbers at all?" .....
from
"When Will Jesus Bring The Pork Chops?" by George Carlin
Notwithstanding Carlin's satire, ignorance of the properties of
different number scales and using an inappropriate one to perform an
analysis inadvertently leaves businesses to decision-making that is
unscientific, unsound, and possibly compromising to their project
goals.
For example, in the 1980s QFD examples, companies would ask customers
to rate their product or service on a 1 to 5 scale, or design
engineers would correlate functional requirements of a product by
using a number scale of 1, 3, 9, etc. The resultant numbers from
multiplying are mathematically invalid, and if you use them in your
downstream QFD deployments or marketing analysis, your conclusion
would be suspect.
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Developed by Dr. Thomas Saaty, Ph.D., the Analytic Hierarchy
Process (AHP)
is a
mathematically rigorous, proven process for prioritization that can
help you combine all relevant information from a complex situation
and arrive at the best educated decision. AHP has become an integral
part of Modern QFD. AHP contains two phases: prioritization of criteria, and
prioritization of alternatives using those criteria (the “ratings
method”). This second phase is less discussed in QFD circles, but can be
used, as presented here, to enhance Stuart Pugh’s matrices into an even
more powerful approach to technology concept selection.
This tutorial will
introduce the basics of both AHP and Pugh Concept Selection, and present
the four fundamental types of selection criteria (bigger is better,
smaller is better, absolute judgment, and relative judgment), as
well as hands-on practice with the cross-tabulation techniques used
for enhanced “super Pugh” concept selection. An MS Excel template
will also be included, so bring your laptop.
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[TUTORIAL 2]
General Theory of Innovation to Design a
Superior Corporate Strategy:
 The
history of business shows that companies with superior strategies usually
beat those who compete on technological strength alone. Another side of
business history reveals that the average longevity of Fortune 500
companies is only 40 to 50 years, according to a study conducted by Royal
Dutch Shell.
Why is business success so random? Why can't more companies
realize the power of strategy and come up with a successful one? Why can't
former leaders employ a new strategy and repeat success more often? What
is the connection between strategy and innovation? Is there a robust
process to engineer powerful strategies on demand? How can we come up with
the right strategies?
If we can identify the formula for the science of innovation, we will be
able to control the process and create better strategies on demand. The
General Theory of Innovation (GTI) is just such a theory that can be used
for gaining control over the process of innovation. GTI evolved from the
Russian-born inventive problem-solving technique called
TRIZ and since 1988 has gone
through rigorous tests in real-world conditions with consistently
successful results. This tutorial will introduce you to the GTI process to
create advantageous strategies. You will learn the basic concepts, a few
tools, and strategy templates which you can apply to your business
immediately.
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