ANALYTIC HIERARCHY

PROCESS MATRIX

ABOUT AHP

CTQ'S RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP

RESPONSE 1 7 7 8 8

QUALITY 0.142857143 1 7 8 8

PACKING 0.142857143 0.142857143 1 8 5

DELIVERY 0.125 0.125 0.125 1 9

RELATIONSHIP 0.125 0.125 0.2 0.111111111 1

COL. TOTAL 1.535714286 8.392857143 15.325 25.11111111 31

The AHP Matrix

The Normalized Score Matrix

RESPONSE 0.651162791 0.834042553 0.456769984 0.318584071 0.258064516 2.518623915 50.37247829

QUALITY 0.093023256 0.119148936 0.456769984 0.318584071 0.258064516 1.245590763 24.91181525

PACKING 0.093023256 0.017021277 0.065252855 0.318584071 0.161290323 0.655171781 13.10343561

DELIVERY 0.081395349 0.014893617 0.008156607 0.039823009 0.290322581 0.434591162 8.691823244

RELATIONSHIP 0.081395349 0.014893617 0.013050571 0.004424779 0.032258065 0.14602238 2.920447602

COL. TOTAL 1 1 1 1 1 5

CTQ'SNORMALIZED

SCORE RESPONSE

NORMALIZED SCORE

QUALITY

NORMALIZED SCORE

PACKING

NORMALIZED SCORE

DELIVERY

NORMALIZED SCORE

RELATIONSHIP

CUMULATIVE NORMALIZED

SCORE OR ROW SUM

NORMALIZED PERCENTAGE OR PERCENT RATIO

SCALE OF PRIORITY

Customer Satisfaction Index Survey Form

The Customer Satisfaction Index Form Looks Like This:- (GATHERING VOC)

5 Poor [ ] POOR 14 Average [ ] AVERAGE 23 Good [ ] GOOD 32 Very Good [ ] VERY GOOD 4

RELATIONSHIP REMARKS SCORES1 Excellent [ ] EXCELLENT 5

5 Poor [ ] 5 Poor [ ]4 Average [ ] 4 Average [ ]3 Good [ ] 3 Good [ ]2 Very Good [ ] 2 Very Good [ ]

DELIVERY PACKING1 Excellent [ ] 1 Excellent [ ]

5 Poor [ ] 5 Poor [ ]4 Average [ ] 4 Average [ ]3 Good [ ] 3 Good [ ]

Excellent [ ]

2 Very Good [ ] 2 Very Good [ ]

CUSTOMER SATISFACTION INDEX SURVEY FORM

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Please Tick any one of the ranks for the following Variables in the check box

RESPONSE QUALITY1 Excellent [ ] 1

Use Of AHP Template

• AHP or Analytic Hierarchy Process Matrix Template is used for evaluating the Customer Satisfaction Index (CSI) or to know Customer Preferences called “Percent Ratio Scale Of Priority” of the Customer.

ExampleFive CTQ's for VOITH Paper Fabrics India Ltd

Marketing Department is used. These CTQ'S are: (1) Response:- Of the Supplier or the manufacturer

delivering its products. (2) Quality: The Value entitlement of the Product for the customer or the Quality of the product. (3) Delivery Time: The Time

taken to deliver the Product to Customer's Premises. (4) Packing: How's the robustness of the

Packing of the Product and (5) Relationship: The actual relationship with the customer.

ExampleCUSTOMER NO. 1 RESPONSE QUALITY PACKING DELIVERY RELATIONSHIP

RESPONSE 1 7 7 8 8

QUALITY 0.142857143 1 7 8 8

PACKING 0.142857143 0.142857 1 8 5

DELIVERY 0.125 0.125 0.125 1 9

RELATIONSHIP 0.125 0.125 0.2 0.11111111 1

COL. TOTAL 1.535714286 8.392857 15.325 25.1111111 31

Normalized Score Table

RESPONSE 0.651162791 0.834043 0.45677 0.31858407 0.258064516 2.518624 50.4

QUALITY 0.093023256 0.119149 0.45677 0.31858407 0.258064516 1.245591 24.9

PACKING 0.093023256 0.017021 0.065253 0.31858407 0.161290323 0.655172 13.1

DELIVERY 0.081395349 0.014894 0.008157 0.03982301 0.290322581 0.434591 8.7

RELATIONSHIP 0.081395349 0.014894 0.013051 0.00442478 0.032258065 0.146022 2.9

COL. TOTAL 1 1 1 1 1 5

AHP ResultsRESPONSE 50%QUALITY 25%PACKING 13%DELIVERY 9%RELATIONSHIP 3%

This is the Percent ratio Scale of Priority Column. This is also called Customer Preference. Here it can be clearly seen that for This Particular Customer “Response” from VOITH carries the greatest preference. The customer rates “Response” from us at the highest priority and is implying that the Marketing Deptt. or the sales backup team is giving maximum response.

How To Proceed?

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As the Maximum Score is 5, when your customer rates these important parameters the total score is multiplied by five(5). First add all the scores for Response; Quality; Delivery; Packing and

Relationship for a particular customer of the particular sales/marketing executive.Then multiply the total by five(5)/ This

will be the customer satisfaction index for that particular customer. Now these scores of the individual CTQ's e.g.

Response;Quality; Delivery etc. are to be converted to AHP score and plugged into the AHP Matrix in the AHP Template provided to

calculate the % Ratio Scale Of Priority for each of the CTQ's of Marketing. The greatest % score is what your customer's

preference is and that's the priority through which he/she judges about the manufacturing organization.

About AHP

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HP

AHP (Analytic Hierarchy Process Matrix) is a Matrix in which the Rows and Columns have the same parameters. For e.g. here If First Row is Response the First Column is also Response; If the second Row is Quality the Second Column is also Quality ……likewise. Now once the matrix is arranged a score range of 1 to 9 is selected and allocated where a maximum score implies that the row is more important than the column. The diagonal of the matrix is allocated a score of 1. Now proceeding rowise the value in the corresponding column just below the diagonal is just inverse of the scores in the corresponding row. Likewise calculate all the columns. Add the columns. Now create a table for normalizing the scores. Divide each value of a cell of a column by the column total. Likewise do for all columns. Add the rows of this new table. This will be the Normalized score for each CTQ. Convert into percentage by dividing the normalized score for a CTQ with the column total of the Normalized Score Column and multiplying by 100. This will be the Percent Ratio Scale Of Priority for each CTQ and will also be the priority of your customer.

Converting The Scores

Here in this case convert the scores of 1 to 9 to the scores allocated in the customer satisfaction index Survey Form and then take the geometric mean of AHP Score to match with the CSI form score. The table to allocate the actual scores is given below:-

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Scoring The MatrixCSI RATING CSI SCORE AHP SCORE

GEOMETRIC MEAN

POOR

54321

EXCELLENT

VERY GOOD

GOOD

AVERAGE

1 - 2

97.55.53.51.5

97 - 85 - 63 - 4

Interpreting AHP ResultsPlug the data of the converted score (Geometric Mean) into the

AHP Matrix Template. An automatic data will be generated into

the columns of the Normalized Score Table. You have to just

look at the last column of the Normalized Score table called

Percent(%) Ratio Scale Of Priority of the Customer or the

Customer Preference. A Histogram can be then made starting

with the Least % ratio scale of priority to the maximum % ratio

scale of priority. The Least score value will indicate that which

problem is to be attacked first (as ranked lowest by the

customer). Alternately we can draw a Pareto chart by first

subtracting each % Ratio Scale Of Priority Score from 100%

and after subtracting the greatest value of % Ratio Scale Of

Priority will become the least value. To Draw a Pareto Chart we

can arrange the subtracted values from greatest to the least

and plot the pareto Histogram. The Maximum value as per the

pareto chart is the CTQ to be most attended first and ultimately

improve our internal and external processes to increase the

Customer's Value entitlement.

Studying Variance & Paired Comparison through AHP

We can also make Multi - Vari Charts for a months data executivewise and actually observe the variance in the CTQ's executivewise and can judge the relative performance of the executives in the field and can further back up the marketing team by analyzing and solving the problems faced by the executives in the field.

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AHP & CSI Data ChartCR1CR2CR3CR4CR5CR6CR7CR8CR9

CR10CR11CR12CR13CR14CR15CR16CR17CR18CR19CR20CR21CR22CR23CR24CR25CR26CR27CR28CR29CR30

CR EXEC. RESPONSE QUALITY DELIVERY PACKING RELATIONSHIP

% RATIO SCALE OF PRIORITY FOR THE MONTH

Normalized Score Revisited

RESPONSE 0.651162791 0.834042553 0.456769984 0.318584071 0.258064516 2.518623915 50.37247829

QUALITY 0.093023256 0.119148936 0.456769984 0.318584071 0.258064516 1.245590763 24.91181525

PACKING 0.093023256 0.017021277 0.065252855 0.318584071 0.161290323 0.655171781 13.10343561

DELIVERY 0.081395349 0.014893617 0.008156607 0.039823009 0.290322581 0.434591162 8.691823244

RELATIONSHIP 0.081395349 0.014893617 0.013050571 0.004424779 0.032258065 0.14602238 2.920447602

COL. TOTAL 1 1 1 1 1 5

CTQ'SNORMALIZED

SCORE RESPONSE

NORMALIZED SCORE

QUALITY

NORMALIZED SCORE

PACKING

NORMALIZED SCORE

DELIVERY

NORMALIZED SCORE

RELATIONSHIP

CUMULATIVE NORMALIZED

SCORE OR ROW SUM

NORMALIZED PERCENTAGE OR PERCENT RATIO

SCALE OF PRIORITY

This is the Percent Ratio Scale of Priority or the customer preferences prioritywise. Higher score mens high priority for that particular parameter

Pareto Chart & AHP

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From the AHP Example the Pareto Chart Drawn Indicates that Relationship is to

be improved for this customer.