Application of the analytic hierarchy process in project management

This paper presents the Analytical Hierarchy Process (AHP) as a potential decision making method for use in project management. The contractor prequalification problem is used as an example. A hierarchical structure is constructed for the prequalification criteria and the contractors wishing to prequalify for a project. By applying the AHP, the prequalification criteria can be prioritized and a descending-order list of contractors can be made in order to select the best contractors to perform the project. A sensitivity analyis can be performed to check the sensitivity of the final decisions to minor changes in judgements. The paper presents group decision-making using the AHP. The AHP implementation steps will be simplified by using the ‘Expert Choice’ professional software that is available commercially and designed for implementing AHP. It is hoped that this will encourage the application of the AHP by project management professionals.