Prioritization Tutorial

• We can’t do everything. Therefore, we prioritize.
• Priority should be given to things that generate the most value.
• The value of something is determined by the degree to which it achieves objectives.

These assumptions dictate the 3 basic steps for constructing a priority system:

1. Identify and structure your objectives. (What do you want?)
2. Define performance measures. (How will you measure the degree to which alternatives achieve objectives?)
3. Derive the aggregation equation and decision rule. (How will you combine the performance measures and use the results to make decisions?)

Example:

What to pack for vacation?

Limited Resource:

Space

(3000 cu. in.)

Alternatives: