My inspiration for this blog entry came from Top Gear Philippines magazine. They have a portion called “Wrong car, right car” by Botchi Santos.
When I took my Masters in Management in UP Clark, Pampanga from Y2000 to Y2003, one of the important lessons that I learned is a management decision technique called Factor Rating. Factor Rating has numerous applications such as choosing a school for your child, to accept or reject a job offer or when choosing your new car. The steps below will hopefully aide you in your decision:
1. Identify your requirements. For example, when choosing a car, what are relevant to you: vehicle type (sedan, wagon, SUV), transmission (automatic, manual), body color (red, white, black), displacement (1600, 1800, 2000), safety features(airbags, abs). You should have a minimum of 4 factors. There’s no maximum number of factors however it gets a bit complicated if you exceed 10 factors.
2. Assign a weight per requirement. Using the example above, which requirement is the most important? Personally, my table will look like this: vehicle type 30%, transmission 25%, safety features 20%, displacement 15% and body color 10%.
3. List down your choices. Let’s say your choices are Toyota Corolla, Chevrolet Optra and Honda CRV.
4. Using a point system, 10 being the highest, identify the points per requirement. For this exercise, we will focus on the Toyota Corolla column and my scores will be: vehicle type = 7, transmission = 9, safety features = 10, displacement = 10 and body color = 7.
5. Multiply the weight with the score and get the sum of each choice.
6. The vehicle with the most number of points wins!
Fundamentally, the approach of Top Gear is the same in factor rating with a dab of mathematics. Still too complicated? Send me an email dslhummer2002@yahoo.com and i'll send you a template. I'm sure that would help.
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