Pugh Matrix with Example

Pugh Matrix is a criteria-based decision matrix that uses criteria scoring to determine which of several potential alternatives should be selected. The technique gets its name from the Scottish scientist?Dr. Stuart Pugh. The Pugh Matrix, also known as the decision matrix or grid analysis, is a tool used to evaluate and compare different options or alternatives based on a set of criteria. Here's an example of how to use the Pugh Matrix:

Let's say that a company is considering three different office locations for their new branch. They want to choose the location that will be the most convenient for their employees and customers. They have come up with five criteria to evaluate each location:

1. Proximity to public transportation
2. Availability of parking
3. Accessibility for people with disabilities
4. Surrounding amenities (restaurants, shops, etc.)
5. Cost of rent

They assign a weight to each criterion based on their importance:

1. Proximity to public transportation - weight: 4
2. Availability of parking - weight: 3
3. Accessibility for people with disabilities - weight: 2
4. Surrounding amenities - weight: 3
5. Cost of rent - weight: 5

Next, they evaluate each location based on these criteria, rating each on a scale of -2 to +2 (with 0 being neutral):

Option 1:

1. Proximity to public transportation: +2
2. Availability of parking: 0
3. Accessibility for people with disabilities: +1
4. Surrounding amenities: +2
5. Cost of rent: -2

Option 2:

1. Proximity to public transportation: -1
2. Availability of parking: +2
3. Accessibility for people with disabilities: +2
4. Surrounding amenities: +1
5. Cost of rent: +1

Option 3:

1. Proximity to public transportation: +1
2. Availability of parking: -2
3. Accessibility for people with disabilities: -1
4. Surrounding amenities: +2
5. Cost of rent: 0

After calculating the weighted scores for each criterion and option, the Pugh Matrix looks like this:

From this matrix, we can see that Option 2 has the highest total score, making it the best choice for the company's new branch location.

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