The purpose of Decision Analysis and Resolution (DAR) is to analyze possible decisions using a formal evaluation process that evaluates identified alternatives against established criteria.

The Decision Analysis and Resolution process area involves establishing guidelines to determine which issues should be subjected to a formal evaluation process and then applying formal evaluation processes to these issues.

A formal evaluation process is a structured approach to evaluating alternative solutions against established criteria to determine a recommended solution to address an issue. A formal evaluation process involves the following actions:

·  Establishing the criteria for evaluating alternatives

·  Identifying alternative solutions

·  Selecting methods for evaluating alternatives

·  Evaluating the alternative solutions using the established criteria and methods

·  Selecting recommended solutions from the alternatives based on the evaluation criteria

Rather than using the phrase “alternative solutions to address issues” each time it is needed, we will use one of two shorter phrases: “alternative solutions” or “alternatives.”

A formal evaluation process reduces the subjective nature of the decision and has a higher probability of selecting a solution that meets the multiple demands of relevant stakeholders.

While the primary application of this process area is to technical concerns, formal evaluation processes can also be applied to many nontechnical issues, particularly when a project is being planned. Issues that have multiple alternative solutions and evaluation criteria lend themselves to a formal evaluation process.

During planning, specific issues requiring a formal evaluation process are identified. Typical issues include selection among architectural or design alternatives, use of reusable or commercial off-the-shelf (COTS) components, supplier selection, engineering support environments or associated tools, test environments, delivery alternatives, and logistics and production. A formal evaluation process can also be used to address a make-or-buy decision, the development of manufacturing processes, the selection of distribution locations, and other decisions.

Guidelines are created for deciding when to use formal evaluation processes to address unplanned issues. Guidelines often suggest using formal evaluation processes when issues are associated with medium to high risks or when issues affect the ability to achieve project objectives.

Formal evaluation processes can vary in formality, type of criteria, and methods employed. Less formal decisions can be analyzed in a few hours, use only a few criteria (e.g., effectiveness and cost to implement), and result in a one- or two-page report. More formal decisions may require separate plans, months of effort, meetings to develop and approve criteria, simulations, prototypes, piloting, and extensive documentation.

Both numeric and non-numeric criteria can be used in a formal evaluation process. Numeric criteria use weights to reflect the relative importance of the criteria. Non-numeric criteria use a more subjective ranking scale (e.g., high, medium, or low). More formal decisions may require a full trade study.

A formal evaluation process identifies and evaluates alternative solutions. The eventual selection of a solution may involve iterative activities of identification and evaluation. Portions of identified alternatives may be combined, emerging technologies may change alternatives, and the business situation of vendors may change during the evaluation period.

A recommended alternative is accompanied by documentation of the selected methods, criteria, alternatives, and rationale for the recommendation. The documentation is distributed to relevant stakeholders; it provides a record of the formal evaluation process and rationale that are useful to other projects that encounter a similar issue.

While some of the decisions made throughout the life of the project involve the use of a formal evaluation process, others do not. As mentioned earlier, guidelines should be established to determine which issues should be subjected to a formal evaluation process.

Refer to the Project Planning process area for more information about general planning for projects.

Refer to the Integrated Project Management process area for more information about establishing the project’s defined process. The project’s defined process includes a formal evaluation process for each selected issue and incorporates the use of guidelines for applying a formal evaluation process to unforeseen issues.

Refer to the Risk Management process area for more information about identifying and mitigating risks. A formal evaluation process is often used to address issues with identified medium or high risks. Selected solutions typically affect risk mitigation plans.

Specific Goal and Practice Summary

SG 1 Evaluate Alternatives

SP 1.1  Establish Guidelines for Decision Analysis

SP 1.2  Establish Evaluation Criteria

SP 1.3  Identify Alternative Solutions

SP 1.4  Select Evaluation Methods

SP 1.5  Evaluate Alternatives

SP 1.6  Select Solutions