An Application of SMART Method in vendor selection of Satellite Systems Case study of Indonesia Remote Sensing Satellite Systems (InaRSSat)

Abstract

Indonesia is an Archipelagic State (maritime continent) with a strategic position and high potential in natural resources. Satellite technology is expected to provide answers in managing spatial-based natural resources. This paper presents a Simple Multi Attribute Rating Technique (SMART) method for organizing and evaluating activities of a big and complex problem solution. To illustrate this method, a case study that deal with vendor selection of satellite systems will be discussed in this paper. The activity is integrated in a decision support system (DSS) which is using of the SMART method to determine vendor rankings and an efficient frontier. SMART method is used in this group decision making process because it can divide complex problems into sets of uncomplicated analysis and therefore able to directly influence the understanding of stakeholders on the process used in finding solutions. This group decision making process involves many stakeholders. Satellite system vendor selection is an important issue as the satellite system is a long-term investment commitment for the government. And also the success of satellite application services can be influenced by the vendor selection result. Moreover, the vendor selection of a satellite system is involving multiple stakeholder with multiple criteria decision-making issue. A systematic approach to assess priorities based on the inputs of several stakeholders can improve the group decision-making process. The paper will illustrate that several decision-makers with different conflicting objectives can use the SMART method to arrive at a consensus. This case study indicates that SMART method can be used to improve group decision making in vendor selection that meets stakeholder criteria. This paper found that the proposed SMART model can reduce the time required for vendor selection and the decision-making process become more systematic. A procedure for selecting the number of providers shall be made in a process which presents as an efficient frontier analysis. Finally, results of criteria and cost benefit analysis design scenarios of satellite industry using SMART method are discussed and we will make some conclusions.