Abstract
Feasibility study is conducted in a stage prior to design, procurement and construction stages in order to determine the viability of project undertaken by an investor. This helps investors to decide whether to proceed with the project or not. Multi-Criteria Decision Making (MCDM) process can be utilized in the feasibility study stage to avoid wrong decisions might cause undesired losses. In industrial projects, wrong decisions might lead to bankruptcy of crucial economic entities. Private investors might have good initiative and the capital to establish economically successful projects but they might either select the inappropriate type of industry that might turn the investment to a failure or might not include some important/crucial considerations into account. This paper presents a key-list of gathered factors that are considered the important factors and affect the selection of industrial projects. Importance, relative importance and weights of these factors are determined using Simos’ procedure. The key-list has been applied on five case-studies of industrial projects and a Weighted-Sum Model (WSM) has been selected as a MCDM technique in order to acquire their final preferences, rank them and consequently come-up with the most preferred/suitable alternative to be constructed. Then, a sensitivity analysis has been performed to determine the most critical criterion of the key-list. Additionally, several scenarios have been processed to verify that the most important criterion of the key-list does not necessarily be the most critical criterion. Moreover, the sensitivity analysis also determines the most critical measure of performance assembled from the five casestudies.
Highlights
Multi-Criteria Decision Making has taken massive concern in the research field over the past few decades
There exist a type of private investors that might have the good initiative and the capital to construct economically successful projects but they might either select the inappropriate type of industry that might turn the investment to a failure or might not include some important/crucial considerations into account (Amer 2010)
This paper introduced an approach for selecting industrial projects using Multi-Criteria Decision Making (MCDM)
Summary
Multi-Criteria Decision Making has taken massive concern in the research field over the past few decades. This reflects how important this issue is since its early conception. There exist a type of private investors that might have the good initiative and the capital to construct economically successful projects but they might either select the inappropriate type of industry that might turn the investment to a failure or might not include some important/crucial considerations into account (Amer 2010). The same technique has been used in a well-known MCDM practice which is contractor selection (Marzouk 2008b). The case study is based on a 34-story building located in a 1,800 m2 construction site in Hong Kong It comprises ten alternatives in form of types of pumps (supplied to site by contractor) and eleven different criteria. Marzouk et al Feasibility study of industrial projects using Simos’ procedure
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