Analytical hierarchy process as a tool for selecting and evaluating projects

Abstract

This paper explains the reasons for selecting the right project to conduct business in various organisations. It presents several methods for evaluating and selecting projects. A special focus is on Analytical Hierarchy Process (AHP) method that is becoming increasingly important tool in different decision-making situations. We have used this method in project management and developed a project evaluation and selecting process. We have also developed a simple application in MS Excel that helps with calculating projects' total priority grade. This tool helps us with simulating project importance based on changes in perception of the criteria.