Papers
Selecting a technical service provider by the Analytic Hierarchy Process
Author(s)Slamet Riyadi
International Islamic University Malaysia
Malaysia
Lokman Effendi
International Islamic University Malaysia
Malaysia
Rafikul Islam
International Islamic University Malaysia
Malaysia
Publication date: Dec, 2013
Journal: Malaysian Management ReviewVol.: 48- Issue: 2- Pages: 53-67
Publisher: Malaysian Institute of Management
Abstract: The selection of a suitable technical service provider in the oil and gas industry can be a lengthy process. To expedite the procurement process, the analytic hierarchy process (AHP) method is proposed as a means of identifying the best technical service provider to develop a field development plan (FDP) for Field X. In the analysis of technical service providers using the AHP model, the Technical Capability and Project Deliverability criteria received the highest overall weights of 0.270 and 0.244, respectively, while the Reliability of the Company and Technology Transfer criteria had lower weights of 0.067 and 0.069, respectively. The Cost criterion had the third highest weight, and the Track Record of Performance criterion the fourth highest in terms of importance: their weights were 0.188 and 0.162, respectively. Provider 5 and Provider 1 had the highest and the second highest overall weights, which were 0.2895 and 0.2546 respectively, while Provider 2 had the lowest overall weight, 0.1246. Based on the use of the AHP method, Provider 5 was selected as the provider to conduct the work of developing an FDP for Field X.
Keywords: AHP, Analytic Hierarchy Process, Field development plan