3-2-2-5 Weighted scoring model

In the simple scoring model, all the criteria are assumed to have equal importance. In the weighted scoring model,  different criteria are assigned different relative weights by the organization. The scores received on each criteria by each project are then multiplied by the weights for  a weighted score. The weighted scores are then summed to get the total weighted score for each project.  Using the previous example, let’s assume the following weights for the five criteria

Criteria Weight
NPV .20
Market share .35
Environmental Friendliness .15
Operating Necessity .20
Technological Superiority .10

The weights don’t have to add up to 1.00 and they don’t have to be decimal. They are just a relative way of assigning importance.

Combining the above with table from the simple scoring model example we obtain the following table

CriteriaWeight

 

Project

NPV Market Share Environmental Friendliness Operating Necessity Technological Superiority Total  Weighted Score
.20 .35 .15 .20 .10
A 4 2 3 4 4 3.15
B 1 3 2 4 2 2.55
C 3 2 4 4 5 3.20
D 5 2 3 2 4 2.95
E 3 5 1 3 2 3.30
F 2 4 5 3 1 3.25

Based on their total weighted scores the projects will be now be ranked in order E, F, C, A, D, B

It is important to understand that this method might be combined with other methods depending on the needs of the organization.

Regardless of the selection method, there is no substitute for providing adequate justification of the criteria used  and the basis for the scoring of the different projects. See the attached comic strips on two takes on the importance of this point.  project-selection

1,140 thoughts on “3-2-2-5 Weighted scoring model”

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