ASTM E1765-16

Standard Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to Projects, Products, and Processes

SIGNIFICANCE AND USE
5.1 The AHP method allows you to generate a single measure of desirability for project/product/process alternatives with respect to multiple attributes (qualitative and quantitative). By contrast, life-cycle cost (Practice E917), net savings (Practice E1074), savings-to-investment ratio (Practice E964), internal rate-of-return (Practice E1057), and payback (Practice E1121) methods all require you to put a monetary value on benefits and costs in order to include them in a measure of project/product/process worth.  
5.2 Use AHP to evaluate a finite and generally small set of discrete and predetermined options or alternatives. Specific AHP applications are ranking and choosing among alternatives. For example, rank alternative building locations with AHP to see how they measure up to one another, or use AHP to choose among building materials to see which is best for your application.  
5.3 Use AHP if no single alternative exhibits the most preferred available value or performance for all attributes. This is often the result of an underlying trade-off relationship among attributes. An example is the trade-off between low desired energy costs and large glass window areas (which may raise heating and cooling costs while lowering lighting costs).  
5.4 Use AHP to evaluate alternatives whose attributes are not all measurable in the same units. Also use AHP when performance relative to some or all of the attributes is impractical, impossible, or too costly to measure. For example, while life-cycle costs are directly measured in monetary units, the number and size of offices are measured in other units, and the public image of a building may not be practically measurable in any unit. To help you choose among candidate buildings with these diverse attributes, use AHP to evaluate your alternatives.  
5.5 The AHP method is well-suited for application to a variety of sustainability-related topics. Guide E2432 states when applying the concept of sustainability, it is necessary ...
SCOPE
1.1 This practice presents a procedure for calculating and interpreting AHP scores of a project's/product’s/process’ total overall desirability when making capital investment decisions.3 Projects include design, construction, operation, and disposal of commercial and residential buildings and other engineered structures.4 Products include materials, components, systems, and equipment.5 Processes include procurement, materials management, work flow, fabrication and assembly, quality control, and services.  
1.2 In addition to monetary benefits and costs, the procedure allows for the consideration of characteristics or attributes which decision makers regard as important, but which are not readily expressed in monetary terms. Examples of such attributes that pertain to the selection among project/product/process alternatives are: a construction projects’s building alternatives whose nonmonetary attributes are location/accessibility, site security, maintainability, quality of the sound and visual environment, and image to the public and occupants; building products based on their economic and environmental performance; and sustainability-related issues for key construction processes that address environmental needs, while considering project safety, cost, and schedule.  
1.3 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

General Information

• Status: Historical
• Publication Date: 29-Feb-2016
• ICS: 03.100.50 - Production. Production management
• ICS: 91.010.99 - Other aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E1765-11 - Standard Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to Buildings and Building Systems
• Effective Date: 01-Mar-2016
• Referred By: ASTM E2166-16(2023) - Standard Practice for Organizing and Managing Building Data
• Effective Date: 01-Mar-2016
• Referred By: ASTM E2506-15(2020)e1 - Standard Guide for Developing a Cost-Effective Risk Mitigation Plan for New and Existing Constructed Facilities
• Effective Date: 01-Mar-2016
• Referred By: ASTM E1699-14(2020) - Standard Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and Processes
• Effective Date: 01-Mar-2016
• Referred By: ASTM E2771-11(2019) - Standard Terminology for Homeland Security Applications
• Effective Date: 01-Mar-2016
• Referred By: ASTM E964-15(2020)e1 - Standard Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
• Effective Date: 01-Mar-2016
• Referred By: ASTM E1057-15(2020)e1 - Standard Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems
• Effective Date: 01-Mar-2016
• Referred By: ASTM E2495-18 - Standard Practice for Prioritizing Asset Resources in Acquisition, Utilization, and Disposition
• Effective Date: 01-Mar-2016
• Referred By: ASTM E2204-15(2020)e1 - Standard Guide for Summarizing the Economic Impacts of Building-Related Projects
• Effective Date: 01-Mar-2016
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-Mar-2016
• Referred By: ASTM E1074-15(2020)e1 - Standard Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
• Effective Date: 01-Mar-2016
• Referred By: ASTM E917-17(2023) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Mar-2016

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation: E1765 − 16
Standard Practice for
Applying Analytical Hierarchy Process (AHP) to
Multiattribute Decision Analysis of Investments Related to
1
Projects, Products, and Processes
This standard is issued under the fixed designation E1765; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision.Anumber in parentheses indicates the year of last reapproval.A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
Theanalyticalhierarchyprocess(AHP)isoneofasetofmulti-attributedecisionanalysis(MADA)
methods that considers nonmonetary attributes (qualitative and quantitative) in addition to common
economic evaluation measures (such as life-cycle costing or net benefits) when evaluating project,
product, and process alternatives. Investment decisions depend in part on how competing options
perform with respect to nonmonetary attributes.This practice complements existingASTM standards
onbuildingeconomicsbyincorporatingtheexistingeconomic/monetarymeasuresofworthdescribed
in those standards into a more comprehensive standard method of evaluation that includes
nonmonetary (quantitative and nonquantitative) benefits and costs. The AHP is the MADA method
2
describedinthispractice. Ithasthreesignificantstrengths:anefficientattributeweightingprocessof
pairwise comparisons; hierarchical descriptions of attributes, which keep the number of pairwise
3
comparisons manageable; and available software to facilitate its use.
5
1. Scope and equipment. Processes include procurement, materials
management, work flow, fabrication and assembly, quality
1.1 This practice presents a procedure for calculating and
control, and services.
interpreting AHP scores of a project’s/product’s/process’ total
3
1.2 Inadditiontomonetarybenefitsandcosts,theprocedure
overalldesirabilitywhenmakingcapitalinvestmentdecisions.
allows for the consideration of characteristics or attributes
Projects include design, construction, operation, and disposal
which decision makers regard as important, but which are not
of commercial and residential buildings and other engineered
4
readily expressed in monetary terms. Examples of such attri-
structures. Products include materials, components, systems,
butes that pertain to the selection among project/product/
process alternatives are: a construction projects’s building
1
This practice is under the jurisdiction of ASTM Committee E06 on Perfor- alternatives whose nonmonetary attributes are location/
mance of Buildings and is the direct responsibility of Subcommittee E06.81 on
accessibility, site security, maintainability, quality of the sound
Building Economics.
and visual environment, and image to the public and occu-
Current edition approved March 1, 2016. Published March 2016. Originally
pants; building products based on their economic and environ-
approved in 1995. Last previous edition approved in 2011 as E1765–11. DOI:
10.1520/E1765-16.
mental performance; and sustainability-related issues for key
2
For an extensive overview of MADAmethods and a detailed treatment of how
constructionprocessesthataddressenvironmentalneeds,while
to apply two MADAmethods (one of which isAHP) to building-related decisions,
considering project safety, cost, and schedule.
see Norris, G A., and Marshall, H.E., Multiattribute Decision Analysis: Recom-
mended Method for Evaluating Buildings and Building Systems, National Institute
1.3 This standard does not purport to address all of the
of Standards and Technology, 1995.
safety concerns, if any, associated with its use. It is the
3
Thispracticepresentsastand-aloneprocedureforperforminganAHPanalysis.
responsibility of the user of this standard to establish appro-
In addition, an ASTM software product for performing AHP analyses has been
developed to support and facilitate use of this practice. Software to Support ASTM
priate safety and health practices and determine the applica-
E1765: Standard Practice for Applying Analytical Hierarchy Process (AHP) to
bility of regulatory limitations prior to use.
Multiattribute Decision Analysis of Investments Related to Buildings and Building
Systems, MNL29, ASTM, 1998.
4 5
Projects also include analytical studies that identify alternative means for Typicalconstruction-relatedproductsforeachproducttypeare:(1)materials—
achieving organizational objectives as well as research and development activities concrete; (2) components—structural steel members; (3) systems—heating,
that support the deployment of new products and processes. ventilating, and air-conditioning system; and (4) equipment—heat pump.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

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This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E1765 − 11 E1765 − 16
Standard Practice for
Applying Analytical Hierarchy Process (AHP) to
Multiattribute Decision Analysis of Investments Related to
Buildings and Building SystemsProjects, Products, and
1
Processes
This standard is issued under the fixed designation E1765; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
The analytical hierarchy process (AHP) is one of a set of multi-attribute decision analysis (MADA)
methods that considers nonmonetary attributes (qualitative and quantitative) in addition to common
economic evaluation measures (such as life-cycle costing or net benefits) when evaluating project
alternatives. Building-relatedproject, product, and process alternatives. Investment decisions depend
in part on how competing options perform with respect to nonmonetary attributes. This practice
complements existing ASTM standards on building economics by incorporating the existing
economic/monetary measures of worth described in those standards into a more comprehensive
standard method of evaluation that includes nonmonetary (quantitative and nonquantitative) benefits
2
and costs. The AHP is the MADA method described in this practice. It has three significant strengths:
an efficient attribute weighting process of pairwise comparisons; hierarchical descriptions of
attributes, which keep the number of pairwise comparisons manageable; and available software to
3
facilitate its use.
1. Scope
1.1 This practice presents a procedure for calculating and interpreting AHP scores of a project’sproject’s/product’s/process’ total
3
overall desirability when making building-related capital investment decisions. Projects include design, construction, operation,
4
and disposal of commercial and residential buildings and other engineered structures. Products include materials, components,
5
systems, and equipment. Processes include procurement, materials management, work flow, fabrication and assembly, quality
control, and services.
1.2 In addition to monetary benefits and costs, the procedure allows for the consideration of characteristics or attributes which
decision makers regard as important, but which are not readily expressed in monetary terms. Examples of such attributes that
pertain to the selection of a building alternative (and its surroundings)among project/product/process alternatives are: a
construction projects’s building alternatives whose nonmonetary attributes are location/accessibility, site security, maintainability,
quality of the sound and visual environment, and image to the public and occupants. occupants; building products based on their
1
This practice is under the jurisdiction of ASTM Committee E06 on Performance of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
Current edition approved March 1, 2011March 1, 2016. Published April 2011March 2016. Originally approved in 1995. Last previous edition approved in 20072011 as
ε1
E1765 – 07E1765 – 11. . DOI: 10.1520/E1765-11.10.1520/E1765-16.
2
For an extensive overview of MADA methods and a detailed treatment of how to apply two MADA methods (one of which is AHP) to building-related decisions, see
Norris, G A., and Marshall, H.E., Multiattribute Decision Analysis: Recommended Method for Evaluating Buildings and Building Systems, National Institute of Standards
and Technology, 1995.
3
This practice presents a stand-alone procedure for performing an AHP analysis. In addition, an ASTM software product for performing AHP analyses has been developed
to support and facilitate use of this practice. Software to Support ASTM E1765: Standard Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision
Analysis of Investments Related to Buildings and Building Systems, MNL 29, ASTM, 1998.
4
Projects also include analytical studies that identify alternative means for achieving organizational objectives as well as research and development activities that support
the deployment of new products and processes.
5
Typical construction-related products for each product type are: (1) materials—concrete; (2) components—structural steel members; (3) systems—heating, ventilating,
and air-conditioning system; and (4) equipment—heat pump.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700
...