Taal Lake is a freshwater lake in the province of Batangas, on the island of Luzon in the Philippines. The lake fills a large volcanic caldera formed by eruptions between 500,000 and 100,000 years ago. That crater lake is the world’s largest lake on an island in a lake on an island, and it in turn contains its own small island, Vulcan Point.
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Bohol is a smaller island in the island grouping of the Visayas, Philippines, a nice place to spend your holidays. Beside the famous chocolate hills and the trasier conservation area, the video shows Bolo knife forging, the Loboc river cruise with a local rondalla music group, dancing the traditional Tinikling dance, dolphin watching with a visit to Balicasag and Virgin island, as well as the Baclayon church, Tagbilaran market and the Hinigdanan cave in Dauis. Enjoy watching!
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Thanks to feedback from Mihail, here a few words about the numerical accuracy when using the AHP excel template.
AHP requires the calculation of the principal Eigenvalue, the weights are derived from the Eigenvector. In my calculations I use the power method. It is an iterative method, and only one of several techniques that can be used to approximate the eigenvalues of a matrix.
The whole calculation is shown in work sheet ’10×10′. I use 12 iterations; at the end of the sheet I do a check (the reverse calculation), using the Eigenvalue equation: (A–λ I) X = 0, with A the AHP matrix; λ the principal Eigenvalue, and X the estimated Eigenvector. The resulting check value in cell B33 shows the sum of all matrix element of the Eigenvalue equation using the iterated Eigenvector and Eigenvalue. Ideally it should be zero.
From version 2014-05-09 onward the template shows the convergence of the power method, when calculating the eigenvalue. In the summary sheet a threshold (squared Euclidean distance d2) can be set, to show how many iterations it takes, until the change of the approximated eigenvector is below the given threshold. By default the value is set to Thresh: 1E-07. As the number of iterations in the template is fixed to 12, care should be taken if the value reaches 12.
Here a practical example comparing the results from the power method, as now implemented in my template, with an example (7 criteria) given by Saaty in Int. J. Services Sciences, Vol. 1, No. 1, 2008 (p 86, table 2). The AHP matrix is:
| 1 | 9 | 5 | 2 | 1 | 1 | 1/2 |
| 1/9 | 1 | 1/3 | 1/9 | 1/9 | 1/9 | 1/9 |
| 1/5 | 3 | 1 | 1/3 | 1/4 | 1/3 | 1/9 |
| 1/2 | 9 | 3 | 1 | 1/2 | 1 | 1/3 |
| 1 | 9 | 4 | 2 | 1 | 2 | 1/2 |
| 1 | 9 | 3 | 1 | 1/2 | 1 | 1/3 |
| 2 | 9 | 9 | 3 | 2 | 3 | 1 |
The result according Saaty is
(0.177, 0.019, 0.042, 0.116, 0.190, 0.129, 0.327) with consistency ratio of 0,022
The result from my AHP Excel template is
(0.1775, 0.0191, 0.0418, 0.1164, 0.1896, 0.1288, 0.3268) with CR 0f 0.022
exactly the same. The check value in sheet ‘8×8 is 4E-12.
Latest Excel template download
My video “Diversity Index as Business Performance Indicator” is now added as episode #14 in my BPMSG podcast feed.
Thanks to the feedback from Pascal a bug is corrected, when you select the results of individual participants in the summary sheet. Selection/display of results from participant 4 to 7 was not shown correctly.
Please go to the AHP template download page to get the updated version.
Just now I realized a problem with my (still) quite new Cannon XA-10 camera. Obvious under low light conditions and white colored background the corners getting dark – vignetting; you see it clearly on the second picture. Of course – lens hood removed, it’s medium focal length …
Question: damage under warranty or normal?
Result from several visits and discussions with the Canon Service center in Singapore:
It is a limitation of the camera. (I would call it a design problem). Workaround: use manual focus & switch image stabilizer off (if possible use a tripod).
A business relying on a single type of product or services can be highly risky. Any change in the market place – a change of customer behavior, a new competitor – might have a high impact on the business results. Diversification is an opportunity to spread and reduce the potential risks.
The mathematical concept of diversity has many applications, ranging from ecology over demography to information science. In the context of business performance diversity indices can be used as key performance indicators (KPIs) to analyze markets, define targets for diversification, and track the success of derived business actions.
Download Presentation Slides (pdf)
See also
Video: Diversity as Business KPI – Alpha and Beta Diversity
Diversity Calculation in Excel – Diversity Indices and True Diversity
Q: I read in some texts that a consistency ratio (actually inconsistency ratio) of less than 0.1 (10%) is good. I am not sure if your consistency ratio is a consistency ratio (i.e. the higher the percentage of the CR, the better and the more consistent the results are) vs inconsistency ratio (i.e. the consistency ratio percentage in your spreadsheet should be less in order to be more consistent).
Can you please let me know if a lower of higher percentage of the consistency ratio reflects a better more consistent response? Also, how important is the CR in the interpretation of results? If two consecutive rounds of solicited info yields very similar results, would that be acceptable even if the consistency ratio may not be good?
A: The CR in my spreadsheet is exactly the same you can find in the literature. A value less than 0.1 (10%) is good, but the threshold of 0.1 is a rule of thumb . Lower values are better than higher values, but values above 0.1 can be acceptable. It depends on the nature of your project. When you process the inputs from a group (several participants), it happens that individual CRs are above 10%, but the consolidated matrix CR is ok. Please read also my comment here.
Q: I’m very new to AHP and I want to use it to identify which country is the best location to offshore a certain function of a company for my MBA project. I need to find relative importance of different factors for such decision and the relative ranking of different ountries from those factors.
How do I use this excel for such purpose? Do I run it multiple times; first for finding the priority of the factors, and then for the comparison of the countries one by one for each of the factors? And lastly multiply the priorities of the factors by each country’s priority? Is there an easier way via your template to do it?
A: There is no easier way. My template only calculates the priorities of factors in one single category of a hierarchy. If you have different categories, you have to run it multiple times (once in each category/ sub-category); then calculate the final weighting factors and make the evaluation of alternatives in your own sheet. NEW since Dec 2013: You might also use my online tool BMPSG AHP hierarchy.
I cannot generalize my template, as the hierarchy could be very different from one to another project.
I’m really getting lazy …
No update of my web site since May 2012; page rank down from 3 to 2. What is going on?
It seems less questions coming up regarding my AHP excel template, though the number of downloads is quite stable. I am still curious to know about your applications; so please kindly feedback, if you are using the template for your study or work.
In between I upgraded my video equipment, using a Canon XA10 video camera and Adobe Premier Elements for editing. I produced a couple of videos for work and on holidays. Very satisfied with the results, brilliant quality in HD. Hopefully I will find some time to share my experience here or on my Youtube channel, so just stay connected.
Thanks so far!
Klaus
September 2012
P.S. Update Nov 8th, 2012 – Now having problems with my XA-10 Camcorder
