Analytic Hierarchy Process (AHP) to Select the Best Service Contract Model in MNS Laboratory to Support CEOR Project

Abstract

Resources support from the 3 rd party contractor is essential in MNS Laboratory operation. The use of 3rd party to support laboratory activities is intended to optimize cost, maintain resources efficiency, and provide world class laboratory service. The contract model used will significantly affect laboratory performance as measured in terms of cost, turn-around time (TAT), quality of data and reporting, and level of customer satisfaction. Selecting a fit-for-purpose contract model for MNS Laboratory operations is very important to help MNS Laboratory to have a strong resources base. Analytic Hierarchy Process (AHP) method is used in selection process with four key criteria. They are Cost, Turn-Around Time (TAT), Organizational Capability and Industrial Relation. Brainstorm with stakeholder is conducted to obtain data for pair-wises comparison and AHP software from BPMSG is used to formulate data. In the final process, the Lump Sum with Modification contract model is selected as the best alternative.

Keywords: cost, customer, data quality, industrial relation, organizational capability, turn-around time (TAT)