A decision-making model for the selection of capital projects

Policy makers at all levels are confronted with the problem of selecting among alternative projects. The objective of this dissertation is to provide a decision-making model combing both economic and non-economic attributes attached to the process. Although most decision-making process emphasizes on the financial aspects, non-economic analysis forms an equally important part of the decision-making process. The proposed model observes the decision-making process from both economic as well as non-economic viewpoint. A set of economic variables are considered as a part of the economic study while a set of key customer and technical attributes were considered for the non-economic study. The economic analysis is comprised of an after tax study followed by a sensitivity analysis on key financial parameters. The non-economic analysis consisted of an integrated AHP-QFD model that was supported by a multiattribute analysis. The model was validated using an illustrative case study comparing two competing drug development processes---an existing versus an emerging (and potentially disruptive ) technology. Additionally, a set of metrics used to determine a disruptive technology and a set of possible risks associated with a emerging/disruptive technology process is provided in the appendix of the dissertation. The dissertation is expected to contribute significantly to the engineering management decision-making process, especially while comparing between an existing and an emerging (or disruptive) technology. Finally, the pharmaceutical policy-makers can use this model as a part of selecting their preferred drug development process.