Pugh Analysis Example

Pugh Analysis Example

Problem Statement

Table shows some evaluation criteria for Pugh matrix. Setup the Pugh matrix and compare two different cars with a datum car.

#

Key Decision Criteria

1

Cost

2

Quality

3

Image

4

Delivery Terms

5

After Sales Service

How to perform analysis

Step 1: Open Sigma Magic
  1. Click on the Sigma Magic button on the Excel toolbar.
  2. Click on the New button to create a new project.
Step 2: Add the analysis template
  1. Click on the Tool Wizard to add the analysis template.
  2. Click on Project and then Pugh Analysis.


Step 3: Specify analysis options
A new worksheet will be added to your workbook. Analysis Setup will be automatically opened, in the setup tab specify the following details.



If you need to make changes to the charts, specify the optional settings in the Charts tab.

 Labels:

  • Add a title for the chart.
  • Label the X-axis and Y-axis appropriately.

Appearance:

  • Adjust colors, font sizes, or other visual elements as needed.
  • Enable/disable gridlines or background shading.


Step 4: Enter the details in worksheet
Click Create, the worksheet will created and then enter all the details. A sample is provided below:



Click on the Analysis Setup and then click Verify tab to ensure all the inputs are okay and shown in a green checkmark.



Step 5: Generate analysis result
Click Analyze and then click Compute Outputs to get the final results



Interpretating Results

Concept 2 is the Recommended Choice

  • The analysis results indicate that Concept 2 has the highest relative score when compared to the baseline (Datum).
  • It received more positive evaluations than negatives, making it the best alternative among the choices.

  Concept 3 Performed Poorly

  • Concept 3 has a negative overall score (-3), indicating that it underperforms compared to both Datum and Concept 2.
  • The negative score suggests that Concept 3 has more weaknesses relative to the benchmark.

Key Decision Criteria Evaluated

  • The matrix assesses five key criteria: Cost, Quality, Image, Delivery Terms, and After Sales Service.
  • Only Cost, Quality, and Image showed differences among concepts, while others remained same(S) for all options.
  • This indicates that Cost, Quality, and Image played a crucial role in ranking the concepts.

  Concept 2 Scores the Highest in Key Areas

  • Concept 2 received positive scores for Cost (+), Quality (+), and Image (-).
  • Despite having a negative rating in Image, its overall positives (9) outweighed its negatives (2), leading to a positive final score.

Concept 3’s Poor Performance Due to Image & Delivery Terms

  • Concept 3 received a negative rating for Cost and Delivery Terms, impacting its overall ranking.
  • Despite having a positive rating for Image, it couldn’t compensate for the other weak areas.

 Final Decision and Business Implications

  • Since Concept 2 ranks highest, it should be prioritized for further consideration or implementation.
  • However, a detailed feasibility check should be conducted before finalizing, ensuring that it aligns with overall business objectives and constraints.

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