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Title:

Vendor Selection

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... V (A2) ... V (An) Value on Attribute 1 ... Ask the expert to introduce himself. Start with tangible examples ... Ask the experts to introduce themselves ... – PowerPoint PPT presentation

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Title: Vendor Selection


1
Vendor Selection
  • Farrokh Alemi, Ph.D.

2
Objectives
  • Model decision makers preferences
  • Facilitate communication and documentation

3
What is a model of values?
  • Quantify preferences
  • Higher numbers more preferred options
  • Assumptions
  • Decision makers have options
  • Selection is based on preferences
  • Preferences are based on attributes

4
Additive Multi-Attribute Value Model
Overall Value V (A1) V (A2)   ... V (An)
Value on Attribute 1
Value on Attribute 2
Value on Attribute n
5
Misleading Numbers
  • Numbers approximate preferences
  • Nominal scale
  • Ordinal scale
  • Interval scale

6
Steps in Vendor Selection
  1. Select process
  2. Select attributes
  3. Select cases
  4. Rate vendor performance
  5. Set priorities
  6. Recommend action
  7. Document action

7
Step1 Select Process
  • Who decides?
  • What must be done?
  • What judgments must be made?
  • How can the model of the judgment be used?
  • Administrator?

8
Step1 Select Process
  • Who decides?
  • What must be done?
  • What judgments must be made?
  • How can the model of the judgment be used?
  • Administrator
  • Select a vendor for long term

9
Step1 Select Process
  • Who decides?
  • What must be done?
  • What judgments must be made?
  • How can the model of the judgment be used?
  • Administrator
  • Select a vendor for long term
  • Performance of vendors on several attributes

10
Step1 Select Process
  • Who decides?
  • What must be done?
  • What judgments must be made?
  • How can the model of the judgment be used?
  • Administrator
  • Select a vendor for long term
  • Performance of vendors on several attributes
  • Model can document the decision

11
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

12
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

13
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the expert to introduce himself
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

14
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

15
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples of EHR that worked
    well and those that worked poorly
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

16
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

17
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

18
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

19
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

20
Step 2 Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes and do not interrupt

21
Step 2. Select Attributes
  • Introduce yourself and your purpose
  • Be judicious about pausing
  • Ask the experts to introduce themselves
  • Start with tangible examples
  • Ask directly for additional attributes
  • Arrange the attributes in a hierarchy
  • Always use the expert's terminology
  • Use prompts that feel most natural
  • Take notes, and do not interrupt

Do this with each committee member prior to
meeting
22
Step 2 Select Attributes
  • Do it again
  • Start with list
  • Solicit changes
  • Record comments
  • Avoid clicks
  • Speak back to the entire group
  • Maintain eye contact

23
Step 2 Select Attributes
  • Example attributes
  • Easy to use
  • Improve one or more business processes
  • Most value for cost
  • Fit with long term business strategy
  • Vendor responsive to practice information needs
  • Strong testimonies from prior users
  • In use by other practice sites
  • Compatible with existing systems

24
Step 2 Select Attributes
Vendor A Vendor A Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 2 minutes 3 minutes 5 minutes
Cost 11,000/bed 11,000/bed 15,000/bed 15,000/bed 9000/bed
Reputation Good Excellent Good

25
Step 3 Prepare Test Scenarios
  • Make a case to enter
  • Cover extremes
  • Check for multiple entry
  • Ask for revision procedures

26
Step 4 Vendor Performance
  • Test all on same cases
  • Check performance on each attribute
  • Rate performance on each attribute
  • Standardize ratings

27
Step 4 Vendor Performance
  • Average time to enter patient data
  • 2 minutes
  • Between 3 minutes
  • 5 minutes

28
Step 4 Vendor Performance
Vendor A Vendor A Vendor B Vendor B Vendor C Vendor C
Attribute Level Level Level
Ease of use 2 minutes 3 minutes 5 minutes
Cost 11,000/bed 11,000/bed 15,000/bed 15,000/bed 9000/bed
Reputation Good Excellent Good

29
Step 5. Rate Vendors on Single Attributes
  • Double anchored assessment method
  • 100 to best
  • 0 to worst
  • Rate the remaining levels

30
Step 5. Rate Vendors on Single Attributes
  • 2 minutes, 100
  • 3 minutes, ?
  • 5 minutes, 0

31
Step 5. Rate Vendors on Single Attributes
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation Good Good 0 Excellent Excellent 100 Good 0

32
Step 6 Set Priorities
  • Assess ratio of importance
  • Attributes are rank ordered
  • Least important is assigned 10 points
  • Rate how many times more important
  • Standardized weights
  • Divide by sum

33
Step 6 Set Priorities
  • If reputation is 10, how many more times is ease
    of use more important?
  • How many more times is cost more important than
    ease of use?

34
Step 6 Set Priorities
  • Example Weights

35
Step 6 Set Priorities
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 0..3 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation 0.2 Good Good 0 Excellent Excellent 100 Good 0

36
Step 7 Recommend Action
  • Calculate weighted sum
  • Recommend best score

37
Step 7 Recommend Action
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 0..3 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation 0.2 Good Good 0 Excellent Excellent 100 Good 0
Total 1.0 100.370.4 100.370.4 100.370.4 80.3100.2 80.3100.2 80.3100.2 100.4 100.4
38
Step 6 Recommend Action
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 0..3 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation 0.2 Good Good 0 Excellent Excellent 100 Good 0
Total 1.0 100.370.4 100.370.4 100.370.4 80.3100.2 80.3100.2 80.3100.2 100.4 100.4
39
Step 7 Document
  • What was selected?
  • What was the process?
  • Why was it selected?
  • What contingencies were thought through?

40
Take Home Lesson
  • Process Matters
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