A decision matrix is a tool to help you select and make the best decisions by evaluating them based on a set of key criteria. This is especially useful if there are multiple important factors that affect your decision-making process or if there are huge consequences coming out of the decision you’re trying to make. A decision matrix can also be called a Pugh matrix, multi-criteria decision analysis, grid analysis, decision grid or problem selection matrix. (VENNGAGE)
American Society for Quality considers that we can use a Decision Matrix:
- When a list of options must be narrowed to one choice
- When the decision must be made on the basis of several criteria
- After a list of options has been reduced to a manageable number by list reduction
Typical situations are:
- When one improvement opportunity or problem must be selected to work on
- When only one solution or problem-solving approach can be implemented
- When only one new product can be developed
