Setting The Optsee® SMART Score Curve

The SMART (Simple Multi-Attribute Ranking Technique) scoring uses the concept of SMART Score is a measure of value or satisfaction. In economics, SMART Score is a measure of the satisfaction gained from the consumption of a "package" of goods and services.

In Optsee®, you define your SMART score curves by using Attribute charts in which "100" represents maximum SMART score or satisfaction with a given outcome (Best Outcome), and "0" represents the lowest SMART score or no satisfaction with a given outcome (Worst Outcome). This allows you to translate different attributes to common normalized SCORE values.

Click here view for a video explaining how this works using a simple car-purchasing example.

For example, the chart in Figure 1 illustrates SMART Score versus Potential profit. In this chart, SMART Score goes up linearly as the projected profits increase. A project that has potential profits of $0 generates no SMART Score points and a project that has potential profits of $10,000 generates 100 SMART Score points. Since the SMART Score curve is a straight line, a project that has a profit potential of $5000 (the mid-point between $0 and $10,000) generates 50 SMART Score points.

Figure 1: Straight-line Rate of Return

project portfolio management Straight-line Rate of Return

In reality, however, SMART Score curves are often not straight-lines. SMART Score curves can curve to reflect diminishing or increasing returns. Optsee® give you the ability to adjust the SMART Score curve function to accurately model your SMART Score curves using the slider below the chart on the Attribute form.

The SMART Score curve in the chart in Figure 2 has been adjusted to reflect an increasing rate of return of SMART Score versus the potential profit. In this chart, projects with $5,000 in profit potential generate 25 SMART Score points, and the remaining 75 SMART Score points are generated by projects with profit projections between $5,0000 and $10,000. Thus, this SMART Score curve is biased towards projects that have a higher profit potential compared to the straight-line (default) SMART Score curve. A curve that is lower than 50 SMART Score points at the mid-point represents an increasing return because more of the SMART Score is gained in the second half between the worst and best outcomes.

Figure 2: Increasing Rate of Return

project portfolio management Increasing Rate of Return

The SMART Score curve in the chart in Figure 3 has been adjusted to reflect a decreasing rate of return of SMART Score versus the potential profit. In this chart, projects with $5,000 in profit potential generate 75 SMART Score points, and the remaining 75 SMART Score points are generated by projects with profit projections between $5,0000 and $10,000. Thus, this SMART Score curve is biased towards projects that have a lower profit potential compared to the straight-line (default) SMART Score curve. A curve that is higher than 50 SMART Score points at the mid-point represents an decreasing return because more of the SMART Score is gained in the first half between the worst and best outcomes.

Figure 3: Diminishing Rate of Return

project portfolio management Diminishing Rate of Return

For Attributes such as cost, where less is better, the linear curve slopes down instead of up (Figure 4). The same adjustments can be made for curves where the "lower values are better."

Figure 4: Lower Values are Better Curve

project portfolio management lower values are better

In Optsee®, you can use many many different value curve types as shown in Figures 5 and 6 so you can use virtually any data types. In particular, text and categorical value curves let you assign numerical value to text data such as "excellent," "good, "fair," etc. With Optsee®, you fit your model to your data, you aren't forced to fit your data to a model.

Figure 5: Linear and S-Curves in Optsee®

project portfolio management Linear and S-Curves

Figure 6: Step and Custom SMART Score Curves in Optsee®

project portfolio management Step and Custom SMART Score Curves

You can also assign SMART Scores directly to categories (Figure 7).

Figure 7: Category SMART Score Table in Optsee®

project portfolio management Category SMART Score Table

To learn more about setting SMART Score curves in Optsee®, see the Quick Start Section on Attributes.

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