A Novel Integrated AHP-QFD Model for Investment Banks

Abstract

This paper proposes an effective model to integrate shareholders’ requirements with regard to Bank’s investment categories in an effort to rank the best project portfolios in order of importance whereby they reap the benefits of their secured investments. This study attempts to utilize Quality Function Deployment (QFD) in an investment bank sector, a customer oriented design tool which starts with House of Quality (HOQ). In this manner, Analytical Hierarchy Process (AHP) approach was employed to fulfill the intended HOQs through measuring the relative importance of shareholders’ needs as well as finding the relative weight of each investment more precisely. For this purpose, a well-structured questionnaire initially should be developed to identify the selection-criteria “wants” and thereby analyzing the intensity of internal relationships through cooperation with the Bank’s Decision makers (BDMs). The results of project portfolio selection revealed that Project D has been nominated as the most potential investment category, followed by Project C, Project B, Project E and Project A. Hopefully, with implementation of the proposed model, investment banks will become more adaptive and competitive.