Laboratory Equipment Purchases: A Multidimensional Approach

This paper offers an objective system to aid the annual process of purchasing equipment items supporting a wide variety of customers. This spreadsheet-based decision-making and budgeting system provides equipment purchase rank orderings based upon established mission criteria. The model employs Value-Focused Thinking (VFT) with an imbedded optimization to assist the decision process. To illustrate this approach, The Dean of Faculty allocated the $1 million laboratory equipment budget at the US Air Force Academy without the divisive claims of departmental inequity. In addition to allocating funds, the approach assures decisions are consistent with stated mission goals. Finally, the example illustrates the efficacy of VFT within the budgeting process. The model transforms asset characteristics into mission-focused, decision aids. As organizations make strides toward performance-based budgeting systems, VFT shows considerable promise.