Scoring analysis of the products - decisions about changing the range require careful analysis. Most methods of product evaluation have the disadvantage that they only take into account the economic value of the products. However, the products also have an ecological and psychological value. With the help of the scoring analysis, the products can be evaluated holistically.
Product scoring is based on internal and external or quantitative and qualitative criteria, which must be independent of each other so that they can be assessed individually. These criteria are weighted according to their importance for the company, with the sum of the weighting factors 100 being %. The individual products are rated with zero to ten points according to these criteria.
The sum of the weighted partial values represents the estimated total value of the product, which can be a maximum of 100 points according to the following procedure. It is assumed that the total value of the product is made up of the individual partial values.
For the decision on whether to keep or eliminate a product, a minimum value must be determined according to the company's level of aspiration. With a minimum value of 50 points, for example, you would have to decide as follows:
Products with a weighted total value below 50 points will be eliminated.
Products with a weighted total value of more than 50 points are retained (unchanged or changed).
The scoring analysis enables a multi-dimensional and weighted overall evaluation of the individual products. These advantages are offset by the following disadvantages:
It is not possible to fully record all the criteria that determine the value of a product
The selection and weighting of the criteria is subjective
Obtaining the relevant information is time-consuming
Different evaluators can come to different conclusions.