A Prioritization Matrix is a group of L-shaped Matrix Diagram designed especially to help you prioritize or rank options. Examining how each option relates to each of your various criteria for operations and improvement gives you a quantitative and effective way to prioritize either the options available to you or the various tasks that need to be done. This is especially important if you fear that either money or time is insufficient to cover all available options. However, even if you plan to implement all options eventually, a project Prioritization Matrix will help you put the most effective tasks in motion first, thereby quickly maximizing your benefits.
There are two methods that you can use to make a project Prioritization Matrix.
Full Analytical Method: The Full Analytical Method gives you a quantitative method for deciding which criteria are the most important to your project and which options best fulfill the given criteria. Use this method for complex projects, or projects where a mis-prioritization could be very costly. It is especially useful when you are unsure as to which criteria are the most important.
Consensus Criteria Method: This method is somewhat simpler than the Full Analytical Method. In the Consensus Criteria Method, the planning team simply decides how important each criterion is. The options are then ranked according to how well they fulfill each criterion.
An excellent source of additional information on this project prioritization matrix tool is Six Sigma Demystified: Second Edition by Paul Keller (McGraw-Hill (2011).