Improving the distribution of value-added activities in complex business networks considering qualitative factors

This paper describes a method-based approach called "NetPIAn - Network planning and analysis to reduce overall costs by an optimal distribution of value-added activities", recently developed by Fraunhofer IPA. "NetPIAn" focuses on offering long-term decision support to the planning process based on quantitative criteria which are partly derived from qualitative factors. The scope of the model ranges from raw material and network suppliers to the development and factory equipment manufacturer and also includes customer requirements and the resulting logistics costs. Using the new approach, production and logistics costs can be allocated to the corresponding step of the value chain. In addition, the model for quantifying the "risk-related" qualitative factors can help to determine a risk factor for each location and each stage of the value chain.