IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

ABS

Dennis Behnke, Sandra Silva, Miłosz Kadziński,Lioba Markl-Hummel, Alfred Quintano, Gert van Valkenhoef

MCDA Summer School

July 9th 2010

Site location for a new production factory for an electric car

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

Agenda

MCDA Summer School 2010 ABS: Site location problem

Problem statement

Considered criteria

Applied MCDA method

Results

Summary

Ranking

Sensitivity analysis

IntroductionProblem statement

Considered criteriaApplied method

ResultsSummary

Main Task

MCDA Summer School 2010 ABS: Site location problem

Context

French company ABS

Factory siting

Electric cars

Subject of analysis

8 possible sites

6 countries

Ranking or choiceLisboa

Paris

Gora

Liska

LavenecMalinec

TörtelDömsod

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statement

Considered criteriaApplied method

ResultsSummary

Decision-makingphilosophy

Divergent phase Convergent phase

time

Problematic situation Implementation of action

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statement

Considered criteriaApplied method

ResultsSummary

Main objectives

Location of a factory for electric cars

National environment

Human resources

Local environment

Time to market

Costs

MCDA Summer School 2010 ABS: Site location problem

Location of a factory for electric cars

National environment

Human resources

Local environment

Time to market

Costs

IntroductionProblem statement

Considered criteriaApplied method

ResultsSummary

Main objectives

MCDA Summer School 2010 ABS: Site location problem

Location of a factory for electric cars

National environment

Human resources

Costs& Supply chain

CostsSupply chain

Political context

Economic context

Stability Favorability

Work force Expatriates

Availability QualificationLabour

productivity

IntroductionProblem statement

Considered criteriaApplied method

ResultsSummary

Hierarchy(actual)

MCDA Summer School 2010 ABS: Site location problem

Location of a factory for electric cars

National environment

Human resources

Costs& Supply chain

Political context

Economic context

CostsSupply chain

Work force Expatriates

11 attributes(World Bank, eurostat,

transparency, MEM)

10 attributes(MEM, McD, QM)

5 attributes(QM, PRF)

IntroductionProblem statement

Considered criteriaApplied method

ResultsSummary

Hierarchy(actual)

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

MAVT

Multi-Attribute Value Theory

Weighted sum

Intuitive interpretation

Easy calculation

Information about some weights in the provided sources

Time tested

Sensitivity analysis

Available application: web-HIPRE

Scientific limitation: some attributes ordinal

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

MAVT

Multi-Attribute Value Theory

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

Weights & Data

Qualitative and quantitative indications in the text like

Interactive group discussion, top-down approach

Individual specialists

“Most important part of an industry is its workforce” [Slavo, p.5]

Considering scales to determine final weights

Dispute between Slavo and directors about weight of economical and political aspects – team took Slavo’s opinion

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

Outcome of the method

Final ranking

1. Liska (PL) 0.62

2. Gora (CZ) 0.60

3. Lavenec (CZ) 0.56

4. Malinec (SVK) 0.56

5. Dömsod (HUN) 0.55

6. Törtel (HUN) 0.55

7. Lisbon (PR) 0.49

8. Paris (FR) 0.44

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MCDA Summer School 2010 ABS: Site location problem

Composite priorities

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

Liska Gora Lavenec Malinec Törtel Dömsod Lisboa Paris

Costs & supply chain

National env

Human resources

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

Outcome of the method

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

Sensitivity Analysis of the attributes

Sensitivity Analysis of the attributes

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

MAVT

Sensitivity Analysis of the subcriteria (Web-HIPRE)

- The high ranked alternatives are mostly insensitive to weight alterations in a wide range:

“Qualification” =• WF share empl. in machin & assem•Unemp. WF Share >8y. Educ•French speaking

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

MAVT

Sensitivity Analysis of the subcriteria (Web-HIPRE)

- Salient exception: logistical advantages of the alternative in Paris:

“Logistics” =• Inbound Logistics (Suppliers)• Outbound Logistics (Customers)

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

Site Location Problem

Provided Data partially uncertain and unclear, no decision maker at handSolution (Ranking) proposed in a short time using data from international institutions

Comprehensible method (MAVT) and transparent decision aiding process

Every team member sharing her expertise

Additional information might now be used before taking a final decision

MCDA Summer School 2010 ABS: Site location problem

IntroductionProblem statementConsidered criteria

Applied methodResults

Summary

THANK YOUFOR YOUR ATTENTION