Performance evaluation as an influence factor for the determination of profit shares of competence cells in non-hierarchical regional production networks

In order to bear the challenge of global competition, the realisation of value adding processes within networked production structures gains significance. To optimise the supply chain in these production networks hereby is one major challenge in order to assure success. This contribution focuses the procedure of performance evaluation in production networks as one part of the network controlling. Thereby the specific model of a non-hierarchical production network based on competence cells (CCs) serves as the theoretical background. The evaluation of performances of the involved CCs is one important task in that context. It is realised during the final phase of an ideal-typical life cycle of a production network. In order to quantify the evaluation data, suitable performance attributes need to be identified. The evaluation process is realised by an adapted value benefit analysis. As the final result a measure for the valuation of the performance of participating CCs is ascertained. In case of an unsatisfying performance the profit shares will be shortened. Thereby a specific approach for the distribution of profit serves as the basis. (C) 2006 Elsevier Ltd. All rights reserved.