Beyond Cost 2024

A2 Methodology for country readiness factor analysis For each of the seven readiness factors, a consistent methodology was applied to aggregate the index data, enabling identification of the top three countries for each factor. Generalized approach Data preparation 1. Data collection Gather the relevant data for each country (please see Appendix 1 for specific indices used). 2. Selection of latest values Use the most up-to-date data available for each country (considering no data from before 2022). 3. Scaling indices Normalize the data to ensure comparability across countries. Apply a minimum-maximum scaling approach to bring all the indices’ values into 0-100 (best) range. Index scaled =Index country − Index min Index max − Index min Index scaled The scaled index Index country The original value of the index for a given country Index min The minimum value of the index across all countries Index max The maximum value of an index across all countries 4. Control for inverted relationships Adjust for cases where higher values represent worse performance to maintain consistency in interpretation. In that case, the value of 100 after scaling does not indicate the most positive influence – which it should. The adjustment is as follows: Index scale-adjusted = 100 − Index scaled Modelling 1. Calculate the raw score of a given country for each of the seven readiness factors. RawScore country =Index 1,country + Index 2,country + … + Index n,country NumberOfIndices 2. Final scoring Rescale the raw score of a given country for each readiness factor to a standardized 0-100 range, where 0 indicates the least prepared and 100 indicates the most prepared. FinalScore country_scaled =RawScore country − RawScore min RawScore max − RawScore min Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 30