Image of MEASURING AND EVALUATING EFFICIENCY OF CUTTING PROCESS AREA THROUGH DATA ENVELOPMENT ANALYSIS (CASE STUDY OF PT. CAHAYA SAKTI FURINTRACO)

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MEASURING AND EVALUATING EFFICIENCY OF CUTTING PROCESS AREA THROUGH DATA ENVELOPMENT ANALYSIS (CASE STUDY OF PT. CAHAYA SAKTI FURINTRACO)

Measuring the performance of production process is an important thing to do by a company to win a competition with other companies in term of efficiency and productivity. In calculating the performance on a certain process of the firm, Data Envelopment Analysis (DEA) which is able to evaluate relative efficiency of Decision Making Units (DMUs) and it is non parametric and multifactor, either output or input is used.

This study was conducted on a furniture manufacturing company whose one of the process is cutting of materials such as Particle Board (PB) and Medium Density Fibre board (MDF). This study attempts to analyze the level of efficiency in cutting process area using Data Envelopment Analysis (DEA) and identifies factors that influence efficiency using The Constant Return to Scale (CRS) Input Orientated Model. Variables used in this study to evaluate performance are Direct Material Cost, Capital Cost and Direct Labor Hour as inputs, and unit of furniture produced as output.

The result of the study indicates that within a nine month of evaluation, in general the cutting process was not performed efficiently. There are only 2 period , May and August 2008, which are technically efficient while others have score level lower than 1 that means inefficient. This might lead to the suggestion that the firm could proportionally reduce more inputs to achieve technically efficient production as far as the processes are concerned. Best practice performance in May and August 2008 should be used as benchmark in arranging the composition of product that will be produced, also number of working hours and optimal machine hours, so that the efficient score of performance in cutting process could be obtained.

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300035293529RLC MM (Server RLC)Available
Detail Information
Series Title
Tesis
Statement of Responsibility
Call Number
3529
Publisher
Salemba, Jakarta : Magister Manajemen FEB UI.,
Collation
in processus
Language
English
ISBN/ISSN
-
Classification
650
Content Type
text
Edition
-
Subject(s)
Tesis
MM MBA
Business Administration
Data Envelopment Analysis (DEA)
Technical Efficiency
Furniture Industry
Cutting Process Area
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