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Assessing the Efficiency of Small and Medium Industry: An Application of Data Envelopment Analysis
Department of Industrial Engineering, Diponegoro University, Semarang, Indonesia.
Jönköping University, Jönköping International Business School. Department of Industrial Engineering, Diponegoro University, Semarang, Indonesia.
Department of Industrial Engineering, Diponegoro University, Semarang, Indonesia.
Department of Industrial Engineering, Diponegoro University, Semarang, Indonesia.
2019 (English)In: IOP Conference Series: Materials Science and Engineering, Institute of Physics (IOP), 2019, Vol. 598, no 1, p. 1-7, article id 012043Conference paper, Published paper (Refereed)
Abstract [en]

The educational toy business is one of the businesses with a good prospect and is expected to continuously grow. The estimated spending of educational toys in Central Java is 757,257 units per year. However, the local manufacturers can only fulfil 27% of the total needs, while the rest are filled by other manufacturers from Daerah Istimewa Yogyakarta or even from China. This is due to the high selling price, so it is less competitive compared to other competitors - according to the Chairman of "Asosiasi Penggiat Mainan Edukatif dan Tradisional Indonesia". This high selling price is affected by high manufacturing cost caused by waste in resources usage; or in other words, low efficiency. This paper aims to investigate the relative efficiency of manufacturers' education toys by employing the data envelopment analysis approach. Results show that three manufacturers are categorized as inefficient. Recommendations would be given so that the manufacturers could improve their efficiencies. 

Place, publisher, year, edition, pages
Institute of Physics (IOP), 2019. Vol. 598, no 1, p. 1-7, article id 012043
Series
IOP Conference Series: Materials Science and Engineering, ISSN 1757-8981, E-ISSN 1757-899X ; 598:1
Keywords [en]
Data envelopment analysis, Efficiency, Risk management, Systems engineering, Indonesia, Manufacturing cost, Relative efficiency, Selling prices, Manufacture
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-46682DOI: 10.1088/1757-899X/598/1/012043Scopus ID: 2-s2.0-85073262505OAI: oai:DiVA.org:hj-46682DiVA, id: diva2:1365440
Conference
Joint Conference of the 6th Annual Conference of Industrial and System Engineering 2019, ACISE 2019 and 1st International Conference on Risk Management as an Interdisciplinary Approach 2019, ICRMIA 2019,Semarang, Central Java, Indonesia, 23 - 24 April 2019
Available from: 2019-10-24 Created: 2019-10-24 Last updated: 2019-10-24Bibliographically approved

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