Measuring Efficiency of Using Resource in the Production Process of Making Stamped-Batik: A DEA Approach

Abstract

One of mathematical modelling to assess relative efficiencies of the group of the decision making unit in production systems is Data Envelopment Analysis (DEA). In this study, we use DEA to assess relative efficiencies in the production process of making stamped batik of 16 SMEs which is located in Pekalongan, Solo, and Yogyakarta. The general conclusion that there is a variance of efficiency among the SMEs, indicating some SMEs has misallocation or inefficient of application of using worker, mori, wax, dyestuff, water, and fuel in the production process of making stamped batik. Additionally, this study provides output target values for improving the efficiency. Overall, this study gives confirmation of how the DEA approach as the advances and recent development in efficiency analysis can be applied for an effective evaluation of performance in SMEs stamped Batik.

DOI: 10.5901/mjss.2015.v6n5s2p318