Ibere Guarani de Souza, Daniel Pacheco Lacerda, Luis Felipe Riehs Camargo, Aline Dresch and Fabio Antonio Sartori Piran
The purpose of this paper is to analyze the productive efficiency and the best operational practices in an armaments manufacturer.
Abstract
Purpose
The purpose of this paper is to analyze the productive efficiency and the best operational practices in an armaments manufacturer.
Design/methodology/approach
A longitudinal case study is performed using data envelopment analysis (DEA). Using DEA, an assessment of six years in the company manufacturing process is conducted. The research aims at developing an internal benchmark on three production lines of the company.
Findings
The results show that only one of the three analyzed production lines increased efficiency over time. With this result, the most efficient production line may be used as a reference in relation to the best operational practices of the company. Moreover, it was found that the current indicators to evaluate efficiency are insufficient and may lead to wrong management decisions.
Practical implications
This research could allow a larger understanding of the factors that really contribute to increased operational efficiency. This is due to internal benchmark assist in the identification of the best practices. The identification of best practices can contribute to enhance the efficiency of inefficient operations without the need for external comparisons.
Originality/value
DEA contributes due to its robustness, for the evaluation of productive efficiency. One of the contributions of this study is to identify opportunities for improvement in key components of the operation through targets, internal benchmarking and robust assessment of productive efficiency.
Details
Keywords
Charles Von Gilsa, Daniel Pacheco Lacerda, Luis Felipe Riehs Camargo, Iberê Guarani Souza and Ricardo Augusto Cassel
The purpose of this paper is to longitudinally assess the technical efficiency and productivity, considering investment projects and technological change, in a second-generation…
Abstract
Purpose
The purpose of this paper is to longitudinally assess the technical efficiency and productivity, considering investment projects and technological change, in a second-generation petrochemical company.
Design/methodology/approach
The study uses data envelopment analysis (DEA) together with the Malmquist index to measure efficiency during the analysis periods. The working method consists of four main phases, namely development of the conceptual model, construction of the mathematical model, application of model to the case, and analysis of the results. The study utilizes a quantitative approach with descriptive goals seeking to evaluate the impacts of technical changes on the operational efficiency and productivity of the production process.
Findings
The use of DEA associated with the Malmquist index proved to be viable for analyzing a single company and identifying efficiency improvements, as well as the impacts of the learning process and the implementation of improvement projects. However, the results of the improvement projects and learning process were not representative and had no statistical significance on the actual change in efficiency of the company during the periods analyzed. For the case in question, the learning process and continuous improvement were not observed during all study periods.
Practical implications
The proposition that the improvement projects and investments implemented increased the efficiency of the company was rejected. Hence, with this work, it was possible to determine that the company unnecessarily invested resources in projects to increase efficiency. Furthermore, the company could have explored more internal resources before making significant investments in increased efficiency.
Originality/value
As for the value of this research in the theoretical and academic scope, this paper advances knowledge on the application of DEA because it proposes to establish an internal reference benchmarking for comparison. The literature contains few studies that analyze organizations using continuous processes, such as petrochemical processes, in longitudinal studies as a function of time, especially with the use of DEA.