Environmental Efficiency Evaluation Based on Waste Reduction for a Chemical Production Company: An Application of Data Envelopment Analysis

Data envelopment analysis technique proposed by Charnes, Cooper and Rhodes in 1978, was used in this thesis in analyzing the efficiency of thirty two decision making units of the chemical production company, simple relation of output-to-input ratio couldn’t be used because of the several number of decision making units. The thesis focus on how to minimize the environmental hazard caused by industries without affecting the production capacity of the industries, the data was analyzed using CCR model as the methodology used which is one of data envelopment analysis technique. There were four Decision making units (DMU6 = June 2017, DMU7 = July 2017, DMU14 = February 2018 and DMU25= January 2018) found to be optimal which meant the minimal waste disposal found to be in the four decision making units, and such units were found to be the benchmarks for the rest of the DMUs in order to minimize waste disposal, and can also be the benchmarks to consider at DMUs in the future production process in minimizing the amount of waste disposes to the environment which would proportionally minimizes the effect of Climate change, and also minimizes energy consumption at industries. Each DMU used served as a month in a particular year. Keywords: Data Envelopment Analysis, Efficiency Evaluation, Environmental Hazard