Increasing the Performance Efficiency of Bread Bakery Company Using Data Envelopment Analysis (DEA)

The market competition of bakeries in recent years have undergone rapid and massive growth, because of this fast growth and change, this necessitate the need for comprehending the performance relative efficiency as well as efficiency fluctuation and changes of the bakeries. Nowadays, food industries and bakery companies tends to use their current available production resources in an inefficient manner, as such, managing and sustaining the development of the bakery regarding how well it is performing when it comes to the production process is very important. Thus, ten inputs and two outputs of a bakery company were considered as the DMUs. The efficiency of inputs such as flour, salt, sugar, butter, yeast, water, electricity consumption, etc., and outputs (bread and flour waste), involved in the production process of a well-known bakery (Tahir B-bakery) from 2016 to 2018 was quantitatively analyzed and evaluated by adopting one of the most well-known, simple and suitable non- parametric effective technique (DEA) via using the CCR input oriented model. Based on the model used, the overall efficiency of the company in those past three years of Tahir B-bakery with regards to the use of input resources for achieving output was tested, it was found the company’s performance is relatively efficient with an average efficiency score of 92.6. The most efficient months being June and July in both 2016 and 2017 respectively, although there is a slightly decrease of efficiency as the years gone by, especially in the month of June and July in 2018 plus the fact that the aim of any firm is to reach maximum level of efficiency when it comes to utilizing the inputs and outputs production resources, as well as other resources involved. Lastly, given the fact that there is a tendency the performance efficiency to drop more as the year’s progress, they can follow the recommended ways for improving their total efficiency, sustain it and avoid further decrease of efficiency for their future productions to come. Keywords: Bakery Company; Data Envelope Analysis (DEA); CCR Input Oriented Model