Measurement of firm?s activity and financial analysis in manufacturing industry : (1996-2006 period)

Production is the process in which the goods and the service are offered. In the light of this definition, production management can be defined as obtaining maximum output and optimal production, appropriate to time and quality, from minimum input. The competitive environment which increases gradually in today?s conditions requires evaluating real sectors as to their efficiency. Thus, it is important for firms in real sector to measure their efficiency in order to compete and be successful.Data Envelopment Analysis (hereinafter DEA) is a non-parametric measurement technique based on mathematical programming to measure the efficiency level of the firms by determining multiple input and output variables.This dissertation aims to examine the efficiency level of sectors operating in manufacturing industry in Turkey regarding the years between 1996-2006 via DEA and to evaluate it from financial aspect. At the end of the analysis done the sectors active and non-active are determined and necessary suggestions are offered to the sectors to increase their efficiencies.Key Words: Manufacturing Industry, Measuring Efficiency, Financial Analysis, Data Envelopment Analysis