Performance Efficiency of a Chemical Company Using DEA

The chemical companies that produce unsaturated polyester resins generally suffer from the high cost in production. Most of them focus on quality control in order to avoid the cost of rework and increase performance assurance. Data Envelopment Analysis (DEA) models are used recently as one of the most powerful non-parametric methods to computing the efficiency of the multiple inputs and outputs of decision-making units (DMU’s). However, these models are sensitive about inputs and outputs selection, and a number of them against the number of DMUs. This paper uses Data Envelopment Analysis (DEA) models to find the efficiency performance of a chemical company in a certain period of time in a manner that maintenance, production and management cost are minimized taking into consideration environmental hazard and maximizing profit. Constant Return to Scale (CRS) models are used to verify the most significant factors that affect efficiency values in the company and forecasting the desired cost reduction in a future period of time. The results determined the efficient DMUs and contained the values needed for inefficient DMUs to reach optimum targets. Keywords: Unsaturated Polyester Resin (UPR), Constant return to scale, Input-oriented model, Efficiency evaluation, Data Envelopment Analysis (DEA).