Performance Evaluation of Steel Industry by Data Envelopment Analysis (DEA)

• Main Authors: Jin-Luh Su, 蘇進祿
• Other Authors: Wann-Yih Wu
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/55nx42

碩士 === 國立成功大學 === 高階管理碩士在職專班 === 92 === 　　After the severe recession in 1996-2001, the steel industry demonstrated an impressively strong rebound in 2002, and it further reaches unprecedented high demand and price in 2004. According to the prediction by IISI, in consideration of economic booming in mainland China and India in next few years, the steel industry is expected to enjoy stable growth in the near future. Taiwan steel production accounts for 2% among the worldwide capacity, and ranks the 12th, following after mainland China, Japan and Korea in Asian region. 　　Numerous investments are planned in both Taiwan and overseas to cope with the rising demand and growth of steel in the future. It is observed that a cycle of rise and fall will occur in every industry. To encounter the challenge in recession, or to seize the right opportunity in the boom, every corporation must understand their differentiation from other competitors, and strive to improve their performance. 　　With application of Data Enevelopment Analysis (DEA) approach, this study conducts performance analysis among eighteen steel mills, which consists of twelve in Taiwan, and six in Japan and Korea. The input factors include the number of staff, total assets, raw material usage and processing costs; the output factors are total revenue and net profit after tax. While interacting the above factors and calculated by DEAP, performance efficiency results for each steel mills are measured, including category of efficiency unit, the best inputs in each steel mills. A sensitive analysis has also been conducted to achieve more accuracy. 　　In addition to measurement from DEA analysis, performance analysis are also associated with other intangible factors, such as management, sales team, financial and leaders. The outlines of conclusion drawn from the study are as follow: 1. Around half of steel mills in Taiwan are very competitive worldwide. However, to cope with the fast shifting environment, continuous improvement and growth is the only way to survive and make profit in the future. 2. Investment of steel mills should consider product mix, and determine the scale of production output based on existing capablity and market analysis. 3. The essential criterion to achieve better performance comprise satisfactory production efficiency, purchase policy, sales system and risk estimate, solid financial structure, excellent leader, and so on.