Using Data Envelopment Analysis to Evaluate the Performance of the LED Industry

• Main Authors: Wei-Chien HSU, 徐維鍵
• Other Authors: 胡黃德
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/82711099690126136156

碩士 === 元智大學 === 工業工程與管理學系 === 98 === The solar and LED (light emitting diodes) are the main industries of Taiwan''s green energy. Because they already have a good industrial background, and it is anticipated that they have the potential to lead most of the Taiwan industries toward to a low-carbon and high-value industrial development. Furthermore, they can lead the green energy to become as Taiwan''s industrial new vitality. In this study, the data envelopment analysis (DEA) for multiple inputs and outputs was conducted to analyze the value of companies’ efficiency. DEA can provide a uniform way of evaluating performance and finding the better companies as benchmarking, and also finding the inefficient companies to propose some concrete improvement directions. This study selected four input variables, total assets, operating costs, operating expenses, research and development costs, whereas the output variable is operating revenue. In this research, the data of 16 LED manufacturers are collected to be decision-making unit (DMU). Then, we used DEA to evaluate the total technical efficiency from 2007 to 2009. The result showed the average of technical efficiency of this industry for each year, were 0.932, 0.924, 0.915. Also, we can observe efficiency value deteriorates cause of the economy collapse in 2008. However, from the viewpoint of individual manufacturer, Bai Hong Co. and Lee Chau Co., have the best performance rating which can be the benchmark companies in this industry. A further evaluation using the Malmquist productivity index analysis, the result shows that the technical inefficiency is the main reason for the inefficient companies. Through this analytical approach, we can understand characteristics of industry and provide appropriate suggestions to the top management.