THE MEASUREMENT AND EVALUATION OF EFFICIENCY PERFORMANCE IN MANUFACTURING: A FUZZY DATA ENVELOPMENT ANALYSIS (DEA) APPROACH

The measurement and evaluation of technical efficiency of manufacturing environments is constrained in part by the unavailability of precise production data. A fuzzy mathematical programming approach is used to accommodate the imprecision associated with some of the input and output production variables. This approach requires that the analyst know how the fuzzy input and output variables can be expressed in terms of their risk-free and impossible bounds and a membership function. The membership function represents the degree to which a production scenario is realistically implementable. Technical efficiency scores are computed for different values of the membership function so as to identify uniquely different production scenarios which can subsequently lead to efficiency improvement strategies. The approach is illustrated in the context of a preprint and packaging manufacturing line which inserts commercial pamphlets into newspapers.