Window analysis and SBM for assessing efficiency of mixing processes in a pharmaceutical industry

Abbas Al-Refaie

International Journal of Productivity and Quality Management, 2023, vol. 40, issue 1, 80-101

Abstract: This research integrates window analysis and slack-based model (SBM) in data envelopment analysis to assess the performance of three mixing machines (M₁, M₂ and M₃) in a pharmaceutical industry during 2019. Applying the window analysis, the technical efficiency, pure technical efficiency, scale efficiency, and slack amounts were estimated from the inputs and outputs of same window of the three machines. Results revealed that the technical inefficiencies were due to the scale inefficiency of M₁, both the scale and managerial inefficiencies of M₂, and managerial inefficiency of M₃. Further, the SBM was adopted to estimate the negative input and positive output slacks, which revealed significant reductions in the idle time and scrap amounts, are required to enhance efficiencies of the three machines. In conclusion, the proposed procedure for efficiency assessment may provide valuable feedback to managers on how to improve efficiency scores of the three mixing machines, efficiently plan and utilise resources, and boost desired outputs.

Keywords: slack-based model; technical; pure-technical; efficiency; window analysis. (search for similar items in EconPapers)
Date: 2023
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