Ranking alternative production scenarios using super-efficiency analysis

The modern, particularly competitive and demanding operational environment has led many companies to a continuous effort for implementing techniques and evaluating alternative production scenarios, which will allow them to optimize their production processes and reduce their cost. In this study, a consumer goods manufacturing company was selected to implement modern optimization techniques in its production processes and then to evaluate the efficiency of potential changes on its operation as well as to record the problems and difficulties arising in such a case. Data Envelopment Analysis, a linear programming based technique was employed to evaluate the efficiency of twelve alternative production layout scenarios. Those scenarios were created through the application of advanced Group Technology techniques and some basic indices/characteristics were attached to each one of those layouts. Results indicated that more than one of these scenarios can be effective. An additional analysis for ranking those scenarios was conducted using the superefficiency model. According to the results of this study, nine of the proposed scenarios are efficient and thus significant improvements can be achieved in the system´s performance, without actually changing its basic production parameters. It is concluded that both the results of the evaluation and the experience gained during the implementation phase, can be very useful for supporting the goals and decisions of the company.