Effectiveness Evaluation Services for Small to Medium-Sized Manufacturing Enterprise

Small to Medium-Sized Manufacturing Enterprises (SMEs) are considered to be the supplier base for domestic manufacturing in all industrialized nations. The SME has reliably demonstrated the ability to innovate and bring to the market new technologies in manufacturing. As businesses are moving in the direction of globalization, SMEs confront a new challenge in competing in the competitive global market. Therefore, the question investigated in this research is, given the globalization of manufacturing, how can SMEs reposition themselves for competitive advantage? Answer to this question obviously relies on a solid model of evaluating the effectiveness of SMEs´ current business practices. An integrated model by combining the Analytical Hierarchy Process (AHP) and Data Envelopment Analysis (DEA) is developed, aimed at linking both qualitative and quantitative factors of multiple manufacturing input/output to accurately assess the operations and performance of SMEs. The analytical results hence can be used to help SMEs better understand the problems and opportunities confronting their operations. This study is validated using the data collection of over 1500 SMEs