The Production Efficiency of Sugar factory Owned by PT Perkebunan Nusantara IX Using Data Envelopment Analysis (DEA) Approach
Journal Title: IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) - Year 2019, Vol 12, Issue 1
Abstract
This research was carried out to 15 sugar factories (PG) owned by PT Perkebunan Nusantara IX which then became DMU (Decision Making Unit). The factories were PG Sudhono (SUD), PG Poerwodadie (PUR), PG Redjosari (RED), PG Pagotan (PAG), PG Kedawoeng (KED), PG Wonolangan (WON), PG Gending (GEN), PG Padjarakan (PAD), PG Jatiroto (JAT), PG Semboro (SEM), PG Wringin anom (WRI), PG Olean (OLE), PG Panjie (PAN), PG Pradjekan (PRA), and PG Asembagoes (ASE). The aim to know the factory efficiency and if the input variable could be used to enhance the sugar production efficiency. The analysis of efficiency value was using Data Envelopment Analisis (DEA). DEA analyzed the efficiency level of input and output variables. The level of efficiency was analyzed using three scales, namely scale efficiency, technical efficiency (CRS) and pure technical efficiency (VRS). The Efficiency Scale was obtained by comparing the CRS and VRS efficiency value. From the CRS analysis, it was found that 60% of sugar factories were operated inefficiently, while 40% were operated efficiently. The value of efficiency based on VRS analysis showed that 100% of sugar factoriess operated in efficient conditions. This inefficiency was influenced by input variables consisting of milled sugarcane, milled capacity, permanent labor, PKWT workforce, seasonal labor, daily labor, outsourced labor, stopping time A, stopping time B.
Authors and Affiliations
Rihcade Gama, Lestari Rahayu Waluyati, Dwidjono Hadi Darwanto
Keywords
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- EP ID EP432704
- DOI 10.9790/2380-1201013237.
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