Data Envelopment Analysis for the performance evaluation of air conditioning and refrigeration companies in Thailand

Abstract

Data Envelopment Analysis (DEA) has been applied to evaluate the efficiency of the Thai air conditioning and refrigeration industries. Eight input and output factors based on the five dimensions of manufacturing performance have been selected for DEA analysis. These factors have been determined by applying factor analysis on the data collected from a survey of the air conditioning and refrigeration industries in Thailand. The actual data for the inputs and outputs, as collected from the industries, have been used in DEA models. Detailed analysis of the results has been carried out to see the effect of each factor on the efficiency scores. Targets for the inefficient industries have been set at a level which would make them efficient. Finally, recommendations which will assist future researchers and the industry have been activated.