Efficiency analysis of tempeh chips production using a data envelopment analysis

Abstract

The Small Medium Enterprises (SMEs) clusters of tempeh chips face critical problems in the production process, i.e., the low quality of raw materials, defective products, and fluctuating sales. These issues affect their productivity, leading to impending improvements. One effort to increase productivity is to increase efficiency during the production process. The research objectives are to analyze and improve the efficiency of soybean chips production using Data Envelopment Analysis (DEA). The objects of research are 5 SMEs that are producing tempeh chips in the same classification. The results showed that the efficiency of production variables are losses, labor, and sales results. The efficiency value is 89.4%-100%, which shows that the production process runs inefficiently due to the high number of losses during the production process, inaccurate production targets, low product selling prices, and limited marketing. The suggested improvement for industries is to improve raw material planning and employee performance to reduce the number of losses that occurred, evaluate and upgrade the supply chain management, optimize social media marketing, and increase the competitiveness of tempeh chips products.