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1 – 10 of over 82000
Article
Publication date: 28 January 2019

C.D. James and Sandeep Mondal

The purpose of this paper is to address the gap between definition and practical aspects of production efficiency in mass customization (MC). The paper summarizes all major issues…

1732

Abstract

Purpose

The purpose of this paper is to address the gap between definition and practical aspects of production efficiency in mass customization (MC). The paper summarizes all major issues impacting efficiency in MC. Also, the paper reviews metrics, relationship between various parameters and provides a best practices benchmark toolkit to achieve higher machine efficiencies.

Design/methodology/approach

The paper identified and categorized multiple challenges impacting machine efficiency in MC through a literature review spanning over three decades, and also ranked the identified issue-based parameters. Top issues were found varying across different types of industries identified through the review. Metrics pertaining to efficiency and degree of MC are reviewed in the paper. A chronological review of issues is presented, and a chain diagram is built in the paper. Toolkit of best practices created with solution strategies and tools are summarized through the review.

Findings

The paper found that MC reasonably impacts machine efficiency which needs to be addressed. Major issues through literature review-based ranking are uncovered, and worldwide research trend and comparison are presented. Active research in this area is observed to be at its peak since 2010. The extensive use of strategies and benchmark toolkit for improving efficiency are summarized.

Research limitations/implications

Ranking of issues has been done through a literature review; hence, there can be skewness depending on the frequency of issues researched by various authors in various areas of industries.

Practical implications

This paper is useful for manufacturing managers and companies willing to increase the size of their product portfolio and choices within their available resources without compromising machine efficiencies and, thereby, the cost. The identified issues help in providing a comprehensive issue list to the academia.

Originality/value

This paper describes what is believed to be the first study that explicitly examines the issues faced in achieving machine efficiency while manufacturing in an MC environment.

Details

Benchmarking: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 10 July 2020

Juanli Wang, Xiaoli Etienne and Yongxi Ma

The purpose of this paper is to evaluate the technical efficiency and production risk in China's rice production and examine the effect of factor market reform on these two…

Abstract

Purpose

The purpose of this paper is to evaluate the technical efficiency and production risk in China's rice production and examine the effect of factor market reform on these two agricultural performance metrics.

Design/methodology/approach

Using an unbalanced farm-level panel data with 2,193 observations on 329 rice farms from 2004 to 2016, the authors estimate a translog stochastic production frontier model that accounts for both technical inefficiency and production risk. A one-step procedure through the maximum likelihood method that combines the stochastic production frontier, technical inefficiency and production risk functions is used to circumvent the bias problem often found in the conventional two-step model.

Findings

Estimation results show that both land and labor market reforms significantly improved the level of technical efficiency over the years, although the effect of land market deregulation is of a much higher magnitude compared to the latter. The land market reform, however, has also increased the risk of production. The authors further find that a higher proportion of hired labor in total labor cost helps lower production risk, while also acting to decrease technical efficiency. Additionally, agricultural subsidies not only increased the output variability but also lowered technical efficiency

Originality/value

First, the authors evaluate the effect of market deregulation on technical efficiency and production risk under a stochastic frontier framework that simultaneously accounts for both production performance metrics, which is important from a statistical point of view. Further, the authors exploit both cross-sectional and time-series variations in a panel setting to more accurately estimate the technical inefficiency scores and production risk for individual farmers, and investigate how the exogenous land and labor market reforms influence these two production performance measures in China's rice farming. This is the first study in the literature to analyze these questions under a panel framework.

Details

China Agricultural Economic Review, vol. 12 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 3 January 2022

Song Thanh Quynh Le, June Ho and Huong Mai Bui

This paper aims to develop a decision support system for predicting the knitting production’s efficiency based on the input parameters of an order. This tool supports the…

Abstract

Purpose

This paper aims to develop a decision support system for predicting the knitting production’s efficiency based on the input parameters of an order. This tool supports the operations managers to make reliable decisions of estimated delivery time, which will result in reducing waste arising from late delivery, overtime and increased labor.

Design/methodology/approach

The decision tree method with a set of logical IF-THEN rules is used to determine the knitting production’s efficiency. Each path of the decision tree represents a rule of the following form: “IF <Condition> THEN <Efficiency label>.” Starting with identifying and categorizing input specifications, the model is then applied to the observed data to regenerate the results of efficiency into classification instances.

Findings

The production’s efficiency is the result of the interaction between input specifications such as yarn’s component, knitting fabric specifications and machine speed. The rule base is generated through a decision tree built to classify the efficiency into five levels, including very low, low, medium, high and very high. Based on this, production managers can determine the delivery time and schedule the manufacturing planning more accurately. In this research, the correct classification instances, which is simply a ratio of the correctly predicted observations to the total ones, reach 80.17%.

Originality/Values

This research proposes a new methodology for estimating the efficiency of weft knitting production based on a decision tree method with an application of real data. This model supports the decision-making process of the estimated delivery time.

Details

Research Journal of Textile and Apparel, vol. 27 no. 2
Type: Research Article
ISSN: 1560-6074

Keywords

Article
Publication date: 30 August 2013

Lijia Wang, Xuexi Huo and Shajahan Kabir

At the center of apple production province in China, how to increase apple per unit yield and to improve apple production efficiency in Shaanxi become big issues. The objectives…

1028

Abstract

Purpose

At the center of apple production province in China, how to increase apple per unit yield and to improve apple production efficiency in Shaanxi become big issues. The objectives of this paper are to investigate the technical efficiency (TE) and cost efficiency (CE) of apple orchard and to analyse determinants which affect apple production efficiency. The paper aims to discuss these issues.

Design/methodology/approach

This paper conducts a two‐stage DEA to achieve the objectives. In the first‐stage, a cost minimization model is applied to measure apple production efficiency. Then, a Tobit model is provided to estimate regression coefficients which are used to adjust the efficiency scores in the first‐stage.

Findings

The results indicate that TE and CE are rather low in Shaanxi. The research also explores that the inefficient production of apple farmers is caused mainly by two aspects. One is the inefficient apple orchards operation of farmers. The other is the disadvantageous environmental conditions which heavily affect apple growth and fruit bearing situation.

Originality/value

Most of the research are based on national statistical data, and only measure the TE. This paper primarily focuses on the estimation of efficiency scores with the data involved in both quantity and price information of traditional inputs and outputs based on 255 apple farmers in Shaanxi. Specifically, This paper also consider farmer's opportunity cost to which little literature refers. The results not only reveal the efficient determinants of apple production, but also provide suggestions for agricultural policy makers.

Book part
Publication date: 31 May 2016

Chunyan Yu

This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical studies. The…

Abstract

This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical studies. The survey shows the apparent shift from index procedures and traditional OLS estimation of production and cost functions to stochastic frontier methods and Data Envelopment Analysis (DEA) methods over the past three decades. Most of the airline productivity and efficiency studies over the last decade adopt some variant of DEA methods. Researchers in the 1980s and 1990s were mostly interested in the effects of deregulation and liberalization on airline productivity and efficiency as well as the effects of ownership and governance structure. Since the 2000s, however, studies tend to focus on how business models and management strategies affect the performance of airlines. Environmental efficiency now becomes an important area of airline productivity and efficiency studies, focusing on CO2 emission as a negative or undesirable output. Despite the fact that quality of service is an important aspect of airline business, limited attempts have been made to incorporate quality of service in productivity and efficiency analysis.

Article
Publication date: 4 September 2018

Jiao Yan, Chunlai Chen and Biliang Hu

The purpose of this paper is to analyze the relationship between farm size and agricultural production efficiency from the aspects of output and profit in order to find an optimal…

1323

Abstract

Purpose

The purpose of this paper is to analyze the relationship between farm size and agricultural production efficiency from the aspects of output and profit in order to find an optimal farm size that achieves both output and profit efficiency in agricultural production in China.

Design/methodology/approach

This study uses the 2012 China Family Panel Studies survey data and employs the stochastic frontier analysis (SFA) models to investigate empirically the relationship between farm size and agricultural production efficiency.

Findings

The study finds that there is an inverted-U curve relationship between farm size and output efficiency and a U-shaped curve relationship between farm size and profit efficiency in agricultural production in China. Based on the empirical results, the study estimates that the appropriate farm size is around 10–40 mu and the optimal farm size is around 20–40 mu both in terms of output efficiency and profit efficiency in Chinese agricultural production under the current agricultural technology and land management system.

Practical implications

The findings of this study suggest that appropriate land consolidation will bring more benefits to farmer households and agricultural production efficiency. There are some policy implications. First, governments should give long term and more stable land using rights to farmers through extending the period of land contract and verifying land using rights. Second, governments should encourage transfers of land using rights and promote land consolidation. But the implementation of this policy should consider regional differences and not be used for blindly pursuing increasing land size. Third, land consolidation should be accompanied with the development of specialized agricultural services.

Originality/value

The paper makes two major contributions to the literature. First, the authors use the SFA model to investigate the relationship between land size and agricultural production efficiency. Second, the authors establish two SFA models – the stochastic frontier output analysis model and the stochastic frontier profit analysis model – to estimate the optimal land size to achieve both output and profit efficiency of agricultural production in China.

Details

China Agricultural Economic Review, vol. 11 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 12 July 2018

Zimin Liu, Dan Yang and Tao Wen

The purpose of this paper is to analyze the impact of farmers’ agricultural production mode transformation, from the perspective of agricultural division of labor and cooperation…

Abstract

Purpose

The purpose of this paper is to analyze the impact of farmers’ agricultural production mode transformation, from the perspective of agricultural division of labor and cooperation, on their agricultural production efficiency including technical efficiency, pure technical efficiency and scale efficiency.

Design/methodology/approach

This paper analyzes the impact of the agricultural production mode’s transformation on farmers’ agricultural production efficiency, based on the classical theory of division of labor and specialization, transaction costs and cooperation. It uses 2013 survey data from 396 farms in 15 Chinese provinces to explore the contributing factors of agricultural production efficiency using a double selection model (DSM), which can correct the endogenous selection bias in farmers’ decisions.

Findings

Farmers that participate in agricultural division of labor and cooperation means transform their agricultural production from a traditional self-sufficient mode to one that is specialized and intensive. Agricultural division of labor measured by farmers’ participation in an agricultural division of labor in the production stages, or in agricultural products, and agricultural cooperation measured by farmers’ participation in farmers’ cooperatives significantly and positively influence their agricultural production efficiency after correcting farmers’ endogenous selection bias.

Originality/value

This paper proposes a unified framework to analyze the impact of farmers’ agricultural production mode transformation on their production efficiency. Further, it builds a DSM for an empirical analysis to avoid the endogenous biases in farmers’ self-selection behavior. This paper also provides ways for policy makers to improve farmers’ agricultural production efficiency from the modern agricultural production perspective.

Article
Publication date: 12 November 2018

Manuel Salas-Velasco

Recent studies have linked differences in aggregate productivity to misallocation of resources across firms. In contrast, the purpose of this paper is to study the macroeconomic…

Abstract

Purpose

Recent studies have linked differences in aggregate productivity to misallocation of resources across firms. In contrast, the purpose of this paper is to study the macroeconomic performance of OECD economies from a production efficiency point of view and estimated the determinants of (in)efficiency with particular emphasis on misallocation of labor.

Design/methodology/approach

Following the pioneering work of Battese and Coelli, the authors proposed a parametric methodology to construct a world frontier that serves as a benchmark to compare the relative position of each country. The non-negative technical inefficiency effects are assumed to be a function of explanatory variables. By doing this, determinants of technical inefficiency are explicitly introduced in the model.

Findings

The results revealed that OECD countries to operate efficiently should expand their aggregate output by 22.6 percent without consuming more resources. A novel finding is that higher skill mismatch is associated with higher production inefficiency. Conversely, more flexible labor markets, and better management and human resource practices, lowered the inefficiency in production. The paper also analyzed the underlying factors driving skill misallocation in the job market. In this regard, a well-functioning education and training system and greater flexibility in the determination of wages are associated with lower levels of mismatch between the skills of individuals and those required by the jobs.

Practical implications

The measurement of the productive efficiency of an economy (or country) is crucial to governments. It is important to know how far a given economy can be expected to increase its output by simply increasing its efficiency, without absorbing further resources. In other words, it is relevant to know if a country could produce more with the same resources and, therefore, could increase per capita income and welfare. In this type of analysis what also matters is to identify what factors or variables explain that greater or lesser ability of a country to convert its resources into aggregate production.

Originality/value

Much research on efficiency measurement has focused on the firm or industry level, mainly to study the efficiency of financial institutions. Efficiency studies using aggregated data across countries are rare in the literature of efficiency. This paper aimed to contribute to filling that shortage evaluating the macroeconomic performance of a sample of OECD countries from the production efficiency point of view.

Article
Publication date: 14 January 2014

Rumki Majumdar

This paper aims to analyze the influence of business decision on process efficiency and production technology in the communication equipment and consumer electronics sectors of…

1851

Abstract

Purpose

This paper aims to analyze the influence of business decision on process efficiency and production technology in the communication equipment and consumer electronics sectors of Indian hardware electronics industry after liberalisation.

Design/methodology/approach

The study is based on 26 sample firms, belonging to the two sectors of Indian hardware electronics industry with continuous operation from 1993 to 2004. Estimation of the contribution of production technology and process efficiency to output growth is based on stochastic production function. Influence of business decisions on production technology and process efficiency is based on indigenously developed business decision model.

Findings

Sectors, in general, fail to achieve improvement in process efficiency in comparison to progress in production technology. The business decisions factors like improve capacity utilization and operational efficiency together with decisions to adopt vertical integration to help sample firms to achieve both progress in technology and improvement in process efficiency in the sectors. However, R&D investments and technology imports are costly for both, indicating inadequate and inappropriate investments made by the sample firms. Disinclination of firms towards improving or developing their own technology is evident from their high dependence on import of technology.

Research limitations/implications

This study only analyses the role and importance of business decision factors in the past. What lies ahead is to meet the challenges and improve performance to withstand the stiff competition. This study suggests for further research about how to improve on the effectiveness of business decision factors that can help Indian hardware electronics industry to survive competition.

Originality/value

The paper develops a business decision model which analyses the impact of business decisions on production technology and process efficiency for a sample of firms in Indian hardware electronics industry.

Details

International Journal of Emerging Markets, vol. 9 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 7 October 2014

Xiaotian Tina Zhang and Yong Wang

The last decade witnessed the reform of China's financial sector, during which Chinese commercial banks’ ownership and operation had been significantly changed in order to improve…

Abstract

Purpose

The last decade witnessed the reform of China's financial sector, during which Chinese commercial banks’ ownership and operation had been significantly changed in order to improve efficiency. The purpose of this paper is to investigates whether these banks have improved their productivity efficiency during their rapid expansion and growth in the post reform era from 2004 to 2011.

Design/methodology/approach

Data envelopment analysis is used to investigate the production efficiency of Chinese commercial banks during 2004-2011. First, the technical efficiency (TE) score is constructed to evaluate bank productivity. The TE score is disintegrated into pure technical efficiency (PTE) and scale efficiency (SE) to examine the effects of technical factors and scale economies. Second, the Malmquist index is constructed to explore the year-by-year productivity. Lastly, regression analysis examines how bank characteristics and ownership structure affect productivity efficiency.

Findings

The Big Four banks are less efficient than other commercial banks, and public banks are less efficient than private banks. The low efficiency is primarily due to scale inefficiency, rather than PTE. In addition, ownership structure impacts production efficiency. Specifically, foreign ownership is related to high efficiency while state ownership is associated with lower productivity.

Research limitations/implications

There were small observations of public banks in China. Thus, a more comprehensive test is impractical to explore whether or not annual changes in ownership structure improve their production efficiency. With more date, such a test will reveal further information about the relationship between ownership and productivity.

Originality/value

The authors are the first to assess the production efficiency of Chinese commercial banks after the recent financial reform during which Chinese commercial banks had undergone significant structural changes. The lower overall productivity of Big Four and public banks is a result of scale inefficiency, although these banks are better than their peers with respect to input-output transformation.

Details

Managerial Finance, vol. 40 no. 10
Type: Research Article
ISSN: 0307-4358

Keywords

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