Operation analysis and performance assessment for TFT-LCD manufacturers using improved DEA

Lee, Zon-Yau; Pai, Chung-Che

doi:10.1016/j.eswa.2010.09.063

Cited by 24 publications

(8 citation statements)

References 15 publications

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“…This paper employs the improved CCR (Charnes, Cooper and Rhodes) model in data envelope analysis (DEA) to calculate the average weights of evaluation criteria (Lee and Pai, 2011). Then the criteria weights and the financial data from 2002-2009 are used to evaluate the relative operation performances of 10 manufacturers by VIKOR method.…”

Section: Introductionmentioning

confidence: 99%

Applying Improved DEA & VIKOR Methods to Evaluate the Operation Performance for World's Major TFT–LCD Manufacturers

Lee

Pai

2015

Asia Pac. J. Oper. Res.

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The whole panel industry has been impacted profoundly by global recession from 2007 to 2009, and the TFT-LCD industry is not an exception. Currently, the major TFT-LCD manufacturers cluster in South Korea, Taiwan and Japan, which totally contribute more than 80% sales in global market. All these TFT-LCD manufacturers face the five industry characteristics, including intensive capital, intensive technology, short product life cycle and fast technology advancement, fluctuating prices easily influenced by market demand/supply and business cycle, and international collaboration. In view of rapid growth of global demand, TFT-LCD manufacturers face a tremendous competition environment. Therefore, how to configure the best resource allocation and create more profits tend to be an essential issue for the managers of TFT-LCD industry. This paper employs improved DEA and VIKOR to evaluate the dynamic operation performances for TFT-LCD manufacturers in Taiwan, South Korea and Japan from 2002 to 2009. Research results show that South Korean firms have relatively better stable operation performances, while the performance of the firms in Taiwan and Japan are relatively worse and varied over time. After referring to the disclosure statements and industrial experts' opinions, this paper also portraits the reason of Sony with great performance in 2007 was resulted from the sales boost of high-level touch panels which leads to 50% high gross profit ratio and rapidly increasing pre-tax profit in 2007. As a result, how to * Corresponding author. 1550020-1 Asia Pac. J. Oper. Res. 2015.32. Downloaded from www.worldscientific.com by UNIVERSITY OF QUEENSLAND on 08/16/15. For personal use only. Z.-Y. Lee & C.-C. Pai develop high-level or multi-function panels might be an essential issue for the TFT-LCD manufacturers in Taiwan.

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Section: Introductionmentioning

confidence: 99%

Applying Improved DEA & VIKOR Methods to Evaluate the Operation Performance for World's Major TFT–LCD Manufacturers

Lee

Pai

2015

Asia Pac. J. Oper. Res.

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“…Moreover, the output variables include the total revenue (Chiu, Huang 2011;Shuai, Wu 2011), net sales (Duran, Zehir 2011;Tsai 2011;Wang et al 2011), net profit ratio (Lee, Pai 2011), operating income (Long, Li 2011;Wang et al 2011) and gross profit margin (Duran, Zehir 2011).…”

Section: Selection Of Input and Output Variablesmentioning

confidence: 99%

Using a Decision-Making Process to Evaluate Efficiency and Operating Performance for Listed Semiconductor Companies

Hsu

2014

Technological and Economic Development of Economy

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Today's high-tech industries face increasing competition and challenges. Thus, for hightech companies, making effective use of resources to enhance business performance and maintain the competitive advantage in the market has become increasingly important. Therefore, this study aimed to design a decision-making model for evaluating the efficiency and operating performance of Taiwan's listed semiconductor companies in 2010 to provide a basis for improving business performance. In view of this, this study combines data envelopment analysis (DEA) and improved grey relational analysis (IGRA) as efficiency tools to measure relative efficiencies; the semiconductor companies are divided into two groups, efficient and inefficient. We then integrate the multiple criteria decision making (MCDM) method (e.g. VlseKriterijumska Optimizacija I Kompromisno Resenje, VIKOR), IGRA and the entropy weight method to evaluate the operating performance of the efficient and inefficient groups, respectively. Establishing a reasonable, objective and valid evaluation model to measure semiconductor companies' operating efficiency can provide company managers, investors and policy makers with a reference for performance evaluation.Business operators and investors are concerned about how companies view their operating strategies and whether or not they make use of their limited resources. They are also concerned with how the external environment influences the achievement of cost minimization, revenue maximization, and sustainable business performance. Today's high-tech industries face increasing competition and challenges. Making effective use of resources to enhance production performance and maintain competitive advantage has become an increasingly important issue. Much of the previous research (Chen et al. 2006;Hung, Lu 2008;Wu et al. 2007) has paid attention to analyze input-output efficiency and the performance evaluation of the high-tech industries based on DEA. However, in addition to achieving fuller and more efficient use of resources, superior financial performance is the key success factor for companies to remain competitive in high-tech industries. Therefore, this article combines efficiency analysis, production performance and financial performance to construct an effective performance evaluation decision-making process. This approach can provide managers and investors with effective decision making process for performance evaluation.The concept of efficiency is widely used in the empirical research of company's production performance. From the perspective of resource allocation, efficiency is defined as a minimum input or maximum output with a given set of input. Efficiency measures provide a basis for evaluating and improving company's productivity. They can also help management to understand whether or not the company is achieving effective and efficient resource allocation and use. From the internal point of view of operational efficiency, company performance can be revealed by the efficiency of resource inputs and outputs. ...

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“…DEA has attracted much attention as a relatively new and efficient approach to studying efficiency matters in many fields, for example in high-tech manufacturing studies (Lee and Pai, 2011;Chen and Chen, 2011), in automobile studies (Yousefi and Hadi-Vencheh, 2010) and in tourism studies (Assaf, 2012).…”

Section: Dea Application In Solar Pv Studiesmentioning

confidence: 99%

Measuring the Operating Efficiency of Solar Cell Companies in Taiwan With Data Envelopment Analysis

Hsiao

2012

American Journal of Applied Sciences

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This study discusses the Data Envelopment Analysis (DEA) approach to measure the operating efficiency of solar cell companies. With active and constructive advancement of the government, competition in the solar cell industry became even tenser. When drawing up the competitive strategies, one firm should identify the key indicators of its operating efficiency. This study incorporates three inputs (the number of employees, fixed asset, operating expenses) and three outputs (fund and investment, shareholders equity, sales revenue, gross margin) to measure the operating efficiency of 12 DMUs (solar cell companies) to provide reference for these companies in determining competitive strategies. Data are gathered from the market observation post system in Taiwan. The result indicates that there are six efficient DMUs and six inefficient DMUs. For the relatively inefficient DMUs, a slack variable analysis is performed and the efficiency scores to understand the usage of inputs and performance improvement of inefficient DMUs. The findings could benefit company operators seeking performance improvement in which they could benchmark practices being adapted by the most efficient companies. Together with Malmquist productivity index analysis, companies are able to assess the productivity change of DMUs over time. Finally, managerial implications are provided

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Operation analysis and performance assessment for TFT-LCD manufacturers using improved DEA

Cited by 24 publications

References 15 publications

Applying Improved DEA & VIKOR Methods to Evaluate the Operation Performance for World's Major TFT–LCD Manufacturers

Applying Improved DEA & VIKOR Methods to Evaluate the Operation Performance for World's Major TFT–LCD Manufacturers

Using a Decision-Making Process to Evaluate Efficiency and Operating Performance for Listed Semiconductor Companies

Measuring the Operating Efficiency of Solar Cell Companies in Taiwan With Data Envelopment Analysis

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