Efficiency improvement strategy on the furniture product assembly line using data envelopment analysis (DEA).

Efficiency is one of the performance parameters and one of the crucial factors that an organization must consider. Improving efficiency is an important aspect of optimizing existing resources to accomplish strategic objectives. This paper presents a study conducted to measure the efficiency of the assembling line in the furniture company in Indonesia. The study used the Data Envelopment Analysis (DEA) model, specifically the input-oriented Charnes Cooper Rhodes (CCR) model, based on the Constant Return to Scale (CRS) assumption using the Banxia Software Frontier Analyst Version 4.0. DEA has become a standard approach for evaluating efficiency in a variety of cases. The study examined input variables consisting of the number of operators, waiting time, and cycle time, while the output variables include production output and operator utilization. Decision Making Units (DMU) were used as an evaluation tool for performance assessment in the decision-making unit during the efficiency measurement process. The study included 12 DMUs, with five DMUs (DMU 3, DMU 4, DMU 5, DMU 8, and DMU 9) achieving 100% efficiency and seven DMUs (DMU 1, DMU 2, DMU 6, DMU 7, DMU 10, DMU 11, and DMU 12) showing inefficiency with efficiency scores of 90.3%, 82.9%, 61.3%, 68.4%, 43.0%, 90.3%, and 99.9%, respectively. The DEA technique was used to evaluate the efficiency of the assembly line in furniture manufacturing companies and to illustrate decision-making regarding the development of efficiency based on potential for improvement. Efficiency improvement strategy refers to stratification management and set-in-order methods for material storage by labelling the shelves so that materials are easy to search and return. [ABSTRACT FROM AUTHOR]