EFFICIENCY AND EFFECTIVENESS ANALYSIS OF SUGARCANE MILLING AT MADUKISMO SUGAR FACTORY OF YOGYAKARTA, INDONESIA

Abstract

ABSTRACT The research is aimed to measure milling activities technical efficiency level and equipment effectiveness at Madukismo Sugar Factory. The research method used DEA (Data Envelopment Analysis) with input assumption oriented to measure efficiency scores from observed each milling year and Overall Equipment Effectiveness method to measure equipment effectiveness. The result showed 2 sugarcane milling years has operated efficiently and 5 sugarcane milling years has not operated efficiently yet (inefficient). Efficiency calculation using Variable Return to Scale (VRS) assumption produced average efficiency value 1.000. Efficiency was reached by all milling year from 2012 to 2017. On the contrary, observation from SE value showed 2 people have reached full efficiency. It means that DMU has reached efficiency either from CRS assumption or VRS while the other 5milling years is still grouped in inefficiency category. KEY WORDS Efficiency, effectiveness, sugarcane mill, production.