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Efficiency Evaluation On FAW CAR Co., Ltd

Posted on:2010-02-20Degree:MasterType:Thesis
Country:ChinaCandidate:Z L LinFull Text:PDF
GTID:2189360272999239Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
This paper reviews the development of enterprise efficiency and finds that DEA has a wide range of applications in the evaluation of enterprise efficiency,through the further analysis of comparison between DEA,weighted average method,statistical regression method and stochastic frontier method,we finds that the DEA method is more superior that other methods,so we determine to use the DEA to evaluate the enterprise efficiency.Based on the literature of evaluation of enterprises efficiency of specialists and scholars at home and abroad ,we finds that DEA applications in enterprises efficiency of automobile industry include: comparison of enterprises efficiency between different economic type of automobile enterprise;Evaluation of competitive strength of auto manufacturers;Evaluation of technological innovation of auto manufacturers;analysis of economic growth in the automobile industry;and so on. At the same time, this paper evaluates some typical articles of automobile enterprises efficiency and gives some recommendations for improvement.There are a lot of factors that influent the automobile enterprises efficiency, through the analysis of the theoretical literature as well as the actual situation of automobile enterprises, we summarizes six factors that influent the automobile enterprises efficiency, including income levels, prices of raw material, situation of global economic ,national policies, the automobile industry chain , the internal management of enterprises.On behalf of the enterprise managers and aim at the efficiency of assets utilization ,this paper evaluates the efficiency of FAW Car Co., Ltd. by using the DEA method ,the article builds up a reasonable system of input-output index by considering the factors influencing the efficiency of enterprises ,the input indicators including liquid assets, net fixed assets, total number of employees, the cost of principal operations, assets and liabilities rate, cost rate, the output indicators including the net profit, return on equity, human resources operational efficiency, total asset turnover ratio.For the choice of decision-making units,this article considers the inherent requirement of data envelopment analysis and the actual situation of China's car manufacturing industry,it chooses companies including Shanghai Auto, Chang'an Automobile, FAW Xiali, Jiangling Motors, Dongfeng Motor, Jianghuai automobiles, Futian car, Jinbei Automotive, hippocampus shares, the dawn of the shares, Jinlong car, Yutong Bus, Weichai Power, Changfeng Motor, China Bus as decision making units.This article uses C2GS2 model and C2R model for enterprise efficient evaluation,C2GS2 model and C2R model is the most basic DEA model . C2R model evaluates both technology efficiency and scale efficiency,C2GS2 model only evaluates technology efficiency,if a decision-making unit is DEA effective (C2GS2), but at the same time, it is not DEA effective (C2R), then we can determine the decision-making unit is technology effective,, but does not reach scale efficiency.We can sort the decision-making units through the analysis of DEA result,and make use of DEA "projection principle" to find the reasons for non-DEA efficient decision-making units and its improving direction,so as to provide decision-makers with important information for management.By analyzing the DEA results, we come up some conclusions as following:1. FAW Car Co., Ltd. DEA efficiency scores : the efficiency scores for 2006-2008 of FAW Car Co., Ltd. in C2R model is 0.55,0.76,0.72,it does not meet the DEA efficiency(C2R) for three years(2006-2008),under the model of C2GS2 ,the efficiency scores are as follows: 0.99,1,1, 0.99 Will be seen as a rounded 1 . FAW Car Co., Ltd. meets the DEA efficiency (C2GS2) in 2006-2008,that is, it achieves the technology efficiency for 3 years,Therefore, the main reason for FAW Car Co., Ltd. non-DEA efficiency (C2R) is its failure to meet the scale efficiency.2. the situation of returns to scale for FAW Car Co., Ltd.:DEA evaluation results showed that FAW Car Co., Ltd. are all increasing returns to scale from 2006 to 2008,the increase of output is more than the increase of input ,therefore, FAW Car Co., Ltd. can invest more input to produce more output.3. "projection analysis" of FAW Car Co., Ltd.: by the "projection analysis" of FAW Car Co., Ltd. and with the comparison of enterprises efficiency between enterprises of higher efficiency and FAW Car Co., Ltd.,we find that the major factors that influence enterprises efficiency of FAW Car Co., Ltd. are the cost rate and human resources operational efficiency,in view of the two factors ,the paper gives some valuable advises of improving the efficiency of FAW CAR Co.,Ltd.In order to improve the enterprises efficiency of FAW Car Co., Ltd.,for the human resources operational efficiency,this article summarizes five conventional means of human resource management method, including making reasonable human resources plan,Rational allocation of human resources,staff training,Staff Motivation,Building of enterprise culture , In addition, it gives advice of Market-oriented employment mechanism and Innovative human resource management model. For lower cost rate,the paper puts forward suggestions for improvement include: Supplier management, to improve logistics efficiency and use of information technology, cooperative research and development, improve the capability of independent innovation and Domestic parts and components.
Keywords/Search Tags:Automobile industry, enterprise efficiency, DEA
PDF Full Text Request
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