Operation Efficiency Evaluation Of Our National Iron And Steel Enterprises Based On DEA

When the iron and steel core countries transfer from western countries to eastern countriesand from developed countries to developing countries, our Chinese iron and steel industry hascompleted the third phase integration. And the production, the degree of industrial concentration,main technical and economic indicators have been improved to some extent. But it is stilldifficult to our iron and steel countries. In recent years the domestic iron and steel enterprises isfacing the unprecedented low profit margin.In order to recognize our iron and steel enterprises’ present situation, analysis its operationalefficiency, this thesis chose data envelopment analysis(DEA) analyzed the situation of our ironand steel company based on the literature review about existing iron and steel enterpriseefficiency evaluation. The author chose total assets, staff number, main business cost asefficiency evaluation input indexes, chose main business income and main business profit asefficiency evaluation output indexes. And then the empirical analysis was based on the22majoriron and steel enterprises’2005-2011years operation efficiency date. The empirical results showthat: firstly, because of the2008financial crisis, the comprehensive efficiency rise slowly after asharp decline. Secondly, the pure technical efficiency can keep in0.9and it contributes little tothe comprehensive efficiency. Thirdly, the scale efficiency declined slightly. Fourthly, the returnsto scale returns to constant return to scale and increasing return to scale. Finally, the author didtarget improvement analysis to some samples. And put forward some suggestions like enhancingthe integration and reorganization, reducing staff, advancing the technical innovation.