Vol 7, No 7 (2016) > Industrial Engineering >

Performance Evaluation of Large and Medium Scale Manufacturing Industry Clusters in East Java Province, Indonesia

Erni Puspanantasari Putri, Danaipong Chetchotsak, Panutporn Ruangchoenghum, Muaffaq Achmad Jani, Retno Hastijanti

 

Abstract: East Java Province in
Indonesia is the centre of the eastern Indonesia region and it has a fairly
high economic significance, which has contributed 14.85% to the national Gross
Domestic Product (GDP). The role of Large and Medium Scale Manufacturing
Industry (LMSMI) clusters in this province is very important and strategic as
one of the main drivers for economic progress and it becomes a part of the
efforts to improve the society's life. Therefore, it is necessary to evaluate
the performance of LMSMI clusters continuously. The purpose of this study is to
investigate the productivity changes of LMSMI clusters in East Java Province,
Indonesia, so that they will be able to survive, grow and compete in facing
global competition. The method used in this study is the method of DEA-based
Malmquist Productivity Index. The result of this study indicates that 50% of
the LMSMI clusters in East Java Province are in the category of improved
productivity, while the remaining clusters are in the category of declining
productivity.
Keywords: DEA-based Malmquist Productivity Index; Industry cluster; LMSMI; Performance evaluation

Full PDF Download

References


Adenan, R.R., 2013. Statistik Industri Besar dan Sedang Provinsi Jawa Timur 2013, Badan Pusat Statistik Provinsi Jawa Timur, CV. Bina Media Mandiri

Adenan, R.R., 2014. Statistik Industri Besar dan Sedang Provinsi Jawa Timur 2014 (Survei Industri Besar Sedang Jawa Timur 2012), Badan Pusat Statistik Provinsi Jawa Timur, CV. Bina Media Mandiri

Bose, T.K., 2012. Application of Fishbone Analysis for Evaluating Supply Chain and Business ProcessA Case Study on The St. James Hospital. International Journal of Managing Value and Supply Chains (IJMVSC), Volume 3(2), pp. 17–24

BPS, 2013. Statistik Industri Besar dan Sedang Provinsi Jawa Timur, Badan Pusat Statistik Provinsi Jawa Timur, CV. Bina Media Mandiri

BPS, 2014a. Jawa Timur Dalam Angka 2014 (Jawa Timur in Figures 2014), Badan Pusat Statistik Provinsi Jawa Timur, BPS-Statistics of Jawa Timur Province

BPS, 2014b. Statistik Industri Besar dan Sedang Provinsi Jawa Timur 2014 (Survei Industri Besar Sedang Jawa Timur 2012), Badan Pusat Statistik Provinsi Jawa Timur, CV. Bina Media Mandiri

Charnes, A., Cooper, W.W., Rhodes, E., 1978. Measuring the Efficiency of Decision Making Units. Eur. J. Oper. Res., Volume 2(6), pp. 429–444

Cook, W.D., Zhu, J., 2008. Data Envelopment Analysis: Modelling Operational Processes and Measuring Productivity. CreateSpace Independent Publishing Platform, pp. 19–65, 207–213

Dobrusskin, C., 2016. On the Identification of Contradictions using Cause Effect Chain Analysis. Procedia CIRP, Volume 39, pp. 221–224

Ishikawa K., 1985. What Is Total Quality Control? The Japanese Way (1 ed.), Englewood Cliffs, New Jersey: Prentice-Hall, p. 198, ISBN 978-01-395-2433-2

Ishikawa K., 1986. Guide to Quality Control. Tokyo, Japan: Asian Productivity Organization

Ishikawa K., 1991. Guide to Quality Control. Asian Productivity Organization, Tokyo

Jatimprov, 2013. Sekilas Jawa Timur. Available online at: http://jatimprov.go.id/read/sekilas-jawa-timur/sekilas-jawa-timur, Accessed on 16 Februari

Neely, A.D., 1998. Measuring Business Performance: Why, What and How. London, UK: The Economist and Profile Books Ltd

Putri, E.P., Chetchotsak, D., 2015. Evaluation Performance using Data Envelopment Analysis: Case Study: Industrial Clusters in East Java Province Indonesia. In: International Ph.D. Symposium on Industrial Engineering 2015, pp. 41–42

Putri, E.P., Supardi, 2014. Establish the Regional Excellence through the Cluster Development of Small and Medium Manufacturing Industry Centre with Effective and Dynamic. Advanced Materials Research, Volume 931–932, pp.1701–1704

Rue, L., Byars, L., Ibrahim, N., 2012. Management: Skills & Application, McGraw-Hill Higher Education

Simanová, L., Gejdoš, P., 2015. The Use of Statistical Quality Control Tools to Quality Improving in the Furniture Business. Procedia Economics and Finance, Volume 34, pp. 276–283

Tempo, 2016. Menko Darmin: Pulihkan Peran Industri Sebagai Pilar Ekonomi. Available online at: https://m.tempo.co/read/news /2016/02/16/090745515/, Accessed on 16 Februari

Toloo, M., Babaee, S., 2015. On Variable Reductions in Data Envelopment Analysis with an Illustrative Application to a Gas Company. Applied Mathematics and Computation, Volume 270, pp. 527–533

Varmazyar, M., Dehghanbaghi, M., Afkhami, M., 2016. A Novel Hybrid MCDM Model for Performance Evaluation of Research and Technology Organizations based on BSC Approach. Evaluation and Program Planning, Volume 58, pp. 125–140

Yuzhi, S., Zhangna, 2012. Study of the Input-Output Overall Performance Evaluation of Electricity Distribution based on DEA Method. Energy Procedia, Volume 16(Part C), pp. 1517–1525