Abstract
Continuous improvement is an endless process to enhance competitive advantage of a company. Improvement usually starts with proper benchmarking among similar departments with similar performance indices to establish a benign competition. However, every department, for example: production sites, could have its own strengths and weaknesses due to the organization’s size, products’ combination, or the generation difference of equipment. Applying single performance indicator might lead to unfair result that some departments gain benefits from the performance indicator which supports them, and others stand on the opposite side. To solve this problem, this study adopts Data Envelopment Analysis (DEA) which is able to assess multiple inputs and outputs and calculate an efficiency index for each department. A module case study in TFT-LCD industry is demonstrated with DEA. The results of assessment are discussed in terms of efficiency analysis, slack variable analysis, and sensibility analysis. This research also indicates improvements directions for every production sites. The proposed method can be further extended to more enterprises level indices internally and compare with competitors externally.