a study on cost efficiency of cement industries in tamil nadu using an application of dea analysis

Research Article
Sarangarajan.V and *Tamilenthi.S
Cost efficiency, Data Envelopment Analysis (DEA), Cement industries and Decision Making Unit (DMU)

Data Envelopment Analysis (DEA) measures efficiency of a Decision Making Unit (DMU) by maximizing the ratio of weighted outputs over weighted inputs. This ratio is normalized according to best practical peers and efficiency is calculated to be between 0 and 1, as 1 representing efficient unit. In this research the author make use of cement industry in Tamil Nadu to find out the cost efficiency. Ten years data has been employed in this study from 1996-97 to 2005-2006. To find out the cost efficiency the author employed DEA by an

application of KonSI DEA Analysis for Benchmarking Software Professional Version. The author concludes that the selected cement companies should manage their cost efficiently from 2001-2002 to 2005-2006 for the sustainability and growth.