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1 Management and Production Engineering Review

1 2013

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SMEs' performance evaluation and optimization based on DEA and CFI

Shi Z., Takala J., Muhos M., Poikkimaki J., Chen Y.

Management and Production Engineering Review

2013

Vol. 4, No. 1

57-64

It is a core content of enterprise performance research evaluating and comparing enterprise performance in dynamic environment. In allusion to this problem, a variety of enterprise performance assessment methods and indexes systems are proposed. Data envelopment analysis (DEA) is a kind of effective mathematical model which is used for comparing the performance among enterprises or different units inside an enterprise, based on the real-world data. Through comparing the performance, DEA can evaluate the enterprise performance from scale effectiveness and technological effectiveness, and then get the performance optimization goals. Critical Factor Index (CFI) is a new enterprise performance assessment method proposed in recent years. This method, based on the performance perception of business leaders or staffs, evaluates the enterprise performance in different dimensions, and then gets the optimization strategy of enterprise resource allocation to improve integrated enterprise performance. This paper has structured a new evaluation and optimization system for performance of small and medium-sized enterprises (SMEs), which combine properly the DEA and CFI method to evaluate and optimize the SMEs' performance comprehensively, and has confirm this system with data of 5 Finnish SMEs.