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Industrial Plants Performance Evaluation Using Dynamic Dea

Kluczek A.

Research in Logistics & Production

2016

Vol. 6, No. 5

465--476

The objective of the paper is to evaluate the energy efficiency performance of industrial plants based on energy audit measures using dynamic Data Envelopment Analysis. The paper demonstrates a three-stage DEA based on slacks-based measure approach to evaluate the energy efficiency of U.S. industrial plants. Also, a 3-step approach to select relevant variables to be employed in slacks-based measure model. The paper has revealed inefficiencies of industrial plants, which were considered as efficient ones examined individually in energy audit procedure. The results indicate that half of analyzed plants are not performing at high energy efficiency, given a total of 6 facilities were operating efficiently. It shows that these industrial plants appear to have the potential to reduce their energy use and cost. Moreover, the results were enriched with the additional analysis of input excesses and output shortfalls and further suggestions for improving energy efficiency are provided.