A DEA-based approach to assess manufacturing performance through operations strategy lenses

While operations strategy is critical in competitiveness, research gaps exist in applying performance frontier methodologies to identify competitive priorities in operations strategy. The concept of performance efficiency frontier can identify the competitiveness drivers specifying the maximum performance that can be achieved by a given set of inputs. This paper proposes and tests a process to measure, assess, and address improvements in manufacturing performance by operations strategy. A five-step procedure, based on the super-efficiency data envelopment analysis (DEA), supports the improvement recommendations. Secondary data of the fourth round of the High-Performance Manufacturing (HPM) survey grounds the benchmarking analysis and assessment. The proposed framework is tested using the in-depth case of a company from the Brazilian automotive industry. The results identified the main gaps of the company to become a market leader through the enhancement of its operations strategic positioning. Improvement recommendations are developed based on a gap analysis of the input variables. By integrating the operations strategy definition within the performance frontier analysis, we guided the competitiveness improvement of the case company.

Automated summary

This paper examines how to identify competitive advantages in operations strategy through performance frontier methodologies, proposing a five-step procedure for improving manufacturing performance. The research findings from a case study in the Brazilian automotive industry highlight the main gaps preventing the company from becoming a market leader, and suggest improvement recommendations based on an analysis of input variables.