Multicomponent efficiency measurement and core business identification in multiplant firms

Abstract

As discussed in the previous chapters, the DMU may perform different types of functions. In that case it is desirable to derive a measure of performance not only at the DMU level but as well at the level of the particular functions within the DMU. In the current chapter we examine a set of manufacturing plants operating under a single umbrella, with the objective being to use the component or function measures to decide what might be considered as each plant’s core business. It is proposed that this information can aid the company in any reorganization initiatives designed to capitalize on the strengths of each location (DMU).