Efficiency Evaluation of the Rolling Mills Production: A Data Envelopment Analysis Approach
Keywords:energy efficiency, iron-steel industry, DEA method, rolling mill
AbstractThe steel industry is one of the industries that concentrate on energy, and types of upstream industries are prioritized in Indonesia. National steel demand will continue to increase up to 32 million tonnes in 2025 to make the steel industry remain competitive. The amount of energy used in the production process, i.e., the energy of LNG and electricity, and the high prices of raw materials to make the steel industry should be able to use all three of these things efficiently. On the other hand, the activity of the production process is often a breakdown on a rolling machine that makes the production process on the stage rolling line stop,except the reheating furnace, was still burning. This leads to the inefficiency of using energy and reduce the productivity of reinforced concrete that can be generated. One of the causes of the breakdown in the rolling machine is negligence labor. Thestudy aims to calculate the level of efficiency in production units, rolling mills one and two. The disruption of the production process is the breakdown in the production of rolling mills. The research uses the approach of the Data Envelopment Analysis model CRS input-oriented. From the evaluation is known that there are eight concrete iron production units are inefficient by an average of 98%. Then, a significant improvement potential values of input parameters using the unit of production of rolling mills is the use of electrical energy by 93.56%, amounting to 65.20% of LNG energy, labor amounted to 49.00%, and raw materials by11.92%. One of the causes of the potential value improvement or inefficient use of the input parameter is the breakdown of the engine components, namely rolling bearings, adjuster gap, entry/exit guide, caliber, and coupling.
AAAT-Agency for The Assessment and Application of Technology. (, 2013). Planning of Energy Efficiency and Elasticity 2013. (In Indonesian).
Hu, J. L., & Wang, S. C. (2006). Total-factor energy efficiency of regions in China. Energy Policy, 34(17), 3206-3217.
IISIA-Indonesia Iron Steel Industry Association. (, 2015). Role and prospect of the national steel industry. (in Indonesian).
Ramanathan, R. (2003). An introduction to data envelopment analysis: a tool for performance measurement. Sage.
Smirlis, Y. G., Maragos, E. K., & Despotis, D. K. (2006). Data envelopment analysis with missing values: An interval DEA approach. Applied Mathematics and Computation, 177(1), 1-10.
Soepardi, A., Pratikto, P., Santoso, P. B., Tama, I. P., & Thollander, P. (2018). Linking of barriers to energy efficiency improvement in Indonesia's steel industry. Energies, 11(1), 234.
Wei, Y. M., Liao, H., & Fan, Y. (2007). An empirical analysis of energy efficiency in China's iron and steel sector. Energy, 32(12), 2262-2270.
Wu, J., Chu, J., Sun, J., & Zhu, Q. (2016). DEA cross-efficiency evaluation based on Pareto improvement. European Journal of Operational Research, 248(2), 571-579.
1. Author and Manuscript
- The author whose name appear in the above statement is declaring that he/she is the author of the stated manuscript
- All of the authors, if any, has already aware of this agreement and give consent for the mentioned name to act on their behalf
- The author stated that the manuscript is original and has never been published elsewhere.
- The author has obtained permissions from other contributors, if any
- The author has specifically mentioned and cited all external materials properly
- Note: External materials refers to any material, writings, figures, tables, illustrations, or any other materials which is not being produced, made, or patented by the author
- The author holds the sole responsible should there are any mistyping; unclear citation and holds responsible should there are any inappropriate manners such as unlawful, breaches, obscene, or any other reasons which are not aligned with the law and norm.
3. Deliverable of Manuscript and Other Materials
- The Contributor/Author shall deliver their manuscript using the provided and acceptable format (doc. Or docx) in the assigned date as well as author copyright document signed.
- Inability delivering the manuscript in the stated date and format will affecting the publication process thus, The Publisher have the rights to reject the manuscript and terminate the letter of acceptance or letter of offerings
- Author is responsible to deliver the manuscript using the provided format. Note: All of the figures, tables, illustrations, or any other materials that will be inserted in the manuscript need to be in high quality
- Should the author decided to alter the manuscript format, the fee will be charged and bore by authors
The Author give “Yayasan Sinergi Riset dan Edukasi” (here forth known as RSF Press) the unlimited right to publish the contribution identified above, without any restraints, in any form, at any time, directly or through others, to reproduce, transmit, archive, lease/lend, sell and distribute the contribution or parts thereof individually or together with other works in any language, revision and version (digital and hard), including reprints, translations, photographic reproductions, microform, audiograms, videograms, electronic form (offline, online), or any other reproductions of similar nature, including publication in the aforementioned book or any other book, as well as, the usage for advertising purposes. RSF Press will ensure that the Author’s name(s) is/are always clearly associated with the manuscript, and the publishers will not make any substantial change to the manuscript without consulting the author and ask for their consent. RSF Press is also entitled to carry out editorial changes in the contribution with the sole purpose of enhancing the overall organization and form of the contribution.
The Author retains the rights to publish the contribution in his/her own web site and thesis, in his/her employer’s web site and to publish a similar or revised version elsewhere, as long as it is clearly stated that the contribution was presented first RSF Press and the corresponding DOI is associated with the contribution.