Technical Efficiency Analysis to Study the Performance of Garment Units to Improve Productivity

Technical Efficiency offers the information on how garment units carry out and can as well contrast their optimum performance. This enhances the decision making process to study the performance and efficiency of the manufacturing units. This document examines Technical Efficiency of 120 garment manufacturing units situated across South-India, by means of Data Envelopment Analysis. The results propose that out of 120 firms the operations of 22 firms are 100% technically competent. 27 firms are reasonable with a technical competence 75% to 99%, 38 firms are moderate with a technical competence 50% to 74%, 29 firms are reasonable with a technical efficiency 25% to 49% and only 4 firms technical efficiency ranges from 0% to 24%. The research contrasts garment manufacturing units regarding all resources employed and next recognize the most competent units or best practice units and the inefficient garment units in which actual competence improvements are feasible, by means of Data Envelopment Analysis. For a competent production the optimum targeted input and output values have been forecasted. This has effected in developing the productivity of the inefficient garment units, decreasing operating costs and rising profitability. It was viewed that, Data Envelopment Analysis is a suitable technique to examine garment manufacturing firms with multiple input/output variables.