The Effects of Non-Controllable Factors in Efficiency Evaluation of Turkish Coal Enterprises

Abstract

In this study, which aims to examine the effects of non-controllable factors as well as input parameters on the efficiency performances of Turkish Coal Mine Enterprises, eight enterprises within Turkish Coal Enterprises (TCE) were examined. In order to keep the study as up-to-date as possible, data from the latest year (2005) was examined. For each enterprise, the outputs consisted of the amount of the production sold and the total income gained in the corresponding year; the controllable inputs consisted of investment expenditure, overburden stripping and number of staff; and non-controllable inputs consisted of total reserve and low heat values. In order to measure the effects of non-controllable inputs on enterprise efficiency, three-stage modified data envelopment analysis (DEA) model was employed. In the first stage, information concerning the efficiency of the enterprises was gained by using only the controllable inputs and outputs. In the second stage, the effects of non-controllable inputs on controllable inputs in inefficient enterprises were examined. Lastly in the third stage, the new efficiency values were calculated by means of DEA where controllable inputs and outputs modified according to non-controllable inputs were used. Considering the non-controllable inputs as a result of the analyses conducted with three-stage DEA model, it was determined that the average efficiency value of Turkish Coal Enterprises increased from 87.5% to 92.3%.

Efficiency Analysis of Lignite Mining Operations Using Production Stochastic Frontier Modeling

“…In DEA modeling, overburden removal is viewed as an output from opencast mining other than coal output. Under the weak disposability assumption, overburden is treated as a non-discretionary output [37], as undesirable output [38], or as a production input [39]. Although there is no agreement among researchers on how to handle overburden removal in DEA modeling, the fact that the case study involves the evaluation of the same mine justifies the decision to use it as a detrimental input in SFA.…”

An Empirical Study of Hybrid DEA and Grey System Theory on Analyzing Performance: A Case from Indian Mining Industry

“…Kasap et al [6] conducted a study which aimed to examine the effects of noncontrollable factors as well as input parameters on the efficiency performances of eight enterprises within Turkish Coal Enterprises (TCE) from 2005 to 2007. For each enterprise, the outputs included the production sold and the total income; the controllable inputs consisted of investment expenditure, overburden stripping, and number of staff and the noncontrollable inputs consisted of total reserve and low heat values.…”

The Efficiency Variations of Coal Enterprises In Turkey In the Case of an Environment Involving Risks and Uncertainties

“…The slack variables found at this stage are due to the inefficient performance of the manufacturer (Muniz et al, 2006;Bosch et al, 2001). To obtain a more detailed explanation the reader is referred to Muniz (2002) and Kasap et al (2007).…”

“…Using the Fried-Lovell and Muniz model, Kasap et al (2007) determined in their study that the average efficiency values of the enterprises increased from 87.5% to 92.3%. Kulshreshtha and Parikh (2002) used DEA to study the developments in efficiency and productivity in underground and opencast mining in India, which is ranked third in the world in coal production.…”

“…In a study by Kasap et al (2007) about DEA in the mining sector, the effects of input parameters and non-discretionary factors on Turkish coal mining enterprises are investigated. Using the Fried-Lovell and Muniz model, Kasap et al (2007) determined in their study that the average efficiency values of the enterprises increased from 87.5% to 92.3%.…”