Communications - Scientific Letters of the University of Zilina 2020, 22(4):20-27 | DOI: 10.26552/com.C.2020.4.20-27

Process Efficiency Analysis of Selected Automotive Companies in Europe

Kveta Papouskova1, Martin Telecky1, Jiri Cejka1
1 The Institute of Business and Technology in Ceske Budejovice, Czech Republic

The automotive industry has lately been undergoing major changes having a considerable impact on the whole vehicle sector. This does not only refer to what is technologically new on vehicles themselves, but also to the new modern management methods, frequently associated with the Industry 4.0 concept. As well as other companies, car factories are pushing their costs downwards to increase their production efficiency. This paper analyses the economic situation of 5 car manufacturers, two of which having their factories in the Czech Republic and three in Germany. The task was to ascertain efficiency of individual companies in order to propose possible improvements. To do this, the Data Envelopment Analysis (DEA) for two models (CCR - model based on Charnes, Cooper & Rhodes and BCC - model based on Banker, Charnes & Cooper) was used. The BCC model was found to be more applicable to the established efficiencies, than the CCR one.

Keywords: automotive sector, business processes, efficiency, correlation analysis, DEA method

Received: January 13, 2020; Accepted: February 18, 2020; Published: October 1, 2020  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Papouskova, K., Telecky, M., & Cejka, J. (2020). Process Efficiency Analysis of Selected Automotive Companies in Europe. Communications - Scientific Letters of the University of Zilina, 22(4), 20-27. doi: 10.26552/com.C.2020.4.20-27
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. The World Commission on Environment and Development. Our common future. Oxford: Oxford University Press, 1987. ISBN 019282080X.
    2. LEE, P., PARK, Y.-J. Eco-efficiency evaluation considering environmental stringency. Sustainability [online]. 2017, 9(4), 661. ISSN 2071-1050. Available from: https://doi.org/10.3390/su9040661 Go to original source...
    3. KARIMI, A., BARATI, M. Financial performance evaluation of companies listed on Tehran stock exchange: a negative data envelopment analysis approach. International Journal of Law and Management [online]. 2018, 60(3), p. 885-900. eISSN 2149-6838. Available from: https://doi.org/10.20979/ueyd.650422 Go to original source...
    4. KHALILI, J., ALINEZHAD, A. Performance evaluation in green supply chain using BSC, DEA and data mining. International Journal of Supply and Operations Management [online]. 2018, 5(2), p. 182-191. ISSN 2383-1359. Available from: https://doi.org/10.22034/2018.2.6
    5. JIANG, H., HAN, L., DING, Y., HE, Y. Operating efficiency evaluation of china listed automotive firms: 2012-2016. Sustainability [online]. 2018, 10(1), 184. ISSN 2071-1050. Available from: https://doi.org/10.3390/su10010184 Go to original source...
    6. IUGA, A. N., POPA, V. N., POPA, L. I. Comparative analysis of automotive products regarding the influence of eco-friendly methods to emissions' reduction. Energies [online]. 2019, 12(1), 6. eISSN 1996-1073. Available from: https://doi.org/10.3390/en12010006 Go to original source...
    7. REZAEE, M. S., HAIERI, A. NOORI, S. Automotive vendor's performance evaluation and improvement plan presentation by using a data envelopment analysis. International Journal of Engineering [online]. 2018, 31(2), p. 374-381. ISSN 1025-2495, eISSN 1735-9244. Available from: http://www.ije.ir/article_73130.html Go to original source...
    8. SANTOS-NAVARRO, G., WONG-GONZALEZ, P. MARTINEZ-MARTINEZ, A. Medicion de la eficiencia tecnica de la industria automotriz mediante el analisis envolvente de datos / Technical efficiency measurement of the automotive industry through data envelope analysis (in Spanish). Economia Sociedad y Territorio [online]. 2019, 19(60), p. 173-201. ISSN 1405-8421, eISSN 1405-8421. Available from: https://doi.org/10.22136/est20191294
    9. BHASKARAN, E. The productivity analysis of Chennai automotive industry cluster. Journal of the Institution of Engineers (India): Series C [online]. 2014, 95(3), p. 239-249. ISSN 2250-0545, eISSN 2250-0553. Available from: https://doi.org/10.1007/s40032-014-0120-6 Go to original source...
    10. OH, S.-CH., HILDRETH, A. J. Estimating the technical improvement of energy efficiency in the automotive industry-stochastic and deterministic frontier benchmarking approaches. Energies [online]. 2014, 7(9), p. 6196-6222. eISSN 1996-1073. Available from: https://doi.org/10.3390/en7096196 Go to original source...
    11. SIMONOVA, S. Modeling of processes and data for quality improvement (in Czech). Pardubice: University of Pardubice, 2009. ISBN 978-80-7395-205-1.
    12. SMIDA, F. Implementation and development of process management in the company (in Czech). Prague: Grada, 2007. ISBN 978-80-247-1679-4.
    13. REPA, V. Process management versus management of process (in Czech). Prague: Grada, 2007. ISBN 978-80-247-2252-8.
    14. SVOZILOVA, A. Improving business processes (in Czech). Praha: Grada, 2011. ISBN 978-80-247-3938-0.
    15. SVATA, V. Project management in ERP systems (in Czech). Prague: Oeconomica, 2007. ISBN 978-80-245-1183-2.
    16. BERAWI, M. A. Improving business processes through advanced technology development. International Journal of Technology [online]. 2018, 9(4), p. 641-644. ISSN 2086-9614. Available from: https://doi.org/10.14716/ijtech.v9i4.2221 Go to original source...
    17. YAHYA, F., BOUKADI, K. BEN-ABDALLAH, H. Improving the quality of business process models: lesson learned from the state of the art. Business Process Management Journal [online]. 2019, 25(6), p. 1357-1376. ISSN 1463-7154. Available from: https://doi.org/10.1108/BPMJ-11-2017-0327 Go to original source...
    18. TELECKY, M., CEJKA, J. Implementation of value-creating processes and financial management in transport practice (in Czech). Brno: CERM Academic Publishing house, 2018. ISBN 978-80-7204-975-2.
    19. ABDALKRIM, G. M. Using the balanced scorecard in private sector organizations: a case study of private telecommunication companies in Sudan. International Business Management [online]. 2014, 7(9), p. 157-164 [accessed 2019-06-20]. ISSN 1913-9004, eISSN 1913-9012. Available from: https://doi.org/10.5539/ibr.v7n9p157 Go to original source...
    20. TAN, Y. C., ZHANG, Y., KHODAVERDI, R. Service performance evaluation using data envelopment analysis and balance scorecard approach: an application to automotive industry. Annals of Operations Research [online]. 2017, 248(1-2), p. 449-470. ISSN 0254-5330, eISSN 1572-9338. Available from: https://doi.org/10.1007/s10479-016-2196-2 Go to original source...
    21. MALAGUENO, R., LOPEZ-VALEIRAS, E., GOMEZ-CONDE, J. Balanced scorecard in SMEs: effects on innovation and financial performance. Small Business Economics [online]. 2018, 51(1), p. 221-244. ISSN 0921-898X. Available from: https://doi.org/10.1007/s11187-017-9921-3 Go to original source...
    22. AL SAWALQA, F., HOLLOWAY, D., ALAM, M. Balanced scorecard implementation in Jordan: an initial analysis. International Journal of Electronic Business Management. 2011, 9(3), p. 196-210. ISSN 1728-2047.
    23. DVORAK, J., RAZOVA, I. Empirical validation of blue ocean strategy sustainability in an international environment. Foundation of Management [online]. 2018,10(1), p. 143-162. ISSN 2080-7279. Available from: https://doi.org/10.2478/fman-2018-0012 Go to original source...
    24. KIM, W. C., MAUBORGNE, R. Blue Ocean strategy: How to create uncontested market space and make the competition irrelevant. Boston: Harvard Business School Press, 2005. ISBN 1-59139-619-0.
    25. KUSI-SARPONG, S., GUPTA, H., SARKIS, J. A Supply chain sustainability Innovation framework and evaluation methodology. International Journal of Production Research [online]. 2019, 57(7), p. 1990-2008. ISSN 0020-7543, eISSN 1366-588X. Available from: https://doi.org/10.1080/00207543.2018.1518607 Go to original source...
    26. RAHIM, F. B. T., BIN ZAINUDDIN, Y. The impact of technological innovation capabilities on competitive advantage and firm performance in the automotive industry in Malaysia. In: 3rd International Conference on Automotive Innovation Green Energy Vehicle : proceedings [online]. Vol. 2059. Iss. 1. 2019. ISBN 978-0-7354-1787-8, 020030. Available from: https://doi.org/10.1063/1.5085973 Go to original source...
    27. BURKE, A, VAN STEL, A. THURIK, R. Blue Ocean vs. Five Forces. Harvard Business Review [online]. 2010, 88(5), p. 28-29 [accessed 2016-03-14]. ISSN ‎0017-8012. Available from: https://hbr.org/2010/05/blue-ocean-vs-five-forces
    28. Malaysia's National Blue Ocean Strategy - NBOS [online] [accessed 2019-06-27]. Available from: http://www.nbos.gov.my/
    29. Country's first Blue Ocean Strategy Centre launched: The centre will train Indian corporates, students and faculty to strategize and develop a competition-free market system. DNA. Sunday. 2010.
    30. MRKVICKA, T., PETRASKOVA, V. Introduction to statistics (in Czech). Ceske Budejovice: University of South Bohemia in Ceske Budejovice, 2006. ISBN 80-7040-894-4.
    31. MAREK, L. Statistics in examples (in Czech). Prague: Professional Publishing, 2015. ISBN 978-80-7431-153-6.
    32. COOPER, W. W, SEIFORD, L. M. TONE, K. Data envelopment analysis: a comprehensive text with models, applications, references and DEA-solver software. New York: Springer, 20007. ISBN 978-0-387-45281-4. Go to original source...
    33. ABGARYAN, K. K., OSIPOVA, V. A. Application of decision support methods for the multicriterial selection of multiscale compositions (in Russian). Informatika i ee Primeneniya [online]. 2019, 13(2), p. 47-53. ISSN 1992-2264, eISSN 2310-9912. Available from: https://doi.org/10.14357/19922264190207
    34. GERGEL, V., KOZINOV, E. Efficient multicriterial optimization based on intensive reuse of search information. Journal of Global Optimization [online]. 2018, 71(1), p. 73-90. ISSN 0925-5001, eISSN 1573-2916. Available from: https://doi.org/10.1007/s10898-018-0624-3 Go to original source...
    35. RODIONOVA, E. A., SHVETSOVA, O. A., EPSTEIN, M. Z. Multicriterial approach to investment projects' estimation under risk conditions. Espacios [online]. 2018, 39(8), p. 17-29. ISSN 0798-1015. Available from: https://www.revistaespacios.com/a18v39n08/a18v39n08p17.pdf
    36. SUBRT, T., BARTOSKA, J. BROZOVA, H., DOMEOVA, L., HOUSKA, M. KUCERA, P. Economic - mathematical models (in Czech). Pilsen: Ales Cenek, 2015. ISBN 978-80-7380-563-0.
    37. FRIEBELOVA, J. Data Envelopment Analysis (DEA) [online] [accessed 2019-05-28]. 2007. Available from: http://www2.ef.jcu.cz/~jfrieb/rmp/data/teorie_oa/DEA.pdf
    38. Annual Report BMW Group - Official Website BMW Group [online] [accessed 2019-06-25]. 2018. Available from: https://www.press.bmwgroup.com/global/article/detail/T0293372EN/bmw-group-annual-report-2018?language=en
    39. Annual Report Hyundai Motor Manufacturing Czech. Public Register and Collection of Documents of the Ministry of Justice of the Czech Republic [online] [accessed 2019-06-25]. 2018. Available from: https://rejstrik-firem.kurzy.cz/27773035/hyundai-motor-manufacturing-czech-sro/sbirka-listin/
    40. Annual Report PSA Group - Official Website PSA Group [online] [accessed 2019-06-25]. 2018. Available from: https://www.groupe-psa.com/en/publication/2018-annual-results/
    41. Annual Report Volkswagen AG - Official Website Volkswagen AG [online] [accessed 2019-06-25]. 2018. Available from: https://annualreport2018.volkswagenag.com/servicepages/filelibrary/files/collection.php
    42. Annual Report Skoda Auto - Official Website Skoda Auto [online] [accessed 2019-06-25]. 2018. Available from: https://cdn.skoda-storyboard.com/2019/03/SKODA_2018_CZE.pdf
    43. R [online]. 2019. Available from: https://www.r-project.org
    44. Frontier Analyst [online]. 2019. Available from:https://banxia.com/frontier
    45. KLUMPP, M., HESENIUS, M., MEYER, O., RUINER, C., GRUHN, V. Production logistics and human-computer interaction-state-of-the-art, challenges and requirements for the future. International Journal of Advanced Manufacturing Technology [online]. 2019, 105(9), p. 3691-3709. ISSN 0268-3768, eISSN 1433-3015. Available from: http://doi-org-443.webvpn.fjmu.edu.cn/10.1007/s00170-019-03785-0 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content