Efficiency Evaluation of the Rolling Mills Production: A Data Envelopment Analysis Approach

Apriani Soepardi, Mochammad Chaeron, Mira T. Kuncoro, Gunawan Wijiatmoko

Abstract


The 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.


Keywords


energy efficiency, iron-steel industry, DEA method, rolling mill

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References


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DOI: https://doi.org/10.31098/ess.v1i1.115

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Copyright (c) 2020 Apriani Soepardi, Mochammad Chaeron, Mira T. Kuncoro, Gunawan Wijiatmoko

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