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http://dx.doi.org/10.5762/KAIS.2018.19.9.501

Efficiency Evaluation of Defence Industry Firms by Utilizing DEA  

Choi, Jae-Ho (Defence Agency for Technology and Quality)
Lee, Yoon-Woo (Defence Agency for Technology and Quality)
Jang, Min-uk (Defence Agency for Technology and Quality)
Seo, Sang-Won (Defence Agency for Technology and Quality)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.19, no.9, 2018 , pp. 501-507 More about this Journal
Abstract
Owing to the complexity and modernization of weapon systems, the role of the defense industry in producing military supplies has become increasingly important. In previous defense industries, price competitiveness was a key factor in the product choice. On the other hand, as exports of domestic military supplies are expanding rapidly based on superior quality, there is a need to evaluate objectively the efficiency of management in the domestic defense industry. In this study, the efficiency of management was measured using DEA, which is one of the decision methodologies. In addition, the number of employees (QA Employee) and R&D performance were set as input variables to utilize DEA, and the output variables were based on sales and operating profit. Based on the results of the analysis, a future study will measure the efficiency of the management of domestic defense industry to help guide a strategic development plan.
Keywords
DEA Analysis; Defense Industry; Efficiency Evaluation; CCR; BCC;
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