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Multi-stage DEA as a Measurement of Progress in Environmentally Benign Manufacturing

The industrial establishment is beginning to realize the value of a sustainable enterprise. As resource consumption is most noticeable in the manufacturing sector, this activity is the usual target for reform. Research in the area of sustainability includes industrial ecology and green manufacturing, but arguably all fall under the umbrella of Environmentally Benign Manufacturing (EBM). Generally, EBM is enacted with three areas: Manufacturing, Research and Design (R&D), and Reclaim. The computer industry has done much in the area of recycling, seeking to reuse the valuable copper found in many components, and reclaiming the harmful lead. Yet no system is in place to assess the efficiency of a company’s EBM efforts. This research proposes use of multistage Data Envelopment Analysis (DEA) to assess corporate enactment of EBM as work parts move from place to place in a company. The algorithm measures loss as products move from R&D to manufacturing to any recycle/reuse systems in place. When completed, a numerical value representing a company’s environmentally benign efficiency should emerge. This experimentation is directed toward establishing DEA as an internal efficiency measurement of closed-loop manufacturing systems so that EBM may be pursued in a more streamlined and educated fashion.