Efficiency Measurement and Performance Evaluation for Chosen Companies Registered in İstanbul Stock Exchange: Data Envelopment Analysis and Topsis Method

The fact that meeting the rapidly increasing requirements of population and having a flexible and compatible structure in view of the improving technologies plays an important role in the meaning of making progress in the so-called sectors and catching the certain stability level in the under-developed and developing countries. Non-Metallic mineral products sector and Fabricated metal products, machinery and equipment sector, which are the subbranches of production industry, substantially show parallelism with the improvements in construction and white goods sectors in recent years. Especially, cement sector involved in non-metallic mineral products sector is affected by the improvements in construction sector to a great extent ( Pala; 2006: 1). Because of the fierce competition in the so-called sector; it is observed that the domestic and foreign cement prices come down. So several operations are being conducted in order for retrieving this situation and minimizing the fuel and energy expenses ( Pala; 2006: 3). According to the export data of 2010 in Turkey; it is seen that the total export in automotive industry, which is 113,7 billion dollars, takes a 15 percent share and comes first among the other industries (TİM, bt:1). This situation shows that both production and financial performance should be measured by some different methods so as to look through more comprehensive vision. For this reason, in this study we tried to determine the efficiencies and to make performance evaluations of twenty six companies operating in Non-Metallic Mineral Products sector and twenty eight companies operating in Fabricated Metal Products, Machinery and Equipment sector by applying both DEA and TOPSIS methods for 2008-2010 period. DEA-Solver-LV is used for DEA in efficiency measurement and TOPSIS Sanna programme is used for TOPSIS in performance evaluation. In 1957, Farrell firstly maintained the idea that a model appropriate for applying on whole economy from a single sector, that is, in measuring efficiency of a concept, efficiency can fall to pieces in its inside (Eken ve Kale, 2011: 889-901). Then, in 1978; a study was conducted by Charnes, Cooper and Rhades in measuring the efficiency of decision making units and the model which Farrell suggested was termed as Data Envelopment Analysis(Ebnerasoul ve Yavarian, 2009: 42-48). Data Envelopment Analysis (DEA) is a field of study combining Operational Research, Management Science and Econometrics. This method gains more importance day by day in measuring and increasing the efficiency of production and service activities. It is observed that the studies, Charnes has made in different fields such as management and economy, have a considerable effect on the other studies related to DEA (Wei, 2001: 1321-1332). The companies which will be evaluated by DEA have to produce the same input and output. Determining the interrelated inputs and outputs is enough in order for Using DEA. Otherwise precise results can not be achieved from the method under discussion (Sherman, 1983: 7). Technique for Order Preference By Similarity to Ideal Solution (TOPSIS), easy to apply and providing to take efficient results; is one of the multiple decision techniques. In the process of applying TOPSIS method; the weights of performance levels and criterias are generated in proper values. Because of this, in measuring weights and quantitive features; this method doesn’t consider any uncertainties associated with the subjective preferences on any number (Soba, Akcanlı, Erem ve Eren, 2011: 413- 420). The stages of TOPSIS method are as follows (Demireli, 2010: 104-106): • Generation of decision matrix, • Normalization of decision matrix, • Weighting of normalized matrix, • Maximum and minimum values of matrix, • Determining the ideal and non-ideal solution, • Relatively ranking of the alternatives. The field of our study is determined as the companies registered in Public Disclosure Platform and operating in Non- Metallic Mineral Products sector and Fabricated Metal Products, Machinery and Equipment sector. Then inputs and outputs thought to have great effects on calculating the relatively efficiencies of the so-called companies are assigned. In our study; a DEA model is generated by seven input and output criteria in total. • In Non-Metallic Mineral Products sector ‐ In 2008; there are fourteen relatively efficient companies among twenty-six companies. ‐ In 2009; there are eight relatively efficient companies. Seperately; Adana Cimento, Anadolu Cam, Cimsa, EczacibasiYapi, Göltas Cimento, Mardin Cimento ve Usak Seramik are managed to keep their efficiencies in 2009 as well as the year of 2008. ‐ In 2010; there are eleven relatively efficient companies. It is seen that Adana Cimento, Cimsa, Eczacibasi Yapi, Göltas Cimento, Mardin Cimento and Usak Cimento keep their efficiencies all the three years round. • In Fabricated Metal Products, Machinery and Equipment sector ‐ In 2008 and 2009; there are nine relatively efficient companies among twenty-five companies (In fact; there are twentyeight companies operating in this sector, but we’ ve taken Uzel Makine, Katmerciler Ekipman and Bosch Fren Sistemleri out of context because the balance sheets and income statements of these companies can not be reached). ‐ In 2010; there are eleven relatively efficient companies. Seperately, it is observed that Emek Elektrik is the closest company to the efficiency value (1,0000) among the inefficient companies. Similar comments can be made for the other companies. According to TOPSIS methods; • In Non-Metallic Mineral Products sector ‐ In 2008; the performance of Batı söke Cimento comes first among the twenty-six companies, while Eczacibasi has the lowest performance degree. ‐ In 2009; Mardin Cimento becomes the first company, Konya Cimento becomes the second and Unye Cimento becomes the third company among them. ‐ In 2010; Konya Cimento qualifies for the first rank and Eczacibasi Yapi shows the lowest performance again. • In Fabricated Metal Products, Machinery and Equipment sector ‐ In 2008; F-M Izmit Piston comes first among twenty-five companies and is managed to keep this situation in 2009 and 2010 although it decreases its performance degree in the last two years. Consequently; it can be possible to make performance evaluation or efficiency measurement by applying different analysis techniques. But making the right decision in determining the appropriate input-output combination has a great importance on the results of the study.