Evaluating the Performance Efficiency of the Iraqi Cement Company through Stochastic Frontier Analysis (SFA): A Quantitative Assessment

Abstract

Background

The General Company for the  Cement Industry in Iraq seeks to encourage cement consumption. It is essential to utilize the resources of existing manufacturing industries and the technologies more be efficiently to Obtaining demand. Therefore, researchers sought to assess the efficiency of the cement industry at the company level in Iraq.

Method and materials

The cobb-Douglas stochastic frontier analysis ( SFA ) ,  methods are used. Data were obtained and that it  taken by the Iraqi general cement company thirteen factories

Result

The efficiency rate was achieved that at 63 % which means that the rate is average and can that work must be done to improve low -efficiency factories . Factory No. 4 in Basra was the most efficient, with an ideal technical efficiency of 0.99936599 ≈ 1, while Factory No. 10 in Muthanna was highly efficient, with an efficiency of 0.94064895. Similarly, Factory No. 5, Kufa, recorded an efficiency of 0.92725490, as did Factory No. 8, Badush   AL- tousieea, recorded an efficiency of 0.87543953.

Conclusions

Preferably use of SFA to identify competencies that in that the industrial and to get in efficiency in cement the production, should focus on improving technical efficiency while focusing on the selection of appropriate technologies and optimal utilization of resources in proportion to the scale of work.