Output Side Efficiency of Production Factors

The other input variable used was fuel. Distribution of rice miller separated by fuel used was depicted on Figure 18. Figure 17 Distribution of Rice Miller Separated by Fuel Used Figure 18 showed that the most makloon type rice miller using fuel in the 0.00-15.00 liter range. There were 46 units makloon type in this range. Eight units used two liters of fuel, nine units used three liters of fuel, five units used four liters of fuel, ten units used five liters of fuel, five units used ten liters of fuel, and the rest used fuel with the other amount spread out in this range. In the 15.00-30.00 liter range, there were five units makloon type rice miller. Three units used 20.00 liter of fuel and the rest use 25 liter of fuel. There are nine units non-makloon type, which in five units use fuel about 30.00 liter. While the remaining number use fuel with the other amount spread out in this range. In the 30.00-45.00 liter range, there were six units combination type. Two units used fuel by 40.00 liter and the rest used fuel with the other amount scattered in this range. There were three units non-makloon type with different amount each other. In this range, there was only one makloon type which uses 32 liters of fuel. In the range 45.00-60.00 liter range, there were only three rice millers of combination type. Two units used 50.00 liter of fuel and the rest used 60.00 liter of fuel. In the 60.00-75.00 liter range, there was a unit of rent and combination 46 5 1 1 2 9 3 7 9 6 3 1 1 55 23 10 3 2 1 F re q u en cy un it Fuel Used Range liter Makloon Non-makloon Combination Total types. Both types used fuel by 70.00 liters. In the 75.00-90.00 liter range, there was only a unit combination type which used fuel by 80 liters. Time of machine used and the amount of fuel used depend on the amount of grain processed. The more grain was processed, then more time and fuel of fuel required. However, both variables usage also depend on the machine used condition. The better machine condition safe more time and fuel required. Input slack was the number of input that could be reduced by rice miller to produce the same output. On the other hand, output slack was the amount of output that could be increased without adding the input. Summary of output and input slack of all respondents were represented in Appendix 4. Appendix 4 showed that zero slacks of all variables produced and grain for all respondents. Hence, there was no average value for slack of those variables. While, average slack of working hour and fuel were 0.420 and 1.141 respectively. The average output and input slacks of all respondents were represented in Table 9. Table 9 Average of Slack in Variables Used and Total Rice Miller with Non-Zero Slack Variable Mean of Slack Total Rice Miller Rice 0.000 Broken Rice 0.000 Rice Bran 0.000 Chaff 0.000 Grain 0.000 Working hour 0.420 25 Fuel 1.141 27 Referring to Table 9, in general, rice milling industry inefficient because zero slack for all variables used was not achieved. In input side, rice milling industry was inefficient. 39.36 percent rice millers can reduced working hour and fuel used by 0.420 hour and 1.141 liter in the same level of output. However, rice milling industry was efficient in output produced. It can be seen on Table 9 that zero slack achieve for all variables output. Rice millers can produce optimal output by using all input. However, personally, that 60.64 percent of all respondents achieved zero slack of all variables see Appendix 4. Appendix 4 illustrated the slack for each variable used of every rice miller. For example, rice miller number 1 had positive slack of fuel by 1.433. It means an excess of fuel used by 1.433 liter to produce output in the same level. This study attempted to link the result obtained from data processed, and its relation to input used. It was connected by using a peer of each rice miller sample. The analysis was done by taking three samples rice miller from each type analyzed. Related to Appendix 5, rice miller no 1 was compared with five other rice millers in calculating relative efficiency of both ES and slack value. The five rice millers were rice miller no 65, 22, 83, 40, and 55. Summary of variables used of the rice millers was depicted on Table 10. Table 10 Summary of Variables Used of Six Rice Millers Variable Rice Miller 1 65 22 83 40 55 Rice kg 500.00 300.00 300.00 400.00 1500.00 100.00 Broken Rice kg 0.00 0.00 0.00 0.00 0.00 0.00 Rice Bran kg 117.56 76.50 70.95 36.67 352.68 25.79 Chaff kg 166.17 73.49 102.04 174.43 498.50 34.81 Grain kg 783.73 449.99 472.98 611.10 2351.18 160.59 Working hour hour 3 6 5 3 5 1 Fuel liter 5.00 4.00 5.00 3.00 8.00 1.00 Table 10 showed that rice miller no 1 was compared with the other five rice millers similar type. As with rice miller no 1, the five rice millers were also makloon type. Rice miller no 55 is rice miller that did not had information about percentage of output produced. Referring to Appendix 1, percentage owned by rice miller no 1 same as rice miller no 40. Difference of both rice millers was time of machine used and the amount of fuel used. Then, both things made a difference in the slack calculated. Rice miller no 1 used machine for three hours and fuel by five liters to produce 500.00 kg of rice. While rice miller no 40 only used machine for five hours and fuel about eight liter to produce 1,500.00 kg of rice. This amount was three times the amount of rice produced by rice miller no 1. It made the difference in slack value of both rice millers. Rice miller no 40 achieved zero slack for all variables used. While rice miller no 1 had slack on fuel usage by 1.433. It means rice miller no 1 can reduced fuel usage by 1.433 liter to produced output in the same level. Second, rice miller no 18 was compared with six other rice millers in calculating relative efficiency of both ES and slack value. Peers for this rice miller were rice miller no 91, 67, 88, 16, 75, and 73. Summary of variables used of the rice millers was depicted on Table 11. Table 11 and Appendix 2 showed that rice miller no 18 was compared with the six other rice millers. Three of which were the same type rice miller. The rest were combination type. Table 11 Summary of Variables Used of Seven Rice Millers Variable Rice Miller 18 91 67 88 16 75 73 Rice kg 4000.00 7000.00 7000.00 6000.00 3000.00 6620.00 3000.00 Broken Rice kg 133.33 107.69 1165.21 588.00 15.08 101.85 26.73 Rice Bran kg 1000.00 3230.77 1296.30 1764.00 695.79 712.92 1069.09 Chaff kg 1533.33 430.77 3501.46 3408.00 927.72 2749.85 1249.64 Grain kg 6666.67 10769.23 12962.96 11760.00 4638.58 10184.62 5345.45 Working hour hour 8 8 8 8 5 8 7 Fuel liter 30.00 27.50 80.00 27.50 10.00 60.00 27.00 In working hour variable, rice miller no 18 used machine for eight hours to produce rice about 4,000.00 kg. While rice miller no 91, 67, 88, and 75 required same time to produce more amount of rice, almost achieved 50.00 percent of the difference. This made a positive value on slack for working hour variable of rice miller no 18 by 1.548. Slack means that rice miller no 18 can reduce working hour by 1.548 hours to produce the output in the same level. Third, rice miller no 3 was compared with six other rice millers in calculating relative efficiency of both ES and slack value. Peers for this rice miller were rice miller no 55, 67, 6, 9, 88, and 16. Four units are the same type rice miller. While both others were makloon and non-makloon type of rice miller. Summary of variables used of the rice millers was depicted on Table 12. Table 12 Summary of Variables Used of Seven Rice Millers Variable Rice Miller 3 55 67 6 9 88 16 Rice kg 2500.00 100.00 7000.00 2440.00 2500.00 6000.00 3000.00 Broken Rice kg 213.94 0.00 1165.21 20.62 454.55 588.00 15.08 Rice Bran kg 641.83 25.79 1296.30 824.61 909.09 1764.00 695.79 Chaff kg 923.08 34.81 3501.46 837.81 681.82 3408.00 927.72 Grain kg 4278.85 160.59 12962.96 4123.03 4545.45 11760.00 4638.58 Working hour hour 8 1 8 4 5 8 5 Fuel liter 18.75 1.00 80.00 14.79 25.00 27.50 10.00 Table 12 showed that the amount of rice produced by rice miller no 3 same as rice miller no 9. Rice miller no 3 required time of machine usage about eight hours. While rice miller no 9 only required five hours to produce the same amount. If rice miller no 3 was compared with rice miller no 67 and no 88, both rice millers were able to produce more rice by the same time of machine usage. Meanwhile, when compared with rice miller no 16, rice miller was able to produce in greater number about 500.00 kg by using only five hours of working hour. Similarly, when compared with rice miller no 6, rice miller was able to produce rice about 2,440.00 kg by using only four hours of working hour. Therefore, rice miller no 3 had positive value on working hour variable about 3.896. This slack means that rice miller can reduce working hour about 3.896 hours to produce output in the same level. Based on slack value of all variables used, there still rice millers who not achieved zero slack on all variables. It occurred whether on working hour and fuel. It means rice miller can reduced whether working hour and fuel or both to produce outputs in the same level. This helped the rice millers to improve efficiency in the use of inputs.

6.3 Relative Efficiency of Rice Milling Industry

Average score of constant return to scale technical efficiency CRSTE, variable return to scale technical efficiency VRSTE, and scale efficiency SE of all respondents were the same. All rice millers had ES equal to one. It was depicted in Table 13. While, the efficiency scores of each rice miller were illustrated in Appendix 3. Table 13 Summary of Average CRSTE, VRSTE, and SE Scores of All Respondents CRSTE VRSTE SE Mean 1.000 1.000 1.000 Maximum 1.000 1.000 1.000 Minimum 0.000 0.000 0.000 Efficiency Score equal to one 94 94 94 Efficiency Score less than one The rice milling businesses with efficiency score of 1.000 were best performing rice milling. The frequency distribution of technical efficiency CRSTE, pure technical efficiency VRSTE, and scale efficiency SE scores were shown in Figure 19. Figure 18 Distribution of CRSTE, VRSTE, and SE Scores of All Respondents In pure technical VRS side, referring to Appendix 3, all rice millers were operating at MPSS. Manually, this condition can be determined by comparing 94 94 94 0.900 0.900-0.950 0.950-1.000 1.000 F re q u en cy un it Efficiency Score CRSTE VRSTE SE