Application of Logistic Regression for Production Machinery Efficiency Evaluation

Abstract

Production companies operate in a complex economic, technological, social and political environment. There are a number of factors contributing to a satisfactory market position, the most important one being a properly defined and implemented strategy. It needs, however, to be continuously monitored and, if necessary, modified. One of the elements subject to such evaluation is the efficiency of the production processes, which has become the genesis of this article. In response to the methods presented in the literature, a proposal using the logistic regression method for this purpose is presented. The dichotomous form of the dependent variable makes it possible to make such an evaluation in an unambiguous manner and to determine the significance and influence of selected factors on the result thereof.