PT Subah Spinning Mills is a sub-company of PT SUKORINTEX, the company is a

manufacture company which produce yarn. This study looks on how efficient the yarn

production in PT Subah Spinning Mills. This study aims to find out the influence of

production factors (raw materials, labors and machine work hours) to the yarn

production output at PT Subah Spinning Mills and to find out the technical efficiency

level of yarn production factors usage in PT Subah Spinning Mills. The data type which

was used in this study was the secondary. The time series data used in this research in

months is from January 2015 to December 2017, there were 36 series (months). The

analysis tools in this study are multiple linear regression and efficiency test. Based on the

data processing result, machine work (X2) and the quantity of raw materials (X3) have

positives influence to the yarn production output in PT Subah Spinning Mills, while the

number of labor (X1) has a negative effect to the yarn production output in PT Subah

Spinning Mills. The technical efficiency level of raw materials usage and the machine

work were efficient respectively; it means that the raw materials and machine usage in

PT Subah Spinning Mills had been classified in the technically efficient category. For the

labors factor, the technical efficiency level of the labors usage is inefficient, in order to

that, the research recommend the company to put more investment on the machine factors

in hope it increasing the amount of yarn production at PT SUBAH SPINNING MILLS.

Based on the results of return to scale (RTS) with a value of less than 1, the number of

return to scale (RTS) is in decreasing return, which means that if there is an additional

production factors, the additional production output will have a less proportion than the

previous production..