This　paper　introduces　a　novel　decomposition　method　for　analyzing　production　efficiency　based　on　the　Data　Envelopment　Analysis　framework,　addressing　the　limitations　of　traditional　approaches　that　often　fail　to　isolate　the　contributions　of　individual　factors.　The　proposed　method　disaggregates　production　efficiency　into　capacity　utilization,　labor　utilization　efficiency,　energy　utilization　efficiency,　and　technological　change,　providing　a　more　granular　view　of　how　different　factors　contribute　to　overall　efficiency.　By　incorporating　both　contemporaneous　and　intertemporal　perspectives,　this　approach　enables　a　comprehensive　understanding　of　efficiency　dynamics　and　factor　interactions　over　time.　To　demonstrate　the　feasibility　and　robustness　of　the　proposed　method,　we　apply　it　to　the　thermal　power　industry　using　data　from　30　Chinese　provinces　covering　the　period　from　2011　to　2021.　The　empirical　results　validate　the　effectiveness　of　the　decomposition　framework,　revealing　distinct　regional　disparities　in　efficiency　and　providing　insights　for　targeted　resource　optimization　strategies.　Based　on　these　findings,　we　offer　recommendations　to　enhance　capacity　utilization,　improve　energy　efficiency,　and　support　sustainable　development　within　the　thermal　power　sector.　This　research　contributes　a　powerful　analytical　tool　for　disaggregating　production　efficiency　and　offers　a　theoretical　foundation　for　future　studies　seeking　to　understand　the　nuanced　relationships　between　comprehensive　production　efficiency　and　single-factor　efficiencies,　thereby　supporting　better　policy　and　management　decisions　in　complex　production　systems.