Nowadays the societies and environment are effected by technological changes. Technological progress specially in recent decades have conceptual and structural influences on societies and economic-social institutions and competitive capability of organizations and different industries. Consequently the planners of technological development of countries have been focused on technology assessment. In every system the awareness of performance status of sub systems is one of the important parts of management. One of the awareness tools in every system is performance evaluation of sub systems. The purpose of this research is to determine the efficiency of production firms using evaluation of technological capability. The proposed method consists of two main parts. In the first part a model for evaluation of the technological capability of production firms is presented. This model consists of two parts, i.e. evaluation of technology components and evaluation of technological capability that is required for production firms. In the second part, by using the results of the first part, a mathematical model on the base of data envelopment analysis for determination efficiency of production firms is developed. Efficiency is determined using different models of data envelopment analysis and the obtained results is compared with each other. The proposed method is implemented through case studies of the auto axial parts manufacturing companies and obtained results are analyzed. The presented method in this thesis is used to analyze weaknesses and strengths of technological capability of companies. Determination efficiency of production firms using the results of evaluation of technological capability also provide the comparison of firms with different technologies.