• Title/Summary/Keyword: DEA Efficiency

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A Study on DEA-based Stepwise Benchmarking Target Selection Considering Resource Improvement Preferences (DEA 기반의 자원 개선 선호도를 고려한 단계적 벤치마킹 대상 탐색 연구)

  • Park, Jaehun;Sung, Si-Il
    • Journal of Korean Society for Quality Management
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    • v.47 no.1
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    • pp.33-46
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    • 2019
  • Purpose: This study proposed a DEA (Data Envelopment Analysis)-based stepwise benchmarking target selection for inefficient DMU (Decision Making Unit) to improve its efficiency gradually to reach most efficient frontier considering resource (DEA inputs and outputs) improvement preferences. Methods: The proposed method proceeded in two steps. First step evaluates efficiency of DMUs by using DEA, and an evaluated DMU selects benchmarking targets of HCU (Hypothesis Composit Unit) or RU (Real Unit) considering resource improvement preferences. Second step selects stepwise benchmarking targets of the inefficient DMU. To achieve this, this study developed a new DEA model, which can select a benchmarking target of an inefficient DMU in considering inputs or outputs improvement preference, and suggested an algorithm, which can select stepwise benchmarking targets of the inefficient DMU. Results: The proposed method was applied to 34 international ports for validation. In efficiency evaluation, five ports was evaluated as most efficient port, and the remaining 29 ports was evaluated as relative inefficient port. When port 34 was supposed as evaluated DMU, its can select its four stepwise benchmarking targets in assigning the preference weight to inputs (berth length, total area of pier, CFS, number of loading machine) as (0.82, 1.00, 0.41, 0.00). Conclusion: For the validation of the proposed method, it applied to the 34 major ports around the world and selected stepwise benchmarking targets for an inefficient port to improve its efficiency gradually. We can say that the proposed method enables for inefficient DMU to establish more effective and practical benchmarking strategy than the conventional DEA because it considers the resource (inputs or outputs) improvement preference in selecting benchmarking targets gradually.

An Analysis on the DEA Efficiency of Project Based on the Environment-friendly Agricultural Production (DEA를 이용한 친환경생산기반구축사업의 효율성 분석)

  • Yang, Sung-Bum
    • Korean Journal of Organic Agriculture
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    • v.24 no.3
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    • pp.337-353
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    • 2016
  • The objective of this study is to analyze the DEA efficiency of the environment-friendly agricultural districts and zones. There are political inefficiency in districts and zones with 45.3% and 85.0%. It mainly results from scale efficiency than pure technical efficiency. There are 10 efficient zones, while 34 decreasing return to scale ones. Meanwhile, districts mostly have increasing return to scale with 97.9%. The results of this study is meaningful to re-construct the project based on the environment-friendly agricultural production.

A Comparative Application of DEA in Venture Business of Electronic and Communication Industry (자료포괄분석에 의한 벤처기업의 경영성과 비교 -전자.통신업체를 중심으로-)

  • Jung Hee-Jin
    • Management & Information Systems Review
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    • v.5
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    • pp.81-101
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    • 2000
  • The purpose of this comparative study is to compare and evaluate venture business of electronic and communication industry by Data Envelopment Analysis(DEA). DEA is a linear programming-based technique that converts multiple input and output measures into a single comprehensive measures of productive efficiency. In this paper, the CCR model and trend analysis model are used to examine the efficiency of 18 venture business. Input variables are number of employees. raw-material costs and production capability and output variables are real production, sales revenues and net income after taxes. DEA approach broad information like as efficiency level of each Decision Making Unit(DMU), reference group of efficiency improvement and trends of efficiency shift. Finally, the correlation of input and output variables are examined to examine the relationship among variables.

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A Study on the Efficiency Measurement of Vehicles by DEA Method (DEA에 의한 자동차 효율성 비교분석에 관한 연구)

  • Jung, Kyung-Hee;Cho, Jai-Rip
    • Proceedings of the Safety Management and Science Conference
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    • 2008.11a
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    • pp.189-199
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    • 2008
  • It is good to use DEA method as it can measure the efficiency without depending on a specific function like cost function. The method also finds out the most efficient group among the sample groups and gives us a specific number. For example, it shows what kind of factor of inefficient group gives how much input and produces how much output. Originally DEA, which was developed by Charnes, Cooper and Rhodes, allows us not only to measure the relative efficiency of Decision Making Units(DMUs) of non-profit organizations whose success cannot be measured by a single bottom-line figure such as profit but also to integrate several variables, which have different measuring scale, into a single model. Therefore we can use physical scales and financial scales simultaneously in the same model without any transformation process. In this study, price and measurable performance indexes of vehicles are used as input and outputs respectively. The purpose of this study is to propose an effective approach for evaluating the relative efficiency of vehicles and to determine the vehicles have high performance efficiency compared to product cost.

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A Study on the Evaluation of Efficiency in the Korean Small and Medium sized Construction Firms (국내 중소건설업체의 효율성 평가에 관한 연구)

  • Kim, Hyuk;Yoo, Han-Joo;Song, Gwang-Suk
    • Journal of Korean Society for Quality Management
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    • v.38 no.3
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    • pp.463-474
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    • 2010
  • In this study, we evaluate the efficiency of Construction Industry using Data Envelopment Analysis(DEA). Since the Construction Industry has been traditionally operated through competition, it is important to measure the efficiency. In this paper, we empirically analyze the Efficiency of the 50 Korean Construction Industry. In detail, we used the scale of efficiency in order that efficiency cannot be affected by the total technical efficiency of each company and the scale of DMU by applying CCR or BBC model. Also, we analyzed the changes of measurement DEA model score. we adopted the basic DEA, RTS Region and MPSS(Most Productive Scale Size) method which are combined with efficiency measurement model in order to analyze the operational status. Furthermore, by complementing the shortfalls of the scale efficiency value of the DEA Model, RTS Region Model can be recommended to be appropriate in the evaluation of ideal input/output Quantity. In particular, input variables are total assets, construction capacity, the technical staff and output variables are sales volume, operating income. The result of RTS Region and MPSS shows that 9 DMUs of the efficiency frontier in the Construction Industry are analyzed to be relatively efficient DMUs, and 41 DMUs are analyzed to be inefficient DMUs, and finally inefficient DMUs are separated with Region 1 and Region 6.

A Study on the Technology Transfer Efficiency for Public Institutes Using DEA Model (DEA 모형을 이용한 공공연구기관의 기술이전 효율성 분석에 관한 연구)

  • Hyon, Man-Sok;Yoo, Wang-Jin
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.31 no.2
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    • pp.94-103
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    • 2008
  • This study measured technology transfer efficiency for public institutes. The study made use of DEA being one of the non-parametric linear programming to evaluate technology transfer efficiency for public institutes and to measure technology efficiency, pure technical efficiency and scale efficiency. The measurement of the technology transfer efficiency for public institutes was as follows: The cause of the technology transfer inefficiency was affected by pure technical inefficiency more than by scale inefficiency. Public institutes' RTS(Return To Scale) value varied depending upon the features of the organizations than the features of the regions. Public research institutes' RTS value is more effective than universities' RTS value. We compared the RTS group with the RTS of Projected DMU groups. The RTS group had constant returns to scale effect while the RTS of the Projected DMU had increasing returns to scale effect. The technology transfer efficiency of public institutes varied depending upon the features of the organizations and regions : The technology transfer efficiency of public institutes were as follows : public research institutes at the metropolitan area, public research institutes at the local areas, universities at the metropolitan area and universities at the local areas. In other words, the technology transfer efficiency was affected by organizational characteristics more than by regional characteristics at the place where public institutes were located.

Efficiency Evaluation of Defence Industry Firms by Utilizing DEA (DEA를 활용한 국내 방산업체 효율성 분석)

  • Choi, Jae-Ho;Lee, Yoon-Woo;Jang, Min-uk;Seo, Sang-Won
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.19 no.9
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    • pp.501-507
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    • 2018
  • Owing to the complexity and modernization of weapon systems, the role of the defense industry in producing military supplies has become increasingly important. In previous defense industries, price competitiveness was a key factor in the product choice. On the other hand, as exports of domestic military supplies are expanding rapidly based on superior quality, there is a need to evaluate objectively the efficiency of management in the domestic defense industry. In this study, the efficiency of management was measured using DEA, which is one of the decision methodologies. In addition, the number of employees (QA Employee) and R&D performance were set as input variables to utilize DEA, and the output variables were based on sales and operating profit. Based on the results of the analysis, a future study will measure the efficiency of the management of domestic defense industry to help guide a strategic development plan.

Efficiency Analysis of ASEAN Ports Using DEA & Shannon's Entropy (DEA결합모형을 활용한 아세안(ASEAN)지역 항만의 효율성 분석)

  • Park, Seonyoul;Kim, Sangyoul;Park, Ho
    • Journal of Korea Port Economic Association
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    • v.33 no.4
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    • pp.1-16
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    • 2017
  • The total container throughput of ASEAN is expected to increase continuously with economic development. However, ASEAN port infrastructure is insufficient to handle the increasing trade volume. According to the World Economic Forum, ASEAN ports except Singapore and Malaysia are ranked in low. Participation in ASEAN port development projects can lead an increase in trade efficiency with S. Korea by improving the port infrastructure of ASEAN countries. In addition, the S. Korean port-related industry can be energized through entering ASEAN port development projects. This study, which measures the efficiency of ASEAN ports, can be used as a basic guideline for the development and the planning of the ports. This study used Data Envelopment Analysis(DEA) and Shannon's Entropy model together to measure ASEAN ports' efficiency. After measuring each DEA (CCR, I-BCC, O-BCC, SBM) weight, the efficiency of ASEAN ports is measured as reflecting each DEA weight. As a result, the ports of Singapore and Malaysia, the major ports in the world, have the highest efficiency. Further, Vietnamese ports need to raise efficiency along with increasing container throughput. Leam Chabang (Thailand), Ho Chi Minh City (Vietnam), and Tanjung Priok (Indonesia) exhibit a negative correlation between container throughput and efficiency; therefore, the ports need to improve so as to maintain competitiveness. Lastly, Cambodia, Myanmar, and Brunei, which do not have active economic development, need to improve their ports for economic development.

Analyzing the Efficiency of National 6T R&D Projects by Two-stage Network DEA Approach (첨단산업기술(6T) 연구개발사업의 효율성 분석: 2단계 네트워크 DEA 접근의 적용)

  • Nam, Hyundong;Nam, Taewoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.44 no.3
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    • pp.248-261
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    • 2021
  • Scientific and technological performances (e.g., patents and publications) made through R&D play a pivotal role for national economic growth. National governments encourage academia-industry cooperation and thereby pursue continuous development of science technology and innovation. Increasing R&D-related investments and manpower are crucial for national industrial development, but evidence of poor performance in business performance, efficiency, and effectiveness has recently been found in Korea. This study evaluates performance efficiency of the 6T sector (Information Technology, Bio Technology, Nano Technology, Space Technology, Environment Technology, Culture Technology), which is considered a high-potential promising industry for the next generation growth and currently occupies two thirds of the national R&D projects. The study measures the relative efficiency of R&D in a comparative perspective by employing the Data Envelopment Analysis (DEA) method. The result reveals overall low efficiency in basic R&D (0.2112), applied R&D (0.2083), development R&D (0.2638), and others (0.0641), confirming that economic performance and efficiency were relatively poor compared to production efficiency. Efficient R&D needs policy makers to create strategies that can increase overall efficiency by improving productivity performance and quality while increasing economic performance.

Evaluation of Information Technology Impact on State-owned Commercial Banks' Efficiency: The Case of Bangladesh

  • BEGUM, Shakera;BATEN, Md. Azizul;ALI, Rahmat
    • Asian Journal of Business Environment
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    • v.12 no.1
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    • pp.1-9
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    • 2022
  • Purpose: This study measures the effect of Information Technology (IT) on both cost and profit efficiency of State-owned Commercial Banks (SOCBs) in Bangladesh. Research design, data and methodology: Yearly Non-IT and IT data are collected from the annual report of SOCBs of Bangladesh from 2008 to 2017. Variable Return to Scale (VRS) cost Data Envelopment Analysis (DEA) and Profit DEA are employed to measure the efficiency of SOCBs and Ordinary Least Square (OLS) is used to investigate the impacts of ICT components on operating cost and profit efficiency for SOCBs. Results: The average cost efficiency (74.4%) was noticed higher than the average profit efficiency (20.6%) for SOCBs. SOCBs were more affordable and less profitable for both cost and profit efficiency. Rupali bank was the most cost efficient while Sonali bank was the most profit efficient. IT Investment and IT personnel expenses were positively significant for cost efficiency. IT income, IT personnel, IT personnel expenses, ATM expenses, and Credit card expenses were negatively significant for profit efficiency. Conclusion: The further studies can combine DEA with machine learning algorithms to study the impact of IT on banks' performances. The results could aid government to remove the hindrance of progress in Bangladesh.