Using data envelopment analysis in efficiency management in industry

Using data envelopment analysis in efficiency management in industry

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Article ID: iaor20073149
Country: United Kingdom
Volume: 2
Issue: 2
Start Page Number: 241
End Page Number: 262
Publication Date: Feb 2007
Journal: International Journal of Productivity and Quality Management
Authors:
Keywords: management, performance, quality & reliability
Abstract:

The paper is devoted to application of non-parametric methods in management of efficiency at interindustry, intragroup and intraindustry levels. The procedure of carrying out the three-level analysis of efficiency in the industry, based on non-parametric method of data envelopment analysis (DEA), is offered here. This procedure provides the allocation of the basic distinctive characteristics of the efficient and inefficient firms, such as the size, regional location, institutional factors, etc., with the purpose of formulation of levers of efficiency management in the industry. The paper shows the results of empirical analysis of industry efficiency in Ukraine with application of the offered procedure. According to results of the analysis, there are conclusions containing the important information and recommendations, which should become the basis of managerial decisions directed to the increase of efficiency at various levels of industry management.

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