Evaluating the comparative efficiency of the postal services in OECD countries using context-dependent and measure-specific data envelopment analysis

2015 ◽  
Vol 22 (5) ◽  
pp. 839-856 ◽  
Author(s):  
Süleyman Çakır ◽  
Selçuk Perçin ◽  
Hokey Min

Purpose – In an effort to help policy makers develop competitive postal service strategies, the purpose of this paper is to evaluate the comparative operating efficiencies of postal services across the Organization for Economic Cooperation and Development (OECD) nations and then identify room for service improvement. Design/methodology/approach – As a better alternative to the conventional data envelopment analysis (DEA) which requires the proportional improvements of inputs and outputs simultaneously, the authors propose the combined use of both context-dependent and measure-specific DEAs to measure the relative attractiveness and progress of the national postal operators of OECD countries. Findings – Defying the conventional notion that public enterprises operate less efficiently than private enterprises, the author discovered that some state-owned public enterprises such as postal service operators could still be efficient if managed properly. Even inefficient postal services operators could significantly improve their service performances, once they identified the root causes of their service failures. Through a series of model experiments and testing, the authors found that proposed context-dependent and measure-specific DEA models were more useful for finding such causes than the conventional DEA model. Practical implications – For public officials and policy makers, the proposed DEAs can pinpoint what it takes to become more efficient and what steps need to be taken to improve postal service operations gradually. Originality/value – This paper is the first to combine the context-dependent DEA with measure-specific DEA to evaluate the comparative efficiency (or progress) and inefficiency (or regress) of the national postal operators of 25 OECD countries.

Healthcare ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 189
Author(s):  
Chien-Wen Shen ◽  
Chin-Hsing Hsu ◽  
For-Wey Lung ◽  
Pham Thi Minh Ly

This study proposes the approach of context-dependent data envelopment analysis (DEA) to measure operating performance in halfway houses to enable suitable adjustments at the current economic scale. The proposed approach can be used to discriminate the performance of efficient halfway houses and provide more accurate DEA results related to the performance of all halfway houses in a region or a country. The relative attractiveness and progress were also evaluated, and individual halfway houses’ competitive advantage and potential competitors could be determined. A case study of 38 halfway houses in Taiwan was investigated by our proposed approach. Findings suggest that fifteen halfway houses belong to the medium level, which can be classified into a quadrant by examining both their attractiveness score and progress score. The results can be used to allocate community resources to improve the operational directions and develop incentives for halfway houses with attractive and progressive values, which can reduce the institutionalization and waste of medical resources caused by the long-term hospitalization of patients with mental illnesses. Our proposed approach can also provide references for operators and policy makers to improve the management, accreditation, and resource allocation of institutions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reza Kiani Mavi ◽  
Neda Kiani Mavi ◽  
Reza Farzipoor Saen ◽  
Mark Goh

PurposeDespite unanimity in the literature that eco-innovation (EI) leads to sustainable development, evidence remains limited on measuring EI efficiency with the Malmquist productivity index (MPI). In conventional data envelopment analysis (DEA) models, decision-making units (DMUs) are inclined to assign more favorable weights, even zero, to the inputs and outputs to maximize their own efficiency. This paper aims to overcome this shortcoming by developing a common set of weights (CSW). Design/methodology/approachUsing goal programming, this study develops a CSW model to evaluate the EI efficiency of the organization for economic co-operation and development (OECD) countries and track their changes with MPI during 2010–2018. FindingsAchieving a complete ranking of DMUs, findings show the higher discrimination power of the proposed CSW compared with the original DEA models. Furthermore, results reveal that Iceland, Latvia and Luxembourg are the only OECD countries that have incessantly improved their EI productivity (MPI > 1) from 2010 to 2018. On the other hand, Japan is the OECD country that has experienced the highest yearly EI efficiency during 2010–2018. This paper also found that Iceland has the highest MPI over 2010–2018. Practical implicationsMore investment in environmental research and development (R&D) projects instead of generic R&D enables OECD members to realize more opportunities for sustainable development through minimizing energy use and environmental pollution in any form of waste and greenhouse gas emissions. Originality/valueIn addition to developing a novel common weights model for DEA-MPI to measure and evaluate the EI of OECD countries, this paper develops a CSW model by including the undesirable outputs for EI analysis.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas O'Neal ◽  
Hokey Min ◽  
Daniel Cherobini ◽  
Seong-Jong Joo

PurposeThe authors employed the three different versions (Charnes–Cooper–Rhodes, Banker–Charnes–Cooper and slack-based measure of efficiency) of data envelopment analysis (DEA) to evaluate the comparative efficiency/inefficiency of aircraft maintenance performance during the previous 41 months in United States Air Force (USAF). As a complimentary tool, the authors also adopted Tobit regression analysis to identify factors affecting efficiencies and inefficiencies.Design/methodology/approachThis paper aims to measure the relative efficiency of maintenance performances for a type of USAF aircraft in an effort to enhance aviation safety and combat readiness.FindingsThrough this study, the authors have two noteworthy findings. These are (1) an increased number of “cannibalization” (extracting necessary parts from the existing aircraft) practices tended to reduce maintenance efficiency; (2) The number of mission-capable aircraft turned out to be the most important factor for maintenance performance efficiency.Originality/valueThis paper is one of the first studies on aircraft maintenance that considered popular but neglected cannibalization practices as a new variable for assessing the maintenance efficiency. In addition, this paper is one of the few studies that performed a post-ad hoc analysis as a follow-up to DEA analysis.


2020 ◽  
Vol 15 (3) ◽  
pp. 1017-1036
Author(s):  
Bao Zhang ◽  
Chenpeng Feng ◽  
Min Yang ◽  
Jianhui Xie ◽  
Ya Chen

Purpose The purpose of this paper is to evaluate design performance of 51 gear shaping machines by using data envelopment analysis (DEA). Design/methodology/approach Existing studies extend traditional DEA by handling bounded and discrete data based on envelopment models. However, value judgment is usually neglected and fail to be incorporated in these envelopment models. In many cases, there is a need for prior preferences. Using existing DEA approaches as a backdrop, the current paper presents a methodology for incorporating assurance region (AR) restrictions into DEA with bounded and discrete data, i.e. the assurance region bounded discrete (AR-BD) DEA model. Then, the AR-BD DEA model is combined with a context-dependent DEA to obtain an efficiency stratification. Findings The authors examine different AR restrictions and calculate efficiency scores of five scenarios of AR restrictions by using the proposed AR-BD DEA model. It shows that AR restrictions have a great impact on the efficiency scores. The authors also identify nine efficient frontiers in total. For each decision-making unit, it could set benchmarks and improve its performance based on each higher efficient frontier. Originality/value This paper first evaluates efficiency of gear shaping machines by considering different (bounded and discrete) variable types of data and including AR restrictions. The AR-BD DEA model and context-dependent AR-BD DEA model proposed in this paper further enrich the DEA theory. The findings in this paper certainly provide useful information for both producers and consumers to make smart decisions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mustafa İsa Doğan ◽  
Volkan Soner Özsoy ◽  
H. Hasan Örkcü

Purpose The Covid-19 pandemic spread rapidly around the world and required strict restriction plans and policies. In most countries around the world, the outbreak of the disease has been serious and has greatly affected the health system and the economy. The factors such as the number of patients with chronic diseases, the number of people over 65 years old, hospital facilities, the number of confirmed Covid-19 cases, the recovering Covid-19 cases and the number of deaths affect the rate of spread of Covid-19. This study aims to evaluate the performances of 21 Organisation for Economic Co-operation and Development (OECD) countries against the Covid-19 outbreak using three data envelopment analysis (DEA) models. Design/methodology/approach In this study, the performance of 21 OECD countries to manage the Covid-19 process has been analysed weekly via DEA which is widely used in various practical problems and provides a general framework for efficiency evaluation problems using the inputs and outputs of decision-making units. Findings The analysis showed that 11 countries out of 21 countries were efficient for selected weeks. According to the DEA results from the 20-week review (09 April 2020–20 August 2020), information about the course of the epidemic prevention and the normalization process for any country can be obtained. Originality/value In this study, due to the problem of the discrimination power of DEA, the cross-efficiency model and the super-efficiency model also used. In addition, the output-oriented model was preferred in this study for Covid-19 management efficiency.


2014 ◽  
Vol 2014 ◽  
pp. 1-12 ◽  
Author(s):  
Xishuang Han ◽  
Xiaolong Xue ◽  
Jiaoju Ge ◽  
Hengqin Wu ◽  
Chang Su

Data envelopment analysis can be applied to measure the productivity of multiple input and output decision-making units. In addition, the data envelopment analysis-based Malmquist productivity index can be used as a tool for measuring the productivity change during different time periods. In this paper, we use an input-oriented model to measure the energy consumption productivity change from 1999 to 2008 of fourteen industry sectors in China as decision-making units. The results show that there are only four sectors that experienced effective energy consumption throughout the whole reference period. It also shows that these sectors always lie on the efficiency frontier of energy consumption as benchmarks. The other ten sectors experienced inefficiency in some two-year time periods and the productivity changes were not steady. The data envelopment analysis-based Malmquist productivity index provides a good way to measure the energy consumption and can give China's policy makers the information to promote their strategy of sustainable development.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dyanne Brendalyn Mirasol-Cavero ◽  
Lanndon Ocampo

Purpose University department efficiency evaluation is a performance assessment on how departments use their resources to attain their goals. The most widely used tool in measuring the efficiency of academic departments in data envelopment analysis (DEA) deals with crisp data, which may be, often, imprecise, vague, missing or predicted. Current literature offers various approaches to addressing these uncertainties by introducing fuzzy set theory within the basic DEA framework. However, current fuzzy DEA approaches fail to handle missing data, particularly in output values, which are prevalent in real-life evaluation. Thus, this study aims to augment these limitations by offering a fuzzy DEA variation. Design/methodology/approach This paper proposes a more flexible approach by introducing the fuzzy preference programming – DEA (FPP-DEA), where the outputs are expressed as fuzzy numbers and the inputs are conveyed in their actual crisp values. A case study in one of the top higher education institutions in the Philippines was conducted to elucidate the proposed FPP-DEA with fuzzy outputs. Findings Due to its high discriminating power, the proposed model is more constricted in reporting the efficiency scores such that there are lesser reported efficient departments. Although the proposed model can still calculate efficiency no matter how much missing and unavailable, and uncertain data, more comprehensive data accessibility would return an accurate and precise efficiency score. Originality/value This study offers a fuzzy DEA formulation via FPP, which can handle missing, unavailable and imprecise data for output values.


2019 ◽  
Vol 14 (2) ◽  
pp. 362-378 ◽  
Author(s):  
Vikas Vikas ◽  
Rohit Bansal

Purpose Data envelopment analysis (DEA), a non-parametric technique is used to assess the efficiency of decision-making units which are producing identical set of outputs using identical set of inputs. The purpose of this paper is to find the technical efficiency (TE), pure technical efficiency and scale efficiency (SE) levels of Indian oil and gas sector companies and to provide benchmark targets to the inefficient companies in order to achieve efficiency level. Design/methodology/approach In the present study, a group of 22 oil and gas companies which are listed on the National Stock Exchange for which the data were available for the period 2013–2017 has been considered. DEA has been performed to compare the efficiency levels of all companies. To measure efficiency, three input variables, namely, combined materials consumed and manufacturing expenses, employee benefit expenses and capital investment and two output variables – operating revenues and profit after tax (PAT) have been considered. On the basis of performance for the financial year ending 2017, benchmark targets based on DEA–CCR (Charnes, Cooper and Rhodes) model have been provided to the inefficient companies that should be focused upon by them to attain the efficiency level. The performance of the companies for the past five years has been examined to check the fluctuations in the various efficiency scores of the companies considered in the study over the years. Findings From the results obtained, it is observed that 59 percent, i.e. 13 out of 22 companies are technically efficient. By considering DEA BCC (Banker, Charnes and Cooper) model, 16 companies are observed to be pure technically efficient. In terms of SE, there are 14 such companies. The inefficient units need to improve in terms of input and output variables and for this motive, specified targets are assigned to them. Some of these companies need to upgrade significantly and the managers must take the concern earnestly. The study has also thrown light on the performance of the companies over last five years which shows Oil India Ltd, Gujarat State Petronet Ltd, Petronet LNG Ltd, IGL Ltd, Mahanagar Gas, Chennai Petroleum Corporation Ltd and BPCL Ltd as consistently efficient companies. Research limitations/implications The present study has made an attempt to evaluate the efficiency of Indian oil and gas sector. The results of the study have significant inferences for the policy makers and managers of the companies operating in the sector. The results of the study provide benchmark target level to the companies of Oil and Gas sector which can help the managers of the relatively less efficient companies to focus on the ways to improve efficiency. The improvement in efficiency of a company would not only benefit the shareholders, but also the investors and other stakeholders of the company. Originality/value In the context of Indian economy, very limited number of studies have focused to measure the efficiency of oil and gas sector in the context of Indian economy. The present study aims to provide the latest insight to the efficiency of the companies especially operating in the Indian oil and gas sector. Further, as per our knowledge, this study is distinctive in terms of analyzing the efficiency of Indian oil and gas sector for a period of five years. The longitudinal study of the sector efficiency provides a bird eye view of the average efficiency level and changes in the efficiency levels of the companies over the years.


2015 ◽  
Vol 22 (4) ◽  
pp. 588-609 ◽  
Author(s):  
Andreas Wibowo ◽  
Hans Wilhelm Alfen

Purpose – The purpose of this paper is to present a yardstick efficiency comparison of 269 Indonesian municipal water utilities (MWUs) and measures the impact of exogenous environmental variables on efficiency scores. Design/methodology/approach – Two-stage Stackelberg leader-follower data envelopment analysis (DEA) and artificial neural networks (ANN) were employed. Findings – Given that serviceability was treated as the leader and profitability as the follower, the first and second stage DEA scores were 55 and 32 percent (0 percent = totally inefficient, 100 percent = perfectly efficient), respectively. This indicates sizeable opportunities for improvement, with 39 percent of the total sample facing serious problems in both first- and second-stage efficiencies. When profitability instead leads serviceability, this results in more decreased efficiency. The size of the population served was the most important exogenous environmental variable affecting DEA efficiency scores in both the first and second stages. Research limitations/implications – The present study was limited by the overly restrictive assumption that all MWUs operate at a constant-return-to-scale. Practical implications – These research findings will enable better management of the MWUs in question, allowing their current level of performance to be objectively compared with that of their peers, both in terms of scale and area of operation. These findings will also help the government prioritize assistance measures for MWUs that are suffering from acute performance gaps, and to devise a strategic national plan to revitalize Indonesia’s water sector. Originality/value – This paper enriches the body of knowledge by filling in knowledge gaps relating to benchmarking in Indonesia’s water industry, as well as in the application of ensemble two-stage DEA and ANN, which are still rare in the literature.


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