scholarly journals Performances Management When Modelling Internal Structure of a Production Process

2020 ◽  
Vol 15 (7) ◽  
pp. 133
Author(s):  
Claudio Pinto
Keyword(s):  
Data Envelopment Analysis ◽  
Production Process ◽  
Performance Management ◽  
Internal Structure ◽  
Relative Efficiency ◽  
Data Envelopment ◽  
Method Performance ◽  
Decomposition Formula ◽  
New Strategy ◽  
Process Level

Performance management is a central point for both public and private organizations. In the data envelopment analysis (DEA) method, performance management takes the form of measuring relative efficiency. Furthermore, considering each organization and or production process as a black box,  inputs are transformed into outputs. In reality, production organizations or processes are composed of different parts that carry out different related activities. For this reason, modeling the internal structure of a production process like a system of interconnected parts makes it possible to measure its performance at the sub-process level. In this paper, we hypothesized a production process, made up of three interconnected parts. It is a new strategy to acquire relative efficiency consisting of building a block inside the system with at least two sub-processes. This step refers to a basic model of relational Network Data Envelopment Analysis (NDEA). Also, we used the additive decomposition formula to measure the efficiency of the whole process. We highlighted the differences in the measurement, between the direct application of the relational NDEA model and the measurement with the block approach model.We compared the cumulative empirical distribution functions of the efficiency scores of a sub-process with the decomposition formula multiplicative and our  approach. In conclusion, the paper proposes, a new strategy to measure the relative performances of a production process model as a network system of three subprocesses, which combines the NDEA and the DEA. This allows us to reevaluate, the indications of policy at the individual sub-process level (block). Moreover, it is a versatile approach which allows aggregation of the sub-processes in blocks, according to the particular policy requirements, legislative technological constraints, etc.

scholarly journals Operating efficiency assessment of commercial banks with Cooperative-Stackelberg hybrid two-stage DEA

2021 ◽  
Author(s):  
Jianfeng MA ◽  
Tianmingdi Zhao
Keyword(s):  
Data Envelopment Analysis ◽  
Production Process ◽  
Internal Structure ◽  
Production System ◽  
Commercial Banks ◽  
Commercial Banking ◽  
Operating Efficiency ◽  
Data Envelopment ◽  
Two Stage ◽  
Efficiency Assessment

The two-stage Data Envelopment Analysis (DEA) is widely applied to assess the efficiency of commercial banks in recent years. Even though this approach well simulates the sequence of bank’s production process, the independent operations within sub-stage are generally ignored, and the cooperative or non-cooperative relations between sub-stages are usually investigated separately. Commercial banking production system, however, has complex internal structure within which parallel and series structure can co-exist, and cooperative relations may concurrently occur with non-cooperative ones. In this paper, we develop a hybrid two-stage DEA to simultaneously consider the series-parallel internal structure and the cooperative-Stackelberg relations between sub-stages. The data of 19 Chinese listed commercial banks are used to show the abilities of the proposed models. This approach represents a powerful and flexible efficiency measurement implement that can be applied when the system in question has a complex internal structure in terms of both sub-systems features and sub-systems relations.

Relative Efficiency of Decision Making Units Producing Both Desirable and Undesirable Outputs: A Case of Textile Processing Units in Pakistan.

2011 ◽  
Vol 50 (4II) ◽  
pp. 685-698
Author(s):  
Samina Khalil
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Relative Efficiency ◽  
Value Added ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Textile Processing ◽  
Decision Making Unit ◽  
Desirable And Undesirable Outputs ◽  
Decision Making Units

This paper aims at measuring the relative efficiency of the most polluting industry in terms of water pollution in Pakistan. The textile processing is country‘s leading sub sector in textile manufacturing with regard to value added production, export, employment, and foreign exchange earnings. The data envelopment analysis technique is employed to estimate the relative efficiency of decision making units that uses several inputs to produce desirable and undesirable outputs. The efficiency scores of all manufacturing units exhibit the environmental consciousness of few producers is which may be due to state regulations to control pollution but overall the situation is far from satisfactory. Effective measures and instruments are still needed to check the rising pollution levels in water resources discharged by textile processing industry of the country. JEL classification: L67, Q53 Keywords: Data Envelopment Analysis (DEA), Decision Making Unit (DMU), Relative Efficiency, Undesirable Output

scholarly journals PENGUKURAN EFISIENSI AGROINDUSTRI PANGAN LOKAL ENBAL DENGAN PENDEKATAN DATA ENVELOPMENT ANALYSIS

2017 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Natelda R Timisela ◽  
Ester D Leatemia ◽  
Febby J Polnaya ◽  
Rachel Breemer
Keyword(s):  
Data Envelopment Analysis ◽  
Relative Efficiency ◽  
Production Cost ◽  
Efficiency Analysis ◽  
The Other ◽  
Data Envelopment ◽  
Sago Starch ◽  
Good Efficiency ◽  
Business Efficiency ◽  
Production Increase

The current research aimed to analyze the relative efficiency level of enbal (sago starch) agro-industries. The relative efficiency analysis on 32 DMUs of enbal agro-industries showed that 40,63% of the industries were efficient and 59.38% were inefficient. Every efficient DMU became the reference for the inefficient DMUs based on the suggested quality. Each DMU of the enbal agro-industries has not reached a good efficiency level, which was indicated by the average relative efficiency scale of 0.886. This was a relatively low value, and improvements on the use of production input were needed. The analysis result on the DMUs of the enbal agro-industries which were on constant return to scale position were 40,62%. This showed that enbal agro-industries actors have applied production input efficiently, for the production increase was equal to the use of input. In other words, the use of input was more proportional. The DMUs of enbal agro-industries which were on decreasing return to scale position were 15,63%. This showed that the use of production input had been unsuitable so that the output decreases and the production cost increased. Meanwhile, the DMUs that were on increasing return to scale position were 43,75%. This showed that the industry actors who used certain production input would create efficient DMUs. On the other hand, the input excess would possibly decrease the output. As a result, the industry actors should be concerned about the use of production input in order to establish business efficiency.

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