'This book is an excellent tool for practitioners who are interested
in the merits and pitfalls of the technique.... (The author's) research
is an example of inventiveness, diligence and accuracy' - Freerk A. Lootsma, Delft Institute of Technology
Data
envelopment Analysis is a Mathematical Programme for measuring
performance efficiency of organizational units. The organizational
units, termed as decision-making units (DMU) can be of any kind:
manufacturing units, a set of schools, banks, hospitals, power plants,
police stations, prisons, a set of firms etc.
DEA has
been unsuccessfully applied to measure the performance efficiency of
these different kinds of DMUs which share a common characteristic - that
they are non-profit organization where measurement of performance
efficiency is difficult.
DEA has been employed for
assessing the relative performance of a set of firms that use a variety
of identical inputs-say in the case of a school: quality of students,
teachers, grants etc.,-to produce a variety of identical outputs-number
of students who pass the final year, average grades obtained by the
students in the final year etc.
DEA assumes the
performance of the DMUs by using the concepts of efficiency or
productivity which is measured as the ratio of total outputs to total
inputs. Also, the efficiencies estimated are relative to the best
performing DMU or DMUs. The best performing DMU is given a score of 100%
and the performance of other DMUs vary between 0 -100%.
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