The number and type of resources saved by increasing the productivity of each DMU are measured by the Data Envelopment Analysis (DEA) technique. In this way, with the help of DEA, a tool can be created to compare the efficiency of departments or activities of companies or organizations. Units with low efficiency are identified, and such units’ ideal (practical) efficiency is also determined. The units with the highest efficiency are identified in this section (department, department, staff).
In the DEA, service units are compared according to the resources and the type of services they consume and produce. Recently, Data Envelopment Analysis (DEA) has been used to measure the effectiveness of “Not for Profit Organizations” such as government hospitals or “Non-Governmental Organizations.” In this way, the number of people employed (employed), profit (loss), capital (primary and in circulation) and the amount of production as input and the number of customers, the energy transferred, and product life as output Are used. For example, government regulators use the DEA to benchmark the performance standards of companies and industries. This process is experimental and the keywords may be updated as the learning algorithm improves.Data Envelopment Analysis (DEA) ApplicationsĪs mentioned, DEA can be used whenever performance comparisons are needed. These keywords were added by machine and not by the authors. With the capacity of Excel Solver, the DEAFrontier can deal with large sized performance evaluation tasks. The DEAFrontier does not set limit on the number of units, inputs or outputs.
Chapter 4 introduces a ready-to-use Excel Solver-based DEA software called DEAFrontier. In addition, chapter 5 describes a variety of models to adapt DEA for particular applications and circumstances to enable users to employ the most appropriate models for their organization.
The following chapter illustrates the power of DEA with multiple inputs and outputs. We have described the basic DEA model, the insights it provides in a simple example where similar insight could be gained from observation and where the linear programming calculations could easily be done without a computer.
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