Introduction to Performance Measurement

Abstract

This book is on Data Envelopment Analysis (DEA). In its most traditional form DEA is one of the methods which we can use to assess the comparative efficiency of homogeneous operating units such as schools, hospitals, utility companies or sales outlets. In such contexts resources and/or environmental factors are converted into useful outcomes and DEA helps us to measure the comparative efficiency with which individual units carry out this transformation process. In less traditional contexts DEA can be used to choose from a set of competing multi-attribute alternatives such as selecting a most preferred site for locating some major facility or a sales outlet.