CHAPTER 11

Process Benchmarking With Data Envelopment Analysis

Data envelopment analysis (DEA), introduced by Charnes, Cooper, and Rhodes (1978), is a linear programming method for calculating relative efficiencies of a set of organizations that possess some common functional elements but whose efficiency may vary due to internal differences. One main difference, for instance, might be the management style employed in each organization. In DEA, organizations are referred to as decision-making units (DMUs).

DEA has generated a fair amount of interest in the academic world and among practitioners because it has been applied successfully to assess the efficiency of various organizations in the public and private sectors. The popularity of the technique ...

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