Performance assessment of service operations using DEA and managerial judgement: a case study Online publication date: Fri, 01-Oct-2010
by Chwen Sheu, Chen-Lung Yang
International Journal of Internet and Enterprise Management (IJIEM), Vol. 6, No. 4, 2010
Abstract: Performance measurement of service operations has unique challenges compared with that in manufacturing operations. Using the insurance claims settlement as an example, this study discusses the complexity of conducting performance measurement for service operations. Data Envelope Analysis (DEA) is then applied to assess the relative efficiency of 14 regional offices of a US insurance company regarding its efficiency in settling insurance claims. Our research emphasis is on how a quantitative method like DEA could assist the existing measurement systems that rely heavily on managerial judgement. The results indicate that the combination of the two methods, quantitative and qualitative, produced a more reliable performance assessment. Accordingly, we discussed the value of using DEA for guiding the improvement efforts along with limitations of its use for assessing the performance of settlement operations. We concluded that DEA can and should complement but not replace the existing experience-based management evaluation.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Internet and Enterprise Management (IJIEM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook