Title: Using the DEA in efficiency management in industry

Authors: Anatoliy G. Goncharuk

Addresses: Department of Management, Odessa National Polytechnic University, 1 Shevchenko av., 65044, Odessa, Ukraine

Abstract: The paper is devoted to application of non-parametric methods in management of efficiency at interindustry, intragroup and intraindustry levels. The procedure of carrying out the three-level analysis of efficiency in the industry, based on non-parametric method of data envelopment analysis (DEA), is offered here. This procedure provides the allocation of the basic distinctive characteristics of the efficient and inefficient firms, such as the size, regional location, institutional factors, etc., with the purpose of formulation of levers of efficiency management in the industry. The paper shows the results of empirical analysis of industry efficiency in Ukraine with application of the offered procedure. According to results of the analysis, there are conclusions containing the important information and recommendations, which should become the basis of managerial decisions directed to the increase of efficiency at various levels of industry management.

Keywords: industry efficiency; super-efficiency; data envelopment analysis; DEA; managerial decisions; efficiency management; Ukraine; decision making.

DOI: 10.1504/IJPQM.2007.012413

International Journal of Productivity and Quality Management, 2007 Vol.2 No.2, pp.241 - 262

Published online: 11 Feb 2007 *

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