Title: A model for the application of data envelopment analysis (DEA) in activity-based management (ABM)

Authors: S. Mota, J.H. Benzecry, R.Y. Qassim

Addresses: Department of Mechanical Engineering, School of Engineering, Federal University of Rio de Janeiro, CP 68503 - Ilha do Fundao, Rio de Janeiro, 21945-970, Brazil. Department of Mechanical Engineering, School of Engineering, Federal University of Rio de Janeiro, CP 68503 - Ilha do Fundao, Rio de Janeiro, 21945-970, Brazil. Department of Mechanical Engineering, School of Engineering, Federal University of Rio de Janeiro, CP 68503 - Ilha do Fundao, Rio de Janeiro, 21945-970, Brazil

Abstract: The objective of this work is to provide a quantitative model for activity-based management (ABM). The model developed is based on data envelopment analysis (DEA), an established operational research technique for productivity and efficiency determinations. Activity centres are considered as decision-making units (DMUs) whose efficiencies are determined by solution of the ABM/DEA model. ABM follows from activity-based costing (ABC) whereby ABC information is employed in improvement and cost reduction programmes. A real case study of an oilrig drill factory is used to illustrate the application of the model.

Keywords: activity-based costing; activity-based management; data envelopment analysis.

DOI: 10.1504/IJTM.1999.002749

International Journal of Technology Management, 1999 Vol.17 No.7/8, pp.861-868

Available online: 06 Jul 2003 *

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