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   Home  Frontier Analyst®  Books

Productivity Analysis in the Service Sector
with data envelopment analysis

Necmi K Avkiran at University of Queensland

Third edition, 2006 · 423 pages A4. ISBN 0-9580550-1-7 Price £48.95 (AUD$100)
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It has been three years since the publication of the popular 2nd edition. The 3rd edition has more than doubled in length by the addition of the new parts such as Using DEA with Confidence, Advanced Concepts of DEA, and Teaching DEA in Classroom. Growth of this book reflects the increasing acceptance of DEA in the workplace, the world of research, and the university courses. In short, the 21st century is shaping as the coming of age of productivity analysis in the service sector.

DEA is a technique that allows for measurement of relative efficiency of organisational units. Its main strength lies in its ability to capture the interplay among multiple inputs and outputs, a process that cannot be satisfactorily probed through traditional ratio analysis.

The main purpose of this book remains that of providing a friendly hands-on reference for productivity analysis using DEA. The book brings productivity analysis within reach of people who do not have expertise in operations research or managerial science but are keen to gain an insight to their organisations.

Book cover
(cover of third edition)

The book concentrates on the DEA theory needed by the end-users, key model design issues, correct interpretation of DEA results, and advanced concepts of current DEA research. Case studies cover such areas as banking, tertiary education, property management, hospitality, health care, socially responsible investments, public transportation, pension funds, health insurance, and others. The book illustrates measurement of technical, cost, revenue and profit efficiencies, and distinguishes between technical efficiency and technological change. The book also details stochastic DEA, research designs to account for the impact of the environment on productivity, context-dependent DEA, incorporating value judgements, and imprecise DEA. The last part of the book provides seminar slides, case studies, and assignments for teaching DEA in the classroom.

Those who will benefit from this book include managers, administrators, consultants, students and academics. Combined with its downloadable data, the book is equally suitable for DEA workshops. The 3rd edition benefits from contributions by Professors Cooper, Lovell, Zhu, Weyman-Jones, Liu, Park, Fethi, Tripe, Meng, Zhang, Morita, Paradi, Sarkis, Burley, and Meimand. The following is an extract from the foreword by Professor Tim Coelli:

“Overall, this is a very well set out book that should inspire readers to ‘jump in and
get their hands dirty’ in constructing DEA models relevant to the industries in which
they operate, allowing them to obtain a range of new insights so as to help them
better measure and analyse performance in their organisations.”

 

This book is available from Dr Avkiran direct (payment via AUD$ check only), or from Banxia Software's online web shop (credit cards accepted).


An Introduction to Data Envelopment Analysis:
A Tool for Performance Measurement

R Ramanathan at Sultan Qaboos University, Muscat

First edition, 2003 · 201 pages 14 x 21.5cm. ISBN: 0-7619-9761-X. Price: £14.99
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"This book is an excellent tool for practitioners who are interested in the merits and pitfalls of the technique. (The author's) research is an example of inventiveness, diligence and accuracy" - Freerk A. Lootsma, Delft Institute of Technology

Data envelopment Analysis is a Mathematical Programme for measuring performance efficiency of organizational units. The organizational units, termed as decision-making units (DMU) can be of any kind: manufacturing units, a set of schools, banks, hospitals, power plants, police stations, prisons, a set of firms etc.

Book cover

 

DEA has been successfully applied to measure the performance efficiency of these different kinds of DMUs which share a common characteristic - that they are non-profit organization where measurement of performance efficiency is difficult.

DEA has been employed for assessing the relative performance of a set of firms that use a variety of identical inputs-say in the case of a school: quality of students, teachers, grants etc.,-to produce a variety of identical outputs-number of students who pass the final year, average grades obtained by the students in the final year etc.

DEA assumes the performance of the DMUs by using the concepts of efficiency or productivity which is measured as the ratio of total outputs to total inputs. Also, the efficiencies estimated are relative to the best performing DMU or DMUs. The best performing DMU is given a score of 100% and the performance of other DMUs vary between 0 -100%.