Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

IME 421 DEA Project

No description
by

Nicole Bordwell

on 13 June 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of IME 421 DEA Project


1. Definition
2. Background
3. Advantages
4. Examples
5. Future of DEA
Input Folder
Output Folder
Data Envelopment Analysis
Nicole Bordwell
Erik Brodnick
Eric Penningroth
Scott Solomon

DEA is most valuable in complex situations where there are multiple inputs and outputs which cannot be readily analyzed with other techniques, such as ratios, and where the number of DMUs being evaluated is so numerous that management cannot afford to evaluate each unit in depth.


For example, when comparing banks, each bank
has a certain number of tellers, a certain square
footage of space, and a certain number of
managers. These would be the DMU inputs. The
outputs for each bank may include the
number of personal transactions or business transactions processed in a given business day.
A management tool that compares RELATIVE efficiencies between similar producers from a homogenous group.
Utilizes linear programming- based methodology
All DMUs have the potential to operate as efficiently as the most capable DMU.
DMUs can be combined to form composite "virtual" producers
Graphical Representation
What could DEA be used for in industry?
Advantages of DEA
Data Envelopment Analysis
Before diving deeper into DEA, we must first define efficiency
Efficiency = Outputs / Inputs
In DEA, the subjects of
interest being compared
are referred to as Decision
Making Units (DMUs)
- Management tool to measure and identify employee performance
- To identify ways to improve efficiency of non-top performers
By:
Time for Lunch Break
The
End!
DEA Projects
DEA in the Electricity Sector

Inputs: Man-hours, goods, capital, services, losses
Outputs: Energy delivered, customers, length of lines

DEA in Hospitals
Used to determine electricity rates
Inputs:Total salaries for doctors, total salaries for nurses
Outputs: In/outpatients, bed productivity, average turnover interval
Assumptions
Origins of DEA
Introduced in its present form in 1978, DEA was first used as a microeconomic tool to establish empirical relationships between inputs and outputs in the production industry. Since its conception, DEA is now commonly used to evaluate relative efficiencies for a broad range of industries including the service and entertainment industries.
Intersection
Frontier
Full transcript