Data Envelopment Analysis (DEA) Applications
As mentioned, DEA can be used whenever performance comparisons are needed. For example, government regulators use the DEA to benchmark the performance standards of companies and industries. In this way, the number of people employed (employed), profit (loss), capital (primary and in circulation) and the amount of production as input and the number of customers, the energy transferred, and product life as output Are used. Recently, Data Envelopment Analysis (DEA) has been used to measure the effectiveness of “Not for Profit Organizations” such as government hospitals or “Non-Governmental Organizations.”
In the DEA, service units are compared according to the resources and the type of services they consume and produce. The units with the highest efficiency are identified in this section (department, department, staff). Units with low efficiency are identified, and such units’ ideal (practical) efficiency is also determined. In this way, with the help of DEA, a tool can be created to compare the efficiency of departments or activities of companies or organizations.
The number and type of resources saved by increasing the productivity of each DMU are measured by the Data Envelopment Analysis (DEA) technique. In this way, inefficient units are encouraged to be efficient or improve their productivity through policies.
Because the inefficiency of low-productivity units is measured, management can optimize their financial savings by optimizing them. Even with the help of DEA, administrators can activate efficient DMUs and improve their productivity without adding input (new resources).
By receiving information about the efficiency of the manufacturing and service sectors, management can increase its capabilities, especially in decision-making, and lead the organization to excellence.