Productivity measurement using DEA and Malmiquest index

• Main Authors: Alireza Khosravi, Sayed Ismail Najafi, Saeed Rafiei
• Format: Article
• Language: English
• Published: Growing Science 2015-07-01
• Series: Management Science Letters
• Subjects: Performance assessment; Productivity index; Malmquist; DEA
• Online Access: http://www.growingscience.com/msl/Vol5/msl_2015_62.pdf
• ISSN: 1923-2934; 1923-9343

Performance measurement is one of the primary tasks in every organization and it helps organization setup appropriate targets for future. There are several ways to assess the performance of the organization, and data envelopment analysis (DEA) is one of the most important methods. DEA is an appropriate technique to measure the efficiency of decision-making units, but does not provide complete information about the unit's productivity. Malmquist productivity index is one of the methods for measuring productivity and the main advantage of this index is the possibility of the productivity changes over time. In this study, DEA is used to measure service performance and economic foundation so that the performance of four companies within a 3-month period were evaluated. In this work, the cost of the system and investment were used as inputs, revenue and profit were considered as the output and constant returns to scale (CCR) was used to analyze the system, which yields 0.9 for all units when all input/output data were considered in crisp form. The efficacy of different units using interval data also showed different productivity compared with the crisp model. The productivity measures of the companies in three-month period were studied using the Malmquist based productivity index and the results were analyzed.