DEA APPLICATION CHECKLIST
©Necmi K Avkiran 1999
I have drafted the following checklist that can be used by those interested in applying DEA:
- What is the decision-making unit to be studied? eg. bank branch, university department, hospital etc.
- How many of these homogenous units are there?
- What are the key business drivers (outputs) critical to success of these units?
- What are the key resources (inputs) that lead to key business drivers?
- Which of these inputs are controllable by management?
- Does the organisation collect data on the outputs and inputs in a regular and consistent manner?
- Is there a particular aspect of the units' productivity you wish to evaluate?
- Which of the units are reported as inefficient through data envelopment analysis?
- Do the units reported as inefficient appear to be consistently inefficient over time?
- Do inefficient units appear as efficient when examined under different methods? If so, establish why.
- Which unit is the global leader? ie. the best practice unit in the sample.
- What are the potential improvements for the inefficient units?
- Which efficient units form the reference set (peer group) for each of the inefficient units?
- How do the operations of the reference set units compare with that of inefficient units?