Data Envelopment Analysis Implementation in Producing the Projection of Inefficient IT Projects

The efficient utilization of input such as labor, raw material and capital is the main target for organization to produce output such as profit and revenue. The result of this practice will eliminate waste, increase output and increase organization's profit. In order to explore the utilization of input to produce better output, a set of data consists of 39 completed projects in an IT organization were analyzed using Data Envelopment Analysis. Through the projection of inefficient projects both in input and output orientation, it shows that the projects that are not efficient need to be compared with efficient projects to improve the efficiency score. This paper also suggests on the improvements of the inefficient projects by referring on both input and output orientation. It was concluded for an organization to improve their performance, they need to balance the input utilization with output produced.

[1]  Zijiang Yang,et al.  Linking commercial website functions to perceived usefulness: A free disposal hull approach , 2007, Math. Comput. Model..

[2]  William W. Cooper,et al.  Choosing weights from alternative optimal solutions of dual multiplier models in DEA , 2007, Eur. J. Oper. Res..

[3]  Nor Mazlina Abu Bakar,et al.  Evaluating Efficiency of Malaysian Banks Using Data Envelopment Analysis , 2009 .

[4]  Peter Welzel,et al.  Technology and Cost Efficiency in Universal Banking A “Thick Frontier”-Analysis of the German Banking Industry , 1998 .

[5]  Ku Ruhana Ku-Mahamud,et al.  An efficiency analysis of projects using DEA , 2011 .

[6]  Ku Ruhana Ku-Mahamud,et al.  Efficiency Measurement Model of Projects Using DEA , 2010, 2010 Second International Conference on Computational Intelligence, Modelling and Simulation.

[7]  R. Rosenman,et al.  Cost Inefficiency in Washington Hospitals: A Stochastic Frontier Approach Using Panel Data , 2001, Health care management science.

[8]  Rien Wagenvoort,et al.  The efficiency and the conduct of European banks: Developments after 1992 , 2004 .

[9]  Colin Thirtle,et al.  A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 19611992 , 2014 .

[10]  Mohamed M. Mostafa,et al.  Modeling the competitive market efficiency of Egyptian companies: A probabilistic neural network analysis , 2009, Expert Syst. Appl..

[11]  Antreas D. Athanassopoulos,et al.  Assessing the Comparative Efficiency of Higher Education Institutions in the UK by the Means of Data Envelopment Analysis , 1997 .

[12]  INONI O.E,et al.  ALLOCATIVE EFFICIENCY IN POND FISH PRODUCTION IN DELTA STATE, NIGERIA: A PRODUCTION FUNCTION APPROACH , 2008 .

[13]  Allen N. Berger,et al.  Bank efficiency derived from the profit function , 1993 .

[14]  Thomas R. Sexton,et al.  An Efficiency Analysis of U.S. Business Schools. , 2010 .

[15]  Emmanuel Thanassoulis,et al.  Applied data envelopment analysis , 1991 .

[16]  Ching-Fu Chen,et al.  Applying the stochastic frontier approach to measure hotel managerial efficiency in Taiwan , 2007 .

[17]  M. Dietsch,et al.  How the environment determines banking efficiency: A comparison between French and Spanish industries , 2000 .

[18]  Abraham Charnes,et al.  A developmental study of data envelopment analysis in measuring the efficiency of maintenance units in the U.S. air forces , 1984, Ann. Oper. Res..

[19]  Rowan Jones,et al.  Research in Governmental and Nonprofit Accounting , 1986 .

[20]  Fader Abdullah,et al.  A Journey To Triumph: The Making Of THRICE Project Using Oracle Technology , 2011 .

[21]  Emmanuel Thanassoulis,et al.  Relative Efficiency Assessments Using Data Envelopment Analysis: An Application to Data on Rates Departments , 1987 .

[22]  Mokhtar Abdullah,et al.  Evaluating public sector efficiency with data envelopment analysis (DEA): A case study in Road Transport Department, Selangor, Malaysia , 2000 .

[23]  Carlos Pestana Barros,et al.  Measuring performance in defense‐sector companies in a small NATO member country , 2004 .