What is it about?
In this study, we used a two-stage Data Envelopment Analysis (DEA) to help understand operating efficiency differences within a large, multi-district water utility. A bootstrap technique using confidence intervals was implemented to overcome the deterministic nature of conventional DEA, and a number of exogenous variables were incorporated to help identify the factors affecting technical efficiency. The findings of this study are expected to be useful for guiding subsequent managerial improvement initiatives.
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Why is it important?
Methodologies/technologies such as this can be used to more rationally and effectively identify and tackle performance discrepancies observed within organizations, particularly when there are multiple operating units or centers in-play. It also provides an analytical base for prioritizing improvement efforts.
Perspectives
Writing this article really illuminated the power of analysis and computing within the context of large operational datasets, ultimately finding/leading to some conclusions and focused outcomes that would have been difficult to identify through other means of analysis (I suspect).
Jonathan Keck
Exelon Corporation
Read the Original
This page is a summary of: Measuring water utility performance using nonparametric linear programming, Civil Engineering and Environmental Systems, October 2017, Taylor & Francis,
DOI: 10.1080/10286608.2018.1425403.
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