Which of DEA or AHP can best be employed to measure efficiency of projects?

Marisa Analia Sánchez
DOI: https://doi.org/10.4995/ijpme.2015.3528

Abstract

This paper compares Analytic Hierarchy Process (AHP) and Data Envelopment Analysis (DEA) approaches for monitoring projects, in order to determine their performance in terms of economic, environmental and social organizational goals. This work is founded on an existing methodology to select and monitor projects based on DEA, and discusses modifications and additions arising from using AHP. The proposal is applied to a real case. The results indicate that AHP constitutes an insightful approach in situations requiring a modelling of managerial preferences regarding the relative importance of organizational goals.

Keywords

Analytic Hierarchy Process; Project Management; Sustainability; Data Envelopment Analysis

Full Text:

PDF

References

Azis, I. (1990). Analytic Hierarchy Process in the Benefit-Cost Framework: A Post-Evaluation of the Trans-Sumatra Highway project. European Journal of Operational Research, 48(1): 38-48. doi:10.1016/0377-2217(90)90059-K

Banker, R., Charnes, A., Cooper, W. (1984). Some models for estimating technical and scale inefficiencies in Data Envelopment Analysis. Management Science, 30(9): 1078-1092. doi:10.1287/mnsc.30.9.1078

Bible, M., Bivins, S. (2011). Mastering Project Portfolio Management. Fort Lauderdale: J. Ross Publishing, Inc.

Camanho, A., Dyson, R. (1999). Efficiency, size, benchmarks and targets for bank branches: an application of data envelopment analysis. Journal of the Operational Research Society, 50: 903-915. doi:10.1057/palgrave.jors.2600792

Chang, D., Yang, F. (2010). Data Envelopment Analysis with Two Distinct Objectives of Inputs or Outputs. In Proc. the 6th International Symposium on Management, Engineering and Informatics. International Institute of Informatics and Systemics, Florida, USA.

Charnes, A., Cooper, W., Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6): 429-444. doi:10.1016/0377-2217(78)90138-8

Cook, W., Seiford, L. (2009). Data Envelopment Analysis (DEA) -Thirty years on. European Journal of Operational Research, 192(1): 1-17. doi:10.1016/j.ejor.2008.01.032

Forman, E. S. (2001). Decision by Objectives - How to convince others that you are right. River Edge, New Jersey: World Scientific Publishing.

Joro, T., Viitala, E. (2004). Weight-restricted DEA in action: from expert opinions to mathematical models. Journal of the Operational Research Society, 55: 814-821. doi:10.1057/palgrave.jors.2601752

Kaplan, R., Norton, R. (2004). Strategy Maps. Converting Intangible Assets into Tangible Outcomes. Boston: Harvard Business School Press.

Kendrick, J., Saaty, D. (2007). Use Analytic Hierarchy Process for Project Selection. Six Sigma Forum Magazine, pp. 22-29.

Kumar, S. (2004). AHP- based formal system for R&D project evaluation. Journal of Scientific & Industrial Research, 63: 888-896.

Madlener, R., Antunes, C., Dias, L. (2009). Assessing the performance of biogas plants with multi-criteria and data envelopment analysis. European Journal of Operational Research, 197(3):1084-1094. doi:10.1016/j.ejor.2007.12.051

Mar, C. (2009). Specialization versus diversification: non-homogeneity in Data Envelopment Analysis. Proc. 3rd International Conference on Industrial Engineering and Industrial Management, Barcelona, Spain, pp. 1125-1133.

Porter, M., Kramer, M. (2011). Creating shared value. How to reinvent capitalism -and unleash a wave of innovation and growth. Harvard Business Review, 1-17.

Saaty, T. (1997). Toma de decisiones para líderes: El proceso analítico jerárquico. La toma de decisiones en un mundo complejo. Pittsburgh: RWS Publications.

Saaty, T., Ozdemir, M. (2003). Negative priorities in the Analytic Hierarchy Process. Mathematical and Computer Modelling, 37(9-10): 1063-1075. doi:10.1016/S0895-7177(03)00118-3

Sánchez, M. (2014). Integrating Sustainability Issues into Project Management. Journal of Cleaner Production, 96: 319-330. doi:10.1016/j.jclepro.2013.12.087.

Shimshak, D., Lenard, M., Klimberg, R. (2009). Incorporating quality into data envelopment analysis of nursing home performance: a case study. Omega, 37(3): 672-685. doi:10.1016/j.omega.2008.05.004

Yalabik, B., Fairchild, R. (2011). Customer, regulatory, and competitive pressure as drivers of environmental innovation. International Journal of Production Economics, 131(2): 519-527. doi:10.1016/j.ijpe.2011.01.020

Abstract Views

3338
Metrics Loading ...

Metrics powered by PLOS ALM


Bookmark and Share


This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives- 4.0 International License 

Universitat Politècnica de València

e-ISSN: 2340-4876     ISSN: 2340-5317   https://doi.org/10.4995/ijpme