• Title/Summary/Keyword: CCR/BCC Model

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Relative Efficiency and Productivity Change of the Korean Non-Life Insurance Firms (국내 손해보험회사의 상대적 효율성 및 생산성 변화)

  • Kang, Ho-Jung
    • The Journal of the Korea Contents Association
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    • v.9 no.5
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    • pp.224-229
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    • 2009
  • This study measures the relative efficiency and productivity change of the Korean Non-Life Insurance Firms using DEA model and Malmquist Index for 2004-2007. The main results of this study can by summarized as follows. First, in case of efficiency of CCR for 2004-2007, the number of efficient firms(CCR value is one) are one firm, one firm, one firm, one firm respectively. Second, in case of efficiency of BCC for 2004-2007, the number of efficient firms(BCC value is one) are five firms, five firms, six firms, six firms respectively. Third, In case of return to scale for 2004-2007, DRS are five firms, DRS are five firms, DRS are six firms, DRS are six firms respectively, Fourth, Malmquist Index representing productivity change for 2004-2007 are 0.99 in 2004-2005, 1.04 in 2005-2006, 1.06 in 2006-2007.

A Study on Measuring Hospital Efficiency and Analyzing Its Determinants in Tertiary Hospitals: Data Envelopment Analysis (3차병원의 생산 효율성 측정 및 결정요인 분석)

  • Yang, Dong-Hyun;Suh, Won-Sik;Park, Kwang-Hoon
    • Korea Journal of Hospital Management
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    • v.2 no.1
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    • pp.183-202
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    • 1997
  • Health care organizations have been faced with financial difficulties under turbulent health care environment. This situation led hospitals to concentrate their efforts to improve their managerial efficiency in various ways. This study aims to evaluate technical efficiency of 31 tertiary hospitals in Korea and find determinants which are closely related with hospital efficiency. Data envelopment analysis(DEA) and Tobit Model were adopted for study. For the analysis, human resource factors such as number of physicians, nurses, and administrative staffs are used as input variables and the number of inpatients and outpatients) are used as output variables. Among 31 hospitals, in CCR model, 8 hositals showed efficiency score 1 which means they have been operated in very efficient ways and BCC model showed 13 of 31 hospitals as efficient organizations. Next, we analyzed determinants which are closely related with hospital efficiency. By using Tobit model, the study showed hospital size, Quality of care, value added per capita, and revenue per patient were closely related with hospital efficiency, However, it appeared that financial status of hospitals(i.e : making profit or not) was not related with hospital efficiency.

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A Comparative Study on the Efficiency of Service Quality Management System : Focused on the SQI of City and Provincial Office (서비스 품질경영시스템의 효율성 비교분석에 관한 연구 : 시청과 도청의 서비스품질 만족도지수를 중심으로)

  • Yoo, Han-Joo;Song, Gwang-Suk
    • Journal of Korean Society for Quality Management
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    • v.35 no.3
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    • pp.21-36
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    • 2007
  • This article is to analyze the service efficiency of public sector using Data Envelopment Analysis(DEA). We tried to measure the public service quality and overall satisfaction by using several DEA models, degree of combination and top2box which is a little bit different methodology from traditional ones. We used CCR, Super-efficiency and Slack based measure(SBM) model in DEA to measure public service efficiency of the 16 public institutions(7 City Halls and 9 Provincial offices). Since the traditional method based on the measurement model(CCR, BCC) has the fundamental problems without taking account of the existence of slacks inputs and outputs in several efficient units, we suggest to measure the exact amount of efficiency and inefficiency of the public sector and rank analysis many efficient units exactly through the slacks-based measure model(SBM)

Management Efficiency of Korean Information and Communication Enterprise (국내 정보통신업의 경영효율성에 관한 연구)

  • Kim, Jong-Ki;Kang, Da-Yeon
    • Proceedings of the Korea Database Society Conference
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    • 2008.05a
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    • pp.321-338
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    • 2008
  • Information and communication industry, which shows rapid growth rate, is now leading the global economic growth, contributing a ripple effect on general business and economic structure. It is said that information and communication industry enables swift economic growth taking a role as a basic industry of information-oriented society. Especially, rapid technical innovation promotes mutual growth of other related industries and it is technology-intensive. The purpose of this research is to analyze the management efficiency of information and communication industry using DEA method, and finally suggest numerical value for inefficient organizations to improve their efficiency. CCR-I, BCC-I efficiency and RTS(Returns to scale) of 29 companies engaged in information and communication industry was evaluated. With the results, I suggested model companies for benchmarking in information and communication industry. To summarize, 7 companies were selected with CCR-I efficiency rate 1, and 12 companies with BCC-I efficiency rate 1. RTS was finalized with 8 IRS companies, 10 DRS companies, and 11 CRS companies.

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Analyzing the Technical Efficiency of Korean Engineering and Construction Firms after the Financial Crisis (외환위기 이후 국내건설회사의 효율성 분석)

  • Kim, Kon-Shik
    • Korean Journal of Construction Engineering and Management
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    • v.6 no.1 s.23
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    • pp.151-161
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    • 2005
  • This paper analyzes the technical efficiencies of 38 Korean engineering and construction firms and the efficiency changes from 1999 to 2003 using data envelopment analysis (DEA). Best practice firms in terms of technical efficiency and profit are identified. For inefficient firms, performance targets to be efficient are suggested. Technical efficiencies had been increased over the five year period, and the efficiency difference between firms had been reduced during this period. The differences in efficiency due to the differences in cooperate governance structures are statistically significant. In addition, the technical efficiency is correlated with product portfolios, degree of subcontract, rates of value added, returns on invested capital, and EBITDA.

A Study on the Measurement of Service Efficiency using DEA - Focused on the SQI of Five Domestic Banks in Korea - (DEA를 이용한 서비스효율성 측정에 관한 연구 - 국내 5개 시중은행의 서비스품질지수를 중심으로 -)

  • Kim, Jin-Wang;Yoo, Han-Joo;Song, Gwang-Suk
    • Journal of Korean Society for Quality Management
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    • v.37 no.1
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    • pp.80-90
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    • 2009
  • Nowadays, there are many companies which employ the SQI measurement to assess service quality. The purpose of this study is to measure the service efficiency for Bank Industry. In this paper, we tried to measure the efficiency of service quality and overall customer satisfaction by using Data Envelopment Analysis(DEA). Rather than using the usual method of converting the Service Quality Index(SQI) into mean value, we applied CCR/BCC models in DEA to service quality efficiency. Also, DEA/PS Model is recommended as appropriate model for evaluating service efficiency by complementing the shortfalls of the weighted value of DEA Model. In this study, six dimensions of service quality were considered as input variables and output variables(overall customer satisfaction, reusing intention, and word of mouth). The result of this study statistically verifies that 5 DMUs are relatively efficient, and intensive activities for service efficiency are needed for 20 sample branches. Managerial implications based on the analysis were suggested.

Efficiency Analysis for TV Home Shopping Companies Using DEA(Data Envelopment Analysis) (DEA 모형을 이용한 TV홈쇼핑기업의 상대적 효율성 연구)

  • Kim, Soon-Hong;Ahn, Young-Hyo;Oh, Seung-Chul
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.5-15
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    • 2014
  • Purpose - The method of TV home shopping is a kind of retail method that provides the viewer with information about products and, further, sells the products to consumers through the media of television. The domestic home-shopping industry has been expanding since 1995, and there are six companies in this arena as of 2012. In this study, we evaluate the management efficiency of TV home-shopping companies and provide suggestions for improving efficiency, using the DEA (data envelopment analysis) model. Hence, we expect to contribute to the progress of the companies' efficiency and the development of the TV home-shopping industry, where deepening competition is inevitable because it is experiencing the maturing market stage in its life cycle. Research design, data, and methodology - Efficiency is the ratio of the quantity of input to the quantity of output of a product or service. It is necessary to estimate aggregate inputs and aggregate outputs, which are calculated by applying a weighting to a number of input and output factors, to measure the efficiency. The DEA model is divided into the CCR model and the BCC model. The CCR model is a basic model that assumed constant returns to scale (CRS), and the BCC model extends the CCR model to accommodate technologies exhibiting variable returns to scale (VRS), and concerns only the technical efficiency without considering the efficiency of returns to scale. In this study, we consider six companies each year from 2008 to 2012 as a DMU (Decision Making Unit) and analyze the differences in efficiency for each company in each year. Furthermore, we evaluate the operating characteristics of TV home-shopping companies, using three models, in accordance with the overall performance, profitability, and marketability of the business. Results - The result of the analysis, using DEA models, shows that Hyundai Home Shopping (2009, 2010, 2011), GS Home Shopping (2011), NS Home Shopping (2011) and CJ O Shopping (2012) possess MPSS (most productive scale size), with a score 1.0 in CCR, BCC, and scale efficiency. Particularly, Hyundai Home Shopping is shown to be the most efficient in terms of overall business performance, marketability, and profitability. The overall efficiency of the home shopping industry has displayed an increasing trend since 2008, even though it decreased marginally in 2012; further, we can observe that home shopping companies operate with increasing efficiency with the passage of time. Conclusions - Home shopping companies have focused on market expansion rather than profits, as they displayed better efficiency in marketability than increase in profitability during the period 2008-2012. In addition, the main reason for the increased efficiency in the home shopping industry is the market expansion through the revenue increase of each home shopping company. This study can be used as a reference when home shopping companies attempt to devise future strategies, as it suggests efficiency benchmarks and development levels for each home shopping company.

A Study on Evaluating the Efficiency of the Photonics Industry in Gwangju Using a DEA Model (DEA 모형을 활용한 광주 광산업체 효율성 평가에 관한 연구)

  • Cho, Geon;Jung, Kyung-Ho
    • Journal of Korean Society for Quality Management
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    • v.39 no.2
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    • pp.244-255
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    • 2011
  • In this study, we try to evaluate the efficiency of the photonics industry using a data envelopment analysis(DEA) model. We first develope four stage procedures for selecting proper input and output variables which consist of selecting the first candidate variables from literature survey, selecting the second candidate variables through experts' discussion, measuring the partial efficiency of the selected variables based on Tofallis' profiling, and clustering some variables through the rank correlation analysis of partial efficiency proposed by Min and Kim(l998). With this procedure, we select 4 input variables(capital, number of employee, R&D cost, operating cost) and 2 output variables(sales, growth of sales) and then utilize CCR and BCC model to measure efficiencies of 26 photonics companies in Gwangju. Moreover, we perform the reference group analysis to figure out what causes inefficiencies and to provide the desirable values for input and output variables at which inefficient photonics companies become efficient. Finally, we classify 26 photonics companies into three groups such as optical communications, optical applications, and optical sources, and perform the Kruskal-Wallis test to check if there exist some differences between efficiencies of three groups.

Analysis of Efficiency of Cropping System for Substitute Crops - Focus on Farms with Cropping Systems for Soybeans + Barley - (논타작물 작부체계의 효율성 분석 - 콩+보리 작부체계 농가를 중심으로 -)

  • Um, Ji-bum;Yu, Chan-ju
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.21 no.2
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    • pp.145-150
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    • 2020
  • The provision of information on the profitability and efficiency during the transition from growing rice to substitute crops is an essential task for the proliferation and settlement of the production adjustment system. First, the profitability of the soybean + barley cropping system was analyzed. The average income of the farms with the soybean + barley cropping system surveyed was 868,000 Won, with an income proportion of 55.1%. With earned income that is approximately 1.7 times higher than that of growing only rice, it is determined to be more profitable. Then, the efficiency of the farms was analyzed through DEA analysis. The efficiencies of the farms were found to include the CCR model (0.927815) and the BCC model (0.97544). It was also found that there are 10 CCR and 14 BCC results with an efficiency value of 1. With an efficiency value of more than 0.9 on average, it can be deemed as efficient management in general. In addition, by presenting a proposal for the improvement of inefficient farms, the target value was provided in order for inefficient farms to become efficient farms.

The Cost Efficiency Analysis of JeollaNamdo Food Industry (전라남도 식품업체의 비용 효율성 분석)

  • Qing, Cheng Lin;Na, JuMong;Chang, Seog Ju;Im, Chang Uk
    • Journal of Korean Society for Quality Management
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    • v.43 no.4
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    • pp.533-544
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    • 2015
  • Purpose: The purpose of this study is to analyze the cost efficiency of food industry in JeollaNamdo. And this study is focused on the correlation between the economic efficiency of food industry and its cost efficiency, based on the analysis of 372 food companies' data in JeollaNamdo in 2012. Methods: DEA cost minimization is the measurement of the cost efficiency of JeollaNamdo food industry in 2012. In this study, the CCR and BBC models have been employed to analyze the decomposing cost efficiency-technical efficiency, allocative efficiency, and scale efficiency respectively. And the Spearman rank correlation and Wilcoxon signed rank test also have been employed to check the correlation and difference between the ranking orders based on the efficiency scores respectively. Results: For the CCR model, mean cost efficiency was found to be 0.084(0.54 for allocative efficiency and 0.19 for technical efficiency). For the BCC model, mean cost efficiency was found to be 0.252(0.453 for allocative efficiency and 0.564 for technical efficiency). Average scale efficiency was found to be 0.38. In analyzing the results, this study argues that the optimal way to improve cost efficiency is by reducing inputs proportionally and changing their combination. Conclusion: The efficiency scores of the two models show high correlation, whereas, the differences between them are also found to be significant. Hence, it should be cautious to select a suitable model when we do the research.