• Title/Summary/Keyword: management efficiency

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Efficiency Analysis of Public Service Organizations Using Stochastic Frontier Analysis (확률변경분석을 이용한 공공서비스 조직의 효율성 분석)

  • Shin, Jong Seop;Kim, Hyun Jung
    • Journal of the Korean Operations Research and Management Science Society
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    • v.40 no.1
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    • pp.117-128
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    • 2015
  • An organization must restructure itself once it makes outsourcing decisions. Outsourcing is a strategy that a company adopts to direct internal efforts into strengthening its core business processes while contracting other companies for strategically less critical tasks thereby improving organizational production efficiency, and the strategy inevitably involves organizational restructuring. While public service organizations have increasingly embraced outsourcing as well, only a handful of studies analyze the change in efficiency from organizational restructuring. Therefore, this study uses Stochastic Frontier Analysis (SFA) to test whether efficiency improved in Korea Expressway Corporation's restructured branch offices. Korea Expressway Corporation evaluated and grouped its branches based on road extensions management, traffic volume, the number of snow days, road deterioration, and the number of junctions to differentially allocate its personnel and budget. The extent of efficiency improvement in each group was compared, and results show that inefficiency did not exist in any of the groups. The efficiency index among the three group categories was similar across the board; 9 offices in the A-group with its expanded personnel and budget had an efficiency index of 0.954, 12 offices in the B-group with unchanged personnel and budget conditions had an index of 0.950, and 12 offices in the C-group with reduced personnel and budget had an index of 0.937. SFA facilitates efficiency analyses because it does not require pre-restructuring data. This study is easy to apply in practice and empirically tests efficiency improvement in organizational restructuring based on data collected from all the branch offices in Korea Expressway Corporation.

Statistical Difference of Production Efficiency in Medicinal Crop Farm (약용작물 재배농가의 생산효율성 통계적 차이에 대한 연구)

  • Choi, Don Woo;Kim, Dong Choon;Lee, Hang Ah;Lim, Cheong Ryong
    • Journal of Korean Society for Quality Management
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    • v.48 no.3
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    • pp.453-462
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    • 2020
  • Purpose::This study aims to analyze the management performance and production efficiency of medicinal crop farmers. Methods: We conducted an empirical survey of medicinal crop farmers and analyzed production efficiency using DEA method. Results: First, The crops that increased the number of farms during 2010 and 2018 were Angelica tenuissima and Salvia miltiorrhiza, which was attributed to higher income per hour than other crops. Second, As for the efficiency of Liriope platyphylla, the average was 0.376, and the coefficient of variation was the lowest, 0.566. Third, Salvia miltiorrhiza and Atractylodes japonica had the highest technical efficiency after Liriope platyphylla, but the variation coefficient was high and the efficiency was relatively high. Fourth, As a result of performing variance analysis to find out the difference of each crops on the value of medicinal crop efficiency, the technical efficiency, pure technical efficiency, and scale efficiency were all statistically significant. Conclusion: Based on the results above, following policy suggestions are offered. First, It is necessary to provide information on crops with high income compared to the input of labor, and to develop labor-saving cultivation technologies for each crop. Second, A stable labor supply system will be needed in rural areas. Third, Efforts should be made to close the technological gap between farmers through a lot of education and consulting for farmers who grow medicinal crops.

Measuring Management Efficiency of Architectural Firms in Korea using DEA/AR Models (DEA-AR 모형을 활용한 건축사사무소의 효율성 비교분석)

  • Kim, Sung-Sik;Park, Jung-Lo;Kim, Ju-Hyung;Kim, Jae-Jun
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2012.11a
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    • pp.125-126
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    • 2012
  • Domestic architect office from a period of high growth from the 1970s to the '80s has been established as some of the large corporations or publicly traded corporation. 1997 IMF has pointed out there is a lot of need for improvement activities in accordance with the construction recession since the 2008 global financial crisis. In order to address these causes, the company's continuous efficient operation for accurate efficiency and competitiveness analysis was required. Leverage financial ratio indicators Study Using Data Envelopment Analysis Data Envelopment Analysis (DEA) model, how to find a benchmark for the improvement of the efficiency of inefficient enterprises in various sectors being. In this study, a comparison of the conventional DEA model and the DEA-AR model is used to analyze the efficiency and domestic architect office is to improve the management efficiency.

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Child Care Service Quality Management Through the Evaluation of Efficiency at Child Care Centers: An Evaluation with Data Envelopment Analysis

  • Song, Seung-Min
    • International Journal of Quality Innovation
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    • v.9 no.2
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    • pp.1-9
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    • 2008
  • This paper proposes a scheme to estimate the technical efficiency at child care centers for the less-than-three-year-old infants by Data Envelopment Analysis (DEA) and to manage the quality of care service through implementing flexible and efficient government subsidy system. The result of technical efficiency estimation shows that there exists the heterogeneity in technical efficiency a substantial opportunity for improvement in technical efficiency across child care centers. This result implies that government may bring up the competition by giving subsidy differentially based on efficiency and use the money which has been used inefficiently other purposes. Both can improve the quality of child care service.

Productive Efficiency of the Coastal Fishing Business : A Comparison of Data Envelopment Analysis and Stochastic Frontier Analysis (연안어업경영의 생산효율성 분석 : DEA와 SFA 기법 비교를 중심으로)

  • Choi, Jong-Yeol;Kim, Ki-Seog;Kim, Do-Hoon
    • Journal of the Korean Operations Research and Management Science Society
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    • v.35 no.3
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    • pp.59-68
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    • 2010
  • Improving productive efficiency is important for strengthening a competitiveness of coastal fisheries. This paper examines the productive efficiency of a sample of coastal gillnet fishing business units by estimating a stochastic frontier analysis (SFA) and a data envelopment analysis (DEA) approaches and compares those estimates obtained from two approaches. The estimated mean productive efficiency by SFA is 77.6% and the mean productive efficiencies obtained for the VRS and CRS DEA are 75.9% and 45.7%, respectively. The joint use of SFA and DEA for estimating efficiency is also discussed.

Analyzing the National Medical Service Efficiency of OECD Countries Using DEA and Malmquist Productivity Index (DEA와 맘퀴스트 생산성 지수를 활용한 OECD 국가간 의료서비스 효율성 분석)

  • Kim, Jihye;Kim, Haesoo;Leem, Bitna;Yoon, Janghyeok
    • Journal of the Korean Operations Research and Management Science Society
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    • v.37 no.4
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    • pp.125-138
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    • 2012
  • Health care that is considered to be one of the major factors for the quality of life is nowadays receiving a great deal of attention, and thus there is a growing need in Korea to identify the efficiency of national medical service and enhance the competitiveness. Although there exist studies on the medical service efficiency about general hospitals and local hospitals, they mostly deal with the efficiency problems from a domestic and regional perspective. In response, this paper analyzes the competitive efficiency of national medical service with respect to 16 OECD countries, by exploiting Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI). Building on the DEA and MPI analysis results, this paper identifies the competitive position of Korean national medical service and suggests implications for the medical service improvement.

A Comparison Study on University Research Efficiency Using DEA Analysis: focused on A University Case (DEA를 이용한 대학 연구 효율성 비교 연구 - A 대학 사례를 중심으로 -)

  • Kim, Seonmin
    • Journal of the Korea Safety Management & Science
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    • v.15 no.1
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    • pp.249-258
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    • 2013
  • Data Envelopment Analysis (DEA) is a useful tool to analyze the relative efficiency of decision making units (DMU) characterized by multiple inputs and multiple outputs. This method has been popularly used as an analytical tool to suggest some strategic improvement. To do this, the results of DEA provide decision makers with a single efficiency score, efficient frontier, return to scale, benchmarking decision making units, etc. The purpose of this paper is to evaluate research performance of 38 universities and provide an inefficient university with the way of organizational changes to be an efficient university by using DEA. Various input and output variables are used to identify technical and scale inefficiency. Additionally, we analyze how an inefficient DMU could be changed an efficient DMU based on a case university. This result will give an insight of constructive directions for increasing of research performance to university decision makers.

Organizational Determinants related with Relative Efficiency of the Community Mental Health Centers (지역사회 정신보건센터의 상대적 효율성에 영향을 미치는 조직관련 특성)

  • 김성옥
    • Health Policy and Management
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    • v.11 no.2
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    • pp.58-84
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    • 2001
  • This study was conducted to explore the relationship between the efficiency and its organizational determinants of tile Community Mental Health Centers(CMHCs). Data are obtained from 81 personnel of 27 CMHCs from Sept. to Oct. in 1999(19 in Kyunggi province, 7 in Seoul City and 1 in Chunchon, Kangwon province). Major findings of this study are as follows. 1. DEA is a mathematical programming technique that optimizes the relative efficiency ratio of inputs over outputs for each decision-making unit(DMU). It produces a summary scalar efficiency ratio for each DMU of CMHCs. It assessed multiple inputs and multiple outputs simultaneously, and compared to specific peer group of CMHCs. 2. Organizational determinants of DEA efficiency of CMHCs we proved as advertisement(+), location of CMHCs(in public facility)(+), area of facility(+), period of operation(+), job satisfaction(+), clarity of work-role(vague), cohesion(-), rate of certified personnel(+), number of referral(+), and voluntary service time(-).

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The Study for Influence of the Efficiency Score of Public Corporation Medical Center on Revenue and Expenses (지방공사의료원 규모의 효율성이 수입과 비용에 미치는 영향에 관한 연구)

  • Kim, Yang-Kyun;Han, Bo-Ra
    • Health Policy and Management
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    • v.15 no.2
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    • pp.53-69
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    • 2005
  • This study has two different objectives. First of all is to comparing results of size efficiency scoring on Public Corporation Medical Center(PCMC) by years of 1993, 1997 and 2003 using Data Envelopment Analysis (DEA). The second is to explore the relationship between revenue and PCMCs' efficiency score, and the relationship between expenses and the efficiency score in 2003. The average efficiency scores were significantly decreased by years of 1993, 1997 and 2003. The revenue per bed(revenue) in 2003 was smaller than the expenses per bed(expenses) in 2003, therefore PCMCs had deficits in 2003. The expenses was negatively related to the efficiency score. Therefore its means was that improving efficiency score decreased expenses. Contrarily, the revenue had any significant relation to the efficiency score. PCMC needs to various endeavors to improve their productivity and efficiency. One of the alternatives is reduce of work load through integration of PCMC and development of new performance index reflecting their situation and future direction.

An Analysis on the Determinants of Efficiency of the Pharmaceutical Firms using Stochastic Frontier Analysis (Stochastic Frontier Analysis를 이용한 제약회사의 효율성과 그 결정요인분석)

  • Sakong, Jin;Kim, Jeongkyu
    • Health Policy and Management
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    • v.25 no.2
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    • pp.97-106
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    • 2015
  • Background & Methods: The purpose of this research is to estimate the efficiency of the pharmaceutical firms and the determinants of their efficiency. Stochastic frontier analysis(SFA) and panel study are applied to the data of 60 domestic pharmaceutical firms from 2006 to 2012. Results & Conclusion: First, the result of the stochastic frontier analysis shows that overall efficiency of the pharmaceutical firms is increasing as time goes by. However, if firms are classified by the scale, the larger firms show more efficiency and if classified by the degree of innovativeness, the innovative firms show more efficiency compared to the non-innovative firms. This evidences show that the scale and R&D investment have significant relationships with the efficiency of the pharmaceutical firms. Therefore, it is necessary to increase the national level of investment for the fundamental researches to vitalize R&D of the new drugs. Second, the result of estimation of the determinants of efficiency shows that the firms with larger sales promotion expenses and entertainment expenses have less efficiency compared to the other firms. This can be explained by the structural characteristics of the small generic pharmaceutical firms. Therefore, the government had better make the pharmaceutical firms to reduce sales promotion and entertainment expenses and increase R&D expenses by introducing systems such as global budgeting system on medicine or reference pricing system.