Operational efficiency-based ranking framework using uncertain DEA methods: An application to the cement industry in Iran
Abstract
Purpose
Competition in dynamic markets requires operational excellence and effective operations strategy. Hence, organizations have to evaluate their operational performance in comparison to their rivals. The purpose of this paper is to present an operational performance evaluation framework for analyzing and ranking the organizations based on the effectiveness of their operations strategies.
Design/methodology/approach
In this study three uncertain data envelopment analysis (DEA) models consist of fuzzy DEA (FDEA), imprecise DEA (IDEA) and Grey DEA are applied to assess the performance of organizations in terms of the operations. The applicability of the proposed framework is demonstrated through a case study at Fars province cement manufacturers of Iran.
Findings
The ranking results assist the mangers of service and manufacturing enterprises in finding out the current positions of their companies and the effectiveness of their operations strategies in comparison to their rivals. Accordingly they can make proper strategic and operational decisions to improve the performance of the operations.
Originality/value
Based on the previous literature, this is the first study which uses FDEA and IDEA methods in an operational performance evaluation problem. Furthermore this study proposes a novel framework for evaluating and ranking the operational performance of firms from the perspective of operations strategy.
Keywords
Acknowledgements
The authors would like to thank the anonymous reviewers and the editor for their insightful comments and suggestions.
Citation
Abbasi, M. and Kaviani, M.A. (2016), "Operational efficiency-based ranking framework using uncertain DEA methods: An application to the cement industry in Iran", Management Decision, Vol. 54 No. 4, pp. 902-928. https://doi.org/10.1108/MD-09-2015-0413
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited