A model for the application of data envelopment analysis (DEA) in activity-based management (ABM). (1st January 1999)

• Record Type: Journal Article
• Authors: Mota, S.; Benzecry, J.H.; Qassim, R.Y.
• Is Part Of: International journal of technology management. Volume 17:Number 7/8(1999)
• Page Start: 861
• Page End: 868
• Publication Date: 1999-01-01
• Subjects: activity-based costing -- activity-based management -- data envelopment analysis; Technology -- Management -- Periodicals; 658.4062
• Languages: English
• ISSNs: 0267-5730

Abstract

The objective of this work is to provide a quantitative model for activity-based management (ABM). The model developed is based on data envelopment analysis (DEA), an established operational research technique for productivity and efficiency determinations. Activity centres are considered as decision-making units (DMUs) whose efficiencies are determined by solution of the ABM/DEA model. ABM follows from activity-based costing (ABC) whereby ABC information is employed in improvement and cost reduction programmes. A real case study of an oilrig drill factory is used to illustrate the application of the model.