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Title: Improving Efficiency and Managing Congestion: A Case Study Employing Data Envelopment Analysis
Authors: Bandyopadhyay, Trishit 
Issue Date: 2007
Publisher: University of the Thai Chamber of Commerce
Source: Trishit Bandyopadhyay (2007) Improving Efficiency and Managing Congestion: A Case Study Employing Data Envelopment Analysis.
Conference: Proceedings of the 2nd International Conference on Operations and Supply Chain Management 
In many parts of the world the share of services in the national output is growing. Thus improvement of efficiency in services has assumed importance. In order to improve efficiency one needs first to measure it, and then set a target, that is benchmark, and move towards that. DEA provides an attractive framework for addressing such a situation and has been employed in a portion of a broader exercise on operational improvement of a State Service Corporation (SSC) in India which has several similar units spread throughout the state with each unit having multiple inputs and outputs. The results indicate that about eighteen percent of the labour in SSC can be reduced through improvement in efficiency via internal-benchmarking. When improvement in efficiency is achieved thus through reduction in an input such as labour, - an important concern surfaces especially in populous countries such as India, where employment generation is an important national objective. It is here that the notion of congestion finds its potential role. It is shown here through a simplified example that when multiple units show congestion then it is often possible to redistribute labour in those units in a manner that balances improving efficiency and worsening employment.
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
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