Investigating Efficiency Utilizing Data Envelopment Analysis: Case Study of Shipyards

Abstract

Establishing performance targets for marine maintenance and repair operations can be challenging for management due to the multitude of factors that can potentially influence productivity, efficiency, and manpower requirements. The aim of this study was to measure and evaluate the efficiencies of various maintenance and repair shipyard operations using data envelopment analysis (DEA). The use of DEA allows for multiple factors affecting maintenance productivity to be analyzed and allows the sources of inefficiencies in maintenance operations to be identified through examination of efficient or best practice decision making units, or DMUs. Results presented in this study were used to develop an overall strategic plan for enhanced decision-making with regard to labor and resource requirements and management strategies for the administration of the shipyards. Inefficient maintenance operations were identified through DEA evaluation and included the use of identified quantitative and qualitative factors. The use of quantified factors in assessing manpower needs was a beneficial approach for what is typically a subjective judgment in the determination of staffing and scheduling needs, organizational structure, and performance targets.