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Using DEA to measure the relative efficiency of the service center and improve operation efficiency through reorganization

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3 Author(s)
Chen-Fu Chien ; Dept. of Ind. Eng. & Eng. Manage., Nat. Tsing Hua Univ., Hsinchu, Taiwan ; Feng-Yu Lo ; Lin, J.T.

Data envelopment analysis (DEA) has become a practicable approach to evaluate the relative efficiencies of decision-making units in various contexts. This paper conducted a DEA study to measure the relative efficiencies of 17 service centers of the NAN-TOU electricity distribution district of Taiwan Power Company (TPC). In addition, this paper also investigated the alternatives for reorganizing the service centers via efficiency measurement. The results showed that the proposed reorganization alternatives have better efficiency scores. Based on DEA evaluations, the authors provided specific directions for the inefficient service centers to improve their operation efficiencies, and thus, maintain the competitive advantage of TPC in facing power market liberalization.

Published in:

Power Systems, IEEE Transactions on  (Volume:18 ,  Issue: 1 )