Data Envelopment Analysis Approach for Performance Evaluation of Power Distribution Sector of Srilanka

Benchmarking performance is crucial for any firm. The outcomes of these benchmarking studies enable the organization or unit to evaluate their performance against that of the best organization or unit and to create strategic goals for performance enhancements. In order to verify the constant return to scale (CRS), variable return to scale (VRS), scale efficiency scores, and slack analysis to identify efficient input targets and output targets, this study investigates how to do Data Envelopment Analysis (DEA) analysis. The chosen base model for the investigation was then supported by DEA analysis using several models. The algorithm that top managers in any firm can use to evaluate and enhance relative performance is described. Using DEA, the Ceylon Electricity Board tests the relative performance of 20 regions within Distribution Division 02 (DD2) of the division. For each area, relative efficiency scores and ways to increase efficiencies are determined.