Efficiency measurement using independent component analysis and data envelopment analysis

Kao, Ling‐Jing; Lu, Chi-Jie; Chiu, Chien-Chao

doi:10.1016/j.ejor.2010.09.016

Cited by 44 publications

(35 citation statements)

References 32 publications

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“…In the study developed by Kao et al (2011), the results showed that DEA was able to distinguish differences in performance among DMUs based on 5 inputs (Total number of registered beds within the hospital -including acute, chronic, and special beds; Total number of physicians who are full-time employees -including dentists and Chinese medicine doctors; Total number of nurses employed in hospitals -including midwives; Total number of health service providers employed in hospitals -including pharmacists, dietitians, physiotherapists, occupational therapy technologists, and radiological technologists; and Total number of full-time equivalent personnel -including social workers, researchers, and nonprofessionals) and 3 outputs (Total number of patients to outpatient departments within a year; Total number of patients to emergency room within a year; Total number of inpatient and outpatient surgeries within a year). Similar to our findings, Kao et al also did not find homogeneity in hospital efficiency.…”

Section: Discussionmentioning

confidence: 99%

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A model for multidimensional efficiency analysis of public hospital management

2017

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Introduction: Multidimensional efficiency analysis can provide important insights into the performance of hospitals.In this paper, we propose a multidimensional model based on Data Envelopment Analysis (DEA) to investigate and compare the efficiency of public hospitals in Brazil. Methods: Data from 21 public hospitals were collected from public databases (OECD -Organization for Economic Co-operation and Development; SIH-SUS -SUS Hospital Information System, Datasus, Brazil). Four inputs (Number of medical and non-medical staff, Annual revenue, Number of beds, Average length of patient hospitalization), four Variables of Influence (Type of hospital, Accredited hospital, Number of medical specialties, Resources from government) and four Outputs (Number of outpatient care services, Number of hospitalizations, Number of surgeries, Number of exams) were used to feed the DEA model. Results: Seven hospital units reach 100% efficiency and, according to DEA, can be considered efficient units. Two units were considered "almost efficient" and the remaining twelve units perform poorly, considering the data supplied to the DEA model. As a whole, the average efficiency of the hospitals investigated was 79% (0.79). Conclusion: A very heterogeneous performance has been found among the Brazilian public hospitals investigated. Besides, the reasonably low average efficiency seems to indicate that the system has a large potential for improvement in almost all areas associated with the input and output variables investigated in this paper.Keywords Hospital efficiency, Data Envelopment Analyses, Public hospital.This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.How to cite this article: Soares AB, Pereira AA, Milagre ST. A model for multidimensional efficiency analysis of public hospital management.

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Section: Discussionmentioning

confidence: 99%

“…The choice for these variables was based on what can be considered primary outputs of a health unity -number of in-and outpatients treated and the number of exams and surgeries required to do so (Kao et al, 2011). The inputs were then defined as those most correlated to the outputs.…”

Section: -Outputsmentioning

confidence: 99%

A model for multidimensional efficiency analysis of public hospital management

2017

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“…This could represent a potential opportunity for bank managers to develop aggressive strategy to survive a competitive environment. Yet Kao et al (2011) pointed out the shortcoming of DEA evaluation analysis: high correlation between input or output variables may affect the weight of variables, thus skewed the results of performance evaluation. They proposed the ICA approach to comb through input variables for independent signals before applying DEA.…”

Section: Outputsmentioning

confidence: 99%

“…It aims to remove the mutual information scheme form observed data with little to no discriminatory power, in order to improve the classification of efficient and inefficient decision-making units (DMUs). Kao et al (2011) studied the ICA approach to further expand the application of DEA. They verified that ICA is another solution to the problem of variables correlation, using data of hospital industry to support the argument.…”

Section: Introductionmentioning

confidence: 99%

Two-Stage Performance Evaluation of Domestic and Foreign Banks in Taiwan

Chiu

Lin

2018

Asian Journal of Economic Modelling

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Article HistoryThis paper provides an integration of independent component analysis and network slacks-based measure for performance analysis for foreign and domestic banks in Taiwan Independent component analysis was used to reduce data dimensionality of variables for a more discerning data envelopment analysis (DEA) performance evaluation. The authors then adopted performance evaluation structure based on a twostage network model using network slacks-based measure: the production efficiency and the profitability efficiency. This study showed that domestic banks were more efficient than foreign banks in operational performance and production efficiency. The empirical results of the proposed ICA-NSBM model may be used to improve the discriminative ability of the performance evaluation using DEA methodology. Contribution/ Originality:This study contributes to the existing literature by comparing the operation performance, in terms of production and profit efficiency, between domestic and foreign banks in Taiwan. It observed that domestic banks had benefited from economies of scale as well as economies of scope and performed better.

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“…Zhao et al (2011) proposed a network-DEA approach for performance measurement of a transportation network with a downtown space reservation system. Kao et al (2011) proposed a two-stage approach of integrating independent component analysis (ICA) and DEA for efficiency measurement of a firm and also for comparing their performance with their competitors. Wang and Chin (2011) proposed a "fuzzy expected value approach" for DEA in which fuzzy inputs and fuzzy outputs were first weighted, respectively, and their expected values were used to measure the optimistic and pessimistic efficiencies of decision making units (DMUs) in fuzzy environments.…”

Section: Introductionmentioning

confidence: 99%

Efficiency evaluation of a safety department in a construction company-A case study: A DEA approach

Odeyale¹

2015

10.5267/j.msl

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Data Envelopment Analysis (DEA) is a decision making tool based on linear programming for measuring the relative efficiency of a set of comparable units. DEA helps us identify the sources and level of inefficiency for each of the inputs and outputs. This approach has been used to evaluate the efficiency of the safety department in five construction companies. A three-input, safety workforce, safety training, and safety budget, and two-output, Perfect days and Uptime, constant returns-to-scale (CRS) model was developed. The model indicated the necessary improvements required in the inefficient unit's inputs and outputs to make it efficient, by identifying what factor is responsible for the low efficiency of performance, and also what factor should be improved in order to improve the efficiency of the safety department. The result shows that the safety department of firm A, B and D are efficient, but Firm C and Firm E can improve their efficiency by reducing inputs up to 3.34% and 6.05%, respectively. The inputs identified for reduction were; number of safety staffs and safety budget for Firm C and E respectively.Growing Science Ltd. All rights reserved. 5

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Efficiency measurement using independent component analysis and data envelopment analysis

Cited by 44 publications

References 32 publications

A model for multidimensional efficiency analysis of public hospital management

A model for multidimensional efficiency analysis of public hospital management

Two-Stage Performance Evaluation of Domestic and Foreign Banks in Taiwan

Efficiency evaluation of a safety department in a construction company-A case study: A DEA approach

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