Imprecise Data Envelopment Analysis (IDEA) and its use in evaluating the performance of organizations based on the EFQM model

Document Type : Research Paper

Author

department of industrial engineering, Islamic Azad University, Tonekabon branch,

Abstract

In this study a pattern has been proposed to evaluate efficiency of organizations in performing the European Foundation for Quality Management (EFQM) model, using Robust DEA with the following features:
• Performance evaluation of organizations is based on RADAR logic, a dynamic assessment framework and powerful management tool that provides a structured approach to questioning the performance of an organization, in the EFQM model.
• In this study, some data are imprecise in form of intervals with vague bounds.
• The performance evaluation based on the mathematical optimization rules has been replaced by the current multi-criteria evaluation approach.
Criteria have been reviewed based on RADAR logic, Analytical Hierarchy Process (AHP) method has been used to weight some indices and factor analysis has been used to find the more important criteria related to enablers. The contribution of this paper is threefold :( 1) use of the factor analysis and the aggregation mechanism of the constructs to detect the major criteria in performing the EFQM model (2) using a robust optimization DEA model in which the output parameters are in form of intervals with imprecise bounds. (3) We use randomly a set of numbers generated for each input and output of DMUs to specify a range of Gamma in which the rankings of the DMUs occur with high probability and then compute the conformity of the rankings resulting from the mathematical model with reality.

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