LOG904-124 Efficiency and productivity measurement using Data Envelopment Analyses (DEA) (Autumn 2022)

About the course

The course introduces efficiency and productivity measurements to increase the performance of businesses and public organizations. Efficiency and productivity measurements compare how businesses and organizations that produce the same outputs while using the same types of inputs perform relative to each other. The distinction between efficiency and productivity measurements will be explained

in the course.

The course defines terms and explains why efficiency and productivity measurement are essential for businesses and organizations using intuitive and straightforward examples. The different sub-sectors of the transportation sector, e.g., ferry, road, and air transport, are used as case examples.

The course then introduces Data Envelopment Analysis (DEA) as a tool for measuring the efficiencies and productivities of businesses and public organizations (or any other forms of decision-making units (DMUs)). Over the last two decades, DEA has become a popular tool for measuring efficiency and productivity due to its intuitiveness in measuring efficiency and productivity. Several students who took the course have used it in their Master's and Ph.D. theses.

In the course, a DEA software will be used to demonstrate how efficiency/productivity can be measured; participants will run the software to enhance understanding. The course is hands-on based where the lectures are in a computer lab, or all students bring their PCs to learn by doing.

The course is connected to the following study programs

• Master of Science in Logistics
• Experience-based Master in Logistics
• Master of Science in Sustainable Energy Logistics
• Exchange programme - Master's level
• Master of Science in Sustainable Transport and Urban Mobility

Recommended requirements

Since all students are at the master's level or higher, there are no particular requirements. However, being able to work with numbers and, in particular, a basic understanding of statistical terms such as averages, standard deviation, and interpretation of the coefficients of regression analysis will be value-added to students.

The student's learning outcomes after completing the course

The student’s learning outcome after completing the course is in three parts as follows:

Knowledge: After the course, students will have understood the theories, concepts, and principles underlying the importance of efficiency and productivity measurements of an organization, using DEA as a tool for an assessment. This knowledge will put students in a position to evaluate or suggest performance evaluation of their future workplaces. For students who choose to proceed with Ph.D. studies, the knowledge gained opens an avenue for research topics within efficiency and productivity measurements with the application of DEA.

Skills: The course will allow students to apply DEA as a tool for efficiency and productivity measurement.

General competence: After the course, those who pass the exams will have general competence in efficiency and productivity assessments using the DEA framework.

Forms of teaching and learning

Teaching at the course is through a compulsory lab class (from this year on, students must bring their PCs to the class). It is a hands-on form of teaching where excel and the DEA framework are used to enhance learning. Each day, the general lectures will not last for more than three hours, and the rest of the day will be for hands-on problem solving, where the lecturer will be available for clarifications.

Examination

Examination: The examination is in the form of individual assignments given each day from Monday to Thursday. Thus, there will be four assignments. The assignment given on Thursday is more extensive than the other assignments, so students have the whole of Friday to accomplish it.

• Form of assessment: Each assignment is an exam and is graded by a percentage score. The percentage score for each assignment out of the total is as follows: Day 1: 10%, Day 2: 20%, Day 3: 20%, and Day 4: 50%.

• Proportion: 100 %

• Duration: One assignment per day (4 assignments in total)

• Grouping: Individually

• Grading scale: Letter (A - F)

• Support material: All teaching materials are allowed to be used.