Measuring Efficiency by Product Group: Integrating DEA with Activity-Based Accounting in a Large Mideast Bank

Jeffrey Kantor and Shlomo Maital
Additional contact information
Jeffrey Kantor: Graduate School of Business Administration, Bar-Ilan University, Ramat Gan 52900, Israel
Shlomo Maital: Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Haifa 32000, Israel

Interfaces, 1999, vol. 29, issue 3, 27-36

Abstract: We built a method for measuring product-specific inefficiency in bank branches to facilitate precise measurement of waste and identify its causes. Our method combines and integrates two separate, widely used models for measuring costs and efficiency performance: activity-based cost accounting (ABC) and data envelopment analysis (DEA). The resulting method for activity-based management provides managers with detailed quantitative performance benchmarks for the specific business activities of their firms or divisions. We used an integrated model to create a branch profile of a large 250-branch Mideast bank that measures inefficiency separately for customer services and transactions.

Keywords: financial institutions; banks; organizational studies; effectiveness/performance (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.29.3.27 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:29:y:1999:i:3:p:27-36

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().