External and Internal Evaluations

Chiang Kao
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Chiang Kao: National Cheng Kung University

Chapter Chapter 17 in Network Data Envelopment Analysis, 2023, pp 447-463 from Springer

Abstract: Abstract There are two concepts used for measuring efficiencies in the network DEA: external evaluation and internal evaluation. The former concept assesses efficiency from the viewpoint of someone outside the organization, whereas the latter does so from the viewpoint of the managers working inside the organization. In the case of the external evaluation of the efficiency of a system such as a manufacturing plant, the evaluator makes observations from a vantage point outside of the plant, seeing only the exogenous inputs entering the plant and the exogenous outputs leaving it. The evaluator has no direct knowledge of what has happened inside the plant. The efficiency of the system in this case is defined as the ratio of the aggregate exogenous output to the aggregate exogenous input, and on the basis of this ratio the performance of different plants can be compared.

Date: 2023
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DOI: 10.1007/978-3-031-27593-7_17

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