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Multiple productivity measurement approaches for management.

S T Young1

  • 1University of Utah, Graduate School of Business, Salt Lake City.

Health Care Management Review
|January 1, 1992
PubMed
Summary
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Managers can combine productivity scores using data envelope analysis (DEA) or the Multicriteria Performance/Productivity Measurement Technique (MCP/PMT). Both methods yielded similar results when applied to hospital data, requiring managerial judgment for final interpretation.

Area of Science:

  • Operations Research
  • Health Services Management
  • Management Science

Background:

  • Managers often need to synthesize diverse productivity metrics into a single, actionable score.
  • Evaluating performance across multiple dimensions presents a significant challenge in management.

Purpose of the Study:

  • To demonstrate and compare two distinct methods for aggregating multiple productivity measurements.
  • To apply these aggregation techniques to real-world hospital materials management data.

Main Methods:

  • Data Envelope Analysis (DEA): A non-parametric method for measuring the relative efficiency of decision-making units.
  • Multicriteria Performance/Productivity Measurement Technique (MCP/PMT): A method for combining multiple criteria into a single performance index.

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Main Results:

  • Both DEA and MCP/PMT were applied to hospital materials management data.
  • The two aggregation methods produced comparable results, indicating robustness in their findings.
  • No statistically significant differences were observed between the outcomes of DEA and MCP/PMT.

Conclusions:

  • Data Envelope Analysis and MCP/PMT offer viable approaches for consolidating multiple productivity indicators.
  • The choice between DEA and MCP/PMT may be less critical than the subsequent application of managerial judgment.
  • Final productivity assessments require careful consideration and interpretation by management, regardless of the aggregation method used.