Assessing joint maintenance shops in the Taiwanese Army using data envelopment analysis

This paper proposes an alternative data envelopment analysis (DEA) method for assessing the performance of joint maintenance shops (JMSs) in the Taiwanese Army over two 6-month periods in 2000. It further examines the possibility of using DEA over time as a basis for continuous improvement. To help productivity improvements, the DEA results for the first time period were implemented at the five selected JMSs located in Taipei, Taoyuan, Taichung, Chaiyi, and Kaoshiung. The findings show that most of previously inefficient JMSs, on average, have become relative more efficient through DEA recommendation remedial actions. Three JMSs increased their technical and pure technical efficiencies; and one JMS increased its scale efficiency. Few JMSs were operating at increasing returns to scale, indicating a potential to expand. As such, it can be a valuable benchmarking tool for the JMS managers and assist in efficiently using scare resources to produce productivity. Finally, the Army has accepted DEA as a performance measurement tool for JMSs. © 2004 Elsevier B.V. All rights reserved.