A DEA-based comprehensive benchmarking approach for implementing continuous improvement

Abstract

PurposeThe purpose of this study is to propose a comprehensive benchmarking approach to help subsidiaries of a company to implement continuous improvement (CI).Design/methodology/approachThe proposed approach classifies subsidiaries of a company into the three stages of CI. After that, the proposed approach employs data envelopment analysis (DEA)-super slacks-based measure (SBM) model and Malmquist Productivity Index (MPI) to evaluate the operational efficiency of the subsidiaries and selects benchmarking targets and sets benchmarking goals based on the operational efficiency for benchmarking of input and output criteria. Then, the proposed approach suggests a four-step benchmarking process for benchmarking of detailed efficiency. Finally, the proposed approach makes the subsidiaries achieve CI by implementing the input and output benchmarking and the efficiency benchmarking.FindingsThe results show that the proposed approach can help subsidiaries of a company to implement a staged benchmarking which considers input and output criteria and Malmquist productivity and efficiency comprehensively.Originality/valueGenerally, benchmarking is implemented in many aspects. However, due to the restriction of a company’s resource level, a practical and staged benchmarking is preferred. This study proposes a comprehensive approach to benchmark systematically and gradually, and provides a more reasonable benchmarking process for implementing CI.