Efficiency Valuation and Business Process Improvement through Internal Benchmarking

Joseph Sarkis and Srinivas Talluri

Engineering Valuation and Cost Analysis Vol. 1, No. 1, 1996. pp. 43-54

Internal benchmarking is an effective method for aiding organizations continuously improve their business processes. Analytical methods to aid in internal benchmarking efforts have been limited. To aid decision makers and analysts in this critical process, through consideration of multiple performance measures, a methodology based on some of the latest advances in data envelopment analysis (DEA) is presented. The methodology can be supported with the use of enterprise modeling tools that allow for a systemic analysis of an organization’s activities. An illustrative example provides additional managerial insights and research directions.

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