PERFORMANCE EVALUATION USING THE DEA METHOD: A CASE STUDY OF ELECTRICITY COMPANIES IN INDONESIA
Universitas 17 Agustus 1945 Surabaya
Indonesia
Universitas 17 Agustus 1945 Surabaya
Indonesia
Universitas 17 Agustus 1945 Surabaya
Indonesia
Universitas 17 Agustus 1945 Surabaya
Indonesia
Abstract
Performance evaluation aims to continuously monitor the efficiency and economics of company operations and offers information for company decision-making. Adequate and comparable performance evaluation requires a method and measuring tool that can measure company performance in a complex manner. DEA is a method that allows the use of quantitative and qualitative characteristics. The State Electricity Company (PLN) is a company that focuses on the electric power sector for the benefit of society and the state. PLN's business sector consists of businesses such as: (i) production, transmission, and distribution of electric power; (ii) planning and development of electric power; (iii) exploitation and development of electric power; and (iv) business of services in the electricity sector. Indonesia's economic growth relies heavily on electricity. The aim of the research is to evaluate PLN's performance in Indonesia using the DEA method. DEA is a linear programming method that deals with performance measurement. Performance measurement consists of input and output parameters. Performance evaluation is one way to identify effective and ineffective DMU. In this way, PLN, as the driving force of the economy in Indonesia, can develop well in a sustainable manner. The research results indicated that efficient DMUs have a percentage of 94% and inefficient DMUs have a percentage of 6%.
Keywords
References
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