Evaluation of the Performance and the Efficiency of Water Supply Organizations Using Data Envelopment Approach

Abstract

The main objective of this study is to use the data envelopment approach (DEA) in combination with sensitivity analysis and key performance study to evaluate the performance and efficiency of the collection works of water companies, especially in a local water company in Jordan. Constant return to scale (CCR) model is applied to ten decision-making units (DMU), where each DMU represents a geographical area. In the results, it is found that DMU3 and DMU5 are inefficient in many quarters, whereas the other DMUs, such as DMU1 and DMU2 show an efficient score in many quarters. Additionally, sensitivity analysis is used to investigate the collection if the performance becomes efficient for some inefficient DMUs. Furthermore, when linking the relative efficiency scores with the collection ratio KPI, it is found that most of the DMUs were not able to reach 100% scores for many quarters.