Setting key performance targets for Croatian shipyards

Abstract

The aim of this paper is to use the Data Envelopment Analysis (DEA) method to measure and analyze different relative efficiencies of five Croatian shipyards. The indicators are chosen to capture different aspects of shipbuilding performance in Croatia. Window analysis is used to determine shipyard efficiency and observe possible changes in shipyard efficiency over time. This leads to identifying a subset of efficient best practice shipyards, whereas for others the magnitude of their inefficiency is ascertained along with the specified efficient input and output targets. The importance of window analysis is that its results serve as an early warning system to all inefficient shipyards. In identifying the sources of inefficiencies and formulating proposals for improving shipyard performance observed over a six-year period (2007-2012), the results presented in this paper can be used to enhance and alter decisions.