Evaluating the performance of multi-project by using data envelopment analysis (DEA)

Abstract

The construction sector, especially in housing development, has rapidly grown in Malaysia. Housing development has been conducted by private and public companies. XYZ Development Sdn Bhd. is one of the private companies in Malaysia involves in housing development. This company has developed 12 housing projects until the year 2016. The previous projects performances are facing problem in terms of total costs and profit. The total costs of the projects are higher, but the profit is lower. Therefore, the performance of multi-projects in XYZ Development Sdn. Bhd. is evaluated by using Data Envelopment Analysis (DEA) which is the BCC model approach. The BCC model is used to determine the efficiency score of each project. Then, for efficient projects, Cross Efficiency is applied to rank the projects. The efficient project also can be as a reference set to the inefficient project. Next, to suggest improvement in order to increase the efficiency of inefficient projects. The results have shown that out of 12 projects, six projects are efficient while the others are inefficient.