A common weighted performance evaluation process by using data envelopment analysis models

The finance literature searches for a link between production and performance, controlling for variables, such as sales, firm size, employee number, etc., that influence production packages. The performance indices are designed according to the resulting effects and determine whether the performance model is appropriate or not, and/or whether the performance of system is good or not. In this paper, a process, based on data envelopment analysis (DEA), is developed to evaluate and rank the relative importance of key performance indices (KPIs). The relative importance of each KPI is evaluated by performance loss measure, and each KPI is weighted according to the measure. Then, the relative performance of each unit is the ratio of weighted output to weighted input based on the common weights.