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2013/2014  KAN-CMM_MMBM  Benchmarking

English Title
Benchmarking

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Course period Third Quarter
Changes in course scheduel may occur
Tuesday 14.25-16.05, week 5-8,10-12
Tuesday 14.25-17.00, week 9
Friday 08.00-09.40, week 5-12
Time Table Please see course schedule at e-Campus
Study board
Study Board for BSc/MSc in Business Administration and Management Science, MSc
Course coordinator
  • Mette Asmild - Department of Finance (FI)
Main academic disciplines
  • Statistics and mathematics
  • Economics, macro economics and managerial economics
  • Methodology
Last updated on 22-10-2013
Learning objectives
Through this course the students should be able to:
  • Explain the differences between different DEA model specifications and justify the choices of specific models for a given problem context.
  • Calculate efficiency scores and identify the corresponding benchmarks, peers & weights in simple examples.
  • Interpret the results from large empirical studies and discuss their implications for management.
  • Explain the differences between the envelopment and multiplier formulations of the DEA models and their respective uses.
  • Argue for the relevance of different model extensions for specific scenarios, including but not limited to the use of weight restrictions and different projections onto the efficiency frontier.
Course prerequisites
Quantitative skills & interests, knowledge of linear programming (and basic understanding of LP duality)
Examination
3 hours written exam:
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 3 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period April and April
Aids allowed to bring to the exam Open book: all written and electronic aids, including internet access
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure
Being able to quantify the efficiency of resource utilisation is important, both in the private sector due to the intensity of competition and in the public sector, where budget cuts and demands for efficiency are common.

This course covers specific benchmarking methods that are very useful in practice for assessing the performance of different organisational units, particularly the socalled Data Envelopment Analysis (DEA) approach. As well as providing measures for the extent of efficiency, DEA also identifies role model units which less efficient units can emulate and performance targets at which inefficient units might aim. Benchmarking analysis through the use of DEA thus supports the identification and adoption of operating practices conducive to the efficient utilisation of resources.

Besides covering both theoretical and practical aspects of the use of DEA, the course also looks at some real life applications, amongst which are studies within the financial services industries undertaken by the lecturer on the course.

The course will involve combinations of lectures, small examples and exercises done in class and potentially some more realistic problems for students to practice on at home.
Teaching methods
Combination of lectures and exercises
Student workload
Attending lectures 30 hours
Exam, including preparation 55 hours
Preparation for lectures 120 hours
Expected literature
Thanassoulis (2001): Introduction to the Theory and Application of Data Envelopment Analysis: A foundation text with integrated software.Kluwer Academic Publishers (0-7923-7429-0).
Last updated on 22-10-2013