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2014/2015  KAN-CMATV2001U  Benchmarking

English Title
Benchmarking

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Course period Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
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 09-12-2014
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
Benchmarking:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Individual or group exam Group exam, max. 3 students in the group
Size of written product Max. 5 pages
Omfang:
1 studerende, max 3 sider
2-3 studerende, max 5 sider
Assignment type Synopsis
Duration
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time No preparation
Grading scale 7-step scale
Examiner(s) Internal examiner and second internal examiner
Exam period Spring Term and Spring Term
Make-up exam/re-exam
Same examination form as the ordinary exam
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 09-12-2014