Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector

Guest editorial Ali Emrouznejad is a Senior Lecturer at the Aston Business School in Birmingham, UK. His areas of research interest include performance measurement and management, efficiency and productivity analysis as well as data mining. He has published widely in various international journals. He is an Associate Editor of IMA Journal of Management Mathematics and Guest Editor to several special issues of journals including Journal of Operational Research Society, Annals of Operations Research, Journal of Medical Systems, and International Journal of Energy Management Sector. He is in the editorial board of several international journals and co-founder of Performance Improvement Management Software. William Ho is a Senior Lecturer at the Aston University Business School. Before joining Aston in 2005, he had worked as a Research Associate in the Department of Industrial and Systems Engineering at the Hong Kong Polytechnic University. His research interests include supply chain management, production and operations management, and operations research. He has published extensively in various international journals like Computers & Operations Research, Engineering Applications of Artificial Intelligence, European Journal of Operational Research, Expert Systems with Applications, International Journal of Production Economics, International Journal of Production Research, Supply Chain Management: An International Journal, and so on. His first authored book was published in 2006. He is an Editorial Board member of the International Journal of Advanced Manufacturing Technology and an Associate Editor of the OR Insight Journal. Currently, he is a Scholar of the Advanced Institute of Management Research. Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector This special issue aims to focus on holistic, applied research on performance measurement in energy sector management and for publication of relevant applied research to bridge the gap between industry and academia. After a rigorous refereeing process, seven papers were included in this special issue. The volume opens with five data envelopment analysis (DEA)-based papers. Wu et al. apply the DEA-based Malmquist index to evaluate the changes in relative efficiency and the total factor productivity of coal-fired electricity generation of 30 Chinese administrative regions from 1999 to 2007. Factors considered in the model include fuel consumption, labor, capital, sulphur dioxide emissions, and electricity generated. The authors reveal that the east provinces were relatively and technically more efficient, whereas the west provinces had the highest growth rate in the period studied. Ioannis E. Tsolas applies the DEA approach to assess the performance of Greek fossil fuel-fired power stations taking undesirable outputs into consideration, such as carbon dioxide and sulphur dioxide emissions. In addition, the bootstrapping approach is deployed to address the uncertainty surrounding DEA point estimates, and provide bias-corrected estimations and confidence intervals for the point estimates. The author revealed from the sample that the non-lignite-fired stations are on an average more efficient than the lignite-fired stations. Maethee Mekaroonreung and Andrew L. Johnson compare the relative performance of three DEA-based measures, which estimate production frontiers and evaluate the relative efficiency of 113 US petroleum refineries while considering undesirable outputs. Three inputs (capital, energy consumption, and crude oil consumption), two desirable outputs (gasoline and distillate generation), and an undesirable output (toxic release) are considered in the DEA models. The authors discover that refineries in the Rocky Mountain region performed the best, and about 60 percent of oil refineries in the sample could improve their efficiencies further. H. Omrani, A. Azadeh, S. F. Ghaderi, and S. Abdollahzadeh presented an integrated approach, combining DEA, corrected ordinary least squares (COLS), and principal component analysis (PCA) methods, to calculate the relative efficiency scores of 26 Iranian electricity distribution units from 2003 to 2006. Specifically, both DEA and COLS are used to check three internal consistency conditions, whereas PCA is used to verify and validate the final ranking results of either DEA (consistency) or DEA-COLS (non-consistency). Three inputs (network length, transformer capacity, and number of employees) and two outputs (number of customers and total electricity sales) are considered in the model. Virendra Ajodhia applied three DEA-based models to evaluate the relative performance of 20 electricity distribution firms from the UK and the Netherlands. The first model is a traditional DEA model for analyzing cost-only efficiency. The second model includes (inverse) quality by modelling total customer minutes lost as an input data. The third model is based on the idea of using total social costs, including the firm’s private costs and the interruption costs incurred by consumers, as an input. Both energy-delivered and number of consumers are treated as the outputs in the models. After five DEA papers, Stelios Grafakos, Alexandros Flamos, Vlasis Oikonomou, and D. Zevgolis presented a multiple criteria analysis weighting approach to evaluate the energy and climate policy. The proposed approach is akin to the analytic hierarchy process, which consists of pairwise comparisons, consistency verification, and criteria prioritization. In the approach, stakeholders and experts in the energy policy field are incorporated in the evaluation process by providing an interactive mean with verbal, numerical, and visual representation of their preferences. A total of 14 evaluation criteria were considered and classified into four objectives, such as climate change mitigation, energy effectiveness, socioeconomic, and competitiveness and technology. Finally, Borge Hess applied the stochastic frontier analysis approach to analyze the impact of various business strategies, including acquisition, holding structures, and joint ventures, on a firm’s efficiency within a sample of 47 natural gas transmission pipelines in the USA from 1996 to 2005. The author finds that there were no significant changes in the firm’s efficiency by an acquisition, and there is a weak evidence for efficiency improvements caused by the new shareholder. Besides, the author discovers that parent companies appear not to influence a subsidiary’s efficiency positively. In addition, the analysis shows a negative impact of a joint venture on technical efficiency of the pipeline company. To conclude, we are grateful to all the authors for their contribution, and all the reviewers for their constructive comments, which made this special issue possible. We hope that this issue would contribute significantly to performance improvement of the energy sector.

Multiple criteria decision-making techniques in higher education

Purpose: The purpose of this paper is to review the literature which focuses on four major higher education decision problems. These are: resource allocation; performance measurement; budgeting; and scheduling. Design/methodology/approach: Related articles appearing in the international journals from 1996 to 2005 are gathered and analyzed so that the following three questions can be answered: "What kind of decision problems were paid most attention to?"; "Were the multiple criteria decision-making techniques prevalently adopted?"; and "What are the inadequacies of these approaches?" Findings: Based on the inadequacies, some improvements and possible future work are recommended, and a comprehensive resource allocation model is developed taking account of these factors. Finally, a new knowledge-based goal programming technique which integrates some operations of analytic hierarchy process is proposed to tackle the model intelligently. Originality/value: Higher education has faced the problem of budget cuts or constrained budgets for the past 30 years. Managing the process of the higher education system is, therefore, a crucial and urgent task for the decision makers of universities in order to improve their performance or competitiveness. © Emerald Group Publishing Limited.

Small business owners’ success criteria, a values approach to personal differences

This study of 150 Dutch small business owners, identified through business/ network directories, investigated relationships between owners’ understanding of success and their personal values. Business owners ranked 10 success criteria. Per- sonal satisfaction, profitability, and satisfied stakeholders ranked highest. Multidi- mensional scaling techniques revealed two dimensions underlying the rank order of success criteria: person-oriented (personal satisfaction versus business growth) and business-oriented (profitability versus contributing back to society). Furthermore, business growth, profitability, and innovativeness were guided by self-enhancing value orientations (power and achievement). Softer success criteria, such as having satisfied stakeholders and a good work–life balance, were guided by self-transcendent value orientations (benevolence and universalism).

An investigation into vibration criteria for rotating machinery

Concern had been expressed by engineers of the Shell Chemical Company regarding the validity of existing vibration criteria for rotating machinery. A survey showed that existing criteria were based solely on the amplitude of vibration, normally of the bearing housings, with no allowance being made for the dynamic properties of the support1ng structure. The feasibility of measuring the mechanical impedance of bearing supports in order to assess the severity of vibration generated by a machine has been investigated. It is suggested that in many cases the oscillatory bearing force levels obtained for these measurements will provide a quantitative indication of severity. Theoretical and experimental work has been conducted on a model rig, comprising a flexible shaft running in journal bearings housed in flexible, asymmetric supports. The accuracy with which the system behaviour could be predicted using measured support impedances is discussed together with the extraction of uncoupled support impedances from measurements on the complete rotating system. Access was available to several industrial centrifugal compressors. To enable the bearing support impedances of these machines to be measured on site considerable attention has been paid to the evolution of a technique involving the use of transient excitation. To develop this technique the model rig and a large rotary converter have been used as test structures. Methods have also been devised and developed for the analysis of the transient impedance data.

A review of multi-criteria decision-making methods for bioenergy systems

Bioenergy schemes are multi-faceted and complex by nature, with many available raw material supplies and technical options and a diverse set of stakeholders holding a raft of conflicting opinions. To develop and operate a successful scheme there are many requirements that should be considered and satisfied. This paper provides a review of those academic works attempting to deal with problems arising within the bioenergy sector using multi-criteria decision-making (MCDM) methods. These methods are particularly suitable to bioenergy given its multi-faceted nature but could be equally relevant to other energy conversion technologies. Related articles appearing in the international journals from 2000 to 2010 are gathered and analysed so that the following two questions can be answered. (i) Which methods are the most popular? (ii) Which problems attract the most attention? The review finds that optimisation methods are most popular with methods choosing between few alternatives being used in 44% of reviewed papers and methods choosing between many alternatives being used in 28%. The most popular application area was to technology selection with 27% of reviewed papers followed by policy decisions with 18%. © 2012 Elsevier Ltd.

A fuzzy AHP based integer linear programming model for the multi-criteria transshipment problem

Purpose – The purpose of this research is to develop a holistic approach to maximize the customer service level while minimizing the logistics cost by using an integrated multiple criteria decision making (MCDM) method for the contemporary transshipment problem. Unlike the prevalent optimization techniques, this paper proposes an integrated approach which considers both quantitative and qualitative factors in order to maximize the benefits of service deliverers and customers under uncertain environments. Design/methodology/approach – This paper proposes a fuzzy-based integer linear programming model, based on the existing literature and validated with an example case. The model integrates the developed fuzzy modification of the analytic hierarchy process (FAHP), and solves the multi-criteria transshipment problem. Findings – This paper provides several novel insights about how to transform a company from a cost-based model to a service-dominated model by using an integrated MCDM method. It suggests that the contemporary customer-driven supply chain remains and increases its competitiveness from two aspects: optimizing the cost and providing the best service simultaneously. Research limitations/implications – This research used one illustrative industry case to exemplify the developed method. Considering the generalization of the research findings and the complexity of the transshipment service network, more cases across multiple industries are necessary to further enhance the validity of the research output. Practical implications – The paper includes implications for the evaluation and selection of transshipment service suppliers, the construction of optimal transshipment network as well as managing the network. Originality/value – The major advantages of this generic approach are that both quantitative and qualitative factors under fuzzy environment are considered simultaneously and also the viewpoints of service deliverers and customers are focused. Therefore, it is believed that it is useful and applicable for the transshipment service network design.

Assessing aviation e-marketplaces:a multi-criteria approach

After a proliferation of logistics e-Marketplaces during the dot.com boom of 1998-2000, there has been a high rate of failure and survivals are developing much more slowly than expected. This is the case in the aviation industry where a large number of B2B e-Marketplaces emerged according to the focus of aviation companies’ strategies on electronic B2B in the late 1990s. However, the current use of e-Marketplaces in the industry is low and many of them have ceased trading. The traditional e-Marketplaces model has been characterised by poor quality portals and a lack of technical standards. Such an approach is unsustainable in today’s competitive scenario. Improvements in website quality attributes may strongly contribute to the simplification of website functionality by users and speed up communication with all supply chain partners. In this context, it appears critical to develop models for the evaluation of e-Marketplace web sites. This chapter, after a discussion about the development of e-Marketplaces in the transport and logistics service industry and its application in the aviation industry, proposes a multi-criteria model for assessing different types of aeronautic B2B e-Marketplaces.

Using DEA to estimate potential savings at GP units at medical specialty level

The aim of this paper is to identify benchmark cost-efficient General Practitioner (GP) units at delivering health care in the Geriatric and General Medicine (GMG) specialty and estimate potential cost savings. The use of a single medical specialty makes it possible to reflect more accurately the medical condition of the List population of the Practice so as to contextualize its expenditure on care for patients. We use Data Envelopment Analysis (DEA) to estimate the potential for cost savings at GP units and to decompose these savings into those attributable to the reduction of resource use, to altering the mix of resources used and to those attributable to securing better resource 'prices'. The results reveal a considerable potential for savings of varying composition across GP units. © 2013 Elsevier Ltd.

Cleavage initiation in the intercritically reheated coarse-grained heat affected zone:Part II. Failure criteria and statistical effects

In part 1 of this article, cleavage initiation in the intercritically reheated coarse-grained heat affected zone (IC CG HAZ) of high-strength low-alloy (HSLA) steels was determined to occur between two closely spaced blocky MA particles. Blunt notch, crack tip opening displacement (CTOD), and precracked Charpy testing were used in this investigation to determine the failure criteria required for cleavage initiation to occur by this mechanism in the IC CG HAZ. It was found that the attainment of a critical level of strain was required in addition to a critical level of stress. This does not occur in the case of high strain rate testing, for example, during precracked Charpy testing. A different cleavage initiation mechanism is then found to operate. The precise fracture criteria and microstructural requirements (described in part I of this article) result in competition between potential cleavage initiation mechanisms in the IC CG HAZ.

Multiple criteria optimization of contemporary logistics distribution network problems

In the contemporary customer-driven supply chain, maximization of customer service plays an equally important role as minimization of costs for a company to retain and increase its competitiveness. This article develops a multiple-criteria optimization approach, combining the analytic hierarchy process (AHP) and an integer linear programming (ILP) model, to aid the design of an optimal logistics distribution network. The proposed approach outperforms traditional cost-based optimization techniques because it considers both quantitative and qualitative factors and also aims at maximizing the benefits of deliverer and customers. In the approach, the AHP is used to determine the relative importance weightings or priorities of alternative warehouses with respect to some critical customer-oriented criteria. The results of AHP prioritization are utilized as the input of the ILP model, the objective of which is to select the best warehouses at the lowest possible cost. In this article, two commercial packages are used: including Expert Choice and LINDO.

Complex skills and academic writing:a review of evidence about the types of learning required to meet core assessment criteria

Assessment criteria are increasingly incorporated into teaching, making it important to clarify the pedagogic status of the qualities to which they refer. We reviewed theory and evidence about the extent to which four core criteria for student writing-critical thinking, use of language, structuring, and argument-refer to the outcomes of three types of learning: generic skills learning, a deep approach to learning, and complex learning. The analysis showed that all four of the core criteria describe to some extent properties of text resulting from using skills, but none qualify fully as descriptions of the outcomes of applying generic skills. Most also describe certain aspects of the outcomes of taking a deep approach to learning. Critical thinking and argument correspond most closely to the outcomes of complex learning. At lower levels of performance, use of language and structuring describe the outcomes of applying transferable skills. At higher levels of performance, they describe the outcomes of taking a deep approach to learning. We propose that the type of learning required to meet the core criteria is most usefully and accurately conceptualized as the learning of complex skills, and that this provides a conceptual framework for maximizing the benefits of using assessment criteria as part of teaching. © 2006 Taylor & Francis.

A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments

Integrated supplier selection and order allocation is an important decision for both designing and operating supply chains. This decision is often influenced by the concerned stakeholders, suppliers, plant operators and customers in different tiers. As firms continue to seek competitive advantage through supply chain design and operations they aim to create optimized supply chains. This calls for on one hand consideration of multiple conflicting criteria and on the other hand consideration of uncertainties of demand and supply. Although there are studies on supplier selection using advanced mathematical models to cover a stochastic approach, multiple criteria decision making techniques and multiple stakeholder requirements separately, according to authors' knowledge there is no work that integrates these three aspects in a common framework. This paper proposes an integrated method for dealing with such problems using a combined Analytic Hierarchy Process-Quality Function Deployment (AHP-QFD) and chance constrained optimization algorithm approach that selects appropriate suppliers and allocates orders optimally between them. The effectiveness of the proposed decision support system has been demonstrated through application and validation in the bioenergy industry.

Collaborative design of assessment criteria to improve undergraduate student engagement and performance

Student engagement is vital in enhancing the student experience and encouraging deeper learning. Involving students in the design of assessment criteria is one way in which to increase student engagement. In 2011, a marking matrix was used at Aston University (UK) for logbook assessment (Group One) in a project-based learning module. The next cohort of students in 2012 (Group Two) were asked to collaboratively redesign the matrix and were given a questionnaire about the exercise. Group Two initially scored a lower average logbook mark than Group One. However, Group Two showed the greatest improvement between assessments, and the quality of, and commitment to, logbooks was noticeably improved. Student input resulted in a more defined, tougher mark scheme. However, this provided an improved feedback system that gave more scope for self-improvement. The majority of students found the exercise incorporated their ideas, enhanced their understanding, and was useful in itself.

Using accreditation criteria for collaborative quality enhancement

This paper describes a process to enhance the quality of higher education. At the heart of the process is a cross-sparring collaborative model, whereby institutions are critical friends. This is based on a prior self-evaluation, where the institution / programme identifies quality criteria it wants to improve. Part of the process is to ensure the documentation of best practices so that they can be shared with others in a so called market place. Linking the best practices to a criterion makes them searchable on a large scale. Optimal pairings of institutions can then take place for the cross-sparring activities.