MASTERÂ Assignment
Benchmarking Car Dealership Efficiency using DEA NSBM
Type : Master M-BIT
Period: May, 2022 - Dec, 2022
Student : Kerkhof, R.G. (Rutger, Student M-BIT)
Date Final project: Dec 15, 2022
Supervisors:
Abstract:
The automotive industry is one of the most important industries in terms of contributing to global turnover, but the sector is nevertheless characterised as a low-profit sector. This means that small improvements to their processes and profit margin may lead to a significant change in profit. A popular approach to improving a process is benchmarking, fundamentally, this entails measuring the process and comparing it to other similar processes. The goal of this thesis is to improve car dealership benchmarking by designing a benchmarking tool for the workshop department, such that it calculates the efficiency of the main (standardized) process. This is done to provide the dealerships with a more insightful assessment and to give automated improvement suggestions. This is achieved by designing a Data Envelopment Analysis (DEA) Network Slacks-Based Measure (NSBM) model, used to measure the Service Core Process (SCP). This model was programmed using R, after which it was verified and extended based on the literature; the results of the verified model were validated using a case study.