Performance efficiency of water supply systems in Malaysia using data envelopment analysis models / Farah Irsalina Ishak, Nur'ain Nadia Ismail, and Mohd Nazmi Irfan Mohd Ridzuan

This paper evaluates the performance of water supply systems of 14 states in Malaysia using Data Envelopment Analysis (DEA) models. The aim of the study is to compare the efficiency score between the states while suggesting the best water supply system and providing a solution to improve the current efficiency. The first phase is the argument of choosing the best performance efficiency between two models, the Charnes Cooper Rhodes (CCR) and Banker Charnes Cooper (BCC) models to determine the efficiency score. The value of equal to one is considered efficient while anything less than one will be regarded as inefficient in which one out of those two models will be chosen based on the highest number of efficient DMUs. Then, the DMUs with an efficiency score of one was then applied with Super-Efficiency model to identify the ranks according to the highest value. Afterward, DMUs that failed to achieve the efficiency score of one were applied with SBM model to clarify the lowest score value in which could be improved. According to the results of the first phase of the study, the BBC input-oriented model was chosen over the CCR input-oriented model because it has the highest number of efficient DMUs, with BBC models having eight efficient water supply systems compared to CCR models having only seven efficient DMUs. Next, the results of the second phase reveal that Labuan has the greatest efficiency value, followed by Perlis, Johor, Terengganu, Pahang, Kelantan, Sabah, and Sarawak. Finally, during phase three, Pulau Pinang was identified as the most inefficient water supply system. Hence, the state of Labuan had the greatest efficient value score of 3.307692, while Pulau Pinang had the lowest inefficient DMU score of 0.5060130. In conclusion, the water supply systems in Malaysia will gain an extraordinary revolution where water companies will be able to meet consumer demand while providing the best quality of water supply. This study emphasizes the efficiency score value of determining an efficient or inefficient water supply systems in which the lacking area could be improved while the best is set to be an example for a better cause for the future.