Measuring efficiency and ranking the public universities in Malaysia using data envelopment analysis models / Nur Arina Sharifuddin and Nurul Syahirah Mohd Fauzi

Universities play a vital role in a country’s growth and have the potential to stay in the field of higher education by determining their performance. Thereby, management will not know whether or not university performance is profitable if it is not measured. Therefore, this project was carried out to determine the efficiency of public universities in Malaysia using Data Envelopment Analysis (DEA) models such as CCR, SBM, Super Efficiency, Super SBM, and Cross Efficiency are used to calculate each DMU’s relative output as well as rank them. In this project, the data of 20 Malaysian public universities in 2011 are used to study the methods for measuring the efficiency of DMUs in the presence of 3 inputs and 5 outputs. DMU will be efficient if and only if the optimal value of efficiency is equal to 1; otherwise, it is inefficient. By using CCR, SBM, and Cross Efficiency models, it shows that 11 DMUs out of 20 DMUs were considered as efficient with an efficiency score of 1 while others are inefficient with a range score of 0.0564705 to 0.8907719. Additionally, Super Efficiency and Super SBM are used to rank the efficient value from CCR and SBM models, with a higher value indicating a more efficient unit. Cross Efficiency is used to measure efficiency and its ranking based on average. In comparison, Universiti Pertahanan Nasional Malaysia is stated as the most efficient university for both Super Efficiency and Super SBM models, while Universiti Utara Malaysia has the highest score in Cross Efficiency. In contrast, UMK for all models was recorded as the most inefficient with the lowest efficiency score compared to other public universities. Thus, the reference set of efficient universities needs to be used by inefficient universities to improve their performance, whereby, universities could maximize their efficiency.