Data Envelopement Analysis; A New Approach to Measure the Agility of organizations
Volume 14, Issue 2, September 2010, Pages 21-45
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Abstract Change is the main characteristic of new business era. Confronting this changing environment, Agile Manufacturing System (AMS) as the most advanced production paradigm, is emerging in the production world. Attention to this concept has resulted in developing various methods of assessing organizational agility as an important part of agility literature. These methods have a common deficiency in methodology; the lack of considering the amount of need for agility in assessing organizational agility. All researches in this area measure only the capability of agility. In fact, the intensity of environmental change determines the extent of need for agility. This necessity in turn defines the level of agility capability required for responsiveness. To obviate the cited shortcoming, a method should be developed to consider the capability of agility (output) against the extensity of change (input). This paper presents a modified Data Envelopment Analysis (DEA) model to assess the relative organizational agility. Then, this new model is used for assessing the agility of 20 production organizations from 5 different industries. Finally, agility efficiency and efficiency path for organizations are mapped.