AN ASSESSMENT OF THE PERFORMANCE OF INDIAN RAILWAYS ZONES USING DATA ENVELOPMENT ANALYSIS

Abstract

The Major Research Project is a vital part of the 2-year MBA course at Delhi School of Management, DTU. The MRP is required to be submitted in the 4th semester of the course. The topic for MRP is “AN ASSESSMENT OF THE PERFORMANCE OF INDIAN RAILWAYS ZONES USING DATA ENVELOPMENT ANALYSIS”. The topic is in relation with Supply Chain and Logistics. My mentor for the same was Dr. Deepali Malhotra who provided necessary guidance, reviewed updates and suggested necessary changes required till the completion. In this Major Research Project, I have tried to analyse the performance of various Indian Railways zones using Multi Criteria Decision Making tool called Data Envelopment Analysis. This tool provides the efficiency of various Decision-Making Units (DMU’s) i.e., Railway Zones by weighing various inputs and outputs, which generally doesn’t have linear relationship. This technique helps in measuring efficiency while acknowledging various inputs and outputs which have major impact on the performance, rather than judging the performance on the basis of certain aspects such as revenue or Net profit. In the case of latter method of judgement, the input variables are completely ignored thus not taking complete picture into consideration. The tool used for analysis is DEAP which was developed by Tim Coelli, and made analysis really easy. It helped in conducting the analysis in very easy manner and provided results which were pretty easy to interpret.