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Towards optimal life cycle management in a road maintenance setting using DEA

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  • Rouse, Paul
  • Chiu, Tony

Abstract

This paper focuses on local road aspects of the highway system and aims to assess how efficiently, effectively and economically the 73 Territorial Local Authorities (TLAs) in New Zealand have maintained their respective local road networks from a life cycle perspective. Measures of quality, quantity and cost, together with nondiscretionary measures of environmental factors, are incorporated in Data Envelopment Analysis to evaluate each TLA's performance in terms of efficiency, effectiveness and economy. TLAs that have high performance on all three measures provide a best practice indication of the optimal maintenance activity mix to undertake. In this study, the best practice mix of expenditure is 59% routine maintenance, 27% resealing and 14% rehabilitation.

Suggested Citation

  • Rouse, Paul & Chiu, Tony, 2009. "Towards optimal life cycle management in a road maintenance setting using DEA," European Journal of Operational Research, Elsevier, vol. 196(2), pages 672-681, July.
    • Handle: RePEc:eee:ejores:v:196:y:2009:i:2:p:672-681
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    References listed on IDEAS

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    1. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    2. Maria Silva Portela & Pedro Borges & Emmanuel Thanassoulis, 2003. "Finding Closest Targets in Non-Oriented DEA Models: The Case of Convex and Non-Convex Technologies," Journal of Productivity Analysis, Springer, vol. 19(2), pages 251-269, April.
    3. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    4. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    5. Paul Rouse & Martin Putterill & David Ryan, 1997. "Towards a General Managerial Framework for Performance Measurement: A Comprehensive Highway Maintenance Application," Journal of Productivity Analysis, Springer, vol. 8(2), pages 127-149, May.
    6. Rajiv D. Banker & Richard C. Morey, 1986. "Efficiency Analysis for Exogenously Fixed Inputs and Outputs," Operations Research, INFORMS, vol. 34(4), pages 513-521, August.
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    Cited by:

    1. Paul Rouse & Julie Harrison & Li Chen, 2010. "Data Envelopment Analysis: A Practical Tool to Measure Performance," Australian Accounting Review, CPA Australia, vol. 20(2), pages 165-177, June.
    2. Patyal, Vishal Singh & Kumar, Ravi & Lamba, Kuldeep & Maheshwari, Sunil, 2023. "Performance evaluation of Indian electricity distribution companies: An integrated DEA-IRP-TOPSIS approach," Energy Economics, Elsevier, vol. 124(C).
    3. Chen, Jiandong & Yu, Jie & Shen, Zhiyang & Song, Malin & Zhou, Ziqi, 2023. "Debt financing and maintenance expenditure: Theory and evidence on government-operated toll roads in China," Economic Systems, Elsevier, vol. 47(1).

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