Type a new keyword(s) and press Enter to search

Benchmarking Techniques and Airport Management

 

The advantage of PFP is that, it is very easy to compute, requires only limited data and is easy to understand and interpret. PFP has been used by numerous airports for global comparative studies and for the study of specific regions like Europe. The result obtained by PFP technique helps to identify and describe the strengths and weaknesses of an airport.
             However, PFP can provide only superficial data and robust decisions based on this comparability cannot be usually made. Additionally, partial measures cannot reflect difference in factor price nor can they take into account the factor substitution. The latter point is very crucial because one airport may use an employee to undertake particular task while another airport may use a machine; or one airport might choose to outsource their activity while the other airport does this in-house. Such differences can have significant impact on partial measure of labor productivity. Another limitation of PFP is the difficulty to deal with multiple inputs and outputs, which may well be a crucial issue for airports having different proportional outputs. Therefore, PFP measures are of limited use and may mislead and misinterpret the performance of an airport if this is only method used. Martin and Roman (2001) point out that partial indicator have indeed provided insight to airport mangers, but these managers usually face the problem of interpreting a relatively large set of indicators. For this reason it is crucial to obtain a comprehensive performance measure which summarises the multifaceted activities carried out in the airport.
             DEA is one of the most frequently used and recognised benchmarking technique that reviews multidimensional activities. It measures efficiency and inefficiency in airport industry (Gillen & Lall, 1997). According to Hensher and Waters (1993), DEA carries out a comprehensive performance measure of the airport based on the ranking concept of relative efficiency of set of decision-making units (DMU).


Essays Related to Benchmarking Techniques and Airport Management