Performance Evaluation of the Eleven Stations of Volta River Authority/Northern Electricity Distribution COMPANY (VRA/NEDCo) Sunyani Operational Area: A Data Envelopment Analysis Approach

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The purpose of this study was to utilize data envelopment analysis (DEA) to measure performance assessment of the one main station and the ten outstations of Volta River Authority/Northern Electricity Distribution Company (VRA/NEDCo) in Sunyani operational area. The DEA approach has been recognized as a robust tool that is used for evaluating the performance of profit and non-profit institutions. The proposed approach is deployed based on empirical data collected from the stations. On an efficiency scale of 0.0 to 1.0, DEA assesses the efficiency of every station relative to the rest of the stations in terms of performance assessment. For inefficient stations, DEA provides quantitative guidance on how to make them efficient. The September 2012 data from the stations of NEDCo Sunyani operational area were used. Three (3) input variables and One (1) output variable were identified. The input variables were staff population (only technical staff including drivers), active customer population and number of vehicles. The output variable was revenue collection. The results show that one station (Mim/Goaso) was found to be efficient, the rest of the stations (Sunyani, Berekum, Kenyasi, Dormaa Ahenkro, Duayaw Nkwanta, Tepa, Bechem, Drobo, Sampa, Wamfie) were found to be inefficient for the month of September, 2012. There was an indication that addressing some of the following problems will improve efficiencies of the ten inefficient stations; lack of logistics, too much work at hand, lack of personal, poor attitude towards work and poor planning etc.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the award of Master of Science degree in Industrial Mathematics.