Performance Evaluation of After Sale Service in Automotive Industry by Data Envelopment Analysis

In this decade, automotive industry has become second big industry in Iran after oil while more than 1 million and 350 thousand cars are produced yearly by different companies and have influenced in most of Iranian’s living and has been considered by government due to sanction against Iran, appreciation of prices and dissatisfaction of customers in after sale services. This study will investigate 88 after sale service dealers belong to Kerman Motor Co. in all over Iran as a sample of the entire automotive industry in Iran. All data (number of customers, human resources, education, equipment, providing pieces and process as 6 inputs and stopped cars more than 48 hours in the repair shop, reworked cars, and customer satisfaction as 3 outputs) has been gathered during 2016-2017 observation of all dealers. Data Envelopment Analysis (DEA) has been applied as one of the most common evaluation methods for measuring the efficiency of performance of each dealer. Contrary to Iran Standard Quality Institute (ISQI) which sends inspectors to all dealers from all companies to evaluate them yearly by a solid framework and without considering the differences in facilities and population in various regions of Iran, DEA has been utilized in this study to evaluate the dealer’s efficiencies and rank them by their own capacities and potentials. CCR model as one of the basic models of DEA has been used in this study due to its more rigid and inflexible essence in comparison to other models. All weights assigned to inputs/outputs will be analyzed to find out most significant index which is effects inefficiency, also inefficient dealers are compared to efficient dealers with most similar for recognizing the weakness and an improvement plan will be presented for giving insight for inefficient units to be improved at the end.