DEA Implementation In Productivity Appraisal Using Malmquist Index

This paper estimates total productivity change over time and de-composes it into technically efficient change and technological change for an Iranian Tile and Ceramic Industry with combining Data Envel-opment Analysis and Malmquist Productivity index. In combining these two techniques the outputs from DEA are used as inputs for Malmquist productivity index. In the current study, Tile and Ceramic industry is supposed to be consisted of the firms which are registered in Iranian stock market. Beside the estimation of productivity growth and analyzing its growth rate, this paper uses an internal benchmarking procedure and compares the firms with each other to introduce the best practices. Improvement Planning for others regarding to the best practices, will lead to better performance. The firms are ranked, ac-cording to their total productivity growth rate for the period 1380-1383, concluding that all the firms experienced productivity growth in both decreasing and increasing growth rates. The industry growth av-erage rate is about (1.166), which is result of technical efficiency growth by the rate of (1.017) and the technological efficiency growth by the rate of (1.087). Technical efficiency growth is considered as a consequence of management efficiency growth (1.037) and scale effi-ciency growth (1.032) in this era.