Applying data envelopment analysis and multiple objective data envelopment analysis to identify successful pharmaceutical companies

Introduction Since the 1980s, U.S. companies have been embracing the Total Quality Management (TQM) movement. TQM is a philosophy that advocates four basic principles: (1) an intense focus on customer satisfaction, (2) accurate measurement of activities, (3) continuous improvement of products and processes, and (4) empowerment of people (Noori and Radford 1995). In striving to obtain these philosophies and principles, most companies must strike an appropriate balance between economic efficiency and quality. One component of a company’s TQM program is a performance measuring process, such as benchmarking. Benchmarking is the process by which a company analyzes the performance and practices of world-class companies and compares their practices and performances to its own. A company can use this knowledge to improve its own operations.