INDEPENDENT POWER PRODUCERS’ EFFICIENCY PERFORMANCE USING FUZZY DATA ENVELOPMENT ANALYSIS (FDEA) MODEL

Autor(i)

  • Rene D. Olamit Electrical Engineering Department, College of Engineering, University of Caloocan City, Caloocan City, Philippines
  • Emilyn C. Cabanda School of Global Leadership & Entrepreneurship, Regent University, Virginia Beach, USA
  • John Reynan J. Montalban Electrical Engineering Department, College of Engineering, University of Caloocan City Caloocan City, Philippines
  • Rommel C. Ramos Electrical Engineering Department, College of Engineering, University of Caloocan City Caloocan City, Philippines

DOI:

https://doi.org/10.46827/ejsss.v12i2.2168

Ključne riječi:

Fuzzy DEA, correlation, slacks, technical efficiency performance, Independent Power Producer Industry

Sažetak

The purpose of this study is to evaluate and investigate the efficiency performance of nine (9) selected Independent Power Producer (IPP) firms using the Fuzzy Data Envelopment Analysis (FDEA) Model. The data were drawn from a database of 7 panel firms in the Luzon Area, Philippines, over the period 2000-2006. The efficiency performance evaluations were done first from 63 pooled panel data prior to cross-sectional analysis in three stages (CVSTE 1, UCVRSTE 2 and UCVRSTE 3). The input controllable variables were (X1) Total Number of Employees, (X2) Depreciation, input uncontrollable variable (X3) ISO Certification. The output controllable variables were (Y1) Total Operating Revenue, (Y2) Total MWH- Sales, output uncontrollable variable (Y3) Age of Technology. Empirically, this study suggested that: (1) ISO Certification and Age of Technology entry into the IPP firm study implies enhanced fuzzification, thus connoting the possible loss of precision; (2) Input and output orientation via UCVRSTE (Stages 2 & 3 ) manifests deficiencies through inappropriate use of scale transformation; (3) slacks occurrence exhibited in three stages implies mismanagement of variable alternatives; (4) an average of 1.33 percent yearly for ISO Certification compliance is required for the IPP’s relative technical efficiency and continuous deterrence yields non-compliance of quality standards; (5) average reduction of 1.22 percent yearly for refurbishment of old technologies is tantamount to an IPP firms’ efficient score, otherwise, non-adherence means disregard of technology rehabilitation and upgrading. This study provides the theoretical, comparative empirical models, and robust evidence of how the DEA-CVRSTE Model (Stage 1) justified the enhanced discriminating power of FDEA-UCVRSTE (Stage 2) Model. The methodology tackles handling information that contains controllable (precise, exact) and uncontrollable (imprecise, uncertain, missing, unclear, vague, fuzzy) values. Hence, this study

Biografije autora

  • Rene D. Olamit, Electrical Engineering Department, College of Engineering, University of Caloocan City, Caloocan City, Philippines

    Engr. Rene Daclan Olamit joined the University of Caloocan City in 2026 and currently serves as the Associate Professor 1 in the Electrical Engineering Department. Prior to his appointment at the College of Engineering, from 2022 to 2025, he served as the Assistant Professorial Lecturer III, Assistant Professorial Lecturer IV, Lecturer: Pamantasan Ng Lungsod ng Maynila (PLM); Universidad De Manila (UDM); Quezon City University (QCU), respectively. His research paper Title: Efficiency of Independent Power Producers: A Fuzzy DEA Approach, co-authored by Dr. Emilyn C. Cabanda, was selected as one of the excellent submissions, which eventually presented, during the 7th International Data Envelopment Analysis Conference held on July 10-12, 2009 in the Alter Hall, The Richard J. Fox School of Business and Management, Temple University, 1801 Liacouras Walk, Philadelphia, PA 19122, United States of America. A native of Camp James McNiel Crawford, Del Monte, Phillips, Bukidnon, Philippines, Engr. Olamit earned his bachelor's and masteral degrees in engineering in the City of Cagayan De Oro and Manila. A recipient of PECCUI/ DERBCI Scholarship, where he obtained his Bachelor of Science in Electrical Engineering, College of Engineering and Architecture- Cagayan De Oro College, Philippines (1990). He also obtained his Master of Science in Management Engineering (Meritus Latin Honour) in the Graduate School Program in the Royal and Pontifical University of Santo Tomas, Philippines (2008). with a Monetary Grant Recipient for Best Thesis Research from the University of Santo Tomas Graduate School Alumni Association Inc. (USTGSAAI). He is currently pursuing his Doctor of Philosophy Major in Commerce Program at the same university (2026). He is also a competent Electrical & Instrumentation Manager /Superintendent / Engineer with a total of 28 Years experiences in various Industries / Sectors from countries: Republic of the Sudan, Negara Brunei Darussalam, Federal Republic of Nigeria, Kingdom of Saudi Arabia and the Philippines. He just recently recognized and awarded as one of the ASEAN Engineer with specialization in Diversified Project Management at the CAFEO 43- Philippines (2025).

  • Emilyn C. Cabanda, School of Global Leadership & Entrepreneurship, Regent University, Virginia Beach, USA

    Dr. Emilyn C. Cabanda joined Regent University in 2008 and currently serves as professor of Operations. Prior to her appointment at the School of Business & Leadership, from 2002 to 2008, she served as lecturer in the Graduate School of the Pontifical and Royal University of Santo Tomas, Manila, Philippines. She also served as a visiting professor at International Christian University (2007) in Tokyo, Japan, and in the International Graduate School of Social Sciences at Yokohama National University (2006), Japan. She also worked as a researcher in Australia (1999- 2002). A native of the Philippines, Dr. Cabanda is a product of global education, having earned her degrees on three continents. As a recipient of the International Postgraduate Research Scholarship, she obtained her Doctor of Philosophy in Business and Economics at Monash University in Australia (2002).

  • John Reynan J. Montalban, Electrical Engineering Department, College of Engineering, University of Caloocan City Caloocan City, Philippines

    Engr. John Reynan Jañala Montalban is a Registered Electrical Engineer and an educator specializing in power systems and electrical engineering education. He earned his Bachelor of Science in Electrical Engineering from Marinduque State College (2013) and completed his Master of Science in Electrical Engineering, Major in Power System at Mapúa University (2021). Currently serving as an Assistant Professor III at the University of Caloocan City. He is also a former faculty at the College of Engineering – Marinduque State University (former Marinduque State College) for almost nine years. Engr. Montalban plays a crucial role in his former institution in curriculum development, accreditation, and student internship coordination. He has led research initiatives and supported extension projects of the BSEE Department. His contributions, along with their program, extend to faculty development, program revisions, and mentoring students in both academic and extracurricular pursuits.

  • Rommel C. Ramos, Electrical Engineering Department, College of Engineering, University of Caloocan City Caloocan City, Philippines

    Engr. Rommel G. Ramos is a Licensed Electronics Engineer and educator with more than two decades of experience in engineering education. He specializes in electronics, control systems engineering, and signal processing education. He is passionate about educating and mentoring future engineers toward professional excellence. He earned his Master of Engineering Science degree from the University of the East in 2013, receiving a special award for academic excellence. He also completed his Bachelor of Science in Electronics and Communications Engineering at the same university in 1996. Engr. Ramos has served in various academic leadership roles. He currently serves as an Assistant Professor at the University of Caloocan City. Beyond the classroom, Engr. Ramos is actively involved in community formation and Christian values-based leadership through the Brotherhood of Christian Businessmen and Professionals, where he has served as Action Group Leader, Breakfast Head, and Unit Leader. He presently resides in Sta. Maria, Bulacan, with his three children.

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Preuzimanja

Objavljeno

2026-03-17

Broj časopisa

Svezak 12 Br. 2 (2026)

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Articles