Frontier analysis

Frontier analysis is a method used to measure the maximum possible output or efficiency that a firm, organization, or system can achieve given its resources. It involves comparing actual performance to an "ideal" best-case scenario—called the "frontier"—which represents the most efficient use of inputs. If a firm operates below the frontier, it indicates room for improvement; if it reaches or touches the frontier, it is operating efficiently. This technique helps identify performance gaps and targeted strategies for optimization across various fields, from manufacturing to healthcare.