Efficiency Measurement

Efficiency measurement assesses how well resources are used to achieve desired outcomes. In everyday terms, it evaluates how effectively inputs—like time, money, and effort—are converted into outputs, such as products or services. For example, a factory that produces more goods with less energy and materials is seen as more efficient. By analyzing efficiency, organizations can identify areas for improvement, reduce waste, and enhance productivity, ultimately leading to better performance and increased value. This concept applies across various fields, from businesses to public services, helping to optimize processes and resource allocation.