A-Z Popular Blog Efficiency Search »
Related Topics

19 Types of Efficiency

 , updated on
Efficiency is the output of something in comparison to the resources it consumes. This is the opposite of waste. Calculating efficiency requires a measurement of inputs and outputs. As such, it is used to describe highly measurable processes and machines. The work of people is described by a similar term, productivity. The following are common types of efficiency.
Energy Efficiency
Value produced by a unit of energy.
Time Efficiency
Value produced in a period of time.
Cost Efficiency
Value produced by spending.
Quality Efficiency
Value produced by the unit cost of a product or service e.g. a reasonably inexpensive product that’s high quality.
Material Efficiency
Value produced by a unit of material such as wood, plastic or metal.
Labor Efficiency
Value produced in an hour, week, month or year of work. Better known as productivity.
Process Efficiency
The value produced by a process relative to the resources it consumes.
Output Efficiency
The ratio of outputs to inputs.
Resource Efficiency
The outputs created by a unit of a resource such as water.
Space Efficiency
The value created per square foot of space.
Information Efficiency
The degree to which information has been reflected in decisions, strategy and market prices.
Inventory Efficiency
How quickly your average unit of inventory sells.
Capacity Efficiency
The value produced by a unit of capacity such as an hour of CPU time.
Service Efficiency
The value such as customer satisfaction produced by a service relative to resources consumed.
Training Efficiency
The outcome of training such as knowledge and skill relative to the resources such as time and cost consumed.
Capital Efficiency
The value produced per dollar of deployed capital.
Employee Efficiency
The value such as revenue produced per employee relative to the all-in costs of your employees.
Data Efficiency
The value produced per data record.
Transportation Efficiency
The resources such as time and energy consumed to transport a person a mile.
Efficiency is calculated with the efficiency formula.
Efficiency is one factor that can be considered in strategy, planning and decision making but it's not everything. Over-optimizing for efficiency can produce negative results because efficiency calculations seldom consider everything involved in value. For example, the definition of transportation efficiency above doesn't include things like safety and comfort. As such, if you over-optimized for this definition of efficiency, you might end up with a bleak type of transportation.


This is the complete list of articles we have written about efficiency.
Business Efficiency
Division Of Labor
Economic Efficiency
Efficiency Formula
Efficiency Goals
Jevons Paradox
Machine Efficiency
Management Efficiency
More With Less
Operational Efficiency
Process Efficiency
Resource Efficiency
Specialization Of Labor
Technical Efficiency
Time Efficiency
Value Creation
More ...
If you enjoyed this page, please consider bookmarking Simplicable.

Efficiency Examples

A definition of efficiency with examples.

Efficiency Types

The common types of efficiency with examples.


The common types of inefficiency.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map