Productivity
The efficiency of work is known as productivity. This is the output achieved in an hour of work. For example, a graphic designer who produces more designs in a month after discovering a software tool that streamlines their work.Process Efficiency
The labor, resources, energy and time consumed by a process for each output.Energy Efficiency
The energy consumed by equipment and transport relative to their output. For example, the energy consumed per passenger mile by a high speed train as compared to an aircraft.Allocative Efficiency
Producing things that have value to businesses and consumers. In other words, producing a product that nobody wants is extremely inefficient.Management Efficiency
The output of a management team relative to the assets they control and resources they expend. For example, managers of a startup who consume $1 million in expenses to produce $1 billion in value are extremely efficient.Cost Efficiency
Cost efficiency is the value you get for the cost you pay. For example, the brand recognition that is created for each dollar of advertising spend.Resource Efficiency
The value created for resources consumed including materials, parts, labor, machine time, energy and land.Quality
Efficiency is calculated using the value of outputs. Value is based on quality. A chef who takes an hour to prepare 24 meals may be more efficient than a fast food worker who produces 24 hamburgers a minute because the quality of the chef's meals may be much higher.Quality of Life
Efficiency often needs to consider quality of life. For example, a factory that produces $1 million in goods a month that causes $1 billion in pollution or reduced enjoyment of a community isn't efficient.| Overview: Efficiency Definition | ||
Type | ||
Definition | The value created for a unit of input. | |
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