30 Examples of Efficiency, Effectiveness and Effectiveness
Miscellanea / / February 24, 2022
The efficiency It is the power to achieve an objective or to obtain the best result using the least amount of resources. For example: In a lens factory, 100 pairs were produced with 2 kg of glass, and now 120 pairs are produced with 2 kg of glass. Therefore, the manufacturing process is more efficient.
The effectiveness it is the ability to achieve a goal, but without taking into account the resources and time spent. For example: One company was effective because it was able to meet the goal of making 150 cars per month.
The effectiveness it is the ability to obtain the best result with the least amount of inputs, that is, to be efficient, and to achieve the objectives, that is, to be effective. For example: In one factory, the production process was effective, because the goal of manufacturing 15,000 tires in a month was met, and efficient, because it was made with the same amount of rubber that had previously been used to produce 12,000, therefore, it was cash.
The three concepts are known as "the three E's" in administration and business management and are used to evaluate the production, profitability and operation of a company. However, they are also used in everyday life, although with different shades of meaning.
Efficiency | Effectiveness | Effectiveness | |
Definition | It is the ability to obtain the best result with the least amount of resources, time and costs. | It is the ability to achieve a goal. | It is the ability to be effective and efficient. |
Determination of the procedure | Determines how a procedure should be performed to achieve a goal. | Determines what procedures must be performed to achieve a goal. | It determines what procedures must be used to achieve a goal and how they must be carried out. |
Formula | Efficiency = (result achieved / actual cost) * time spent / (expected result / cost considered) * estimated time | Efficacy = (obtained result * 100) / expected result | Effectiveness = [(efficiency score + efficacy score) / 2] / maximum score |
Definition in everyday life | It is the ability to accomplish something as soon as possible and using the least amount of input. | It is the ability to achieve a goal or perform a task correctly. | It is synonymous with efficacy or validity. |
Efficiency
In business it is called efficiency to the ability to obtain the best result with the least amount of resources, time and costs. Efficiency determines how a procedure through which an objective is achieved should be developed, that is, it focuses on delimiting how a goal is achieved.
For a business to be profitable, it must be efficient, and for this, the employees must be competent to carry out their work, the productive processes have to grant benefits and the clients have to be satisfied.
To determine whether a business or procedure is efficient or not, the efficiency indicator formula is used:
Efficiency = (result achieved / actual cost) * time spent / (expected result / cost considered) * estimated time
If the result of this calculation is less than 1, the procedure is inefficient; if it is equal to 1, the procedure is efficient; and if it is greater than 1, the procedure is very efficient.
Examples of efficiency
- In a factory, 90 kilos of cellulose pulp are used to make 300 reams of paper, while another factory uses the same amount to make 400 reams. Therefore, the second factory is more efficient than the first.
- In a restaurant 20 cooks prepare approximately 90 dishes per dinner, in another restaurant 15 cooks prepare approximately the same amount. Therefore, in the second restaurant they are more efficient than the first.
- In one laboratory, 15 researchers produced a vaccine in three months, while in another laboratory, 15 researchers produced a similar vaccine, but in five months. Therefore, the researchers in the first lab were more efficient than those in the second.
- In a field 10 tons of wheat were produced. The following year, 15 tons were produced. Therefore, the second year improved efficiency.
- In a warehouse 60 boxes are accommodated every ten minutes, on the other hand, in another warehouse, where they use forklifts, 85 boxes are accommodated every ten minutes. Therefore, in the second tank they are more efficient than in the first.
Efficiency in everyday life
The concept of efficiency in everyday life is used to refer to the ability to achieve something as quickly as possible and using the least amount of input. However, it is sometimes used as synonymous effectiveness, but they have very different meanings.
Examples of efficiency in everyday life
- It takes a person half an hour to get to the village from his house, while another person takes an hour. Therefore, the first one is more efficient than the second one to carry out the same journey.
- One person changed the common light bulbs for LED lamps, which are more efficient, because they illuminate for longer with less electricity consumption.
- Andrea makes 5 pizzas with 1 kilo of flour, while Esteban makes 3 pizzas with the same amount of flour. Therefore, Andrea is more efficient than Esteban in making pizzas.
- Jose can make 5 pieces of furniture per week, while another carpenter can make 3 pieces of furniture per week. Therefore, José is more efficient than the other carpenter.
- Pablo gets to work in half an hour, because he rides a bicycle, while Sergio takes 40 minutes from his house to the office, because he takes the bus. Pablo is more efficient, because he makes the same journey in less time and because he does not spend money on the trip.
Effectiveness
In the business world, efficiency is called the ability of people or processes to achieve a goal or an expected result.
Effectiveness determines what processes or activities must be undertaken to fulfill a purpose, but utilization is left out. of resources and time, that is, it is not considered relevant how an objective is achieved, but what activities allow do it.
Therefore, a procedure or a business can be effective, because what was expected was achieved, but inefficient, because a lot of time and money was invested in the process.
To calculate whether a procedure or business is effective or not, the effectiveness indicator formula is used:
Efficacy = (obtained result * 100) / expected result
If the result of this calculation is between 0 and 3, the procedure is inefficient; if it is 4, the procedure is moderately efficient; and if it is 5, the procedure is very efficient.
Examples of effectiveness
- A company met the goal of being the brand that sells the most shoes, therefore, it was effective.
- A telephone company had the objective of increasing sales, therefore, a promotion was carried out to attract new users and the number of clients was doubled. Therefore, the procedure used was effective in reaching the goal.
- An engineer was able to solve a problem that arose in the construction of a bridge and managed to finish the construction, therefore, it was effective.
- A research group presented the best laboratory project and, therefore, was effective in meeting the goal of obtaining a grant to finance the study.
- A company wanted to improve the customer service system and, for this reason, training was carried out for all the people who worked in the sector. The procedure was effective, because users increasingly evaluate this service better.
Efficiency in everyday life
The concept of efficacy is used in a similar way in everyday life, since it refers to someone's ability to meet a goal or to do a task.
This term is often confused with efficiency, because both are used to talk about personal objectives and goals, but efficiency establishes how something is done to achieve them and effectiveness relates to what is done to achieve them. reach them.
Examples of effectiveness in everyday life
- One person became a lawyer.
- One person passed an international German exam.
- One person was able to save enough money to go on a trip.
- One person won a tennis tournament.
- A person was able to reach the top of a mountain.
Effectiveness
In business, effectiveness is called the ability to strike a balance between efficiency and effectiveness. Effectiveness determines what procedures are used to achieve something (effectiveness) and how they are done (efficiency).
Therefore, a procedure is effective when it is efficient (because better results and greater benefits are obtained using the least amount of resources and as soon as possible) and when it is effective (because the goals are achieved desired).
To calculate whether a procedure or a business is effective or not, the effectiveness indicator formula is used:
Effectiveness = [(efficiency score + efficacy score) / 2] / maximum score
The result of this calculation is expressed in percentages and if it is between 0 and 80%, the procedure is ineffective; if it is between 80% and 99%, the procedure is effective; and if it is equal to 100%, the procedure is very effective.
Examples of effectiveness
- In a clothing workshop, the process was effective, because it was effective (the 100 pants that were requested by the client) and efficient (the order was completed earlier than agreed and fewer meters of fabric were used than expected). provided).
- In a pastry shop, the order was delivered on time, so the procedure was efficient, but they had to hire more people to finish it, therefore, the procedure was inefficient, because it was more expensive. Therefore, the procedure was ineffective.
- In an automobile company, the new production process was effective, because the objective of manufacturing 100 cars per month was met. and it was also efficient, because with the recently acquired machines, the steel was used better and waste was reduced by 30 %. Therefore, the process was effective.
- The person who is in charge of buying supplies and raw materials for a factory is effective, because he is efficient (he meets the goal of having stock of all the necessary elements) and efficient (carry out the acquisitions in a short time and get the best prices on the market).
- In one field, a new cultivation system was implemented that was effective, because it allowed the goal of producing 40 tons of wheat to be met, that is, was effective, and because the harvest could be carried out using less machinery and, therefore, less labor and less fuel, that is, it was also efficient.
Effectiveness in everyday life
In current language and, therefore, in everyday life, the term effectiveness is used with a meaning different from that used in the business world and can acquire two meanings different.
On the one hand, effectiveness is synonymous with efficacy, that is, it refers to the ability to achieve a desired result or goal. On the other hand, it is synonymous with reality or validity.
Examples of effectiveness in everyday life
- One person was effective because he was effective in achieving the goal of reading all of one author's books. (in this case effectiveness is used as a synonym for efficacy)
- One person was effective, because he was able to complete the miniature car collection. (in this case effectiveness is used as a synonym for efficacy)
- One person was effective, because he reached the goal of knowing all the techniques necessary to cook pasta. (in this case effectiveness is used as a synonym for efficacy)
- The contract is effective, because all those involved have already signed it. (in this case effectiveness is used as a synonym for validity)
- If any of the parties does not comply with all the clauses of the agreement, it will be without effect. (in this case effectiveness is used as a synonym for validity)
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