difference between productivity, efficiency and effectiveness

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Difference between Productivity , Efficiency & Effectiveness ??

Importance Productivity, Efficiency & Effectiveness in operation management - These are the are the key performance indicators of an organisations. we can monitor current performance status, need of improvement areas & also can make future growth plan according to these parameters.

PRODUCTIVITY ?? - In simplest way Productivity = Output/Input

OR

The rate of output per unit of input.

OR

Productivity is a relation between amount of work done & amount of resource used.

EFFICIENCY ?? - A capacity of achieving maximum output with the help of least use of resources. a more efficient process have minimum possibilities of resources wastage.

OR

A process which can achieve max output through optimize use of resources called an efficient process 

On the other side less efficient process always requires more effort & resources to achieve the results.

Summarisation - HOW WELL THE RESOURCE UTILISED WITH MINIMAL WASTES.

EFFICIENCY ?? - Effectiveness means achieving the desired results. OR if the result of any process meet the customer requirement so, its mean the process is effective. OR Achieving the desired target by an organisation show the effectiveness.

Summarisation - HOW WELL THE RESULT ACHIEVED AS PLANNED

EXAMPLES of Productivity, Efficiency & Effectiveness in the workplaces -

A1 

INPUT - RESOURCES - Manpower	OUTPUT - RESULT - Nos.	PRODUCTIVITY - Output/Man
4	380	95

A2

INPUT - RESOURCES - Manpower	OUTPUT - RESULT - Nos.	PRODUCTIVITY - Output/Man
5	500	100

A3

INPUT - RESOURCES - Manpower	OUTPUT - RESULT - Nos.	PRODUCTIVITY - Output/Man
6	550	91.7

SUMMERISATION OF ALL ABOVE MENTIONED EXAMPLES -

A1 achieved average productivity of 95 nos/man with o/p of 380 nos, but A1 is more EFFICIENT as used minimum no. of M/P.

A2 achieved more productivity of 100 nos/man & o/p of 500 nos with average no. of manpower. So compatibly A2 is more EFFICIENT & EFFECTIVE to achieved higher productivity.

A3  achieved least productivity of 92 nos/man with 6 m/p but beside this A3 is more EFFECTIVE as produced maximum no. of O/P.

COMPARISON -

 

Effectiveness	Efficiency	Productivity
Achievement of Desired Result / Output	Optimal use of resources / Input	Ratio of Output to input
Customer /Goal / Target	Quality	Quantity
Effectiveness is doing the right things.	Efficiency is doing things right	Productivity is Doing the right things in right manner

Efficiency is the foundation for survival. Effectiveness is the foundation for success.

- John C Maxwell     

RELATION between Productivity, Efficiency& Effectiveness -

EFFECTIVENESS + EFFICEINCY = PRODUCTIVITY

OR

PRODUCTIVITY = EFFCETIVENESS / EFFICEINCY

We can achieve higher productivity through perfect balancing ratio of Effectiveness & efficiency.

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Pradeep