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Efficiency is very often confused with effectiveness. In general, efficiency is a measurable concept, quantitatively determined by the ratio of useful output to total useful input. Effectiveness is the simpler concept of being able to achieve a desired result, which can be expressed quantitatively but does not usually require more complicated ...
In statistics, efficiency is a measure of quality of an estimator, of an experimental design, [1] or of a hypothesis testing procedure. [2] Essentially, a more efficient estimator needs fewer input data or observations than a less efficient one to achieve the Cramér–Rao bound .
Performance is a measure of the results achieved. Performance efficiency is the ratio between effort expended and results achieved. The difference between current performance and the theoretical performance limit is the performance improvement zone. Another way to think of performance improvement is to see it as improvement in four potential areas:
Efficacy, efficiency, and effectivity are terms that can, in some cases, be interchangeable with the term effectiveness. The word effective is sometimes used in a quantitative way, "being very effective or not very effective". However, neither "effectiveness", nor "effectively", inform about the direction (positive or negative) or gives a ...
Effectiveness on the other hand mainly influences the output of the productivity ratio as it usually has direct consequences for the customer. Effectiveness can be defined as "the ability to reach a desired output". Generally, it is assumed, that efficiency can be quantified, e.g. by utilization rates, considerably more easily than effectiveness.
Neely et al. use a more operational retrospective focus—"the process of quantifying the efficiency and effectiveness of past actions". [ 4 ] In 2007 the Office of the Chief Information Officer in the USA defined it using a more evaluative focus—"Performance measurement estimates the parameters under which programs, investments, and ...
Overall equipment effectiveness [1] (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run. It identifies the percentage of manufacturing time that is truly productive.
There are also other definitions and measures. All characterizations of economic efficiency are encompassed by the more general engineering concept that a system is efficient or optimal when it maximizes desired outputs (such as utility ) given available inputs.