Knowledge Bank
Knowledge Bank

Productivity vs Efficiency

24.04.20 06:42 PM By Michael

What is productivity and what is efficiency in a business agility world? Productivity was originally used for farming yields around it was used for each acre ensure that the right time and making sure the potatoes problems we have processed today is what if people don't want those potatoes mushrooms just because it doesn't mean the same time we were to bring the output labour efficiency it doesn't help around result quickly view of how much are we using how much are we getting out of this system end in system purchase it is a training system where you may get supermarket prices you may get them built-in give me some criteria started ringing in activity in to the office and saying that you don't know what that even mean I don't know what that time on the employee's wages reality we don't think of the productivity of value so if we would have a calculation we could look at the value created give us a better metric was the value created over time and trading with us Farmers fixed constraints you could have more money value as I told you as increased the same way as I went from potatoes potatoes 40% it does not mean that you're more possible to get a better picture activity was the customer value divided by x and then divide that by the number of a relative increase or decrease around fte and people leaving there will be a higher productivity your products remember being busy does not increase customer value if you want to measure it bring it back to how much that person is actually producing and then we have a quick look at it's nothing complicated and the metric by itself it's ok could be your neighbouring input products to make batter or it could be the machine to use and the output of the thing that you're looking forward to it could be energy it could be used interchangeably percentage of the in Perth is really good looking at machine that don't change it looks really good to use A&M process and how much are getting out of that information about being created efficient process a good return on the service not really good people when we look at patient machine and that's why I need is is important your focus is on getting them good are efficiency really good for sure if you're focusing on the fixed system the conclusion that is not a great measure the day you want your financial performance increase or if you're in the government efficiency ratio 67 keep and then look at the customer value goodbye customer lowest 12% 15% correlation with employee engagement poison motivated around customer value metrics to show the value and on my conserve management