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Tuesday, May 15, 2007

Efficiency

Efficiency

A term denoting to the relationship between outputs and inputs. It requires generating higher outputs as related to inputs. It means enhancing productivity, i.e less rework, less errors and optimal use of resources.

A term indicating the optimization of productivity (measured outputs over measured inputs)typically stated on a 0-100% scale. To improve efficiency, the productivity ratio must be improved (the input to output ratio must be decreased). See definition of productivity.

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