What is the difference between effectiveness and efficiency with examples

What is the difference between efficiency and effectiveness, with examples? The difference between efficiency and effectiveness is that effectiveness refers to performing actions that will help achieve some goal, while efficiency refers to performing those actions with the least amount of time or resources expended. Examples of the difference between efficiency and effectiveness are all around us. Consider cars and trains.

Both are highly effective for transporting people long distances. But trains are able to transport more people using fewer resources gasoline, fewer railroads than roads, etc. What is effectiveness and efficiency in management? In a sense, this makes effectiveness a subjective measure. The same task can become less effective as goals and conditions change. What is an example of efficiency? Fuel efficiency is a common example of efficiency we think about all the time.

A more fuel efficient car takes you farther with fewer resources and ultimately less money. Can you be efficient without being effective? If something is not at all effective, then it cannot be made efficient. For example, rubbing rocks together is really effective at making noise, but it takes a special kind of rock to be effective at making sparks as well. Why is efficiency important? From energy efficiency to efficiency at work, most of us value a job done without any wasted time or resources.

Vote count:. No votes so far! Be the first to rate this post. Matthew Zane. He is a teacher, writer, and world-traveler that wants to help people at every stage of the career life cycle. Topics: Glossary , Post Interview.

By Matthew Zane - Aug. Articles In Guide. Choose A Career. In This Article. What Comes First, Effectiveness or Efficiency? What Does an Effective Leader Do? Are you looking for job opportunities? Tell us your goals and we'll match you with the right jobs to get there. See My Jobs. Create My Resume Now. Build My Resume Now. Create My Free Resume. Create Your Resume Here. How useful was this post? Click on a star to rate it! Some refer to this as equipment replacement value ERV.

It is defined as the monetary value that would be required to replace the current assets in the organization. It includes production and process equipment, as well as utilities, support, and all related costs. For example, in the past 12 months, I have had some maintenance expenses. Based on these expenses, the ratio of total maintenance costs to RAV is 3.

Managers are responsible for determining the most appropriate mix of physical asset policies, work management, and reliability improvement processes to reduce the costs of non-value added or recurring expenses. In my example, some expenses might be considered capital expense or improvements. Perhaps I purchase a higher quality shingle, for example.

Another measure of maintenance efficiency is corrective maintenance CM versus preventive maintenance PM. Evaluating total maintenance costs to RAV does not naturally give enough detail to identify where costs are applied. Total man-hours spent on CM versus PM can help managers determine if maintenance practices are effective at preventing unscheduled downtime and reducing CM.

The percentage of work planned as opposed to emergency or corrective repairs is also an effective measure. Remember that emergency work is typically three-four times more expensive than planned work. PM ratios and a good measure for efficiency. Diffen LLC, n. Comparison chart Differences — Similarities —. Using Effectiveness and Efficiency Effectiveness is about doing or using the right things — things that yield positive results.

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