What is Productivity, Effectiveness, Efficiency and the differences between them
I was confused between Efficiency and Effectiveness and Productivity so I go ahead and do some research about it. Below are my finding which clear my thought. In Manufacturing, Productivity is an average measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it. The measure of productivity is defined as a total output per one unit of a total input. Effective refer to the capabilities to producing a desired product/ result. Efficiency refer to produce product in the most optimum way - Fastest and least expensive way. It is being measure by the amount of time, money and energy. What is Productivity efficiency : Productive efficiency occurs when the economy is utilizing all of its resources efficiently. The concept is illustrated on a production possibility frontier where all points on the curve are points of maximum productive efficiency (i.e. the maximum throughput)....