2. Efficiency is a level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of inputs. 2

3. Efficiency also can be stated as the act of being adequate in performance minimum with a minimum of waste, effort, time. 3

4. Time, money, raw material are limited. So it makes sense to try to conserve them. 4

5. improving productivity procurement processes working practices 5

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7. Economic efficiency refers to the use of resources so as to maximize the production of goods and services. 7

8. A situation can be called economically efficient if :  No one can be made better off without making someone else worse off.  No additional output can be obtained without increasing the amount of inputs.  Production proceeds at the lowest possible per- unit cost. 8

9.  Productive efficiency, also known as technical efficiency, occurs when the economy is utilizing all of its resources efficiently, producing most output from least input. 9

10. An example PPF:  Points B, C and D are all productively efficient, but an economy at A would not be. 10

11. Financial market efficiency refers to in financial markets is the efficiency of allocating resources. This includes producing the right goods for the right people at the right price. 11

12. There are three levels of market efficiency. These are:  Weak-form efficiency  Semi-strong efficiency  Strong-form efficienc y There are four market efficiency types. These are:  Information arbitrage efficiency  Fundamental valuation efficiency  Full insurance efficiency  Functional/Operational efficiency 12

13. Allocative efficiency is a measure of the benefit or utility derived from a proposed or actual choice in the distribution or apportionment of resources. 13

14. Distributive efficiency occurs when goods and services are received by those who have the greatest need for them. 14

15. Dynamic efficiency refers to an economy that appropriately balances short run concerns with concerns in the long run. Dynamic efficiency also refers to the ability to adapt to changed economic conditions at low cost quickly. 15

16. Technical efficiency is the effectiveness with which a given set of inputs is used to produce an output.  When technical-efficiency is not being achieved due to a lack of competetive pressure, X-inefficiency occurs. 16

17. The efficiency of a process is calculated by dividing the output by the input, and then multiplying the result by 100. 17

18. Efficiency is usually given as a percentage and can be computed with the following formula:  Efficiency = Work Output / Work Input (1)  Efficiency rating x 100=Percentage efficiency rating (2) 18

19.  Train the workforce  Improve motivation  More capital equipment  Use better quality raw materials 19

20. Training the workforce increases improvements in the workers productivity levels. Training should enable workers to work more quickly and more accurately and to produce better quality products. 20

21. A better-motivated workforce will work harder and take pride in their work. There are many different financial (e.g. bonuses) and non-financial ways (e.g. empowerment) for businesses to motivate their workers. 21

22. Investment into new, higher technological machinery can have number of advantages:  Longer hours can be worked.  Machine can perform repetitive and complicated tasks more quickly.  Accuracy incerases and therefore wastage can be less. 22

23. This can reduce the amount of time wasted on rejected or defective products. A business should ensure they find the supplier who can supply the best quality resources, but at a competitive price and also with reliable delivery. 23

24. Efficiency and effectiveness were originally industrial engineering concepts that came of age in the early twentieth century.  Effectiveness is doing the right thing ’. ‘ doing the right thing ’.  Efficiency is ‘ doing the thing right ‘ doing the thing right ’. 24

25.  Efficiency alone will put your company on the fast track to bankruptcy.  Effectiveness (efficiacy) alone *may* allow your company to survive. However the company will not reach its maximum potantial if it is inefficient. Effectiveness and Efficiency together will almost guarantee success ! 25

26. THANK YOU FOR YOUR LISTENING! 26