The measure of how effectively resources (such as labor, materials, time) are utilized in producing goods or services. It aims to maximize output while minimizing input.
Related terms
Division of Labor: An organizational strategy where tasks are divided among specialized workers to increase efficiency.
Assembly Line: A production process where products move along a conveyor belt with each worker performing a specific task on them. This method significantly improves efficiency compared to having one worker make an entire product from start to finish.
Time-motion Study: A technique used to analyze work processes by breaking them down into individual tasks and measuring the time required for each task. It helps identify inefficiencies and find ways to improve productivity.