In this article, you will learn the most relevant difference between what is effectiveness against efficiency according to lean six sigma and process excellence lean manufacturing activities.
Please don’t confuse effectiveness with efficiency.
These two business metrics are often used interchangeably.
Process Effectiveness Definition
Documented evidence that proves the degree to which something is successful in producing the desired result; success.
Effectiveness is an external measure of performance and indicates how well a Process fulfills the demands of various stakeholders. Simply saying, “doing the right things.”
For example, effectiveness is measured by teaching employees what they need to know. Managers and supervisors need to make sure that the services or products meet customers’ expectations. When analyzing a company’s processes, effectiveness takes precedence over efficiency. The effectiveness of a process is the measure of how relevant the output is to the desired objective. A truly effective process will make customers happy by providing everything right. That is the right results at the right place time, and cost. Hence, measure process effectiveness from the customers’ goal point of view. What is effectiveness
Most Important Aspects of Process Effectiveness
Effectiveness refers to the quality of results that are obtained from the value-added activities completed by the combination of people, resources, component materials, machines, processes, critical process parameters, etc.
To improve the effectiveness in the workplace, the whole group of factors needs to deliver consistent results.
In addition, effectiveness refers to your ability to optimize business strengths in the way you operate.
It refers to the level of quality with which a task or process is carried out that ultimately leads to higher overall business performance. In other words, does it do what it’s supposed to do? What is effectiveness
Process Efficiency Definition
Efficiency is an internal measure of performance for a process that shows how well the process converts inputs into outputs. The more the ratio of outputs to inputs approaches 100 percent, the better the efficiency of the process will be. Simply saying, “doing things right” and comes from the proper harnessing of time, cost, and efforts. For example, an employee is trained by the supervisor and obtain a high score in the exams provided. So the employee can improve efficiency by developing a daily work schedule, avoiding personal phone calls, and preventing distractions. Essentially it is the ratio of ‘useful output to total input’. Hence it requires resource optimization (mainly cost and time) along with maximum waste reduction. To understand process efficiency, we need to measure process time, cost, and effort needs. What is effectiveness
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REFERENCES: What is Effectiveness.