Understanding Efficiency: Objectives, Benefits, Terms and Examples of Efficiency
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What is efficiency? In general, the notion of efficiency is a measure of the success of an activity that is assessed based on the amount of costs / resources used to achieve the desired results.
In this case, the fewer resources used to achieve the expected results, the process can be said to be more efficient. An activity can be said to be efficient if there is an improvement in the process, for example being faster or cheaper.
According to the Big Indonesian Dictionary (KBBI), efficiency can be interpreted as the accuracy of the way things are done, and the ability to carry out tasks properly and accurately without wasting costs, time, and effort.
In order to better understand what efficiency means, we can refer to expert opinions. The following is an understanding of efficiency according to experts:
According to Mulyamah (1987; 3), the notion of efficiency is a measure of comparing input usage plans with realized use or other words actual use
According to S. P. Hasibuan (1984; 233-4), the definition of efficiency is the best comparison between input (input) and output (the result between profits with the sources used), as well as optimal results achieved with limited use of resources. In other words, the relationship between what has been done.
Efficiency is often carried out in various fields of human life which of course has a purpose as the reason for efficiency. In general, the efficiency goals are as follows:
From the explanation above we know that the goal of various efficiency efforts is to achieve optimal efficiency. Optimal efficiency is the best comparison between the sacrifices made to get an expected result.
Humans always strive to make efficiency in various fields of life. In order for efficiency efforts to be successful, they must meet the following conditions:
After understanding the meaning of efficiency, we also need to know examples of efficiency that humans often do. The examples of efficiency are as follows:
Optimal efficiency is the best comparison between the sacrifices made to get an expected result.
Efficiency with a benchmark is a comparison between the minimum results determined by the real results achieved, which can be said to be efficient if the real results are greater than the minimum number specified.
As an example
In this case the benchmark is the ability of each of the building workers to achieve the specified minimum results in a certain time.
Efficiency with break-even points is often used in business fields where break even points are the boundary points between efficient and inefficient businesses.
A business or business can be said to be efficient if the break-even point is known and the business produces more than the break-even point.
Thus a brief explanation of the meaning of efficiency, goals and benefits of efficiency, efficiency requirements, and types and examples of efficiency in general. Hopefully this article is useful and adds to your insight.