Difference between revisions of "Operational Efficiency"
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Latest revision as of 19:50, 27 August 2020
Operational Efficiency is about doings right, minimizing the resources input requirements for a given output. Four drivers can be identified:
- Economies of scale and learning
- Optimization of product design
- Business process re-engineering and smart product design enables companies to reap efficiency benefgits.
- These efficiencies may be complemented by Lowering of input costs
- Culture and norms may also increase operational efficiency. In the eyes of some employees, low cost curve is not particular attractive way to spend a working day. As a result they create organizational slack.
