Operational efficiency: what it is and what it means

Operational efficiency is the ratio between useful output produced and resources consumed: time, money, people, space. It is the ability to produce value for the customer by removing everything that does not contribute to that value. It does not ask you to work more: it asks you to eliminate whatever consumes resources without producing useful output.

Distinctive: removing everything that does not contribute to that value
Distinctive: useful output produced
Essential: ratio between
Essential: resources consumed
Essential: value for the customer
Constant: time, money, people, space

Glossary

Operational efficiency

The ratio between useful output produced and resources consumed, a lever for recovering margin by removing activities that produce no value for the customer.