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Efficiency

Efficiency concerns the relationship between resources used and outputs produced, taking account of the required quality. It can be expressed as output per input or resources per unit of output. It differs from economy, which concerns resource acquisition cost, and effectiveness, which concerns achieving objectives or outcomes. Compare similar case mix and service conditions, and investigate whether apparent productivity gains shift cost or defects elsewhere.

Worked example

A service team resolves 500 comparable cases using 100 staff hours instead of 125, maintaining quality. Hours per case fall from 0.25 to 0.20.

Common mistake

Processing more cases is not necessarily effective if the cases are resolved badly or fail to meet the organisation’s purpose.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Direct September 2026–June 2027
ACCA MA Direct September 2026–June 2027
ACCA PM Direct September 2026–June 2027
ACCA SBL Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027