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Hi john
Pls could you explain me VFM audit and 3 ‘E’s as part of VFM audit
Thanks in advanceTake three Es in the following order:
Effectiveness: what should the organisation do? For example, in the UK the health service does not normally undertake cosmetic surgery and does no see that as part of its mission. That activity is judged irrelevant.
Efficiency: input to output. In the health service compare the cost of drugs or surgical procedures to their success rates.
Economy: adopt normal commercial approaches to keeping costs down. So if the health service decided on a certain drug, buy in bulk and get a good discount.
So am i right in thinking that
Economy is about keeping costs down
Effeciency about what result were achieved by those input costs and
Effectiveness is whether the co is achieving its objectives by being economical and efficient.
Pls correct me if i am wrong.
Many Thanks
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