Efficiency is about doing the same job with less input. Think of a bicycle that needs less pedalling to go the same distance – it’s more efficient.
Mathematically: \$Efficiency = \frac{Output}{Input}\$
Effectiveness is about achieving the intended result. If your goal is to sell 100 units, and you sell 100, you’re effective.
Analogy: A chef who follows a recipe to make a perfect dish is effective.
Productivity measures output per unit of input over time. It’s like how many pages a student can write in an hour.
Formula: \$Productivity = \frac{Output}{Time}\$
Sustainability means running operations so that future generations can also thrive. It balances economic, environmental and social goals.
Key pillars:
Improving sustainability can:
| Measure | Cost Impact | Environmental Impact | Example |
|---|---|---|---|
| Switch to LED lighting | ↓ Initial cost, ↑ long‑term savings | ↓ Energy use, ↓ CO₂ emissions | A factory replaces 500 incandescent bulbs with LEDs. |
| Implement a recycling program | ↓ Waste disposal fees | ↓ landfill use, ↓ resource extraction | Office separates paper, plastic, and metal. |
| Adopt renewable energy (solar panels) | ↑ Capital cost, ↓ electricity bills | ↓ fossil fuel use, ↓ greenhouse gases | A school installs solar panels on its roof. |
| Design for circular economy | ↑ R&D cost, ↓ raw material cost | ↓ waste, ↓ resource depletion | A clothing brand uses recycled polyester. |