How to Strike the Right Balance in Business
EDITOR ’ S CHOICE EFFICIENCY VS PRODUCTIVITY
RE-FLOW
How to Strike the Right Balance in Business
Many businesses struggle to find a balance between productivity and efficiency – and no they aren ’ t the same thing . So , what is the difference between the two , and how do you strike the right balance ?
Efficiency - refers to the quality of work and how well allocated resources are utilised .
Productivity – is the volume of output over a set period .
Productivity can be quite abstract and tends to be influenced by a variety of outside factors beyond the control of a business , such as the state of the economy and competitors . Nonetheless , obtaining an estimate can help managers appropriately allocate resources and plan ahead . The basic formula for productivity is the following :
Productivity = Total Output / Total Input
Efficiency If productivity is about maximising the amount of work product , then efficiency measures the quality of it . To do this , you need a standard to measure it against . With that , you can measure efficiency using the formula :
Efficiency = ( Standard Labour Hours / Amount of Time Worked ) * 100
Productivity can sometimes take precedence over efficiency . The need to complete a large volume of work , in a set time period , to turn a profit can mean businesses aren ’ t effectively utilising their resources and sacrificing efficiency .
Appropriate allocation of resources and labour is key to ensuring efficiency and productivity on-site .
Inefficiencies , although sometime minor issues , can add up . A few lost minutes here , a manual process there , and they can amount to large losses both in time and money .
Inefficient workflows can lead to :
• Returning to a job - re-doing rushed , poor-quality work , means resources are being siphoned away from other projects . In extreme cases , this can come at the cost of clients and contracts , which has a direct effect on staff morale and employee retention .
• Wasted work hours – manual processes can take double the time meaning less hours on the worksite and delays to the job .
• Misplaced resources – not keeping track of all equipment and vehicles means time lost in tracking down what is needed for a certain job . Also , if defects aren ’ t logged , precious time and money is spent on delays in works and finding a replacement .
• Scheduling clashes – if you don ’ t have information about jobs , upcoming and ongoing , all in one place , this can lead to clashes , double bookings and even missed opportunities of new work .
• Customer dissatisfaction – in such a competitive market , upsetting a client can mean they will look elsewhere to meet their needs . Poor communication , delays and missed appointments could all be reasons a client loses faith in your business .
• Declines in worker safety - cut corners can lead to injury or in the worst cases death . In 2021 / 22 , 36.8 million days were lost due to work-related ill health and nonfatal injuries .
That ’ s why optimising your company ’ s operational processes to improve efficiency is crucial to achieving sustainable business growth . Many businesses are now trading in their current processes for a digital field management solution . With a more efficient foundation that streamlines many repetitive administrative processes , teams on all sides of the business can benefit from more time , where productivity can increase as well .
The main way field management software increases productivity is by automating repetitive admin tasks and streamlining workflows . Rather than physically transporting job packs , forms and communications to remote sites , instant communication between the dashboard and app components of the system allows users to receive all necessary work information through their mobile device .
With digital form completion through said app , automated workflows can be triggered based on submitted data . This means actions such as recording vehicle defects or scheduling servicing no longer need to be done by a staff member , enabling resources to be diverted elsewhere .
Meanwhile , efficiency is also improved . Asset management ensures that equipment is serviceable , workers are properly qualified to carry out work , and materials are being properly accounted for and stocked as needed . Enabling compliance through forms helps reduce errors in reporting . This , coupled with evidencing work through capture , sign-off , and tracking ensures work is completed to standard . All this feeds into live data reports , facilitating forward planning and data-driven decisions that help to measure and improve efficiencies across the business .
To summarise , productivity is measured by the quantity of work done , while efficiency is measured by the quality of this work . Neglecting one in favour of the other can have serious consequences but luckily , the increased adoption of new technologies is offering an accessible way for businesses to find that healthy balance and grow sustainably .
For further information , please visit https :// re-flow . co . uk
54 PECM Issue 64