Problem:
You have just been hired as a productivity analyst for Company AAA, which is a manufacturing company. The company has been doing well financially during an economic downturn. However, senior management feels that improvements are warranted. They have recently noticed an increase in the number of defects. Although they have not received any customer complaints, senior management sees a need to reduce the number of defects.
To determine where the defects are occurring, you have been asked to determine whether performance effectiveness or performance efficiency would be the better measurement tool. Define performance effectiveness
Define performance efficiency,
Which methodology would you recommend? Why?