Q. Illustrate about Value for money framework?
The value for money (VFM) framework (the 3Es)
- Economy (Cheap) e.g. is the organisation procuring resources at the lowest possible cost without sacrificing the standard expected for quality and service levels
- Efficiency (Quick) e.g. is the organisation enhancing efficiency by minimising inputs essential to produce outputs.
- Effectiveness (Good) e.g. is the organisation maximising effectiveness by achieving its goals and objectives.
Economy and efficiency should not be compromised to the extent where effectiveness can suffer e.g. to do it quicker (efficiency) or cheaper (economy) may often compromise effectiveness.