Efficiency Analysis is a method used to evaluate how well resources are utilized to achieve desired outcomes. It helps organizations identify areas where they can improve productivity and reduce waste. By comparing actual performance against optimal performance, businesses can make informed decisions to enhance their operations. This analysis often involves various tools and techniques, such as Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). These methods assess the efficiency of different units, like departments or companies, by measuring inputs against outputs. Ultimately, Efficiency Analysis aims to maximize effectiveness while minimizing costs.