Operational efficiency refers to the ability of an organization to deliver products or services in the most cost-effective manner while maintaining high quality. It involves optimizing resources, reducing waste, and streamlining processes to enhance productivity and profitability. By focusing on operational efficiency, businesses can improve their competitive edge and respond more effectively to market demands.
Achieving operational efficiency often requires the implementation of methodologies such as Lean and Six Sigma, which emphasize continuous improvement and data-driven decision-making. Organizations that prioritize operational efficiency can better allocate their resources, leading to increased customer satisfaction and sustainable growth.