Production efficiency refers to the ability of a company or organization to produce goods or services using the least amount of resources, such as time, labor, and materials. It is often measured by the ratio of output to input, indicating how effectively resources are utilized. Higher production efficiency can lead to reduced costs and increased profitability. Improving production efficiency can involve various strategies, including optimizing workflows, investing in technology, and training employees. By focusing on lean manufacturing principles or adopting automation, businesses can streamline processes and minimize waste, ultimately enhancing their overall performance and competitiveness in the market.