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Both Effectiveness and Efficiency indicators have their distinct meaning and purpose. Both are equally important for the organization for their sustained success and fulfilling customer requirements. By understanding the key difference, it can be effectively implemented throughout the organization.
As per ISO 9000: 2015
Efficiency: Relationship between the results achieved and the resources used.
Effectiveness: The extent to which planned activities are realized and planned results are achieved.

As per Peter Drucker:
Effectiveness: Being effective is about doing the right things
Efficiency: Being efficient is about doing things right

Example of Effectiveness
a. Number of pieces planned and produced
b. Number of pieces rejected vs target
c. Number of training conducted vs its plan
Example of Efficiency
a. Inventory Turnover Times
b. Cost of Poor Quality
c. Sales per person


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