Dickeson--Use the Right Efficiency Formula

It is vitally important to the survival of your enterprise to understand productivity. Productivity is the act of "adding value" to materials by performing services. If value is not added to goods by services, productivity is negative.

"Value" is an external perception by the customer, isn't it? The buyer's perception, limited by the competition, places a dollar value on the productivity. That's the "effective productivity"—an external measure.