L3M1 practice question 6 of 10

Doing the same with fewer resources is:

Full set: 90 questions
Answer options
A:

A. Efficiency

Correct answer
B:

B. Effectiveness

C:

C. Economy

D:

D. Efficiency

Correct Answer:
A. A. Efficiency
Explanation

In procurement and operations performance evaluation (often evaluated via the "3 Es" framework: Economy, Efficiency, and Effectiveness), efficiency refers to the relationship between inputs (resources) and outputs. Achieving the same output while using fewer resources (or producing greater output with the same inputs) is the precise definition of operational efficiency.

Why Incorrect

B. Effectiveness measures the extent to which intended goals or outcomes are achieved ("doing the right things"), irrespective of resource consumption.
C. Economy focuses on minimizing the acquisition cost of input resources while preserving appropriate quality.
D. Option D duplicates Option A; Efficiency is the correct standard term for this input-output operational ratio.

References

1. CIPS Study Guide: L3M1 Procurement and Supply Environments, Module 1, Section 1.2 "Performance Measurement and the 3 Es".

2. National Audit Office (NAO). (2020). Value for Money Handbook, Section 2 "The 3Es Framework", pp. 6–8.

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