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Economic Systems for Resource Allocation
Published in Danny Myers, Construction Economics A new approach, 2022
Productive efficiency means using production techniques that do not waste inputs. Expressed in the language of policy documents concerning sustainability, it means increasing growth rates while reducing the use of resources. In any free market economy businesses will never waste inputs. A business will not use 10 units of capital, 10 units of labour and 10 units of land when it could produce the same amount of output with only 8 units of capital, 7 units of labour and 9 units of land. Productive efficiency therefore refers to output that is produced at the lowest possible cost. During the last decade, for example, the increasing use of prefabricated components on site has enabled improvements in construction productivity as this has encouraged greater levels of output with fewer workers. These developments depend upon managers responding ‘correctly’ to the various input prices facing them. The more expensive the inputs, the more incentive managers have to economise. The market signals, therefore, ‘how’ production should technically occur.
Airport Regulation in the UK
Published in Peter Forsyth, David W. Gillen, Andreas Knorr, Otto G. Mayer, Hans-Martin Niemeier, David Starkie, The Economic Regulation of Airports, 2017
From a public policy view, the objective of economic regulation should be economic efficiency: the aim being to maximise the size of the national pie in standards of living terms. Practically, this suggests that the policy problem is how to ensure: Least-cost production: productive efficiency.Best use of scarce outputs: allocative efficiency (including environmental costs).Optimal investment: projects only proceeding when the expected net present value exceeds zero and costs include option values. The main policy issue then becomes having sufficient instruments to address each of the targets and, where competition is seriously limited, the trade-off between market failure versus regulatory failure. This raises the question of how far is regulation more likely to achieve the public policy objectives compared with relying on competition law.
From scrabbling in the ground to exporting great treasure
Published in Israel Berkovitch, Coal on the Switchback, 2017
Starting from a position well below that of Britain, the Ruhr industry increased its proportion of output of coal won by machines until almost all of it was gained by the use of pneumatic picks; Belgium made similar advances, but in Britain investment for this purpose was slower. Yet, PEP saw the concentration of production as being of even greater significance and named it as the ‘chief explanation of the advance of productive efficiency in foreign coalfields’. In the mid-1930s there were still more than 2,000 mines in Great Britain; they raised an annual output of 220 million tons, or an average of about 100,000 tons each (though the potential capacity was reckoned to be almost double the actual output). Against this we can compare the Dutch mines of that time with annual figures of some 2 million tons each, the Germans averaging just under a million, and the Poles with about half of this level – though this included some 50 per cent of their pits producing a million tons or more every year.
Can wind power policies effectively improve the productive efficiency of Chinese wind power industry?
Published in International Journal of Green Energy, 2021
In a technical sense, productive efficiency is understood as maximizing the level of output performance under an amount of input cost used to produce such output, which reflects the competitiveness of an enterprise (Tarancón et al. 2018). Compared with the WPI of developed countries, the capital and land resources of that in China are relatively insufficient. Therefore, the productive efficiency of Chinese WPI should be paid more attention. Besides, considering the significance of WPI in the process of decarbonization and energy transformation in China, how to improve the productive efficiency of WPI is the primary common concern of wind power entrepreneurs, as well as the government. Unfortunately, to our knowledge, there is no comprehensive study on the productive efficiency of Chinese WPI. In fact, measuring the productive efficiency of WPI is the premise of evaluating the effect of wind power policy, which will not only help enterprises choose the optimal productive strategy, but also contribute to the adoption of best governance practice for the government.
Impact of Industry 4.0 on supply chain performance
Published in Production Planning & Control, 2021
Hajar Fatorachian, Hadi Kazemi
The machine-to-machine and networked communications in Industry 4.0-enabled-environment can result in the generation of smart factories and fully automated production systems (Fatorachian and Kazemi 2018). The high level of automation can, subsequently, lead to improved operational performance (Nevo and Wade 2011) and enhanced production efficiency and productivity (Leitao, Colombo, and Karnouskos 2016; Chung 2015). Additionally, according to Jung et al. (2016), Industry 4.0 can have a great impact on product design and development. For instance, integration of production systems and advanced design software in smart factories can enable visualisation and simulations of operations (Rashid and Tjahjono 2016), and can, significantly, improve product design/development and production processes.
Toward cost-effective service excellence: Exploring the relationship between managers’ perceptions of quality and the operational efficiency and profitability of restaurants
Published in Quality Management Journal, 2020
The term efficiency in modern economics was primarily defined by Farrell (1957) as the maximum output obtained from a given set of inputs. Based on this definition, restaurant firms have most often applied partial ratio analysis for their efficiency evaluation. The use of the simple-ratio approaches in the restaurant industry is limited, because they include too few business characteristics (Joppe and Li 2016). Reynolds (1998) defined efficiency as the effective use of inputs to accomplish operational goals. Accordingly, scholars have recognized the relevance of holistic measures, which integrate several operational characteristics and are based on the concept of the production possibility frontier, which represents the maximum output attainable from each input level (Barros 2005). Productive efficiency, therefore, indicates whether internal resources in the production process have been used efficiently in order to produce operational service capacity effectively (Huang, Ho, and Chiu 2014). Various holistic analysis techniques for measuring operational efficiency and benchmarking have been presented in the scientific literature (Coelli et al. 2005; Reynolds 2003; Reynolds and Biel 2007). The most common of these are Data Envelopment Analysis (DEA) and the Stochastic Frontier Analysis (SFA).