ABSTRACT
This chapter addresses the detailed background of the relationship between effectiveness and efficiency in manufacturing small and medium-sized enterprises (SMEs). It also examines issues of effectiveness and efficiency regarding employees and machinery utilization in South African case studies. As indicated in the chapter, effectiveness is distinguished from efficiency in the sense that this concept focuses more on achieving the desired results of manufacturing SMEs, irrespective of the method used. With effectiveness, results are attained through quality; delivery; cost; dependability; flexibility; innovation; employee teamwork; benchmarking; close ties with suppliers; communication and dissemination of information; planning; utilization of machinery; management practices (planning, organizing, leading, and control); and training.
Efficiency, meanwhile, focuses on the best method to use in order to achieve the results of manufacturing SMEs. In order to simplify this, efficiency, in this chapter, means that manufacturing SMEs need to follow appropriate operating standard procedures in the manufacturing process within various workstations with minimum application of resources. The aims are improved cost, improved product and service quality, saved cycle time, waste and defect reduction, safe working conditions, standards in place, and minimum inventory required in order to ensure productivity improvement.
