Efficiency is Simple: Fix the Two Doors That Let Inefficiency In

Everyone Talks About Efficiency, But What Is It Really?

Everyone wants efficiency. Everyone talks about efficiency. But if you ask ten people what efficiency really means, you’ll probably get ten different answers.

For me, the definition is simple:

Efficiency = Output ÷ Input

It’s as basic as that. If the formula is so simple, then why do we often make efficiency improvement exercises so complicated? They don’t need to be.

If you think as a layman and ask yourself: "How do I make something more efficient?" the answer is straightforward:

1️⃣ Remove existing inefficiencies.
2️⃣ Don’t allow new inefficiencies to enter your system.

That’s it. Do these two things, and the major part of efficiency improvement is done.

Where Do Inefficiencies Come From?

Now, ask yourself:

  • Why were these inefficiencies in your plant or systems in the first place?
  • How did they enter?
  • How did they build up over time?

Do a basic root cause analysis, and you’ll find the answers. You’ll find the gaps. You’ll find the loopholes. And once you do—shut them tightly.

If you ask me where inefficiencies sneak in, I’ll tell you there are two main doors through which they enter:

1️⃣ Procurement
2️⃣ HR (Human Resources)

Procurement: The Gateway for Inefficient Machines, Parts & Materials

When procurement focuses solely on L1 (lowest cost) instead of SMART procurement, inefficiencies creep in.

  • Poor-quality materials lead to frequent breakdowns.
  • Cheap machinery results in higher maintenance costs and lower output.
  • Cutting corners on specifications leads to long-term operational losses.

A smart procurement strategy focuses on:
✔ Right specifications
✔ Right material quality
✔ Reliable after-sales support
✔ Best return on investment
✔ On-time delivery

If you let inefficient materials enter the system, they will keep draining time, resources, and productivity.

HR: The Bigger, Freer Entry for Inefficiency

The biggest and most uncontrolled entry point for inefficiencies isn’t machinery—it’s people.

  • Poor hiring decisions bring unskilled or unmotivated workers.
  • Ineffective training creates gaps in execution and discipline.
  • Contractors and employees who lack accountability lower overall performance.

An inefficient machine can be replaced. An inefficient workforce? Much harder.

A strong HR system should:
✔ Hire based on competency, not just availability.
✔ Continuously train employees to eliminate performance gaps.
✔ Build a culture of accountability and ownership.
✔ Ensure performance evaluations are strict but fair.

Procurement brings inefficiencies in materials—HR brings inefficiencies in people. Control these two entry points, and you control efficiency.

The Big Question: How Do We Control These Two Access Points?

Now, I leave you with this challenge:

🔹 How can we make procurement smarter so inefficiencies don’t enter through materials and machines?
🔹 How can we strengthen HR policies to ensure only the right people, with the right skills and mindset, are part of our workforce?

The answer to efficiency isn't complex systems—it’s closing these two doors tightly.

What are your thoughts? How do you ensure efficiency in your workplace? Share your insights!


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