Project Efficiency is a ratio to determine the relation between the outputs from a process against the resources invested into performance of this project. Project Efficiency can be measured by the volume of outputs obtained per the inputs utilized. In other words if the outputs are adequate to inputs, then project efficiency is equal to 100%, so in other words the project implementation has been accomplished within the planned constrains (which were identified on the project planning stage, in terms of workforce, cost, time and objectives) and with the planned outcomes. If for some reasons a project surpasses the expectations (appears more profitable than planned), then its rate of efficiency can be for example 110%, and if a project is underperformed, then its rate can be 90%.
Some factors influencing a project’s efficiency:
- Technologies used in the working processes (the better technology used, the more economical their rate of efficiency is);
- Quality of planning (the more qualified and deliberated project planning is applied, the easier it is to forecast and keep proper efficiency level);
- Quality of operational management (how effectively the resources are managed when they are immediately in utilization or operation);
- External factors which are hard to forecast (disasters, emergent leaves of key staff members, bankruptcy of stakeholders, etc);