Resource Efficiency
Using resources (materials, energy, labor, capital) productively with minimum waste.
Formula
Resource Efficiency = Useful Output / Total Input × 100
Real World
Toyota's lean manufacturing system minimises material waste on production lines, cutting costs and reducing its environmental footprint — a competitive advantage over less efficient rivals.
Exam Focus
Link resource efficiency to both cost reduction and sustainability; one-sided answers cap marks at Level 2.
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