Global Efficiency
An operations management concept referring to the overall throughput or cycle time of an end-to-end workflow, which is constrained by the slowest stage, as opposed to local efficiency.
Timeline (last 90 days)
Local efficiency refers to the output rate of a single stage or individual, while global efficiency refers to the throughput capacity of the entire value stream from demand to delivery.
In complex systems, maximizing local efficiency at every stage often backfires: upstream accelerates output while downstream cannot absorb it in sync, leading to queueing, backlog, and rework, and global efficiency actually declines.
All Facts (2)
Local efficiency refers to the output rate of a single stage or individual, while global efficiency refers to the throughput capacity of the entire value stream from demand to delivery.
50%UnverifiedIn complex systems, maximizing local efficiency at every stage often backfires: upstream accelerates output while downstream cannot absorb it in sync, leading to queueing, backlog, and rework, and global efficiency actually declines.
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