Measurement Cost

Return on Measurement

Process Entropy

Process Efficiency

Group Inertia

Information Durability

Conversion Efficiency


Conversion Efficiency:
MMD™ uses the concept of Conversion Efficiency to better understand and compare behavior alternatives. Conversion Efficiency refers to the relationship between economic inputs and desired outcomes. Conversion Efficiency is expressed as the ratio of number of inputs and one outcome. Conversion Efficiency is primarily used to refer to a single event, as opposed to Process Efficiency which is used for abstraction of multiple events as an aggregate.

Examples include:

  • 1150 billed worker-hours per automobile produced
  • 10 cold sales calls per qualified sales lead
  • 8 worker hours per staff meeting

Conversion Efficiencies are used in time-series statistics to evaluate task performance as well as comparing to the theoretical perfect efficiencies for the specific tasks. The former is most useful for day-to-day operational improvement, the latter for identification of optimal process or resource change opportunities.

Conversion Efficiency can be fully objective or embed subjective elements within objective measures. Being able to pull subjective elements into an objective framework is one of the primary benefits of this concept.

Examples and Case Studies:

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Copyright © 2012 Arbitor Associates, LLC. All Rights Reserved. Last modified: 8/12/2012