Resource Effectiveness is the key to producing the optimum performance out of a venture. Instead of adding more resources (like labor, machines etc.), the concept emphasizes on better utilization of already employed resources.

The process provides a visibility to both the operational tasks and the strategic projects such that resources can be allocated to the highest-priority activities. For this, the overall resource effectiveness may be applied to equipment, human resources and infrastructures. Equipment effectiveness deals with the time taken by a piece of equipment to manufacture a sellable good, while human resource effectiveness is concerned with the time that an individual takes to perform value adding activities. However, to gauge the infrastructure effectiveness, a detailed understanding of all the players and systems involved may be required.

For an organization aspiring to achieve resource effectiveness, it must define its most important resources, highlighting the constraint ones. This should be followed by a preparation of a clear definition of all the activities performed by these resources. Finally, studies should be done to analyze the states of the activities and plans should be chalked out to minimize the wastage and duplication of resources utilized.

A high degree of resource effectiveness may push down bottlenecks and should result in a reduced cycle time, minimum maintenance requirements and simplified administration. As a result, a manufacturing environment can increase its capacity and achieve greater margins, driving the organization to become a leader.