What measure indicates the efficiency of a production process directly?

The efficiency of a production process is best indicated by the utilization rate. This measure assesses how much of the available production capacity is actually being used to produce goods. It directly reflects the effectiveness of the production process by showing whether resources, such as machinery and labor, are being employed efficiently. Higher utilization rates suggest that the production process is running at or near its full capacity, which typically correlates with efficient operations.

The other options, while relevant to overall production effectiveness, do not provide a direct measure of efficiency in the same way. Output quality pertains more to the end product rather than the process itself, and inventory turnover reflects the movement of inventory rather than how efficiently production resources are managed. Key performance indicators (KPIs) include various metrics that can assess different aspects of performance but are not solely focused on efficiency. Therefore, utilization rate is the most direct indicator of how effectively a production process is functioning.