How to Calculate Efficiency?

The calculation of efficiency with Excel is what we are going to learn.

For calculation of efficiency, we need a data that looks like this:

data table

Note: The scenario is knowing the manufacturing efficiency, and transactional efficiency. The numbers showing under the circles in the picture above are sum of delay and process (ex. Prototype).

Click under Total (G2) (1), and type =SUM(A2:F2).

click under total

Click under Manufacturing Efficiency (H2) (1), and type =D2/G2 (2).

Manufacturing Efficiency

Note: If you wish, you could right click on the result, click format cell, choose percentage, and then click ok. You can also use this step for other activities. The B2, D2, and F2, are Added-value time.

Click under transactional efficiency (I2) (1), and type =D2/D5 (second circle) (2).

transactional efficiency

Note: You can format the cell, and change it to percentage as well.

In conclusion, it is about dividing the time that matters with total time to know how efficient it has been.

You can download free Efficiency Calculator template here