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

## Production data preparation

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

Note: The scenario assumes knowledge of manufacturing efficiency and transactional efficiency. The numbers shown beneath the circles in the image above represent the sum of delays and processes (for example, Prototype).

## Efficiency calculations

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

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

Note: If you wish, you could right-click on the result, choose 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).

Note: You can also format the cell and change it to a percentage.

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