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 may need to adjust the formula based on your specific requirements and data. Also, make sure that the actual and standard output values are in the same units of measurement, such as units per hour or units per day, to ensure that the efficiency calculation is accurate.

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