How to Calculate Production Efficiency in Excel

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:

Efficiency data table

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).

Efficiency 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, 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).

Excel transactional efficiency

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.

You can download free Efficiency Calculator template here.