Efficiency represents how much of the input given to a process/machine is converted to useful output.
Importance of Efficiency
By calculating efficiency, we can know how much amount of input given to a process is converted to a useful output and how much input is wasted without converting into useful output.
This knowledge will helps us to know how much money is wasted in a process and it will leads to initiating projects which will improve efficiency and reduce wastage.
How to calculate Efficiency
Efficiency calculation is different for different type of process or resources, but the basics is same.
The basics of efficiency calculation
Input given = Input used for creating output + Wasted input
Efficiency calculation
Efficiency = Input used for creating output / Input given
Unit of efficiency
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Usually efficiency is said in percentage.
If wasted input is zero, efficiency will be 100%
Example of efficiency calculation
As an example we can take a molding process of plastic parts.
Suppose 6 kg of plastic raw material is given to the molding process and 4.5 kg is converted to useful plastic parts. And 1.5 kg of plastic raw material is wasted in the process.
So, the efficiency of molding process in converting raw material in to useful products is calculated as follows.
Formula for efficiency calculation is,
Efficiency = Input used for creating output / Input given
= 4.5 kg / 6 kg
= 0.75
= 75%
In this similar way we can calculate, efficiency of the molding machine in converting energy input to useful output but the calculation will be little complicated since we need to calculate how much energy given is converted to useful output or work or how much energy given is wasted due to sound, heat and vibration.
We can also calculate manpower efficiency, its explained in the article, ‘How To Calculate Manpower Efficiency‘
In this way, wherever input is converted to output we can calculate efficiency.
You may also refer our article on Productivity, because these two words are commonly used together.
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