Efficiency means that an entity is operating at an optimum level of performance. It is a measurable concept that can be determined by the ratio of useful output to total input. A company that maximizes efficiency effectively employs resources such as raw materials, labor hours, energy, and time.

The efficiency formula is used for measuring batch production efficiency and workers' production efficiency.

The efficiency is the work output from an operation, divided by work input from the same operation, and expressed as a percentage. The general formula for calculating efficiency is:

 (Work output /work input) X 100

If you consider work input and output in 'minute', the efficiency formula would be like this - the ratio of total standard minutes produced and total minutes spent on the work.

I am working in the apparel manufacturing sector. In a garment manufacturing factory, we calculate line efficiency every day to check and measure their line performance. We use the following formula for calculating efficiency.

Let's find the efficiency of a stitching machine operator.

The machine operator is worked 8 hours and he has produced 400 garments in the given job. The standard time of the job was 30 seconds. Note that to calculate produced minutes you need to know the standard minute of the job (operation).

He has produced minutes (400 X 30)/60 = 200 minutes. He has worked 480 minutes.

So, his efficiency is (200/480)*100 = 41.67 %

Calculate line efficiency

The line efficiency calculation method is explained in an earlier post.