Enter the actual output rate (units) and the standard output rate (units) into the calculator to determine the Production Efficiency.

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## Production Efficiency Formula

The following formula is used to calculate the Production Efficiency.

Ep = AO / SO *100

- Where Ep is the Production Efficiency (%)
- AO is the actual output rate (units)
- SO is the standard output rate (units)

To calculate the production efficiency, divide the actual output rate by the standard or optimal rate.

## How to Calculate Production Efficiency?

The following two example problems outline how to calculate the Production Efficiency.

**Example Problem #1:**

- First, determine the actual output rate (units). In this example, the actual output rate (units) is given as 50.
- Next, determine the standard output rate (units). For this problem, the standard output rate (units) is given as 60.
- Finally, calculate the Production Efficiency using the equation above:

Ep = AO / SO *100

Inserting the values from above and solving the equation:

Ep = 50 / 60 *100 = 83.33 (%)

**Example Problem #2: **

Using the same process as above, first define the variables required by the formula. In this case, these values are:

actual output rate (units) = 100

standard output rate (units) = 150

Entering these values yields:

Ep = 100 / 150 *100 = 66.66 (%)