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

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:

  1. First, determine the actual output rate (units). In this example, the actual output rate (units) is given as 50.
  2. Next, determine the standard output rate (units). For this problem, the standard output rate (units) is given as 60.
  3. 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 (%)