Note

Efficiency is an important measure of how effectively labor and time are utilized in manufacturing and production. A higher efficiency percentage indicates better productivity and optimized resource usage.

Formula for Efficiency Calculation

• Earned Minutes = Production (PCs) × Standard Minute Value (SMV)
• Available Minutes = Manpower × Working Time (Minutes)

Why Must Input Values Be Greater Than 0?

To ensure the calculation is meaningful, input values must be greater than zero:

• Production (PCs) > 0: No production means no efficiency can be calculated.
• SMV > 0: Every product takes some time to manufacture.
• Manpower > 0: If no workers are available, no time can be utilized.
• Working Time > 0: Without time allocation, efficiency becomes undefined.

Practical Applications

Efficiency measurement is widely used in:

• Manufacturing: To assess production performance.
• Quality Control: To identify inefficiencies and improve processes.
• Safety & Environmental Monitoring: To ensure compliance with standards.

Conclusion

A **higher efficiency** value means **better productivity and cost savings**. By tracking efficiency, companies can improve workflow, reduce waste, and maximize output.