Step-by-step explanation:
Overall efficiency is a measure of the effectiveness of a system or process in converting inputs into outputs. It is calculated by dividing the actual output by the expected output and multiplying the result by 100%. The formula for calculating overall efficiency is:
Overall Efficiency = (Actual Output / Expected Output) x 100%
Actual output refers to the amount of output that was produced by the system or process, while expected output refers to the amount of output that should have been produced based on the inputs and other factors.
For example, if a manufacturing plant produces 900 units of a product in a day, but it was expected to produce 1000 units based on the inputs and other factors, then the overall efficiency would be:
Overall Efficiency = (900 / 1000) x 100% = 90%
This means that the manufacturing plant is operating at 90% efficiency, and there is room for improvement in order to reach its full potential.
Calculating overall efficiency is important for businesses and organizations because it helps them identify areas where they can improve their processes and increase productivity. By measuring actual output against expected output, they can identify inefficiencies and take steps to address them.