Efficiency measures how effectively a system converts input energy into useful output energy. It is expressed as a percentage and is always less than 100% in real systems because some energy is always converted to waste (usually heat).
$$\eta = \frac{E_{useful output}}{E_{input}} \times 100\%$$
KEY TAKEAWAY: No real system is 100% efficient. Understanding efficiency allows engineers to quantify energy waste, compare design options, and identify where improvements will have the greatest impact.
VCAA FOCUS: Efficiency calculations appear in almost every VCAA Systems Engineering exam. Practise calculating efficiency from power or energy data, working backwards from efficiency to find input or output, and comparing efficiencies of different design options.