Of course all things aim to be 100% efficient, but thats virtually impossible. A Sankey diagram is a good way to visualise how much energy is wasted/useful (the more useful energy that goes out, the more efficient the object is). For example...
The useful energy output for a lightbulb is light energy, because thats what we want to come out. However, some of the electrical energy is transferred into heat energy. This is an example of a very inefficient lightbulb, only 10% of the energy input comes out as useful energy, the rest comes out as heat (wasted) energy.
NOTE: Inefficiency is the same for many everyday situation, e.g. a fire (for warmth) creates light; a pepper grinder creates sound (even though you just want it to move).
NOTE NOTE: In Sankey diagrams, the 'down' arrow (s) is the wasted energy, the 'straight' arrow(s) is the useful energy
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