The main objective of this study was to determine the efficiency of the use of factors of production in the craft industry gedeg in the village of Kubu Bangli. This study uses a model of Cobb - Douglas. The study found the use of production factors capital has been used efficiently while labor factors of production are no longer efficient. The use of children's labor should be reduced, job specialization is necessary, so that the efficient use of labor and production quality can be improved. Guidance for maintaining the continuity of the craft industry gedeg farmers in the village of Kubu Bangli needs to be done.