A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material and one less worker required. Under old process, five workers could produce 80 units per hour. Material input was previously $20/unit for old process. For the new process, material cost is now $15/unit. Overhead is charged for each at 1.5 times direct labor cost. Direct labor cost is $15/hour. Finished units are sold for $35 each. What increase (or decrease) in productivity is associated with the process improvement?

Total productivity with old system

Total productivity with new system

% Change (increase or decrease) in total productivity