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An IPS manufacturing company changes production system from present system to new system. With present system, the company uses 25 workers, who can produce

An IPS manufacturing company changes production system from present system to new system. With present system, the company uses 25 workers, who can produce on an average 40 and 30 IPS per day of type-1 and type-2 respectively, but on an average 10% manufactured IPS are rejected. Each worker receives Tk.15000 per month and tools and equipment cost (i.e., machine cost for the first system) was Tk.30000 per day. With the new system the company can produce 60 and 40 IPS per day of type-1 and type-2 respectively with no rejection. The machine of the new system costs 60 million taka and the operation life of the machine is 8 years. Five operators are required to operate the new machine. Wage of each of the operator is Tk.25000 per month. Price of the type-1 and type-2 IPS is Tk.20000 and Tk.30000 per unit respectively. Part/material cost is 45% and 55% of the price of type-1 and type-2 respectively. Consider 25 working days in a month. A. Compute labor and machine productivity under each system. B. Compute the overall productivity under each system. C. Explain what the main factor of this productivity is.

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