A company has introduced a new process improvem ent method that reduces processing time for 2. each


A company has introduced a new process improvem ent method that reduces processing time for 2. each unit; output is increased A company has introduced a new process improvem ent method that reduces processing time for 2. each unit; output is increased by 10 units with less material, but one additional worker is required. Under the old process, five workers could produce 60 units per hour. Labor costs are Dhs.12/hour, and material input was previously 960 Dhs. For the new process, material is now 600 Dhs. Overhead is charged at 1.6 times direct labor cost. Finished units sell for 31 Dhs each. Find the productivity for old & new process? Calculate the productivity growth?

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