1. A cable manufacturing company produces two types of cables from same
raw materials; wire and plastic resins. To produce one meter first type cable 200 gm resin and 1.5 kg wire are required. Whereas, 300 gm resin and 2.5 kg wire are required to produce one meter of the second type cable. Cost of resin and wire is Tk.60/Kg and Tk.200/Kg respectively. The company can produce 60000 meter first type and 30000 meter second type cable per month by using 30 labors. Labors receive Tk.150 per day per labor, and overhead cost is Tk.10000 per day. To set up the machine Tk.60000000 is invested on it. Life of the machine is 10 years. Price of the first and second type cable is Tk.500/meter and Tk.700/meter respectively. Consider 25 working days make a month.
a) Compute labor, material, machine, overhead and multi factor
productivity. b) If production time for every meter of second type cable is double to that of first type cable then compute overall productivity of 1st and 2nd type of the cables.
2. A company produces two types of measuring devices. Price of per unit of
the 1st and 2nd type of the device is $10 and & $12 respectively. Material cost to produce the devices is 40% of their prices. The company used ten workers, who can produce an average of 30 and 50 devices of 1st and 2nd types per day. Workers receive $10 per day and machine and overhead cost is $120 and $100 per day respectively.
a. Compute labor, material, machine and overhead productivity.
b. Compute the overall productivity. c. If production time of each 2nd type device is 25% more than that of 1st type then compute overall productivity of 1st and 2nd types of the product.