• The total costs (as of 1990) of locally manufacturing all the components parts of similar quality as the imported machine (except the engine and the standard parts) was estimated at RM 14,180-17,391
• Five methods of cost reduction were investigated as listed in the TABLE below.
• The production method suggested is a combination of Methods B, C and D to give a total component production cost of about RM 6,500.

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      Methods to reduce                	   Components 	        Selling
      component production cost        	   Costs (RM) 	        price (RM)
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 A. Import used components     		    3000-4000		3900-5200
 
 B. Redesign to IRRI design                 5000-6000		6500-7800
    
 C. Local assembly of CKD components        5000-6000		6500-7800
     
 D. Local assembly & selective imports	    6723-7297		8740-9480

 E. Change the production processes        13492-16295	       17540-21180
    

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